SUSTAINABILITY 360

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SUSTAINABILITY 360

• Wal-Mart Stores Climate Change Initiatives

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BACKGROUND

• Wal-Mart Operates 6,700 facilities around the
  world in various formal.
• Wal-Mart is the largest private consumer of
  electricity in the U.S.
• Overall, second largest U.S. consumer after the
  federal government (inc. military installations)

• 2006 utility spend was over 1.5 billion
• Domestic energy usage is growing about 8-10 per
  year, parallel to corporate growth

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175 million customers shop at our stores around
the globe at least once per week.
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SUSTAINABILITY GOALS

• 100 Renewable Energy Supply
• Zero Waste at Stores
• Reduce Solid Waste by 25 in Next 3 Years
• Decrease All Packaging by 25 by 2013
• Offer Retail Products that Sustain our
  Environment
• Reduce GHG at Wal-Mart Stores, Sams Clubs, and
  Distribution Centers Around the World by 20 Over
  the Next 7 Years.

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LEGAL REGULATORY ACTIONS

• Conducted First Greenhouse Gas Inventory Baseline
  For Entire Company (International Included) in
  2006
• Responded to Carbon Disclosure Project Survey for
  the First Time to Considerable Acclaim
• Appeared at U.S. Senate Committee on Energy
  Natural Resources hearings to discuss potential
  steps to address Climate Change with Bipartisan
  Support on April 5, 2006.

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LEGAL REGULATORY ACTIONS (Cont.)

• Filed comments regarding the Regional Greenhouse
  Gas Initiative (RGGI) in the Northeast
  advocating consideration of early action by
  non-utilities.
• Pursue regulatory and policy changes that will
  create incentives for industry and utilities to
  invest in energy efficiency, to use low or no GHG
  sources of electricity, and to reduce barriers to
  integrating these sources into the power grid.

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ENERGY AND ENERGY EFFICIENCY

• Renewable Energy Portfolio
• Commitment to be 100 renewable without reliance
  on renewable energy credits.
• Energy team published a solar RFP in December
  2006 (Results to be announced shortly).
• Investigating wind options as well as discussing
  landfills and biomass alternatives.
• Experimental Stores Receive Solar Installation
  and Wind Turbines
• Aurora, CO
• McKinney, TX
• So far, results have not been positive due to
  ongoing technical problems

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Temperature

• All stores temperatures maintained at 75 degrees
  (73 degrees in pharmacy area) Fahrenheit, with
  two degrees latitude by store.
• All facilities monitoring centralized at
  headquarters

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ENERGY AND ENERGY EFFICIENCY (cont.)

• Demand Side Management
• Investing in European smart meters so
  headquarters will have real-time data on energy
  consumption.
• Actively seeking and participating in demand
  response/load response programs across the U.S.
• Wal-Mart has increased its participation in the
  DSM and advanced metering proceedings across the
  nation.
• SUPPLIER ENERGY EFFICIENCY INITIATIVE
• Sams Club in collaboration with two vendors is
  making plans to offer an energy efficiency
  program for Club members and small businesses.
• Such initiative would focus primarily on lighting
  retrofits.
• Rollout will begin in the Southwest this spring.

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Retail Merchandising

• Promotion of Energy Efficient Retail Products
• Lighting Constitutes approx. 20 of Residential
  Electric Bill and each CFL saves approx. 30 over
  its life span.
• Advertising Campaign with GE for Promotion of
  Compact Fluorescent Light Bulbs.

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Carbon-Balanced Products

• Sams Club has joined forces with a carbon offset
  supplier and pressure washer supplier to roll out
  the first known carbon-balanced product.

• Sams and suppliers took the established average
  life span (2 years) of product and offset that
  period of time with carbon credits.

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Retail Merchandising (cont.)

• Reduce Produce Packaging with Corn-Based (PLA)
  Packaging on 4 items.
• Cut Fruits, Herbs, Brussels Sprouts,
  Strawberries
• Saves the equivalent of 800,00 gallons of
  gasoline
• Provides over 11 million pounds of GHG emissions.
• Work with Suppliers to Reduce all Packaging by 5
  by 2013
• Equivalent to removing 67 million gallons of
  diesel fuel per year.

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BUILDING EFFIENCY AND TECHNOLOGY

• Committed to building a new prototype that will
  be 25-30 more efficient and produce 30 less GHG
  than current stores within the next 4 years.
• Experimental low temperature refrigeration system
  using CO2 as the secondary circulating coolant
  was installed in the Sandfly, GA Sams Club July
  2006
• Successful introduction of LED lighting in
  refrigeration cases will be installed in all new
  stores going forward

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• New Kansas City format improves energy efficiency
  by 20 than the traditional Super Center format.

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BUILDING EFFIENCY AND TECHNOLOGY (Cont.)

• Experimenting with fly ash mix instead of
  traditional cement mix, which could have huge
  impact of GHG reduction.
• Working with various suppliers to test new
  technology and fast track roll out, with the goal
  of making technology improvements affordable to
  all

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SUSTAINABILITY 360

• Thank You!

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System Comparisons

• Direct Expansion
• System

Second Nature System
PRIMARY REFRIGERANT LOOP
DIRECT EXPANSION LOOP
SECONDARY COOLANT LOOP