Statement of Environmental Defense on the environmental aspects of Wal-Mart

(Washington, DC - November 15, 2007) The following statement may be attributed to Gwen Ruta, Director of Corporate Partnerships at Environmental Defense:

A sustainability report is meant to give a panoramic snapshot of where company is with its environmental efforts and to provide companies and their shareholders and stakeholders a way to track progress over time.

As the only environmental group with an office in Bentonville, Environmental Defense knows that Wal-Mart is serious about its sustainability program. The company is moving in the right direction, and learning as it goes.

Preparing this first-ever sustainability report was a huge undertaking for a company of the size and scope of Wal-Mart. The report reveals areas where Wal-Mart has made progress, and areas where they have more to do. It shows many encouraging pieces of the picture, and predictably, has shortcomings. It would benefit by providing more transparency, context and a more systematic assessment of progress relative to environmental goals. Some examples include:

• Energy use –The report states that LED lighting installations have saved approximately 66% of the energy used for lighting in those stores where they have been installed. Providing information on the number of stores where installations have occurred and the energy used at those stores relative to the total number of stores and energy used would allow readers to understand the magnitude of change that has already occurred and to track progress over time.

• Water use – The report states that newly-installed restroom sinks in many stores use sensor-activated, low-flow faucets that reduce water flow by approximately 80%. Again, reporting the number of new faucets installed relative to the number remaining to be installed and actual water use before and after installation would provide the needed context for understanding and tracking progress.

• Seafood – The report states that Wal-Mart has 22 products available in all stores that are MSC-certified; again context on the total number of wild seafood products sold at Wal-Mart stores, and the percentage of seafood sales that come from wild and farmed fish would aid understanding.

We’d also like to see Wal-Mart present more data that allows readers to verify the information presented. For example, the limited data presented on improvement to fuel efficiency in the truck fleet – an area where we know that Wal-Mart has made progress –leave room for confusion. The 15% increase in fuel efficiency reported would translate to a reduction in CO₂ emissions of approximately 13%, yet the data presented in the report show a less than 2% reduction in CO₂ emissions. Information on the number of trucks that have been retrofitted with new tires and truck, trailer and engine improvements would help to understand the numbers.

Our take-away is that over the last two years, Wal-Mart has built the foundation for a robust environmental program with many innovative and potentially transformational projects underway. And they have clearly identified some important challenges, such as reducing their overall carbon footprint as the business grows. This report underlines the need to focus on those challenges and to develop more transparent accountability systems that include clear baselines against which to measure progress.