SB'14 San Diego Thomas Redd, Manager of Strategic Sustainability Initiatives, Walmart Kara Hurst, CEO, The Sustainability Consortium Tensie Whelan, President, Rainforest Alliance Thomas Odenwald, SVP, Energy and Resource Management Strategies, SAP With so many approaches to measuring sustainability – how do you know if you are making real progress? Join representatives from TSC, Walmart and SAP to discuss the newest approaches in product sustainability, including moving from measuring and assessing to implementing collaborative action on improvement opportunities. This panel will highlight how using science-based information to drive partnership throughout the consumer product supply chain is creating new ways to scale systems of measurement and progress on sustainability issues.

3. ApproachImpact
2
3
Emerging Vertical Partnerships for Scale in
Impact Measurement
Kara Hurst, The Sustainability Consortium
T.C. Redd, Walmart
Thomas Odenwald, SAP
Tensie Whelan, Rainforest Alliance

4. The Sustainability Consortium – an approach that drives impacts
… that enable proactive
innovation in sustainability…
Using a multi-stakeholder
approach…
… to create practical
measurement tools…
… and unlock value in the
supply chain
ApproachImpact
1 2
3 4

5. The Consortium is a global organization, with offices
in the United States, and Europe and China
5

6. TSC’s membership represent over $2.4 trillion in revenue…

7. …and are dedicated leaders in sustainability

8. TSC’s working group structure focuses on
major consumer goods sectors.
8
ELECTRONICS FOOD BEVERAGE &
AGRICULTURE
HOME &
PERSONAL CARE
PAPER, PULP,
& FORESTRY
PACKAGING TOYS
RETAIL
MEASUREMENT
SCIENCE
CLOTHING, FOOTWEAR
& TEXTILES
The Retail and Measurement Science
Consortium Working Groups consist of
TSC Tier I members.
GENERAL
MERCHANDISE

9. How Our Work Fits In
9
Detail/Specificity
Breadth
“Traditional” LCA
TSC Product
Category
Corporate
Reporting

10. SAMPLE: 2013 Product Categories
FBA:
• Beef
• Beer
• Bread
• Cotton
• Farmed Salmon
• Grain / Cereals
• Milk
• Wine
• Packaged Cereals
Electronics
• Computers
• Monitors
• Mobile Devices
• Printers
• Televisions
PPF
• Copy Paper
• Toilet Tissue
HPC:
• Laundry detergent
• Showering products
• Surface Cleaners
Toys
• Plastic Toys
Batch 1
FBA:
• Beans
• Nuts
• Seed Oils
• Butter
• Cheese
• Potatoes
• Tomatoes
• Cucumbers
• Leaf Vegetables
• Prepared Salads
• Sorghum
• Sugar
• Corn syrup
• Coffee
• Tea
PPF
• Facial Tissue
• Greeting Cards
• Paper Towels
HPC:
• Baby Diapers
• Feminine/Nursing
Hygiene
• Baby Wipes
Manufactured Goods
• CDs and DVDs
• Small Appliances
Electronics
• Printer Ink
Toys
• Plush Toys
Batch 2
FBA:
• Bananas
• Chocolate
• Farmed shellfish
• Wild caught fish
• Eggs
• Chicken
PPF
• Lumber
HPC:
• Aerosol air fresheners
• Hand & body lotion
Batch 3
FBA:
• Berries/Small Fruit
• Apples
• Citrus
• Pork
Durable Goods
• Bicycle
• Hand tools
• Flatware
Small batteries
Batch 4
PPF v2 - Batch 1 Revision
Electronics
• Video Game Consoles
Toys
• Metal Toys
• Board games
CFT
• Clothing and textiles
Batch 5
FBA:
• Pet Food
• Canned Soup
• Frozen Convenience
Meals
• Jams and Preserves
PPF
• Books and magazines
HPC:
• Color cosmetics
• Oral hygiene products
Paint
Batch 6

11. TSC Tools
11
Category Dossier
Collection of evidence on
product category and its supply
chain, environmental and social
hotspots, and improvement
opportunities
Category Sustainability
Profile (CSP)
Synthesis of product
sustainability knowledge and
improvement opportunities
Key Performance
Indicators (KPIs)
Metrics / questions to
measure and track product
category sustainability

12. TSC Innovation Projects
Commodity Mapping Electronics End-of-Life

13. Ahold uses TSC’s knowledge products to identify
hotspots and justify sustainability choices
13

14. Marks & Spencer has a bonus structure
based on attributes in sustainability
TSC has revolutionized the process…
Before 2009
1. Wine team requests attribute in bulk
shipping
2. Sustainability Manager spends weeks on
Google, talking to wine experts and trying to
find LCA information on bulk shipping
3. Sustainability Manager cannot find
appropriate information and tells the buyer
that the category is not approved
4. The buyer is completely discouraged and
gives up in sustainability
5. No progress is made in the wine category
2012 and beyond
1. Wine team requests attribute in bulk
shipping
2. Sustainability Manager looks up the product
Category Sustainability Profile (CSP) and
looks at the hotspots. The Manager also
finds that Bulk Shipping does appear in the
Key Performance Indicators
1. Sustainability Manager looks at the Dossier
and finds that the supplier in question is
50% less than the industry standard in
carbon footprint.
2. Sustainability Manager sends an email the
same day to notify the team that Bulk
Shipping is approved.
14

15. 15
EDF uses TSC’s knowledge products to help the
organizations they work with improve performance in
four key areas

16. Our Purpose: helping Companies Take Action
16
Buyer Index
Scorecard
Category
Sustainability Profile
Key Performance
Indicators

17. Contact Us!
Kara Hurst
CEO
Email Kara.Hurst@asu.edu
1.718.666.8774
Twitter @KaraHurst
www.sustainabilityconsortium.org

18. 18
We Must Partner with Our Suppliers to Make a Big Impact!
• only 10%of our environmental footprint
is within our direct control
Walmart Stores Inc. - Confidential

19. 19
Create zero wasteBe supplied 100% by
renewable energy
Sell products that sustain
people and the environment
ENERGY WASTE PRODUCTS
Walmart’s Sustainability Goals
those suppliers who partner with us in building a responsible
supply chain will be the suppliers that will grow with us.. And
you too will become a better and more sustainable business.
- Mike Duke, President and CEO, Wal-Mart Stores, Inc.
“
“
Walmart Stores Inc. - Confidential

20. 20
The Sustainability Index Rollout: Progress to Date
2012
2013
2014
▪ Initial products assessed included beef, dairy,
computers, televisions, and laundry/dish detergents
▪ Walmart commits to buying 70% of U.S. goods from
suppliers who use the Index
▪ Sustainability goals are included in buyers’ objectives
▪ Over 1,000 suppliers participate
▪ Scores already start improving
▪ Successfully transition to a better IT solution (SAP’s PSN)
▪ Over 50% of eligible sales were evaluated
▪ 60% of buyers have a scorecards
▪ Top performing suppliers will be featured on a
sustainability micro-site on walmart.com
Walmart Stores Inc. - Confidential

21. 21
Walmart has Made 2 Public Commitments about the Index
By the end of 2017, Walmart and Sams Club will buy 70% of
the goods we sell in U.S. stores from suppliers who use the
Index to evaluate and share the sustainability of their products.
- Mike Duke, President and CEO, Wal-Mart Stores, Inc.
Every buyer will have sustainability goals as part of
his or her objectives, and we will use the Index as the tool
to measure progress against those goals.
We’ll recognize and reward those buyers and suppliers
who are doing well. We will also ask suppliers who aren’t
performing well to develop plans to improve..
- Duncan Mac Naughton, Chief Merchandising Officer, Wal-Mart US
“
“
“
“
Walmart Stores Inc. - Confidential

22. 22
What Does Walmart Expect Suppliers To Do After They
Complete Their Surveys?
Review Your
Scorecards
Draft Plan for
Improvement
Discuss Plan
with Your
Buyer
• Merchants and
suppliers will be able
to see supplier scores.
• Identify the KPIs
where you have the
biggest opportunity for
improvement
• Walmart keeps your
scores confidential.
• Ask your buyers if they
have a priority KPI they’re
focused on this year
• Engage your internal
SMEs to determine what
KPIs you think you can
improve the most this year
• Set goals around how
much you think you can
improve this year
• Merchants & suppliers
discuss scores and plans
for YoY improvement during
normal business meetings
(JBP, line reviews, etc.).
• Merchants will recognize
leading suppliers
Walmart Stores Inc. - Confidential

23. © 2014 SAP AG or an SAP affiliate company. All rights reserved.
Driven by Purpose
Help the world
run better
and improve
people’s lives.

24. © 2014 SAP AG or an SAP affiliate company. All rights reserved.
50% of the world’s packages couriered
79% of the world’s chocolate production
77% of the world’s beer production
86% of the world’s athletic footwear
20,000,000 people use SAP on the cloud
1,800,000,000 text messages per day
85% of the Top 100 most valued brands
74% of the world’s business
transactions touches an SAP
system
SAP Facts

25. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 25
SAP Product Stewardship Network (PSN)

26. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 26
SAP Product Stewardship Network (PSN)
Sustainability Assessments
Send survey
Evaluate
results
Answer
survey
Customer
Supplier

27. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 27
Benefits
• Comprehensive framework
• Quantitative & Qualitative
KPI’s
• Industry standard
KPI’s/surveys
• Scalable supplier
engagement
• Analytics, continuous
improvement
SMRS Framework
• 100’s of hotspots
across 9 impact
groups
• Mapped to 200+
KPI’s
TSC
LCA Research
• Scientific community
• TSC members (50+)
• NGO (10+)
Benefits
• Common approach to
assess product (category)
sustainability
• Efficient way to publish
• Benchmark info
• Data reuse
Supplier
s
93 TSC Toolkits
(and growing)
SAP
PSN
KPI’
s
Retailers
SAP Product Stewardship Network (PSN)
.............powers Walmart‘s Index program

28. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 28
Key Points to Take Home
1. Regulations and sustainability demands are
growing and ever changing resulting in
complexity and risk to revenue, brand and
marketability
2. These requirements must be managed at the
lowest cost and highest quality
3. SAP Product Stewardship Network offers the
benefits:
 Supply chain collaboration platform for easy
connection (>2700 companies registered)
 Multiple scenarios supported
 Standardization for lower cost data exchange and
analysis
 Reduced cost related to maintenance and expertise
 Supplier on-boarding service for faster time to value
 Product compliance control and insight with
integration to on-premise business processes

29. © 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Thomas.odenwald@sap.com

30. 1
We Must Partner with Our Suppliers to Make a Big Impact!
• only 10%of our environmental footprint
is within our direct control
Walmart Stores Inc. - Confidential

31. 2
Create zero wasteBe supplied 100% by
renewable energy
Sell products that sustain
people and the environment
ENERGY WASTE PRODUCTS
Walmart’s Sustainability Goals
those suppliers who partner with us in building a responsible
supply chain will be the suppliers that will grow with us.. And
you too will become a better and more sustainable business.
- Mike Duke, President and CEO, Wal-Mart Stores, Inc.
“
“
Walmart Stores Inc. - Confidential

32. 3
The Sustainability Index Rollout: Progress to Date
2012
2013
2014
▪ Initial products assessed included beef, dairy,
computers, televisions, and laundry/dish detergents
▪ Walmart commits to buying 70% of U.S. goods from
suppliers who use the Index
▪ Sustainability goals are included in buyers’ objectives
▪ Over 1,000 suppliers participate
▪ Scores already start improving
▪ Successfully transition to a better IT solution
▪ Over 50% of sales were evaluated
▪ 60% of buyers have a scorecards
▪ Top performing suppliers will be featured on a
sustainability micro-site on walmart.com
Walmart Stores Inc. - Confidential

33. 4
Walmart has Made 2 Public Commitments about the Index
By the end of 2017, Walmart and Sams Club will buy 70% of
the goods we sell in U.S. stores from suppliers who use the
Index to evaluate and share the sustainability of their products.
- Mike Duke, President and CEO, Wal-Mart Stores, Inc.
Every buyer will have sustainability goals as part of
his or her objectives, and we will use the Index as the tool
to measure progress against those goals.
We’ll recognize and reward those buyers and suppliers
who are doing well. We will also ask suppliers who aren’t
performing well to develop plans to improve..
- Duncan Mac Naughton, Chief Merchandising Officer, Wal-Mart US
“
“
“
“
Walmart Stores Inc. - Confidential