A MESSAGE FROM OUR CHIEF making. Yet we are encouraged by emerging shifts in mindsets, A rose by any other name… Debates have intensified about N SUSTAINABILITY OFFICER practices, resource flows and policies within each of these terminology—ESG, stakeholder capitalism, inclusive capitalism, O arenas as well as progress within our own company. shared value, etc.—and whether all of this is just a passing fad. TI C As we go to press, the world faces uncertainty: COVID-19 waves Our view is simple: a company’s long-term success depends U Climate action: more than promises. In the lead up to COP26 in D continue; inflation has kicked up while supply chains remain on its performance on the societal issues most relevant to its O Glasgow, many companies set goals to help the world get to NTR volatile; the effects of climate change have intensified; social net-zero emissions. Walmart has been engaging in climate action business and stakeholders. We can’t have a strong business I divides seem to have widened. without a thriving planet and the trust and engagement of since 2005 and enlisting suppliers to do the same since the customers, associates, suppliers, investors, civic partners and Y Yet despite such challenges—or as much spurred on by them— launch of Project Gigaton™ in 2017. This year we reported that we T communities. And the fundamentals of that are here to stay. I we are more committed than ever to our efforts to become continue to make progress toward our science-based targets for N TU a regenerative company, one that puts humanity and nature emissions reduction (for example, reporting a 17.5% reduction in We remain optimistic. In Walmart communities around the world, R O at the center of our business practices. We believe that we FY2021 relative to our 2015 baseline for Scope 1 and 2 emissions) our customers, associates, suppliers and civic partners help one P P O maximize the value of our company for our customers and and we significantly expanded our efforts and disclosures another live better every day in a million ways, big and small. other stakeholders by tackling relevant, pressing societal issues related to our nature goals. Thank you for your engagement to make us a better company. Y through business. T I No simple solutions. When it comes to complex societal issues, IL B In the pages of this year’s FY2022 Summary and the stakeholders don’t always agree on the way forward and there A IN accompanying ESG Issue Briefs, we share our aspirations, can be many obstacles to progress. Through our ESG reporting, A ST strategies, progress and challenges related to our priority we aim to provide insight into Walmart’s theories of change, U S environmental, social and governance issues. A few observations systemic challenges and the efforts of Walmart teams and our Kathleen McLaughlin Y about our FY2022 disclosures: partners to overcome them. EVP and Chief Sustainability Officer IT “Who’s #1? The customer, always.” In a year where so many Decision-useful reporting. Investors have asked businesses for Walmart Inc. N U M communities turned to Walmart for access to affordable food, more consistent and relevant ESG information. Nobody wants OM consumables, COVID-19 vaccines and other everyday essentials, an avalanche of data or—at the opposite end of the spectrum— C high-level headlines; they want concrete facts regarding policies, it became clearer than ever that delivering our customer Y proposition is itself a central ESG contribution. practices and results relevant to the creation of shared value. We T I aim to set the standard for decision-useful reporting. This year, R Progress on rewiring systems for equity. Because advancing G we have responded to investor requests for expanded disclosure E equity in society requires transformation of complex systems, NT I in specific arenas (for example, public policy engagement; our strategies in arenas such as economic mobility, racial & S approach to nature). We continue to aim for consistency and C equity and human rights in supply chains involve long-term, I relevance through the structure of our ESG issue briefs and TH intensive collaboration with others on business and philanthropic E approach to metrics (e.g., clear definitions; sharing progress for initiatives extending beyond the four walls of our company. the last three fiscal years). Substantial improvements in outcomes may be years in the 9