q139/random_k4/random_3.md

Environmental,
Social and
Governance

FY2021 Summary

Contents
About our reporting

Year at a glance

Our leadership
A message from our CEO

A message from our CSO

Our company
Stakeholders

Corporate purpose

Transforming our business: Becoming an
omni‑channel, regenerative company

Our approach to ESG
Creating shared value

ESG priorities

Management of ESG

Stakeholder engagement

Opportunity
Human capital: Good jobs &
advancement for associates

Equity & inclusion at Walmart & beyond

Supplier opportunity

3

5

7
7

8

9
9

10

11

12
12

12

13

13

14

15

17

18

Sustainability
Sustainable product supply chains

Climate change

Waste: Circular economy

Regeneration of natural resources:
Forests, lands, oceans

People in supply chains

Community
COVID‑19 response

Providing safer, healthier food &
other products

19
20

22

24

26

29

30
31

33

34
Ethics & integrity
Highest standards of ethics & compliance  35

Good corporate governance

Engagement in public policy

Digital citizenship: Ethical use of data &
responsible use of technology

Human rights

35

36

36

37

Additional ESG reporting resources Click to find resources on our ESG website

   2

About our reporting

Walmart has reported on a wide range of ESG issues since 2005. Our reporting is
focused on our priority ESG issues — those that we believe are the most relevant
to our business and important to our stakeholders.

This Annual Summary provides an overview of our
shared value approach to ESG, ESG priorities, and key
highlights. The Annual Summary covers our activities
during the fiscal year ending January 31, 2021
(FY2021), except as otherwise noted. Calendar years
(CY) are marked as such or written in a four‑digit
format. In addition to this Annual Summary, beginning
in 2021, our reporting is centered around a series of
issue briefs covering each of Walmart’s priority ESG
issues in depth. Each brief covers our aspiration and
strategy with respect to the issue, the relevance of
the issue to business and society, our key goals and
metrics, and our progress to date. These briefs will
be updated from time to time and may not align with
particular fiscal year reporting periods.

Our reporting is guided by frameworks such as
the Sustainability Accounting Standards Board
(SASB), the Task Force on Climate‑related Financial
Disclosures (TCFD), Global Reporting Initiative (GRI)
standards, and the United Nations (U.N.) Sustainable
Development Goals (SDGs). We also report through
programs such as CDP, a global environmental
disclosure system.

“Walmart” means Walmart Inc., a Delaware
corporation, and its consolidated subsidiaries
that were subsidiaries during the reporting period;

except for financial data, it otherwise excludes
all acquired eCommerce subsidiaries, businesses,
platforms and/or marketplaces, unless otherwise
noted. This report also covers some activities
of the Walmart Foundation, a separately
incorporated Delaware charitable private foundation.
Walmart.org is used to refer to the collective
philanthropy of Walmart Inc. and the Walmart
Foundation.

As discussed in Walmart’s March 2021 annual report
on Form 10‑K, the COVID‑19 pandemic impacted
Walmart’s business in many ways throughout FY2021,
including through net sales growth and strong
comparable sales in many markets, pandemic‑related
costs, changes in customer shopping patterns, and
employment trends. As the pandemic and related
trends evolve in FY2022 and beyond, impacts on
Walmart’s business may also evolve.

We sought and received external assurance from
a third party with respect to certain emissions
information reported in this Annual Summary. We
did not seek or receive external assurance from third
parties with respect to other information, although in
certain instances third parties assisted in the process
of collecting, analyzing and calculating information
presented in this Annual Summary.

   3

Forward‑looking statements

This ESG reporting contains certain forward‑
looking statements based on Walmart
management’s current assumptions and
expectations, including statements regarding our
ESG targets, goals, commitments and programs
and other business plans, initiatives and objectives.
These statements are typically accompanied by the
words “aim,” “hope,” “believe,” “estimate,” “plan,”
“aspire” or similar words. All such statements are
intended to enjoy the protection of the safe harbor
for forward‑looking statements within the meaning
of Section 21E of the Securities Exchange Act
of 1934, as amended. Our actual future results,
including the achievement of our targets, goals
or commitments, could differ materially from
our projected results as the result of changes in
circumstances, assumptions not being realized,
or other risks, uncertainties and factors. Such
risks, uncertainties and factors include the risk
factors discussed in Item 1A of our most recent
Annual Report on Form 10‑K and subsequent
quarterly reports on Form 10‑Q filed with the

Securities and Exchange Commission (“SEC”),
as well as, with respect to our ESG targets, goals
and commitments outlined in this reporting
or elsewhere, the challenges, assumptions
and dependencies identified in our ESG issue
briefs under the heading Challenges and other
assumptions, risks, uncertainties and factors
identified in our reporting. We urge you to consider
all of the risks, uncertainties and factors identified
above or discussed in such reports carefully in
evaluating the forward‑looking statements in
this report. Walmart cannot assure you that the
results reflected or implied by any forward‑looking
statement will be realized or, even if substantially
realized, that those results will have the forecasted
or expected consequences and effects. The
forward ‑looking statements in our reporting
are made as of the effective date identified on
the issue brief, unless otherwise indicated, and
we undertake no obligation to update these
forward‑looking statements to reflect subsequent
events or circumstances.

Reporting resources

Click to find resources on our ESG website

   4

YEAR AT A GLANCE FY2021

Opportunity

Sustainability

+

$19.50
Average total hourly
compensation in
the U.S.1

>300,000
U.S. associates2
promoted to jobs of higher pay
and greater responsibility

>$2.8 billion
in bonuses paid
to U.S. hourly
associates3

Targeted zero emissions
— without offsets — across the company’s global
operations by 2040

Committed to help protect,
manage or restore at least
50 million acres of land and
1 million square miles of ocean
by 2030

$100 million
over 5 years
committed by Walmart and the
Walmart Foundation to create
the Center for Racial Equity

U.S. management
promotions went to4

46% women
39% people of color

>$13 billion
in goods and services sourced
from ~2,900 diverse suppliers
for our U.S. businesses5

12.1% reduction
in scopes 1 and 2
emissions (CY2015–CY2019)6

Estimated 36%
of our global electricity needs
were supplied by renewable
sources in 20207

19% decrease
in carbon intensity per
revenue (FY2016–FY2020)8

81% of waste
diverted from landfills and
incineration globally (CY2020)9

~95,000 associates
trained through
Walmart Academy

290,000 college credits completed
worth an estimated $123 million completed by associates
at the end of 2020 through Live Better U

>186 MMT of CO2e
avoided by suppliers in CY2020 through Project GigatonTM for a cumulative
total of more than 416 MMT of CO2e avoided since 201710

   5

Community

Ethics & integrity

Supported
>500 COVID‑19
testing sites
in the U.S.

>$43 million
given by Walmart and the Walmart Foundation
to support COVID‑19 response efforts around
the world

>$1.4 billion
in cash and in‑kind donations
globally from Walmart and the
Walmart Foundation

>500,000
new associates
hired in the U.S.

5 Board nominees
appointed in last 5 years, 3 of whom are women
and/or racially/ethnically diverse11

98% overall attendance
rate at Board and Board committee meetings

25%
female11

17%
racially/ethnically diverse11

>745 million pounds of food
donated by Walmart globally in 2020, with more than >627 million pounds
donated by Walmart stores, clubs and distribution centers in the U.S.

>942,000
associates received
ethics training

+

Published updated

Code of Conduct and
Standards for Suppliers

 Awards

2020 Climate A list —
2nd consecutive year

ranked 22 in 2021 Top 50 Companies

•  No. 8 Top Companies for Talent Acquisition

for Women of Color

•  No. 6 Top Companies for LGBTQ Employees

3rd
consecutive year

ranked no. 9 — 6th
consecutive year
on the list

   6
 6

Our leadership

A message from our Chief Executive Officer

As always, the world is full of opportunities
and challenges. And as you know, the past year
presented a number of new problems — large
and small — to be solved. We face a long list of
social and environmental challenges in addition
to the health and accompanying economic crisis
and their impact around the world. Just as we
are in any “normal” year — if there ever is such a
thing — Walmart was guided by a desire to serve
all of our stakeholders: customers, associates,
shareholders, suppliers, communities and the
planet. Our multi‑stakeholder approach is rooted
in the purpose Sam Walton articulated nearly three
decades ago when he said we have the chance to
give the world an opportunity to see what it’s like
to live a better life… “a better life for all.”

This past year, more than 2 million Walmart
associates embraced this timeless purpose to step
up and serve stakeholders in new ways. Our teams
are also system thinkers, striving to reshape our
practices across the company and influence society
to be more equitable for all.

When the pandemic hit, associates around the
world faced the uncertainty of an unprecedented
situation by remaining constant in their
commitment to care for customers, communities
and each other. Our associates innovated to safely
serve customers and aid relief efforts — many of

which continue today. As a result, we fulfilled more
online pickup and delivery orders than ever. We
implemented measures to protect shoppers and
each other. We kept our supply chain moving and
launched COVID‑19 testing and vaccination sites.
And we offered a sense of normalcy with a warm
greeting — albeit a socially distant one — when
people craved it most.

we set a goal last fall to become a regenerative
company — one that restores, renews and
replenishes. While we decarbonize our operations
and eliminate waste, we’ll also protect, manage and
restore nature and advance prosperity and equity
for the people who participate in our product
supply chains. This concept of regeneration will help
shape our approach to shared value going forward.

The murder of George Floyd was a snapshot of
centuries of prejudice and injustices our Black and
African American communities have faced, and it
focused everyone’s attention in a way that hadn’t
happened in a long time. Once again, our people
asked how we could help make a difference. Within
our walls, we collectively listened and learned, and
that work continues today. We accelerated changes
to our hiring, pay and promotional practices to
create an even more diverse, equitable and inclusive
company for all. We also launched associate‑led
Shared Value Networks (SVNs) and the Center for
Racial Equity, which are now deploying resources
and strategies to address issues across finance,
healthcare, education and criminal justice systems.

This past year and in the years leading up to it,
our natural systems signaled that we aren’t doing
enough for the planet and irreversible damage
is being done as a result. Taking a step back and
assessing our business and societal aspirations,

When we put the size of Walmart to work for all
of our stakeholders, we make a difference for the
people, communities and planet we serve. And
as the chairman of the Business Roundtable, I’m
encouraged to see so many other businesses doing
the same. A multi‑stakeholder approach is the best
way to both build a business in the long‑term and
to reshape systems to be more fair and ultimately
regain trust.

Together, we can help the earth recover and
help everyone truly live a better life. Let’s make
it happen.

Doug McMillon
President and Chief Executive Officer
Walmart Inc.

   7

A Message from our Chief Sustainability Officer

Walmart has long taken a shared value,
whole‑system approach to environmental, social
and governance (ESG) issues. Through our ESG
strategies, we aim to do more than operate
responsibly and mitigate business risk; we want
to create value for business by better serving
our customers and stakeholders and helping to
transform related societal systems (e.g. food
systems, workforce development systems) for
more equitable and sustainable outcomes. Events
of the past year — the COVID‑19 pandemic, the
murder of George Floyd, rising income inequality
and intensifying climate and ecosystem decline
— underscore the relevance of our shared value
philosophy.

While these events challenged us all, they
reinforced our desire to accelerate our omni‑
channel transformation and commit to becoming
a regenerative company — seeking to fulfill our
customer mission in a way that restores, renews,
and replenishes nature and humanity.

This year, our ESG reporting includes a series of
briefs covering Walmart’s priority ESG issues in
a new, “living” digital format as well as our ESG
FY2021 summary and data tables. The briefs will
be refreshed online periodically, providing our
stakeholders with timely information. We have
updated our list of priority issues based on recent
stakeholder engagement, reflecting stakeholder
expectations, relevance to our business and
Walmart’s ability to make a difference in four
broad themes of Opportunity, Sustainability,
Community and Ethics & Integrity. Each brief
articulates Walmart’s ESG impact thesis including

disclosures regarding our aspirations for shared
value creation, our strategies, key metrics and facts
regarding progress (with reference to our public
commitments, SASB, TCFD, CDP, GRI and the U.N.
SDGs), and challenges.

Key highlights include:

•  COVID-19 response: Prioritizing the well‑being
of our associates, customers and communities,
we altered our operating practices (including
providing a COVID‑19 emergency leave policy
that The New York Times editorial board
said “set a standard” for the private sector),
expanded pickup services from 1,500 to
more than 3,500 sites, and administered
COVID‑19 tests and vaccines. Together with
the Walmart Foundation, we have given more
than $43 million in cash and in‑kind donations
to support COVID‑19 response efforts around
the world.

•  Inclusive opportunity: In the U.S., we

provided an average of $19.50 an hour in total
compensation to hourly associates, promoted
more than 300,000 people (with 46% of
hourly‑to‑hourly  promotions going to people
of color), and began twice‑yearly disclosure
of diversity data. We established Shared Value
Networks to help eradicate systemic racism
through business initiatives and, alongside the
Walmart Foundation, committed $100 million
over five years to support philanthropic efforts
through the Center for Racial Equity.

•  Climate and nature: Walmart made CDP’s
‘A List’ for climate action. We sourced an

estimated 36% of our electricity needs from
renewable energy. Since Project GigatonTM
launched in 2017, more than 3,100 suppliers
have reported a cumulative 416 million
metric tons (MMT) of avoided emissions.
We set 2040 as our target date to achieve
zero emissions in our global operations and
committed to help protect, manage or restore
at least 50 million acres of land and 1 million
square miles of ocean by 2030.

•  Governance: We refreshed our Code of

Conduct and related policies to further foster
a culture of accountability, transparency and
trust. We also enhanced disclosure of our
board diversity, digital citizenship and public
policy engagement.

The challenges facing business and society require
collective action from us all. The pandemic
demonstrated how small but widespread changes
in individual behavior can produce large‑scale,
positive effects. We believe businesses can be part
of the solution and, as a stakeholder in Walmart,
your collaboration on this journey is key to meeting
the challenges of our time. We look forward to
facilitating positive change, together.

Kathleen McLaughlin
EVP and Chief Sustainability Officer
Walmart Inc.

   8

Our company

Walmart’s stakeholders

Customers

Associates

Shareholders

Suppliers

Business partners

Communities

Planet

Convenient access
to quality, affordable
products and services

Purpose‑driven work;
opportunity for good
jobs and upward mobility

Strong long‑term returns
through financial and
ESG leadership

Access to customers
and support for supplier
development and growth

Access to and
understanding of
engaged customers for
our sellers, advertisers
and ecosystem partners

Resources to build
stronger, more inclusive
communities

Leadership on zero
emissions, zero waste and
regenerative approach
to nature

   9

Walmart’s corporate purpose

Walmart’s purpose is to save people money and help them live better. We provide convenient access to
high‑quality, affordable food and other essential products and services to millions of people each week.
In doing so, we aim to create shared value for our stakeholders.

Our values

Acting with
integrity

Striving for
excellence

Serving the
customer

Respecting the
individual

Our business in FY2021

>$559 billion
in revenue

eCommerce
marketplace grew triple-digits

8.7%
U.S. comp sales including fuel

>2.3 million
associates

>11,400
stores in two dozen countries

$8.7 billion
returns to shareholders

   10

Transforming our
business: Our flywheel
for becoming an
omni‑channel,
regenerative company

We are transforming our company to provide
customers with a seamless omni‑channel
experience in stores and online — in a way that is
regenerative.

By regenerative, we mean fulfilling our customer
mission in a way that creates value for people
and planet: creating opportunity, enhancing
sustainability of retail product supply chains,
strengthening communities and upholding the
highest standards of ethics and integrity.

Transforming our business model toward an
omni‑channel, regenerative approach sets up a
virtuous cycle that we call our “flywheel.” Along
with our assortment, price and experience, we
want to make trust a competitive advantage.

Earn primary destination
(food, consumables, GM)

•  In store

•  Delivery

•  Pick‑up

•  Walmart+

Reinvest in the
customer value
proposition

•  Assortment

•  Price

•  Experience

•  Trust

Serve customers more broadly, deepen our
relationship and sustain a healthy mix by expanding:

eCommerce

Health
& wellness

Financial
services

•  1P eCommerce

•  High quality

•  3P marketplace

•  Preventative

•  Accessible

•  Affordable

•  Trusted

•  Digital

•  Accessible

•  Affordable

Monetize capabilities

Sustainably lower cost

•  Marketplace

•  Advertising

•  Data

•  Fulfillment

•  Last mile

•  Store productivity

•  Supply chain design & automation

•  Digital transformation

•  Regenerative

   11

Our approach to ESG

Creating shared value

Shared value — addressing societal issues in
ways that create value for our business and
stakeholders — lies at the heart of Walmart’s
enterprise strategy and our approach to ESG issues.

We believe we maximize long‑term value for
shareholders by serving our stakeholders:
delivering value to our customers, creating
economic opportunity for associates and suppliers,
strengthening local communities, and enhancing
the environmental and social sustainability of our
business and product supply chains. Addressing

such societal needs builds the value of our business
by extending our license to operate, building
customer and associate trust, creating new
revenue streams, managing cost and risk, building
capabilities for future advantage, and strengthening
the underlying systems we all rely on. In other
words, business exists to serve society: business
strengthens society and at the same time serving
society strengthens business. We aspire to become
a regenerative company — helping to renew people
and planet through our business.

For each priority ESG issue, we set out to develop an ESG impact thesis that articulates
the relevance of the issue for society and Walmart’s business, reflects an understanding of
stakeholder expectations, and defines our aspirations, goals and strategies. Through such
disclosures, we aim to provide stakeholders with an understanding of Walmart’s shared value
approach and progress.

To create change we:

ESG priorities

We prioritize the ESG issues that offer the
greatest potential for Walmart to create shared
value: issues that rank high in terms of relevance
to our business and stakeholders as well as
Walmart’s ability to make a difference.

Based on our most recent ESG priority
assessment,12 conducted in spring 2021, we have
organized our ESG priorities into four leadership
themes: Opportunity, Sustainability, Community,
and Ethics & integrity.

Opportunity

Community

•  Good jobs and advancement for associates

•  Serving communities

•  Equity and inclusion at Walmart and beyond

•  Safer, healthier food, and other products

•  Growth for suppliers, sellers and local

•  Disaster preparedness and relief

economies

Sustainability

Ethics & integrity

•  Climate and renewable energy leadership

•  Highest ethical and compliance standards

•  Zero waste in operations, products,

•  Strong corporate governance

•  Lead through business by embedding our ESG aspirations and initiatives into

packaging

how we do business and work with teams across the company

•  Regeneration of natural resources: forests,

•  Collaborate with suppliers, NGOs, governments and others to transform

land, oceans

systems at scale

•  Use our philanthropy to extend the societal impact of business initiatives

Read more: ESG priorities ^

•  Sustainable product supply chains

•  Dignity of people in supply chains

•  Engagement in public policy

•  Digital citizenship

•  Respect for human rights

   12

Management of ESG

Leadership of ESG issues starts with our CEO —
with oversight from committees of our Board of
Directors — and cascades across our enterprise.
Walmart’s Chief Sustainability Officer (CSO) helps
define the ESG agenda and provides dedicated
management and oversight of Walmart’s global
ESG initiatives and goals. The CSO reports to our
Executive Vice President of Corporate Affairs and
provides updates on our ESG agenda and progress
to the Nominating and Governance Committee of
the Walmart Board of Directors and to the Walmart
executive leadership team. Board committees also
have oversight responsibility for particular ESG
issues. Walmart business leaders shape and deliver
ESG strategies relevant for their segments and

Stakeholder engagement

Our ability to create shared value depends
on direct and frequent engagement with our
customers, associates and community leaders,
as well as the people who supply our products,
hold our stock and evaluate our performance.
Stakeholder perspectives and feedback help
improve the relevance and effectiveness of the
products and services we offer and the initiatives
we support.

functions. For example, the Real Estate team leads
renewable energy initiatives, and the People team
leads human capital initiatives.

Additional governance bodies and working
teams include:

•  The ESG Steering Committee, a management
committee that meets at least semiannually
and is composed of leaders from various
departments throughout the business,
including the Office of the Corporate
Secretary, the Controller’s Office, Investor
Relations, Ethics and Compliance, Audit,
People, Global Public Policy and Government
Affairs, and Sustainability.

•  The ESG Strategy and Engagement team, led
by the Senior Director of ESG Strategy and
Engagement, reports to the CSO and helps
Walmart business leaders prioritize ESG issues
and define impact theses. The team helps to
improve ESG strategies, performance and
disclosures; engage with investors and other
stakeholders; and shape evolution of the ESG
field to increase focus on shared value impact.

•  Other groups, such as the ESG Working Group
and ESG Disclosure Committee, help to guide
and shape the company’s ESG strategy and
disclosures.

Read more: ESG priorities ^

Day‑to‑day, we engage with customers, fellow
associates, suppliers, members of the communities
where we operate and shareholders. Read more:
Stakeholder engagement ^

Additionally, our 2021 ESG priority assessment
included extensive outreach to stakeholders,
including customers, associates, shareholders,
suppliers and NGOs, to understand their
perspectives on which issues Walmart should
prioritize. Read more: ESG priorities ^

“

Leadership of ESG issues starts
with our CEO — with oversight
from committees of our Board
of Directors — and cascades
across our enterprise

”

   13

Opportunity

Retail can be a powerful engine for
inclusive economic opportunity.
We aim to advance equity and
opportunity throughout Walmart, our
supply chain and the communities
we’re in to fulfill our customer
mission, strengthen our business and
help people build a better life for
themselves and their families.

Issue briefs

Find more about each issue on the website

Human capital: Good jobs & advancement
for associates ^

Equity & inclusion at Walmart & beyond ^

Supplier opportunity ^

   14

Human capital: Good jobs & advancement for associates

With our position as one of the world’s largest
private employers, we seek to accelerate the
professional development and advancement of
our associates and help make retail a gateway to
upward mobility in the sector overall. Our human
capital development strategy focuses on inclusion,
well‑being, growth and digital enablement.

Inclusion

Walmart is committed to making retail a place of
inclusive opportunity where people, regardless of
where they start, can gain the skills and experiences
they need to advance in their careers. Doing so
allows us to attract, develop and retain the talent
we need to deliver our distinctive omni‑channel
customer proposition.

Well-being

We are focused on the financial, physical and
emotional well‑being of our associates. We provide
competitive total compensation and benefits
packages, including paid time off (including sick
leave) and medical coverage to eligible associates,
and we seek to improve job experiences through
approaches such as scheduling that is predictable,
yet flexible.

In the U.S., our wage structure reflects the skill
requirements associated with each role, our
geographic footprint, and our retail format (for
example, Neighborhood Market grocery format,
eCommerce and supply chain warehouses). By
market and role, we aim to provide competitive
starting wages to attract talent and serve our
customer.

With the introduction of our new team‑based
model, we raised wages for approximately
165,000 Walmart U.S. associates in our stores in
FY2021. This model is tiered with new positions that
provide a ladder of opportunity and allow more
room for pay growth. As of March 2021, after wage
increases were implemented, the average hourly
wage in the U.S. was over $15.25 per hour.13

Throughout 2020, a year marked by uncertainty,
we prioritized our associates’ well‑being, creating
an emergency leave policy, adjusting store hours,
implementing numerous safety measures and
distributing $2.8 billion in bonus payouts for U.S.
associates.3

Segment

Avg. hourly
wage13

Avg. total hourly
compensation14

Peer comparison

Walmart U.S.15

$14.61

$19.52

Grocery chains,
multicategory retailers,
dollar stores

Sam’s Club U.S.16

$16.24

$21.01

Warehouse clubs

Supply chain only (Walmart
U.S. and Sam’s Club U.S.)17

$20.37

$28.67

eCommerce fulfillment

>$15.25 per hour

the average hourly wage in the
U.S. as of March 2021, after wage
increases were implemented13

 15

Growth

Walmart continues to design and invest in programs
that help our associates develop the skills and
knowledge they need to advance within our company.
Approximately 75% of our U.S. salaried store, club
and supply chain management started their careers in
hourly positions. In FY2021, our U.S. store managers,
who are not required to have a college degree, earned
an average of approximately $210,000.

In addition to on‑the‑job development and redesigned
roles with a focus on cross‑training and mobility,
Walmart’s formal training program, Walmart Academy,
has paid associates to learn through immersive teaching
that combines technology, classroom training and
ongoing coaching on the sales floor. In FY2021, despite
the challenges posed by the COVID‑19 pandemic,
we trained approximately 95,000 associates via the
Walmart Academy, including in‑person and virtual
trainings. We have found that more than 80% of
Walmart Academy graduates are retained for an
additional year.

Through Live Better U (LBU), Walmart provides
eligible U.S. associates the chance to complete higher
education debt‑free. At the end of 2020, our associates
had completed 290,000 college credits worth more
than an estimated $123 million.

Digital

To meet evolving customer expectations, we empower
our associates through digital tools and prepare them
for the digital present and future, including newer roles
supporting our omni‑channel business.

Read more: Human capital: Good jobs & advancement
for associates ^

   16

>300,000

U.S. associates were
promoted to jobs of
greater responsibility
and higher pay18

Equity & inclusion at Walmart & beyond

Numerous studies have shown that diverse,
inclusive businesses tend to outperform their peers,
as they attract and retain talent, foster innovation,
and better reflect the complex character of the
customers and communities they serve.19 The
events of 2020, including racial violence in the
U.S. and COVID‑19’s disproportionate impact
on communities of color and women, served as
a further call to action for everyone, including
companies, to work for greater equity and inclusion
within their own operations and across society.

Fostering a culture of inclusion
& more diverse, inclusive teams
throughout Walmart

Within our company, we are focused on fostering
an inclusive culture and creating a more diverse,
inclusive team at every level. We aim to set the
tone at the top through a diverse board and
executive team.

In FY2021, we saw progress in several areas,
including seeding our talent pipeline with diverse
talent in management promotions and the
percentages of officers that are women and/or
Black/African American.

Measurement, insights & reporting

We track and publicly disclose (semiannually) key
performance indicators on diversity and inclusion
at Walmart to inform our plans for continued

progress. In FY2021, we collaborated with Policy
Link, the Kellogg Foundation, and McKinsey and
Co. to produce “Race in the Workplace: The Black
Experience” to help advance understanding about
challenges facing Black Americans in the private
sector in the U.S.

Advancing equity in society

We are redoubling our efforts to direct business
and philanthropic resources toward addressing
drivers of systemic disparities in society and
reporting on our progress through our ESG
reporting and our biannual Culture, Diversity,
Equity and Inclusion reports.

Read more: Equity & inclusion at Walmart
& beyond ^

People of color4

47%

U.S. associates

Women4

55%

U.S. associates

39%

U.S. total management
promotions

46%

U.S. hourly-to-hourly
promotions

37%

U.S. management

25%

U.S. officers

46%

U.S. total management
promotions

58%

U.S. hourly-to-hourly
promotions

46%

U.S. management

33%

U.S. officers

Shared Value Networks

In mid‑2020, Walmart established four Shared
Value Networks (SVNs) to help advance racial
equity in the U.S. criminal justice, education,
financial and health care systems, with a particular
focus on disparities affecting Black and African
American people.

Each SVN is pursuing opportunities for Walmart
to utilize our business capabilities (such as
products and services, technology, sourcing from
diverse suppliers, jobs and career paths) to help
influence social systems toward more equitable
outcomes. For example, the Education SVN made

a five‑year, $5 million commitment to launch the
Equity in Education initiative with North Carolina
A&T State University to prepare more African
American college graduates for careers in
engineering, business and other critical professions.
Read more: SVNs.

Center for Racial Equity

To extend the societal impact of Walmart’s SVNs,
Walmart and the Walmart Foundation committed
up to $100 million over five years to create the
Walmart.org Center for Racial Equity, focused on
eradicating systemic disparities experienced by

Black and African American communities in the U.S.
The center announced its first round of grants in
February 2021, totaling $14.3 million from Walmart
and the Walmart Foundation to 16 nonprofit
organizations. Recipients included organizations
focused on improving health equity, increasing
awareness and education on the COVID‑19 vaccine,
and providing financing to students at historically
Black colleges and universities.

Read more: Center for Racial Equity.

   17

>$13 billion

spent by Walmart’s U.S.
businesses with diverse suppliers5

$10 billion

commitment is to triple exports
from India to $10 billion each
year by 2027

Supplier opportunity

Through sourcing, Walmart aims not only to delight
our customers but also to provide opportunities for
economic growth and development for our suppliers,
for the people they employ, for their communities and
for people who work throughout supply chains. As part
of our local and global sourcing programs, we pursue
several special initiatives focused on building a more
inclusive, diverse supplier base and contributing to local
economies:

•  America at Work initiative: Through our America
at Work initiative, we committed to invest an
incremental $250 billion in products that support
the creation of American jobs between 2013 and
2023. As of the end of FY2021, we have sourced an
incremental $145 billion since 2013.20 In March 2021,
we announced a refreshed ten‑year commitment
to invest $350 billion in products made, grown or
assembled in the United States.

•  Make in India: Since 2019, Walmart has invested in
the development of micro, small and medium sized
suppliers in India through our Vriddhi program to
prepare them to participate in global supply
chains. Most recently, we announced an ambition
to triple our exports from India to $10 billion each
year by 2027.

•  Supplier inclusion: We have programs to source from
and develop diverse suppliers, including suppliers
owned and/or operated by women and people of
color. In FY2021, Walmart’s U.S. businesses spent
over $13 billion with diverse suppliers.5

Read more: Supplier opportunity ^ and
People in supply chains ^

   18

Sustainability

Working with suppliers, NGOs
and customers, Walmart seeks to
transform not only our business but
also the world’s supply chains to be
regenerative. The following pages
describe our approach — in our
operations and in supply chains — to
addressing issues and opportunities
related to climate, nature, waste
and people working in product
supply chains.

Issue briefs

Find more about each issue on the website

Product supply chain sustainability ^

Climate change ^

Regeneration of natural resources: Forests,
land, oceans ^

Waste: Circular economy ^

Waste: Plastics ^

People in supply chains ^

“

The commitments we’re making today not
only aim to decarbonize Walmart’s global
operations, they also put us on the path to
becoming a regenerative company — one
that works to restore, renew and replenish
in addition to preserving our planet, and
encourages others to do the same.

Doug McMillon, September 2020

”

   19

Sustainable product supply
chains

As a multicategory retailer operating in multiple countries,
Walmart engages suppliers, customers and NGOs in
sustainability initiatives across a wide range of product
supply chains. Because of the complexity of global
supply chains and the systemic nature of issues such as
climate change or forced labor, lasting improvement
requires collaboration among many stakeholders. No one
organization can single‑handedly transform supply chain
systems. Progress depends on the engagement of suppliers,
NGOs, consumers, governments and other stakeholders.

To improve the sustainability of a given product supply
chain, we start by listening to our customers and other
stakeholders to set aspirations, such as emissions reduction
or economic inclusion, and prioritize improvements to the
product supply chain system, such as farming practices or
commodity traceability. We make progress by:

•  Setting standards and requirements for

Walmart product sourcing

•  Engaging Walmart suppliers to spark action, share best
practices and tools, and encourage measurement and
disclosure

•  Leading and contributing to industry consortia

and initiatives to accelerate collective
action beyond Walmart

•  Helping Walmart customers make informed

choices through labeling and cause campaigns

•  Advocating for public policies that align with

sustainable supply chain priorities

•  Accelerating systems change beyond Walmart through

philanthropic investments

   20 20

Walmart sustainable product supply chains: focus areas by category

Top priority

     Special initiatives

  Continuous improvement

Produce

Row crops

Specialty
crops

Seafood

Meat/dairy

Packaged
food

Consumables

Textiles

Across
categories

Climate

Zero waste

Nature

Worker
dignity

Inclusive
economic
opportunity

Safer,
healthier
products

See full details in the Product supply chain sustainability ^

   21

Climate change

Walmart aims to galvanize collective climate action
across the retail and consumer goods sector
through our ambitious targets and mitigation
initiatives, advocacy, supplier engagement,
philanthropy and innovation in product supply
chain practices, while taking steps to strengthen
the resilience of our business against the effects of
climate change.

Governance

The Walmart corporate sustainability team leads
the development of the company’s climate
strategy, working with a cross‑functional team
including finance, real estate, operations,
merchandising, strategy, and public policy. The
strategy is reviewed at least annually by Walmart’s
executive leadership team and the Nominating
and Governance Committee of the Walmart Board
of Directors. To inform the company’s climate
mitigation and adaptation strategies, Walmart
periodically conducts a scenario‑based climate risk
assessment.

Mitigation

Walmart has committed to science‑based targets
(SBTs) for emissions reduction, including achieving
zero emissions in our operations by 2040 and
engaging suppliers through our Project Gigaton™
to reduce supply chain emissions by 1 billion metric
tons by 2030.

In 2020, we realigned our SBT to a 1.5 degree
Celsius trajectory, the highest ambition approved
by the Science Based Targets Initiative (SBTi). Our
new target is to reduce absolute scopes 1 and
2 GHG emissions by 35% by 2025 and by 65% by
2030 (2015 base year) on the way to achieving
zero emissions in 2040. We achieved a 12.1%
reduction in scopes 1 and 2 emissions between our
2015 calendar year (CY) baseline and 2019.6

And we’re proving that we can reduce emissions
while growing revenues by reducing our carbon
intensity by 19% since FY2016 versus FY2020, as
measured by CO2e/$M revenue.8

In support of these ambitions, we are committed
to 100% renewable electricity by 2035; in 2020, an
estimated 36% of our global electricity needs were
supplied by renewable sources.7

Mitigating the effects of climate change will
require worldwide collective action. In retail, the
vast majority of emissions occur in product supply
chains rather than in retail operations. Our Project
Gigaton™ initiative is part of our commitment
to pursue substantial emissions avoidance and
reduction in product supply chains. More than
3,100 suppliers have formally signed on to Project
Gigaton™, making it one of the largest private
sector consortiums for climate action. Suppliers
report having avoided more than 186 MMT of
CO2e in 2020, for a cumulative total of more than
416 MMT of CO2e avoided since 2017.10

Annual greenhouse gas emissions

21

Scope 1

Scope 2

CY2014

CY2015

CY2016

CY2017

CY2018

CY2019

12.16

12.02

11.08

0

5

10

15.12

14.93

14.08

6.76

6.11

6.65

6.52

6.10

6.48

15

Carbon intensity

21, 22, 23

Million metric tons (MMT) CO₂e

20

25

e
₂
O
C

)
T
M
M

(

s
n
o
t
c
i
r
t
e
m
n
o

i
l
l
i

M

50

40

30

20

10

0

6
0
5
4

.

,

1
5
6
5
8
4
$

.

3
6
3
4

0
3
1
,
2
8
4
$

.

6
6
2
4

,

3
7
8
5
8
4
$

,

3
4
3
0
0
5
$

3
3
7.
3

,

5
0
4
4
1
5
$

3
6
5
3

.

,

0
0
2
9
5
5
$

2
5
3
3

.

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

Carbon intensity
(Scope 1 and 2 MT
CO2e / $M revenue)

Total annual revenue [$M]

$600,000

$400,000

$200,000

0

   22

Adaptation

Our climate strategy includes adapting our operations
to enhance resilience in the face of climate risk.
Strategies include preparing our facilities and associates
for weather‑related disasters, taking steps to enhance
surety of supply in the face of near‑term disasters
and disruptions and longer‑term climate change, and
accounting for transition risk in business planning.

“

Walmart made CDP’s ‘A List’ and
Supplier Engagement Leaderboard
for Climate for the second
consecutive year in 2020

Advocacy

”

Walmart has a board‑adopted climate policy and
advocates for 1.5 degree Celsius‑aligned, science‑based
national and international climate policies that are
consistent with achieving net‑zero emissions by
2050 and fairly and equitably addressing the needs
of all stakeholders. We advocate by leading one
of the largest private sector consortia for climate
action, contributing to public policy, and engaging
in thought leadership. We also engage policymakers,
customers, associates, other retailers, and opinion
leaders in support of climate action. For example, in
spring 2021, we agreed to be a retail sector champion
of Race to Zero, a U.N. global campaign to mobilize
around net‑zero efforts in the lead‑up to COP26.

Read more: Climate change ^

Estimated 36%
of our global
electricity needs

were supplied by renewable
sources in 20207

12.1% reduction

in scopes 1 and 2 emissions
(CY2015‑CY2019)6, 21

   23

Waste: Circular economy

We aim to break the link between consumption
and waste as part of a movement toward a
circular economy, meaning a transition from a
“take‑make‑dispose” approach to one that values
the reuse and regeneration of materials. We aspire
to achieve zero waste to landfill or incineration
in our operations, and we work with suppliers,
customers and communities to accelerate the
adoption of circular packaging and products.

Our strategies to achieve zero waste include
eliminating food waste and packaging waste
(including plastic waste) and engaging our
customers.

Operational waste

We set a goal to achieve zero waste24 to landfill or
incineration in our U.S., Canada, Mexico, U.K. and
Japan markets by 2025.25 In CY2020, we diverted

81% of waste from landfills and incineration globally,
holding steady from the previous year.9

Food waste

To reduce food waste in our operations, we focus
on increasing the sell‑through of food products
and diverting unsold food from landfill, putting
still‑fresh food to use for meals in the community
or other purposes such as animal feed, composting,
or anaerobic digestion. Examples of our
efforts include:

•  Walmart U.S. sold 256 million food units

through food discount programs in FY2021
(862 million since FY2019).

•  In CY2020, Walmart donated more than

745 million pounds of food globally. In FY2021,
Walmart stores, clubs and distribution centers
in the U.S. donated more than 627 million
pounds of food.26

•  Between 2016 and the end of FY2021, Walmart

and the Walmart Foundation made over
$32 million in philanthropic investments in
innovation and capacity building along the
value chain to help recover food at the farm,
retail and consumer level.

Packaging waste

Walmart is working with our suppliers and the
broader retail consumer packaged goods industry
to optimize packaging.

Packaging overall. Our ambition is to accelerate
a transition to 100% recyclable, reusable or
industrially compostable private brand packaging.
Examples of our goals and progress are below:

Goal

Metric

CY2020 progress28

100% of global private brand packaging recyclable,
reusable or industrially compostable by 2025

Estimated percentage recyclable, reusable or industrially
compostable by 2025, based on supplier reports

20% private brand plastic packaging in North America
made of post‑consumer recycled content by 202527

Estimated percentage made of post‑consumer recycled
content, based on supplier reports

17% of global private brand plastic packaging made of
post‑consumer recycled content by 2025

Estimated percentage made of post‑consumer recycled
content, based on supplier reports

62%

9%

9%

   24

Plastic packaging. We joined the U.S., Canada
and U.K. Plastics Pacts as part of the Ellen
MacArthur Foundation’s initiative to create a
circular economy for plastics — which aspires
to recycle or compost 50% of plastic packaging
by 2025. To help our suppliers make progress
on packaging, we hosted a virtual Sustainable
Packaging Innovation Summit with more than
3,000 participants in November 2020. Most
recently, a FY2021 Walmart grant to The
Recycling Partnership allowed the organization
to work with SYSTEMIQ to develop the Plastic IQ
scenario‑modeling tool to help U.S. companies
set effective circularity strategies. The tool
became available in Spring 2021.

Plastic bags. In FY2021 we became a founding
partner of Closed Loop Partners’ Beyond the Bag
effort, working with retailers, NGOs and
entrepreneurs to come up with industrywide
solutions.

Read more: Waste: Plastics ^

Customer engagement

We are also taking steps to encourage our
customers to participate in the circular economy.
For example, in 2020, we launched a new
partnership with thredUP to provide new, like
new or gently used items from its inventory for
sale on Walmart.com/thredUP. The offering has
grown to over 2 million pre‑owned quality items
from pre‑owned clothes.

Read more: Waste: Circular economy ^

“

Our ambition is to accelerate
a transition to 100% recyclable,
reusable or industrially
compostable private brand
packaging by 2025

”

   25

Regeneration of natural
resources: Forests,
lands, oceans

Walmart works with our suppliers to increase
the adoption of sustainable and regenerative
practices in supply chains. Building upon years
of work promoting the sustainable production
of important commodities, Walmart and the
Walmart Foundation committed in 2020 to help
protect, manage or restore at least 50 million acres
of land and 1 million square miles of ocean by 2030.

Source more sustainably

As a retailer, the primary way we can help to
protect, responsibly manage and restore natural
resources is through the products we purchase and
sell. Our sourcing teams seek to procure products
and ingredient lines that support our regenerative
ambitions and advance our nature goals. In some
instances, credible third‑party certifications help
us validate that products meet a standard that
is more sustainable than conventional products.
Commodities with certifications that support
Walmart’s nature goals and commitments include
palm oil, coffee, pulp and paper, farm‑raised
seafood, wild‑caught seafood, cotton, bananas and
pineapples.

Commodity/Product

Fresh and frozen seafood
Percentage sustainably sourced,29
as reported by suppliers

Certifications supporting Walmart’s
nature goals & commitments

FY2021 Progress

Marine Stewardship Council (MSC) or Best
Aquaculture Practices (BAP), or certified by a
program which follows Food and Agriculture
Organization guidelines and is recognized by the
Global Sustainable Seafood Initiative (GSSI)

Walmart U.S.
~100%30

Sam’s Club U.S.
~100%33

Walmart Canada
89%31

Walmart Mexico
61%34

Canned tuna
Percentage sustainably sourced,35
as reported by suppliers

MSC or certified by a program which follows
Food and Agriculture Organization guidelines
and is recognized by the Global Sustainable
Seafood Initiative (GSSI)

Bananas and pineapples
Percentage sourced and certified as sustainable,
as reported by suppliers

Rainforest Alliance, Sustainably Grown or Fair
Trade USA

Walmart
Central America
73%32

Walmart U.S
35%37

Walmart Canada
34%38

Sam’s Club U.S.
3%36

Bananas:39

Walmart U.S.
99%

Pineapples:40

Walmart U.S.
89%

Sam’s Club U.S.
100%

Sam’s Club U.S.
96%

Coffee
Percentage of private brand coffee net sales sourced
and certified as sustainable, as reported by suppliers

Rainforest Alliance, Fair Trade USA

Walmart U.S.
100%

Sam’s Club U.S.
92%

   26

Commodity/Product

Certifications supporting Walmart’s
nature goals & commitments

FY2021 Progress

Palm oil
Percentage of supplier‑reported palm oil volume
in Walmart Inc. private brand products certified as
sustainable

Roundtable on Sustainable Palm Oil (RSPO),
Rainforest Alliance

~90%42

Pulp and paper
Percentage of supplier‑reported pulp and paper
volume in Walmart Inc. private brand products that is
recyclable or certified as sustainable

Forest Stewardship Council, Programme for
the Endorsement of Forest Certification,
Sustainable Forestry Initiative

97%43

Cotton
Percentage of cotton volume for Walmart U.S. private
brand apparel and soft home textile products sourced
as “more sustainable,” as reported by suppliers

Better Cotton, Cotton USA, organic, recycled
cotton, Fair Trade USA41

47%44

Row crops
Acres involved in fertilizer optimization and soil health
practice programs, as reported by suppliers

>1.5 million acres

   27

Engaging suppliers & others to
accelerate progress

We seek to expand our impact by engaging
suppliers in pursuing ambitious nature initiatives
and by collaborating with others to pursue common
objectives. This includes encouraging suppliers to
undertake sustainability initiatives and report their
progress; providing resources and forums to share
best practices; and supporting collective action
among retailers, suppliers, NGOs, governments,
and other stakeholders through special initiatives
and consortia.

Scaling impact through systemic
change

Walmart and the Walmart Foundation
use philanthropy to complement and extend the
work of our business to help preserve
irreplaceable landscapes by supporting innovative
approaches that can help address gaps in the way
the system works today. For example, we invest
in improvements in certifications and standards
that can have a positive impact on nature,
tools to improve transparency and traceability,
and initiatives to build capacity to adopt practices
that benefit nature.

Selected examples of FY2021 investments include:

•  World Wildlife Fund (WWF): The

Walmart Foundation provided a grant
in FY2021 to World Wildlife Fund for
a new collaboration with cattle ranchers across
the Northern Great Plains. WWF will assist
ranchers in developing and implementing
whole ranch management plans designed to
achieve ecological and economic outcomes.

•  The Nature Conservancy (TNC): TNC uses
science‑based approaches that incorporate
multi‑stakeholder input into solutions to
benefit nature and people. A Walmart
Foundation grant in FY2021 supports TNC
to help advance transparency tools for
vessels at sea through two key workstreams:
(1) connecting satellite monitoring to
electronic monitoring on vessels to surface
overfishing and sustainability threats in
partnership with Global Fishing Watch with
research support from University of California,
Santa Barbara, and (2) aiming to accelerate
the scale of electronic monitoring on longline
vessels in the Western and Central Pacific.

Read more: Regeneration of natural resources:
Forests, land, oceans ^

Over 1.6 million
acres protected
since 2005

Walmart’s Acres for America
program, administered by
the National Fish and Wildlife
Foundation (NFWF), has helped
protect over 1.6 million acres
since 2005.

   28

People in supply chains

We aim to source responsibly while acting as
a catalyst of positive transformation for the
well‑being of people working in consumer product
supply chains, working with others to realize the
economic promise of supply chains and to help
address specific systemic risks.

Responsible sourcing

Our Responsible Sourcing program sets
expectations of product suppliers aligned with
our Human Rights Statement, monitors supplier
performance against those expectations and works
through our business to continuously improve our
product supply chains. In FY2021, we trained more
than 2,700 merchandising and sourcing associates
on Responsible Sourcing, assessed more than
14,300 third‑party audits of facilities producing
products for Walmart, and managed more than
800 cases involving allegations of supply chain
misconduct. In 2021, we revised and reissued our
Standards for Suppliers and issued new Responsible
Sourcing and Forced Labor Prevention policies.

Creating economic opportunity for
people in supply chains

Growing, making, and transporting products can
significantly benefit local economies and provide
economic opportunity for people who work in
product supply chains. Walmart sources billions of
dollars from diverse suppliers and uses business and
philanthropic resources to help smaller producers
access markets and grow.

Diverse sourcing

Walmart uses its sourcing strategies to foster
equity and inclusion of underrepresented and
disadvantaged groups while enhancing our product
offering. In FY2021, Walmart’s U.S. businesses spent
over $13 billion with approximately 2,900 diverse
suppliers.5

Market access for small producers

In Mexico, Central America, South Africa and India,
Walmart teams work to develop small producers as
suppliers and source from them to help them reach
Walmart’s customers.

Apart from Walmart’s own sourcing initiatives,
the Walmart Foundation also helps promote
market access for small producers, awarding
grants of just over $52 million that are expected
to benefit more than 293,000 smallholders (44%
of whom are women) in India, Mexico and Central
America between 2017 and the end of FY2021.
The grants provide access to training and capacity
development along with market linkages for
smallholders in Farmer Producer Organizations
(FPOs). As part of these efforts, the Walmart
Foundation committed $25 million over five years
to strengthen smallholders in FPOs in India;
progress to date includes 10 grantees with grant
awards of just over $20 million, providing reach to
over 170,000 smallholder farmers (57% of whom
are women).

We have committed to engage with stakeholders to address the major potential risks to the
dignity of workers in a minimum of 10 retail supply chains by 2025. We have focused on the
following supply chains to date:

•  Apparel in Bangladesh

•  Produce in the U.S. and Mexico

•  Shrimp in Thailand

•  Tuna in Thailand

•  Electronics sourced for the U.S.

retail market

Within these supply chains, we are
focused on addressing issues of forced
labor and responsible recruitment,
worker safety, and gender equity.

We also aspire to help make responsible
recruitment the standard business
practice for employers throughout
global supply chains.

Read more: People in supply chains ^

Collaborating to address systemic
risks to worker well-being

Systemic issues such as forced labor, unsafe working
conditions and gender inequity require collective
action to bring about significant, positive and
lasting protection of worker well‑being. Walmart
and the Walmart Foundation collaborate with
suppliers, non‑governmental organizations,

experts and others to address root causes of these
issues, foster innovative solutions and accelerate
adoption at scale.

Read more: People in supply chains ^

   29

Community

As an omni-channel retailer with
a physical presence in thousands
of communities around the
world, Walmart aims to serve and
strengthen communities through
our products, services, jobs and
other resources that help people
live better.

Issue briefs

Find more about each issue on the website

Serving communities ^

Safer, healthier food & other products ^

Disaster preparedness & response ^

>$1.4 billion

in cash and in‑kind donations
globally, by Walmart and the
Walmart Foundation

   30

COVID‑19 response

As COVID‑19 upended lives and ways of working
around the world, Walmart supported our
communities while prioritizing the health and
safety of our associates and our customers. Our
associates stepped up to the challenge, serving
our customers and supporting communities during
this time.

Access to food & essentials

In the U.S., with many businesses closing and
people staying at home needing essential items,
we worked to keep our stores open and stocked,
providing access to needed products and services,
including by:

•  Maintaining our everyday low‑price discipline

and issuing guidance setting limits on
essential items.

•  Expanding pickup and delivery services so that
people could access essential items without
having to physically come into a store. We
expanded to ~7,300 pickup and 5,200 delivery
locations globally in FY2021 and our U.S.
eCommerce business grew 79% in FY2021,
a strong signal of customer demand for
alternatives to traditional in‑store shopping.

Taking care of our associates

When the pandemic hit, Walmart quickly
implemented safety protocols and a special
COVID‑19 leave policy for our U.S. associates,
including paid time off over and above regular paid
time off, which remained in place throughout the
end of FY2021 and into FY2022.

In FY2021, Walmart also paid four special cash
bonuses (in addition to our regular quarterly
incentives); to U.S. hourly associates, special cash
bonuses totaled $1,200 for each full‑time hourly
associate and $600 for each part‑time hourly
associate, assuming associates were employed
on the qualifying dates for each bonus. The
total special cash bonuses paid during calendar
2020 exceeded $1.5 billion.

Walmart and Sam’s Club in the U.S. strongly
encouraged, but did not mandate, associates to
get vaccinated. To help make vaccination as easy
as possible, the company offered appointments to
associates in stores and clubs, providing two hours’
paid time to get a vaccination. The company also
enhanced its COVID‑19 emergency leave policy
to three days of paid leave for any vaccine side
effects for associates.

•  Creating the ability for those using SNAP
benefits to utilize pickup and delivery.

Customer & associate safety

We implemented changes across our operations to
make our facilities safer for associates to work and
our customers and members to shop. For example,
in our U.S. stores and clubs we changed our hours

   31

to allow for additional cleaning, required face
coverings for associates and customers, installed
sneeze guards at checkout and other points of sale,
provided contact‑free services, and conducted
daily associates’ temperature and health checks. We
adjusted our shopping and pickup hours for seniors,
those with disabilities and those designated high‑risk
by the CDC.

Supporting communities

With many businesses closing in Spring 2020 — and
wanting to help provide relief to Walmart associates
serving customers in stores — Walmart set a goal to
hire 150,000 new associates in the U.S. We quickly
met that goal, and within six months, we had hired
more than 500,000 new associates in the U.S.

Throughout the pandemic, Walmart has worked
closely with federal and state governments,
labs, and insurance companies to expand
COVID‑19 testing. As of the end of FY2021, we
supported more than 500 testing sites active
across the U.S. that tested hundreds of thousands
of people.

By the end of FY2021, our pharmacists (and
pharmacy technicians in some states) were
administering vaccines in dozens of states, Puerto
Rico and the District of Columbia. As of May 2021,
COVID‑19 vaccines were available in all Walmart and
Sam’s Club pharmacies, more than 5,100 locations
nationwide, across 49 states, Puerto Rico and
Washington, D.C.

To help India meet its urgent need for medical‑grade
oxygen, Walmart, the Walmart Foundation,
Flipkart and PhonePe, along with Walmart’s Global

Technology and Sourcing hubs, are collaborating
to procure vital oxygen concentrators and other
equipment. Extending these efforts, the Walmart
Foundation committed $2 million to support various
NGOs in India in the spring of 2021.

To further serve communities during the pandemic,
Walmart and the Walmart Foundation have given
more than $43 million in cash and in‑kind donations
to organizations working in communities around the
world responding to COVID‑19. Grants were directed
toward the areas of health care, technology and
food access. Read more about the organizations that
received funds as part of our response here. Overall,
in FY2021, Walmart and the Walmart Foundation
provided over $1.4 billion in total cash and in‑kind
donations globally.

Read more: Serving communities ^

Disaster preparedness &
response

We aim to mitigate the impact of disasters
and related disruption on our business
and local communities with a focus on
associate safety and well‑being and
recovery of business operations to serve
communities in need.

Read more: Disaster preparedness
& response ^

   32

Providing safer, healthier food & other products

Providing safer, healthier and affordable food and
other products is central to our mission to help
people save money and live better. Our efforts
include policies, standards and practices to
sustain the safety and quality of our assortment,
while engaging our customers and working with
others on industrywide efforts in consumer
education, food and product safety, and access to
safer, healthier and affordable products.

Food access

Our omni‑channel business model provides
convenient access to food and other products for
our customers around the globe. For example:

•  In the U.S., our stores and clubs are within

10 miles of 90% of American households, and
our eCommerce capabilities allow us to reach
many more.

•  In the U.S., we have rolled out pickup in more
than 3,500 Walmart and all 597 Sam’s club
locations, and express delivery is offered in
nearly 3,000 Walmart stores. We expanded to
~7,300 pickup and ~5,200 delivery locations
globally in FY2021.

•  In CY2020, Walmart donated more than

745 million pounds of food globally; in FY2021,
Walmart stores, clubs, and distribution centers
in the U.S. donated more than 627 million
pounds of food. 66% of U.S. donated foods in
FY2021 were fruits, vegetables, dairy products
and meats. These donations help to improve

food security for those in need and strengthen
the charitable meal system — the network of
food banks, food pantries and meal programs
across the U.S.

•  The Walmart Foundation also supports efforts
to unlock resources for community‑based
organizations and entrepreneurs in geographic
areas with limited access to food, oftentimes
characterized as food deserts and/or swamps,
focusing on removing barriers to funding
for BIPOC‑led organizations.

Food safety

Responsibility for food safety lies with every
Walmart associate and supplier. Walmart
maintains a global food safety compliance
program to assist Walmart associates and
suppliers in meeting that expectation. As part
of that program, Walmart develops policies,
standards, procedures and controls designed to
prevent, detect and remediate practices that
do not meet our expectations. Walmart’s Food
Safety Compliance team comprises experienced
food safety professionals who oversee our
food safety program. In FY2021, more than
190,000 independent food safety audits were
conducted at Walmart stores and clubs globally
and more than 290,000 associates took at least
one food safety course.

Read more about food access, food and product
safety, and sustainable chemistry:
Safer, healthier food & other products ^

>627 million pounds of food

donated by Walmart U.S. stores, clubs and distribution centers

>3,500
Walmart U.S.

All 597
Sam’s Club U.S.

stores have pickup

locations have pickup

   33

Ethics &
integrity

Walmart wants to make trust a
competitive advantage. Integrity
builds trust in our business, and
modeling the highest standards of
ethics and compliance helps us create
and maintain a culture of integrity.

>942,000

associates received
ethics training

   34

Issue briefsFind more about each isssue on the websiteEthics & compliance ^Corporate governance ^Engagement in public policy ^Digital citizenship: Ethical use of data & responsible use of technology ^Human rights ^Highest standards of ethics & compliance

At every level of our company, we work to
create a culture that inspires trust among
our associates, with our customers and in the
communities we serve.

In February 2021, Walmart published our Code of
Conduct, which replaced the former Statement
of Ethics as our internal policy and external
statement of our values, principles and expected
behaviors. The code applies to all associates of
Walmart and its subsidiaries and to Walmart’s
and its subsidiaries’ board members when
they are acting in their capacity as directors.
To complement and supplement the code,

Walmart released new versions of 20 ethics and
compliance policies in 2020 and 2021, covering
topics ranging from Anti‑Money Laundering
and Financial Services to Discrimination and
Harassment Prevention and Trade Compliance.
Walmart also re‑released its Standards for
Suppliers in early 2021. The revised standards
include foundational expectations of suppliers on
topics not previously covered, including food and
product safety, consumer protection, trade and
sanctions compliance, conflicts of interest, and
fair competition.

Read more: Ethics & compliance ^

Good corporate governance

operating results and
creating alignment
with our shareholders.

Read more:
Corporate governance ^

Strong corporate governance starts with setting
the structures and incentives to help the company
thrive in the long term and flows through to
everyday practices. Our approach to corporate
governance includes maintaining a majority
independent Board with diverse backgrounds and
relevant experiences and skills and developing a
talented and diverse pipeline of leaders.

We design our compensation programs to support
our enterprise strategy and to align our leadership
team with our culture, strategy and organizational
structure. Our executive compensation programs
are intended to motivate and retain key
executives, with the goal of generating strong

Walmart Board of Directors 11

In the last five years,

3 out of 5

appointed board nominees were
women or racially/ethnically diverse

As of April 2021, 25% of our Board was female
and 17%  was racially or ethnically diverse

25% female

17%  racially or

ethnically diverse

98% overall attendance rate at Board

and Board committee meetings

11 of 12

Directors are non-management

   35

Engagement in public policy

We strive to make a meaningful and positive
contribution to the countries and communities in
which we operate through our engagement with
government. Through policy advocacy, support
of the political process and collaborations with
business coalitions, we aim to support public policy

that is in the interests of our business, customers,
associates and other stakeholders. Issues of
focus include health and safety, climate change,
marketplace trust and transparency, racial equity,
trade and supply chains, and data privacy.

Read more: Engaging in public policy ^

Digital citizenship: Ethical use of data & responsible
use of technology

As our customer proposition has evolved beyond
stores and clubs to become a more digital,
omni‑channel offer that blends online and
in‑store experiences, our approach to data and
technology has become central to building trust.
Walmart’s digital trust commitments, based in
Walmart’s core values, provide a foundation for
the company to earn and maintain customer trust
as we make decisions regarding new technologies,
services and data use; maintain policies and
controls regarding the use and sharing of personal
information; responsibly manage data, records and
information; and protect our information and digital
infrastructure from cyber intrusions.

For more information about our digital trust
commitments, privacy policies and cybersecurity
program please see our
Digital Citizenship: Ethical use of data &
responsible use of technology brief ^

Digital Trust Commitments

Service: Our use of technology and data
will be in service of people.

Excellence: We strive for excellence
in our technology, making it simple,
convenient and secure.

Integrity: We will use data responsibly
and transparently and always with
integrity.

Respect: Our data practices and
technology will treat people fairly, with
dignity and respect.

   36

Human rights

We respect human rights and seek to use
our scale, capabilities and influence to help
people and communities improve their lives,
with a focus on our salient human rights
issues. Our Human Rights Statement serves as

the foundation of our efforts to respect human
rights by confirming our respect for human
rights and articulating how our culture, values
and international instruments inform our approach
to human rights.

Salient human rights
issues

Key aspects

Treating workers with respect

•  Freedom of association and collective bargaining

•  Meaningful opportunities for workers to be heard

•  Pay, working hours

Promoting a safe & healthy
work environment

•  Physical safety and security of work premises

•  Workplace abuse

•  Healthy work environments

Providing a fair & inclusive work
environment

Combating forced &
underage labor

Read more: Human rights ^

•  Anti‑discrimination and harassment

•  Diversity and inclusion

•  Gender equity

•  Forced labor, including debt bondage

•  Underage labor

•  Vulnerability of migrant workers; responsible recruitment

•  Human trafficking

“

We respect human
rights and seek to use
our scale, capabilities
and influence to help
people and communities
improve their lives

”

   37

Endnotes

1.  Average total compensation for fiscal year 2021 includes average hourly pay, other compensation
and benefits per hour for full and part time associates (excluding home office). The calculation
excludes the following associate types: Pharmacists, on‑site clinics, drivers, management trainees
and temporary associates. This does not include special cash bonuses or paid leave related to
COVID‑19.

2.  Data includes both hourly and management promotions and excludes Walmart Home Office

promotions.

3.  This includes four special cash bonuses totaling $1.5 billion paid to U.S. associates during the

pandemic, and regular quarterly bonuses.

4.  U.S. metrics include all hourly associates, excluding temporary associates. Global metrics exclude

associates in India and eCommerce associates in Ireland and Israel. U.S. management metrics include
all salaried, exempt associates. U.S. officer metrics include president, executive vice president,
senior vice president and vice president positions. Data for the U.S. is as of January 31, and data for
international markets is on a one‑month lag and on a calendar year‑end basis.

5.  A diverse supplier is defined as a U.S. privately held company that is recognized as 51% owned and

operated by a woman, minority, veteran, disabled veteran, person with a disability or member of the
lesbian, gay, bisexual or transgender (LGBT) community.

6.  On an adjusted basis between the 2015 calendar year baseline and 2019, Walmart reduced its
absolute Scope 1 and 2 emissions by 10.15%, equivalent to 1.98 million metric tons of CO2e.
Adjustments may include the effects of acquisitions and divestitures for the period in which they had
an effect.

7.  This includes generation from active or under‑development renewable and low‑carbon projects.
It considers the combined contribution of the renewable energy credits and power generated
from on‑site and off‑site projects as well as renewable energy that we receive from utility‑owned
renewable generation feeding into the grids where our sites are located. Third‑party‑verified
energy consumption data is one year in arrears (for example for FY2020, we used CY2019 energy
consumption). This was used in combination with the electricity procured from our renewable energy
projects in 2019 and the most recent grid fuel mix information obtained from the International
Energy Agency for the regions where we operate.

8.  Carbon intensity (Scopes 1 and 2 per revenue) calculation is based on emissions reported for

calendar year and divided by total annual revenue as measured by Walmart’s fiscal year. Absolute
emissions have been adjusted for most recent grid factors.

9.  Based on review of material handling and waste diversion processes, as reported by waste vendors,

food banks and stores. In cases where certified or otherwise documented weights were not available
due to industry challenges, they have been estimated based on waste audits, historical data,
extrapolation for similar facilities in size and scope, etc.

10.  Supplier‑reported; calculated in accordance with Walmart’s Project Gigaton Accounting

Methodology, available on the Walmart Sustainability Hub.

11.  Data as of the date Walmart’s annual Proxy Statement was filed with the SEC for 2021. Prior to 2021,
Walmart disclosed the gender and racial/ethnic diversity of its Board members in two ways: (1) the
percentage of all directors identifying as female; and (2) the cumulative percentage of all directors
identifying as female and/or racially or ethnically diverse. Beginning with the 2021 Proxy Statement,
Walmart disclosed the gender and racial/ethnic diversity of its Board separately.

12.  Walmart uses the term “ESG priority” in a manner similar to the way other organizations may refer to
their “material” ESG issues. The term is intended to cover those issues which are the most relevant to
our business and most important to our stakeholders.

13.  The calculation excludes the following associate types: Pharmacists, on‑site clinics, drivers,

management trainees and temporary associates.

14.  Average total compensation for fiscal year 2021 includes average hourly pay, other compensation
and benefits per hour for full and part time associates (excluding home office). The calculation
excludes the following associate types: Pharmacists, on‑site clinics, drivers, management trainees
and temporary associates. This does not include special cash bonuses or paid leave related to
COVID‑19.

24. Meeting or exceeding Zero Waste International Alliance (ZWIA) business recognition program

requirements, which include adoption of the ZWIA definition of zero waste and achievement of 90%
or more diversion of all discarded resources from landfills, incinerators and the environment. We
measure reductions in food waste through use of the following: Measurement metric = total weight
of non‑diverted food in pounds (i.e., landfill and controlled combustion without energy recovery) /
total weight of all food sold in pounds. Zero waste goal and reporting scope includes waste materials
and products generated in Walmart’s owned facilities and its operations (stores, clubs, warehouses,
return centers, truck maintenance garages, etc.).

25. Original goal covered U.S., Canada, Japan and the U.K. and now includes Mexico. Walmart divested

its retail operations in the U.K. and Japan in February and March of 2021, respectively. Going
forward, we will no longer disclose progress for our divested operations.

15.  This segment includes the Walmart U.S. stores and supply chain.

16.  This segment includes Sam’s Club clubs and supply chain.

26. Based on reports from Feeding America.

27.  Includes U.S., Canada and Mexico.

17.  Supply chain includes associates who work in distribution and fulfillment centers but excludes drivers.

28. Walmart private brand suppliers representing 81% of Walmart global private brand net sales reported

18.  Data includes both hourly and management promotions and excludes Walmart Home Office

promotions.

19.  See, e.g., Sundiatu Dixon‑Fyle, Kevin Dolan, Vivian Hunt, and Sara Prince, McKinsey & Co., Diversity

Wins: How Inclusion Matters (May 19, 2020), available at https://www.mckinsey.com/featured‑
insights/diversity‑and‑inclusion/diversity‑wins‑how‑inclusion‑matters (last accessed May 3, 2021);
Paul Gompers and Silpa Kovvali, The Other Diversity Dividend, Harvard Business Review, (July‑August
2018), pg. 72‑77 available at https://hbr.org/2018/07/the‑other‑diversity‑dividend (last accessed May
3, 2021); Rocío Lorenzo, Nicole Voigt, Miki Tsusaka, Matt Krentz, and Katie Abouzahr, How Diverse
Leadership Teams Boost Innovation, Boston Consulting Group Henderson Institute (Jan. 23, 2018),
available at https://www.bcg.com/en‑us/publications/2018/how‑diverse‑leadership‑teams‑boost‑
innovation (last accessed May 3, 2021).

20. As of the end of FY2021, we were ~93% of expected progress to date.

21.  Annual Scopes 1 and 2 GHG emissions and carbon intensities correspond to the results we disclose
in response to the annual CDP Climate Change questionnaire and can be downloaded from the
CDP website. The methodology is in accordance with the GHG Protocol Corporate Accounting
and Reporting Standard, meaning we use the latest available emissions factors for energy grids at
the time of annual reporting to CDP. As a result, emissions reported to CDP in any given year are
subject to the grid factors available in the year of reporting. Lucideon CICS independently verified
Walmart’s reported Scope 1 and Scope 2 emissions, pursuant to ISO 14064‑3 (the international
standard for verification of greenhouse gas inventories). For more details, please refer to Walmart’s
Greenhouse Gas Inventory Methodology attached to our CDP disclosures. Scope 2 (market‑based)
emissions include the carbon reduction value of renewable electricity procured from on‑site and
off‑site projects.

22. Carbon intensity (Scope 1 and 2 per revenue) calculation is based on emissions reported to CDP for
calendar year (Jan. 1 ‑ Dec. 31) and normalized by total annual revenues as measured by Walmart’s
fiscal year (Feb. 1 ‑ Jan. 31). The intensities correspond with the Scope 1 and 2 emissions as reported
in our annual CDP response and have not been adjusted for most recent grid factor updates.

23. For the 2018/FY2019 calculation, we estimated emissions for Walmart Brazil operations (using
2017 data as a proxy) for the period between January 2018 and August 2018 as Walmart Brazil
revenue for the same period are included in the FY2019 annual revenue number. Absolute emissions
have been adjusted for most recent grid factors.

packaging data. The calculation includes all private brand primary plastic packaging and single‑
use plastic and reusable plastic bags globally. For the time frame of the private brands packaging
survey, we instructed suppliers to use their latest or most recent 12‑month period for which they
have data available. If they reported last year, they may use the same reporting period as the initial/
prior reporting year to avoid gaps or overlap with the prior year’s submissions. Because of the sale
of Walmart’s Argentina business in late 2020, we were unable to capture sufficient packaging data
for the Argentina market. To represent this market’s business, we used the 2018‑2019 private brand
packaging survey for Argentina.

29. Sourced from fisheries that are third‑party certified as sustainable, actively working toward

certification or engaged in a fishery improvement project (FIP) or Aquaculture Improvement
Project (AIP). FIPs are tracked on the FishChoice platform (publicly registered FIPs include FIPs and
Pre‑FIPs, both of which are registered with Fishsource).

30. Walmart U.S. seafood suppliers were asked to report through the Seafood Metrics System the

total volume of the fresh and frozen, wild‑caught and farmed seafood shipped to Walmart U.S. in
FY2021 and the volume of that seafood that met Walmart’s requirements (certified by a designated
program or in a FIP or AIP). Suppliers representing approximately 100% of Walmart U.S. volume of
fresh and frozen, wild‑caught and farmed seafood shipped to Walmart U.S. in FY2021 responded;
they reported that 99.61% met Walmart’s seafood policy requirements. Reported volumes were
validated against Sustainable Fisheries Partnership records and Walmart business data showing
supplier shipments.

31.  Walmart Canada seafood suppliers were asked to report through the Seafood Metrics System the

total volume of the fresh and frozen, wild‑caught and farmed seafood shipped to Walmart Canada in
FY2021 and the volume of that seafood that met Walmart’s requirements (certified by a designated
program or in a FIP or AIP). Suppliers representing approximately 96% of Walmart Canada volume of
fresh and frozen, wild‑caught and farmed seafood shipped to Walmart Canada in FY2021 responded;
they reported that 89% met Walmart’s seafood policy requirements. Reported volumes were
validated against Sustainable Fisheries Partnership records and Walmart business data showing
supplier shipments.

32. Based on reports from suppliers representing 100% of Walmart Central America fresh and frozen,

wild‑caught and farmed seafood in CY2020.

   38

33. Sam’s Club U.S. seafood suppliers were asked to report through the Seafood Metrics System the

37.  Walmart U.S. shelf‑stable tuna (includes canned and pouched tuna) suppliers (private brand and

total volume of the fresh and frozen, wild‑caught and farmed seafood shipped to Sam’s Club U.S. in
FY2021 and the volume of that seafood that met Walmart’s requirements (certified by a designated
program or in a FIP or AIP). Suppliers representing approximately 100% of Sam’s Club U.S. volume of
fresh and frozen, wild‑caught and farmed seafood shipped to Sam’s Club U.S. in FY2021 responded;
they reported that 99.99% met Walmart’s seafood policy requirements. Reported volumes were
validated against Sustainable Fisheries Partnership records and Sam’s Club business data showing
supplier shipments. Seafood locally sourced in Hawaii for our Sam’s Club locations in Hawaii was not
included in the reported volumes.

34. Walmart Mexico national seafood suppliers were asked to report through the Seafood Metrics

System the total volume of the fresh and frozen, wild‑caught and farmed seafood shipped to Walmart
Mexico in FY2021 and the volume of that seafood that met Walmart’s requirements (certified by a
designated program or in a FIP or AIP). Suppliers representing approximately 61% of Walmart Mexico’s
national supplier volume of fresh and frozen, wild‑caught and farmed seafood shipped to Walmart
Mexico in FY2021 responded; they reported that 61% met Walmart’s requirements. Reported volumes
were validated against Sustainable Fisheries Partnership records and Walmart business data showing
supplier shipments.

35. Sourced from fisheries that are third‑party certified as sustainable, actively working toward

certification, or engaged in a fishery improvement project (FIP) tracked on the FishChoice platform
(publicly registered FIPs include FIPs and Pre‑FIPs, both of which are registered with Fishsource).

36. Sam’s Club U.S. shelf‑stable tuna (includes canned and pouched tuna) suppliers were asked to report
through the Seafood Metrics System the total volume of shelf‑stable tuna shipped to Sam’s Club U.S.
in FY2021 and the volume of that product that met Walmart’s seafood policy requirements (certified
by a designated program or in a FIP). Suppliers representing 100% of Sam’s Club U.S. volume of shelf‑
stable tuna shipped to Sam’s Club U.S. in FY2021 responded; they reported that 3.66% met Walmart’s
seafood policy requirements (0.03% certified; 3.64% FIP). Reported volumes were validated against
Sustainable Fisheries Partnership records and Walmart business data showing supplier shipments.

702 S.W. 8th St.
Bentonville, AR 72716, USA
1‑800‑925‑6278 or 1‑800‑WALMART
help@walmart.com

national brand) were asked to report through the Seafood Metrics System the total volume of shelf‑
stable tuna (includes canned and pouched tuna) shipped to Walmart U.S. in FY2021 and the volume
of that product that met Walmart’s seafood policy requirements (certified by a designated program
or in a FIP). Suppliers representing approximately 100% of Walmart U.S. volume of shelf‑stable
tuna shipped to Walmart U.S. in FY2021 responded. Across the assortment, suppliers reported that
35.1% met Walmart’s seafood policy requirements (14% certified; 21.1% FIP). Private brand suppliers
reported that 85.59% (36% certified; 49% FIP) met Walmart’s seafood policy requirements and
national brand suppliers reported that 4.87% met Walmart’s seafood policy requirements. Reported
volumes were validated against Sustainable Fisheries Partnership records and Walmart business data
showing supplier shipments.

41.  Claim based on supplier‑reported data for total cotton volume, Cotton USA, Organic, Fair Trade
USA, and Recycled Cotton; for Better Cotton, claim based on Better Cotton Initiative’s Better
Cotton Platform data.

42. Suppliers supplying Walmart private brand products in departments most likely to contain palm

oil were identified and encouraged to participate in Walmart’s palm oil survey. Excluding suppliers
who responded to the survey and stated that they do not supply Walmart with products containing
palm oil, suppliers representing 65.6% of the relevant business responded. The percentage of
supplier‑reported palm oil volumes in Walmart private brand products certified as sustainable is
the quotient of the volume of certified palm oil divided by total volume of palm oil, per the supplier
survey responses.

38. Walmart Canada canned tuna suppliers were asked to report through the Seafood Metrics System

the total volume of tuna shipped to Walmart Canada in FY2021 and the volume of that product that
met Walmart’s requirements (certified by a designated program or in a FIP). Suppliers representing
approximately 98% of Walmart Canada canned tuna volume responded; they reported that 34% met
Walmart’s seafood policy requirements (25% certified; 9% FIP). Reported volumes were validated
against Sustainable Fisheries Partnership records and Walmart business data showing supplier
shipments.

43. Suppliers supplying Walmart private brand products in departments most likely to contain pulp and
paper were identified and encouraged to participate in Walmart’s pulp and paper survey. Excluding
suppliers who responded to the survey and stated that they do not supply Walmart with products
containing pulp and paper, suppliers representing 74% of the relevant business responded. The
percentage of supplier‑reported pulp and paper volumes in Walmart private brand products certified
as sustainable or containing recycled content is the quotient of the volume of certified or recycled
pulp and paper divided by total volume of pulp and paper, per the supplier survey responses.

39. Percentages are based on volume of bananas and pineapples sourced under an annual alignment. Spot
buy volume due to sporadic increase of demand or rejections or delay of shipping to ensure surety
of supply is not included. Spot buys may or may not be sustainability certified (Rainforest Alliance,
Sustainably Grown or Fair Trade).

44. Based on reports from suppliers that represented 91.2% of Walmart U.S. private brand apparel net

sales and 85.7% of Walmart U.S. home textiles net sales. Walmart proxied supplier‑reported volume
data to determine the total volume of cotton in Walmart U.S. private brand apparel products, but did
not assume that any portion of cotton from non‑reporting suppliers was certified.

40. Supplier reported data for total cotton volume sourced through one of the following: Cotton USA,
Organic, Fair Trade USA, or Recycled Cotton. Better Cotton Initiative data was derived from BCI’s
Better Cotton Platform data.

   39