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					2010
Social Responsibility and Sustainable
Development Report




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Walmart de México y Centroamérica
             About




                                    Contents
                                    Distribution of units per country 02 | Letter from the Chief Executive Officer 04 | About our
                                    report 06 | Acting with transparency and honesty, always 08 | Social responsibility and sustainable
                                    development management 10 | Stakeholders 12 | Caring for our associates 14 | Meeting the needs
                                    of our customers 24 | Supporting the development of suppliers 30 | Benefitting our communities 40 |
                                    Forging a sustainable future 50 | Performance indicators index 62 | GRI Index 85 |
W
            al-Mart de México S.A.B. de C.V. is the region’s leading
            retail company with operations in 384 cities located in
            six countries on the American continent: Costa Rica, El
Salvador, Guatemala, Honduras, Mexico and Nicaragua. Shares for
                                                                                       $334.5
the Company have been traded on the Mexican Stock Exchange                             billion pesos
since 1977, under the ticker symbol Walmex. The corporate offices
are located in Mexico City.
                                                                                        in net sales
   The Company runs 2,279 operating units –including retail stores,
membership warehouse clubs, apparel stores, and restaurants– 263
bank branches, and 25 Distribution Centers (DCs).




 Net sales                                                             Operating income
 billion pesos                                                         billion pesos
                                                $334.5
                                              $334.5
                                                                                                         $27.0
                                                                                                       $27.0




   $71.4
$71.4
                                                                          $3.8$3.8



     2000
  2000                                           2010
                                               2010                           2000
                                                                           2000                          2010
                                                                                                       2010


                                                                              $33.3
                                                                            $33.3
For further information, go to: www.walmex.mx/es/quienes-somos/descripcion-empresa.html and
our Annual Report at: www.walmex.mx/es/informacion-financiera/anual.html




                                $5.3$5.3
    Distribution of units per country
     Mexico



                                                                                                   Total stores
                                                                     Bodegas and discount stores         899
                                                                     Hypermarts                          192
                                                                     Warehouse membership clubs          108
                                                                     Supermarkets                         75
                                                                     Apparel stores                       90
                                                                     Restaurants                         366

                                                                     Bank branches                       263




    Guatemala

                                                    Total stores
           Bodegas and discount stores                     136
           Hypermarts                                       7
           Warehouse membership clubs                       2
           Supermarkets                                    30




2    Social Responsibility and Sustainable Development Report 2010
                                                                                                              Honduras

                              Total stores
Bodegas and discount stores          48
Hypermarts                           1
Supermarkets                         7




                                                                                                             Nicaragua

                                                                             Total stores
                                               Bodegas and discount stores        53
                                               Supermarkets                        7




                                                                                                            El Salvador

                                Total stores
Bodegas and discount stores           51
Hypermarts                             2
Supermarkets                          25




                                                                                                             Costa Rica

                                                                                            Total stores
                                                    Bodegas and discount stores                  149
                                                    Hypermarts                                    6
                                                    Supermarkets                                  25




                                                                                               Walmart de México y Centroamérica   3
Letter from
        the Chief Executive Officer

At Walmart de México y Centroamérica we are quite                                      The year was one of growth and responsibility.
clear on our reason for existing: improve the quality                               Our Company broke the record in openings this
                                                                                    year –267 units in Mexico and 30 in Central Amer-
of life for Mexican and Central American families.
                                                                                    ica– totaling 297 units. We have presence in 384
                                                                                    cities; annual sales total of $334.5 billion pesos;
                                                                                    and we employ over 219,700 associates through-
                                                                                    out the region.
                                In addition to being firmly rooted in our corpo-       The Grand Opening of our 25th DC –in Villaher-
                            rate beliefs and values, we are a Company commit-       mosa Tabasco, Mexico– was of great importance
                            ted to the development of the six countries where       as the purpose is to offer enhanced service to our
                            we operate, seeking to have a positive influence        suppliers for the distribution of their products,
                            on the lives of the people with which we interact       now with state-of-the-art technology.
                            day after day.                                             We are a leading Company that always increas-
                                We wish to present you with our seventh Social      es its efforts so our associates can grow and devel-
                            Responsibility and Sustainable Development Re-          op within a sound and safe working atmosphere
                            port, which for the first time includes information     that offers a good work-life balance.
                            on Mexico and the performance of the operations            It is our aim to be the best business partner for
                            in five countries of Central America that we acquired   our suppliers, identifying crucial areas in which to
                            in February 2010. Moreover, for the fourth consecu-     work with them, with reinforced training and de-
                            tive year, this report is based on the guidelines set   velopment programs so companies of all sizes can
                            forth by the Global Reporting Initiative (GRI).         grow with us. A case in point is Fertile Soil, a sup-
                                We are particularly proud this year of continu-     port program for small and medium sized growers
                            ing with our improvement process regarding our          in Central America, which generated some 3,488
                            social responsibility strategy. Despite already be-     jobs in the region.
                            ing considered a strategic pillar to achieving prof-       Regarding the environment, I must mention
                            itable growth three years ago, we are solidifying a     the start of operations for the wind farm in Juchi-
                            culture of being a good corporate citizen that per-     tán, Oaxaca in Mexico, which provides clean en-
                            meates all levels of the Company.                       ergy for 348 of our units. In Central America we in-

 4   Social Responsibility and Sustainable Development Report 2010
stalled new outdoor lighting systems at more than
350 units, thus enabling us to save energy and en-
sure improved illumination for our customers. Also
in 2010, Walmart de México y Centroamérica held
its First Sustainability Forum with the enthusiastic
participation of over 1,000 people interested in         as further motivation to keep working for the ben-
strengthening alliances and sharing best practices       efit of those countries where we are present.
in favor of our planet.                                     We are aware that there is still much to be done;
   The Walmart de México Foundation continued            we are confident that with our team of associates
with its commitment to nutrition and develop-            and business partners we will continue generating
ment in poverty-stricken communities by support-         value for our investors who have placed their trust
ing projects aimed at increasing food availability       in us, and we will continue to make a difference in
and household income. We are proud to add that           the quality of life of our customers and of the com-
this has always included the generous involve-           munities who need us the most.
ment of our associate volunteers, which in 2010
totaled over 86,900.
   This year the United Nations Development
Program honored our Foundation with the World
Business and Development Award for its commer-
cialization program, which was praised as being an
innovative business practice that supports sustain-
able development in communities. Over $2 billion         Scot Rank
pesos in financial and in-kind donations have been       CEO
channeled since 2003 to civil society organizations      Walmart de México y Centroamérica 
to support the nutrition of millions of beneficiaries.
   The goals we have accomplished and our im-
proved performance, as compared to the previous
year, is proof that we are on the right path, serving

                                                                                                   Walmart de México y Centroamérica   5
                                                                   Our vision
                  Contribute towards improving the quality of life of families
                               in Mexico and Central America.




       About our report

T
       his is our seventh annual Social                   Three years ago, we decided to apply      a clear reflection of our commitment to
       Responsibility and Sustainable De-             the G3 guide from the Global Reporting        transparency and continuous improve-
       velopment Report for Walmart de                Initiative (GRI), to determine the content    ment. For the first time, we are using in-
México y Centroamérica, and the first one             and performance indicators that allow for     dicators for the Supplement on Food and
to include information on Central America;            the continuity of our economic, environ-      Beverages, Apparel and Footwear, and the
in late 2009 approval was granted to ac-              mental and social actions. At the end of      newly titled Including Gender in Sustain-
quire 100% of its operations and in March             the report we have included a reference       ability Reports: A Guide for Professionals,
2010 the integration process began. This              table that summarizes the GRI indicators,     all of which were prepared by the GRI.
report reflects the period from January               thus making it easier to read.
through December 2010.                                    We have a self declared B GRI Checked
   Beginning in 2004, we committed to re-             application level, and there is no outside
porting our social responsibility activities          verification.
each year, independent from the annual fi-                Year after year we have provided great-
nancial report.                                       er detail on the content of the indicators,



   6     Social Responsibility and Sustainable Development Report 2010
Scope, structure and materiality

   This report is on the performance achieved by Walmart de México y Centroamérica in
social responsibility and sustainable development, including all our business formats in the
countries where we have operations:



           Format                          Mexico                Central America

                                Bodega Aurrerá, Mi Bo-
 Bodegas and discount                                     Palí, Despensa Familiar, and
                                dega Aurrerá, Bodega
 stores                                                   Maxi Bodega
                                Aurrerá Express

 Hypermarts                     Walmart                   Hiper Más and Hiper Paiz

 Warehouse
                                Sam´s Club                ClubCo
 membership clubs
                                                          Paiz, La Unión, La Despensa de
 Supermarkets                   Superama
                                                          Don Juan, and Más por Menos

 Apparel stores                 Suburbia

 Restaurants                    Vips and El Portón

 Bank                           Banco Walmart




It is divided into two primary sections.                                                       been in constant communication by dif-
   The first section is an overview of Walmart de México y Centroamérica, with refer-          ferent means, throughout the year. Given
ence made to social responsibility and sustainable development strategies and infor-           the recent integration process, this is the
mation on our basic beliefs, the statement of ethics, anticorruption policies, corpo-          first year in which we include certain GRI
rate governance, and certain regional figures.                                                 indicators on Central America. In 2011 we
   The second section is sub-divided into five chapters, which include information on          will continue working to achieve complete
results, achievements, actions and the Company’s most critical best practices in Mexico        integration and be able to consistently re-
and in Central America regarding the pillars of social responsibility. We have defined them    port our accomplishments under a single
as associates, customers, suppliers, community, and sustainability. There are tables with      performance-indicator reporting scheme.
materiality indicators, including GRI and others, which we have voluntarily included be-          The exchange rate used to convert the
cause we feel they add value. These indicators make it easier to compare information for       information from Central America to Mexi-
one year against another, and the data has been carefully selected and included because        can Pesos was 12.6162, which corresponds
it is deemed of importance for our Company and for stakeholders with whom we have              to the annual average.




                                                                                                    Walmart de México y Centroamérica   7
       Acting with transparency and honesty, always


T
       he foundations for Walmart de Méxi-
       co y Centroamérica are those very              Board of Directors
       same beliefs and values that have
helped to make this Company a leader in                                                       Chairman
its field. One of the most important of those                                          Eduardo Solórzano
values, and the basis for our culture, is in-
tegrity. It is, in turn, supported by our basic        Directors                     Alternate Directors            Secretary
beliefs: respect for the individual, customer          Ann Bordelon                  Renzo Casillo                  José Luis Rodríguezmacedo
service, and striving for excellence. Ethics is
                                                       Susan Chambers                Antonio Echebarrena*
a key element in our work, day after day.
                                                       David Cheesewright            José Ángel Gallegos            Assistant Secretary
   The structure and duties of the Board
of Administration, our Statement of Ethics,            Rafael Matute                 Marc N. Rosen                  Antonio Pérez de la Riva
and all activities conducted by the Com-               Doug McMillon
pany in general are governed by the best               Salvador Paiz*
practices in corporate governance, reflect-
                                                       Scot Rank
ing our transparency and integrity for our
                                                       Cathy R. Smith
shareholders and stakeholders.
   The Board of Directors meets at least               Blanca Treviño*
four times a year and has 11 Directors,                Ernesto Vega*                                                            * Independent Director
three of which are independent members.
The Chairman of the Board holds no execu-
tive position within the Company.                     Directors: 36% women, 64% men
   The Board is assisted on management
                                                      Audit Committee: 33% women, 67% men
issues by the Executive Committee, the Au-
dit Committee, and the Corporate Practices            Corporate Practices Committee: 33% women, 67% men
Committee.


Statement of Ethics
   The Statement of Ethics, promoted by               is in keeping with current legislation and is   Hotline and another Hotline number for
the Global Ethics Office, governs our be-             reviewed each year.                             assistance worldwide. This number is op-
havior and protects our associates. It is the             The Statement clearly stipulates zero       erated by an organization independent
pillar on which our culture is based; its con-        tolerance for non-ethical behavior what-        from Walmart de México y Centroamérica,
tent and our associates’ commitment to it             soever, from any person associated with         available 24/7, and capable of managing
are consistently reinforced. It covers atti-          our Company, including associates, repre-       calls in several languages. There are clearly-
tudes and behaviors that serve to create a            sentatives, shareholders, suppliers, consul-    established guidelines prohibiting any re-
healthy work environment, including such              tants, or anyone else with whom the Com-        percussions for associates who report their
subjects such as harassment, discrimina-              pany works, or their representatives.           concerns.
tion, conflicts of interest, fair trade, finan-           It provides different mechanisms for             The Ethics Office keeps a file on
cial soundness, anticorruption, health and            reporting incidents or any other concern,       ethics-related reports, supervises the en-
safety, to name just a few. The Statement             including an anonymous and cost-free            suing investigations, action plans, and any




   8     Social Responsibility and Sustainable Development Report 2010
processes requiring sanctions, all under        cally and signs the Statement, reaffirm-
the strictest standards of confidentiality.     ing commitment to full compliance at all
   A basic part of our strategy to achieve      times. Managers and above receive per-
compliance includes on-going commu-             sonal follow-up on the Statement and sign
nication with associates through talks,         a letter of agreement of full compliance at
training courses and meetings to review         all times. They also answer a questionnaire
key policies and other activities aimed at      on possible conflicts of interest. Posters
mitigating risks. This year we disseminated     and emails are also used to disseminate
our Statement of Ethics through an online       the contents of the Statement of Ethics in
module and remote training. All new as-         all corporate offices, with the purpose of
sociates receive the Statement of Ethics        sharing the information with our suppli-
and training regarding the same. Each           ers and offering contact information in the
associate registers his/her data electroni-     case of any violations.




Our commitment to meeting social responsibility and sustainable development objectives
begins with the chief executive officer and is accomplished through all vice presidents and
directors, down to all operation levels in the company.

Anticorruption policy
   Walmart de México y Centroamérica            violation of said policies, regulations and      In 2010 we extended the training pro-
has a Global Anticorruption Program con-        applicable laws, as stated therein.           gram on how to avoid corruption. The
taining actions to prevent situations of           The Company has systems and proce-         participation and support of top man-
bribery or corruption in all processes.         dures to ensure ethical behavior, detect      agement in conveying these messages to
   Both the Statement of Ethics and the         risks inherent to the operation of the dif-   those working in management positions
Global Anticorruption Policy specifically       ferent businesses, and establish action       in operations has been crucial to building
forbid corrupt payments of any type, in-        plans to mitigate said risks.                 and reinforcing a culture of integrity.
cluding giving to, or receiving from, any
bribes or gifts whatsoever to civil servants
or private sector personnel. This prohibi-
tion exceeds legal provisions currently in
force. Both documents establish the ex-
pectation that all direct associates, indi-
rect affiliates and third parties be familiar
with them and apply the duties, guide-
lines and prohibitions regarding corrup-
tion and bribes, as outlined in the policies.
Disciplinary action will be taken, includ-
ing termination of contract, in the case of



                                                                                                    Walmart de México y Centroamérica   9
   In a study conducted on the policies of global companies, the United Nations ranked our        Audits
anticorruption program in first place. www.unodc.org
   Included within the Statement of Ethics is a policy on gifts and gratuities. It states that       Internal Audit independently verifies
Walmart does not allow its associates to accept gifts or objects of value from any supplier,      the anticorruption program, and the Au-
potential supplier, government, candidate or any person who may exert influence in deci-          dit Committee is charged with investigat-
sions or commercial transactions.                                                                 ing and reporting anticorruption controls,
   There is also an established procedure regarding donations, which encompasses the super-       among other matters.
vision of executives involved in the process. Associates are forbidden from endorsing political
parties on behalf or in representation of the Company, or from campaigning within Company
facilities. For further information on our Corporate Governance, go to: www.walmex.mx



       Teamwork

W
            e are members of different trade             • CANIRAC (National Chamber of the       In Central America, among others:
            organizations and associations,                  Restaurant Industry)                    • National commerce and industry
            both domestic and international,              • CEEG (Executive Council of Global          chambers in each of the five coun-
with the purpose of promoting standards and                  Companies)                                tries
principles that enable us to identify risks and           • COMCE (Mexican Business Council          • American chambers of commerce in
opportunities in our performance, promote                    for Foreign Trade, Investment and         each of the five countries
competitiveness, share best practices, and                   Technology)                             • Associations promoting social corpo-
reinforce the dialogue among the public, pri-             • AMCHAM (American Chamber of                rate responsibility in each of the five
vate and social sectors.                                     Commerce)                                 countries
In Mexico, these include, among others:                   • AMECE (Mexican Trade Standards           • ALAS (Latin American Supermarket
   • ANTAD (the Mexican Retail Association)                  Association)                              Association)
   • ABM (Mexican Banking Association)                    • COPARMEX (Mexican Confederation
   • CANACO (Mexican Chamber of                              of Employers and Business Centers)
       Commerce)



       Social responsibility and sustainable development management

F
       or Walmart de México y Centroamérica, to be socially responsible means act-                nomic, social and environmental terms is
       ing honestly and ethically, as per our corporate values and beliefs; pursuing de-          and shall continue being fundamental to
       velopment and quality of life for our associates; operating efficiently to reduce          maintaining a leadership position.
costs and offer low prices to our customers, always; investing in Mexico and Central
America and generating quality jobs; working with our suppliers to drive competitive-
ness; enabling innovation; promoting volunteerism among our associates; fighting
hunger and promoting development in less privileged communities; and, caring for
the environment.
   We seek to improve and consolidate this culture of sustainable development
with social responsibility through our value proposition and programs implement-
ed with our associates, suppliers and customers.
   The foundations for our strategy of social responsibility are our corporate values
and beliefs, which in turn are based on a long-term commitment to creating value
for all stakeholders. We know that compliance with our social responsibility in eco-

  10     Social Responsibility and Sustainable Development Report 2010
Social Responsibility Strategy and Committee
   In 2008 we created the Social Respon-          social responsibility, and ensure that we are               programs that include development of
sibility Committee, comprised of the top          in full compliance at all times with current                enhanced, more environment-friendly
Company Officers, with the President and          legislation.                                                prototypes for new units.
Chief Executive Officer of Walmart de Méxi-           The social responsibility strategy for this            The results of this strategy are in-
co y Centroamérica as its head. This Com-         year focused on the following subjects:                 cluded in this document in quantitative
mittee is involved in the design and over-          • Reviewing processes that allow us                   and qualitative terms, outlining our com-
sees the implementation and performance                 to continue ensuring our ethical                  mitments, achievements, and goals for
of the Company’s strategy regarding social              performance.                                      the year. The improvements achieved as
responsibility.                                     • Reinforcing programs that drive op-                 compared to last year’s actions are a re-
   The Committee analyzes areas of oppor-               portunities for the growth of our as-             flection of ongoing efforts and progress.
tunity and detects areas of improvement by              sociates and improve their work-life                 In 2010, our performance evaluations
identifying the risks, needs, and concerns of           balance.                                          included behaviors for socially respon-
our stakeholders; it defines the strategy for       • Identifying areas that allow us to im-              sible leaders that our associates should
social responsibility; approves action plans;           prove supplier relations.                         follow, thus seeking to have leaders
and establishes measurements with clearly-          • Improving the impact our actions have               fully committed to making Walmart an
defined indicators for each business for-               on driving development of communi-                exemplary corporate citizen. The score
mat. One of its primary duties is to oversee            ties where we operate.                            obtained under this item, together with
and follow through on our performance in            • Strengthening         operating        efficiency   other variables, impacts the percentage
                                                                                                          of salary increases awarded to manag-
                                                                                                          ers and above. In addition, we created
                                                                                                          an internal communication campaign to
Social Responsibility Committee
                                                                                                          reinforce ethical behavior and social re-
Name                         Position in the company
                                                                                                          sponsibility among all associates.
                                                                                                             To ensure the implementation and the
Scot Rank                    Chief Executive Officer, Walmart Mexico and Central America                  scope of our objectives, we established
                                                                                                          indicators, measurements and deadlines
                             Executive Vice President and Director General of Walmart Central
Alberto Ebrard                                                                                            for compliance. Said measurements were
                             America
                                                                                                          added to the objectives of the different
Gian Carlo Nucci             Executive Vice President and Chief Operations Officer, Mexico                levels of the organization.
                             Executive Vice President and Chief Officer of Business Development,             The measurements established by
José Ángel Gallegos
                             Logistics and Corporate Integrity                                            Walmart de México y Centroamérica are
                          Senior Vice President, Legal and Corporate Relations                            generally in line with medium and long-
José Luis Rodríguezmacedo
                          Walmart Mexico and Central America
                                                                                                          term global initiatives. Throughout this
Xavier Del Río               Senior Vice President, People Division, Mexico and Central America           report we have made reference to those
                                                                                                          initiatives and we have included links to
                             Senior Vice President of Corporate Affairs and President of the
Raúl Argüelles                                                                                            internet sites for further information.
                             Walmart de México Foundation
                                                                                                             Moreover, we have reinforced com-
                             Internal Audit Vice President for Walmart Mexico and
Mónica Loaiza                                                                                             munication to keep our audiences in-
                             Central America
                                                                                                          formed and to reinforce our commitment
Jesús Ruiz                   Vice President, Commercial Development and Productivity
                                                                                                          to the well-being and quality of life for
                                                                                                          families throughout Mexico and Central
                                                                                                          America.




                                                                                                               Walmart de México y Centroamérica   11
    Corporate social responsibility awards and recognitions

          •	 British	World	Finance magazine, for Best Corporate Governance in Mexico.
          •	 Socially Responsible Company granted by the Mexican Center for Philanthropy (Cemefi) and the Alliance for Social
             Responsibility in Mexico (AliaRSE) for the 10th consecutive year and the only retail company, one of 10 in all, to have
             achieved this.
          •	 Mundo Ejecutivo magazine, for being among the top 50 companies with the best corporate social responsibility.
          •	 The	 Honduran	 Business	 Council	 for	 Sustainable	 Development,	 the	 Honduran	 CSR	 Foundation,	 the	 National	 Center	 for	
             Clean Production (Honduras) and the Energy Efficiency for Industry and Commerce Project, awarded the 2010 Business
             Sustainable Development Award in Honduras for being an outstanding example of CSR, environmental excellence and
             economic sustainability.
          •	 Certified	for	the	third	consecutive	year	as	a	Socially Responsible Company by the Honduran CSR Foundation (FUNDAHRSE).




        Stakeholders

S
          takeholders for Walmart de México y Centroamérica are identified as all those                Shareholders
          groups related to our Company’s activities, products or services. To identify them,             We have the responsibility of generating
          we applied the GRI methodology through which we mapped, assigned a priority,                 value in the short, medium and long terms
and classified as follows:                                                                             by efficiently managing resources, having
    Level A: customers, associates, shareholders, suppliers, and communities.                          good corporate governance, and using the
    Level B: social and business organizations, competitors, among others.                             best practices regarding transparency in the
    As part of our social responsibility strategy, we have clearly defined how to relate to            use of information.
each one of them so as to foster dialogue and respond to their expectations.
                                                                                                       Customers
                                                                                                          Our priority as a Company is to improve
                                                                                                       the quality of life of Mexican and Central
                                                                                                       American families by generating savings
                                                                                                       opportunities through our value proposi-
                                                                                                       tion of Everyday Low Prices, improving their
                                                                                                       shopping experience, and providing excel-
                                                                                                       lent quality and service.
                         Mexico and Central America
                                                                                                       Associates
                                                                                                          Walmart de México y Centroamérica is
                                                                                                       a leading Company where our associates
                                                                                                       can grow. We work hard every day to offer a
Shareholders                                                                               Community
                                                                                                       safe and healthy work environment with re-
                                                                                                       spect, competitive wages and benefits, and
                              Customers                Juan Pérez
                                                                               Suppliers
                                                                                                       personal and professional development
                                                      Associates
                                                                                                       opportunities.



  12           Social Responsibility and Sustainable Development Report 2010
Suppliers
   We support the growth and consolidation of our strategic partners through initiatives
that drive their development and competitiveness, in addition to fostering ethical and so-
cially responsible practices. Moreover, we seek long-term relations with our suppliers so as
to generate value and support our policy of low costs and increased efficiency.


Community
   Our contribution to the development and well-being of the communities we serve is
accomplished by generating jobs and offering quality products at low prices. Through the
Walmart de México Foundation and Corporate Affairs in Central America, we have been
promoting volunteerism among our associates; lending support during natural disasters;
supporting projects that allow us to mitigate hunger; increasing food availability; improv-
ing the income and development of remote communities through their own productivity.


Dialogue with stakeholders
   This year we supplemented and updat-           We also heard proposals on improve-           for the society at large. We also participated
ed the opinions previously expressed by        ments and concerns regarding our corpo-          in different roundtable discussions and fo-
our stakeholders in Mexico by conducting       rate social responsibility from civil society,   rums such as the Ibero-American Encounter
various opinion surveys, and participating     the principal mutual funds, the community        on Social Responsibility, held in Madrid; and
in forums and analysis groups, which al-       at large, associates, and suppliers through      the Master’s Program on Social Responsibil-
lowed us to identify areas of improvement      our Supplier Advisory Board and confer-          ity at Anáhuac del Norte University in Mexi-
for our Company and listen to their expec-     ences for dialogue and the exchange of           co City, among others. In addition, we have
tations and opinions on how we can con-        information. Consequently, through this          been members of different committees on
tinue generating value in the future. These    report we seek to respond to your opinions       social responsibility, such as the ANTAD
actions led to the updating of the study       and concerns, some of which were even            committee, the AMCHAM committee, and
conducted in 2009 that identified impor-       implemented in our social responsibility         the Cemefi committee.
tant subjects of interest to our stakehold-    strategy this year.                                 To consult the best practices and dis-
ers in the field of social responsibility.        The Food Security Workshop, coordinat-        cussion topics from the Forum, please visit:
   Together for a Better Planet -the first     ed by the Walmart de México Foundation,          www.porunplanetamejor.mx
Sustainability Forum organized by Walmart      was held with the purpose of sharing learn-      www.enlacesostenible.com
de México y Centroamérica- is an example       ings, best practices and generating value
of the Company’s desire to share practices
and exchange information with suppliers,
companies, competitors, government au-
thorities, members of civil society, opinion
leaders, and academia to promote the de-
velopment of environmental management
practices that contribute to competitive-
ness and economic growth, and that foster
the use of green technologies. Another ex-
ample is our participation in the B4E Sum-
mit on Climate Change, held in Mexico City,
and in the 16th meeting of the Conference
of Parties, to identify solutions that focus
on environmental challenges.

                                                                                                      Walmart de México y Centroamérica   13
      Caring
for our associates
We are one of the top private-sector employers in the region with over 219,700 associates
distributed throughout Costa Rica, Guatemala, El Salvador, Honduras, Mexico and Nicaragua.
In addition to being a major source of employment, Walmart de México y Centroamérica offers
excellent opportunities for growth and talent development.




W
            e make an effort to provide
            job proposals that set us aside
            from the rest, emphasizing the
development of our associates. We strive
to be a leading Company in which our
associates can grow and develop within
a secure atmosphere ensuring gender
equality and quality of life.



Policies and procedures
   Walmart de México y Centroamérica
boasts a series of policies and procedures
designed to ensure a positive and open
relationship with its associates. In addition
to complying with all current laws and
regulations, the policies help shape aspects
of our associates’ contracts that include
offering development, quality of life, health,
safety, equality, and open communication.
   Our talent attraction and gender                                                                           Over
equality policies establish the necessary
guidelines to ensure equal opportunities
for men and women alike, and which
                                                                                                     219,700
protect against discrimination due to sex,       Walmart de México y Centroamérica
age, religion, sexual preference or political    has zero tolerance concerning improper
                                                                                                        associates
ideology    when     offering   employment       enforcement of these policies. When hiring,
opportunities,      working      conditions,     we follow all labor legislation in force in each
professional development and training.           of the six countries we serve, and adhere
These policies are meant to guarantee equal      to an inclusive recruitment and selection
and fair treatment within the organization.      process.



           “Customer experience begins with the experience of the associate. We care for our people.”
                                                                                                                          Sam Walton

                                                                                                    Walmart de México y Centroamérica   15
10 years of history                                                                                                                  219,767*

                                                                                                                           176,463
                                                                                                             170,014

                                                                                                   157,432

                                                                                         141,704

                                                                               124,295
                                                                     109,057
                                                       99,881
                                              92,708
            Associates             84,607




            New jobs                9,817     8,101     9,173         9,176     15,238   17,409    15,728    12,582         6,449    22,881*

            Promotions                        11,398    15,000        15,000   16.118    19,569    21,852    23,879        15,287    20,058*

                                    2001      2002      2003          2004      2005      2006      2007      2008          2009     2010




* Includes information from Central America



Methodology and systems
    Walmart de México y Centroamérica is a company under constant
growth, which continuously seeks to support the development of
its people. This year we launched the first talent attraction system
that supplies us with a solid database and ensures that all vacant
positions are filled efficiently and effectively.




     Training and development
Objectives. To be a leading company where our associates can grow.
Strategies. Identify internal talent and execute accelerated
development programs.
Implement advanced technology to enhance recruitment,
training, and development processes, allowing us to improve
the recruitment and selection of associates to fill all vacancies
when opening new units.


Programs and actions
  •	 In order to develop high performing                         this year we launched a new perfor-                  ates, analyzed their needs to grow and
       associates, we implemented a Lead-                        mance evaluation system with specific                helped them develop their own indi-
       ership Model that defines what every                      talent development metrics in order                  vidual development plans.
       leader should show in his current role                    to train our leaders on the subject and      •	 In order to supplement our internal
       and how each leader can prepare for                       measure our associates’ growth objec-                development efforts with the attrac-
       the next level of responsibility, while                   tively. Moreover, and with the help of               tion of outside talent, this year we re-
       helping his/her team to grow as well.                     calibration sessions, we identified the              visited the Talent Seedbed program,
  •	 Following our Leadership Model,                             potential of management-level associ-                through which MBAs and interns

  16      Social Responsibility and Sustainable Development Report 2010
    joined the organization with the              torship circles with the primary leaders
    purpose     of     being   involved   in      of the Company, thus helping drive the
    important company projects.                   development of our female associates.
 •	 We promoted CBL (Computer-Based             •	 The Womanpower project was imple-
    Learning) self-training courses, based        mented to assure gender equality
    on the human and technical compe-             when hiring trainees.
    tencies model and needs analysis for        •	 The High Potential Development
    the Company, reinforcing skills devel-        program allowed associates from dif-
    opment especially at the Asst. Manager        ferent areas and countries to work on
    level and below.                              specific projects to drive their growth
 •	 The     Merchandising        Academy,         and skills development.
    launched in 2010 in Mexico, is a reflec-    •	 Training was offered in Central America
    tion of our Company’s desire to enhance       in subjects pertaining to leadership,
    capacities and further the development        communication, project management,
    of all our Merchandising associates and       and store operations, through pro-
    staff. Through technical and leadership       grams such as the Development of
    training, we strive to train merchants        Middle Management.
    who will work to enhance the value for      •	 The first generation of Central Ameri-
    our customers.                                can associates sent to the United States
 •	 We developed female managers and              for training via the Walton scholarships


                                                                                                        20,058
    executives through courses, certificate       was a great success and now some of
    courses in foreign universities, and men-     them are Store Managers in training.


                                                                                                      associates were
We invested $83.5 million pesos in training.
                                                                                                         promoted




                                                                                             Principal challenges
                                                                                              •	 The accelerated growth of the Com-
                                                                                                 pany demands intensive recruitment
                                                                                                 processes for the opening of new units;
                                                                                                 that is, the need for filling vacant posi-
                                                                                                 tions in less time, supervising gender
                                                                                                 equality and diversity, and at the same
                                                                                                 time effectively attracting new talent.



                                                                                             11 million training hours
                                                                                             throughout the region.

                                                                                                  Walmart de México y Centroamérica   17
       Gender equality
Objectives. Be an inclusive company that is committed to gender equality and equal
opportunities.
Strategies. Strengthen programs that increase the percentage of women in positions of
Asst. Manager and above.
Ensure the implementation of policies and procedures that eliminate discrimination during
hiring process and within the Company.

                                                                                                                  52% of our
                                                                                                           associates in Mexico
                                                                                                               are women,
Programs and actions
                                                                                                                and 41% in
                                                                                                               Central America
 • Continuation of efforts aimed at
       achieving a balance between men and
       women holding top leadership posi-
       tions. This is accomplished through our
       Advisory Board on Gender Equality
       and Diversity, which was created in
       2009. This Board coordinates training
       initiatives and the dissemination of
       information on gender and equal
       opportunity-related subjects.
 • We continue working on the Female
       Talent Initiative, which is aimed at ac-
       celerating the development of women
       so they can be eligible for positions of
       greater responsibility.
 • We strengthened the portfolio of train-
       ing alternatives for female managers
       and executives so as to guarantee the
       development of critical skills, in addi-
       tion to launching the individual and
       group mentoring program as yet an-
       other way to help them further prog-
       ress in their careers.                           Principal challenges
 •	 We have a salary payband that ensures
       equal pay regardless of gender, age,               •	 Maintain an equal and cordial environment that fosters sound relations with equal
       religion, sexual preference or political              opportunities for men and women alike.
       ideology. Any differences that exist are           •	 Reinforce training offered in ethics-related subjects, including respect for diversity,
       due to individual performance, which                  gender, and human rights in general.
       is evaluated on a yearly basis according
       to established standards of success.



  18       Social Responsibility and Sustainable Development Report 2010
Associates per age group and gender
                                 Mexico                                Central America                           Region Total

Age range               Men       Women          Total         Men        Women          Total          Men         Women          Total
<=25                  36,573       27,700       64,273         6,280       2,901         9,181          42,853       30,601       73,454
26 a 30               16,721       17,609       34,330         4,343       2,934         7,277          21,064       20,543       41,607
31 a 35               12,372       15,703       28,075         2,831       2,241         5,072          15,203       17,944       33,147
36 a 40                9,876       15,752       25,628         1,579       1,422         3,001          11,455       17,174       28,629
>=41                  15,765       22,606       38,371         2,227       2,332         4,559          17,992       24,938       42,930
Total                91,307       99,370       190,677       17,260      11,830       29,090          108,567      111,200      219,767




     Quality of life
Objectives. Promote the well-being of our associates by offering them a safe and sound
work place, enhancing their quality of life.
Strategies. Greater focus on nutrition among associates, via consultation, talks and informa-
tion campaigns on balanced diets to combat obesity.
Reinforcing the Quality of Life Transfer program so associates may work closer to home.
Increasing the number of agreements signed with different companies and improving                6,782 associates were relocated to
our communication of these agreements, in order to provide benefits that translate into          improve their quality of life.
savings and increased family time for our associates, through recreational activities that are
free-of-charge or offered at reduced prices.
Restructuring of work schedules so associates may spend more time with their families.




Programs and actions
 • This year, the Quality of Life Transfer
    Program relocated 6,782 associates to
    units closer to their homes, of which
    3,325 are men and 3,457 are women.
 • Alternative working hours were offered
    to our associates so they can better
    adapt to their needs.
 • In April 2010, an agreement by and
    between PrevenIMSS and Walmart de
    México y Centroamérica was signed for
    the mutual cooperation in implement-
    ing preventive health programs for
    our associates and their families, the




                                                                                                      Walmart de México y Centroamérica    19
                                                                                                    Quality of
                                                                                                    Life Transfers

                                                                                                    Walmart de México y Centroaméri-
                                                                                                    ca, aware of the time and difficulties
                                                                                                    involved in traveling long distances
                                                                                                    to work, decided to help its associ-
                                                                                                    ates by offering to relocate them
                                                                                                    to units closer to their homes, thus
                                                                                                    allowing them to spend more time
                                                                                                    with their families. Thanks to this
                                                                                                    program, in 2010 we relocated 6,782
                                                                                                    associates, greatly improving their
                                                                                                    quality of life.




     purpose of which is to improve occu-                 physical activity, and healthier menu      techniques, and fire-fighting. Our Cen-
     pational health and safety and to pro-               options.                                   ter for Operations Continuity is of great
     mote healthy recreational and physical            • Agreements have been signed with            help in risk prevention for our associ-
     activities throughout Mexico.                        different companies and institutions       ates, and in guaranteeing operation
• We worked together with the IMSS                        offering special health, entertain-        continuity during accidents or natural
     (Mexican Social Security Institute) so               ment, education and housing ben-           disasters. We also have an Emergency
     social workers could visit our units in              efits to our associates, among others.     Center that assists associates and units
     Mexico and provide health services                   We have signed a total of 252 such         with flooding, and fires, among others.
     such as: vaccination campaigns for                   agreements in Mexico to date, which      • In Mexico and Costa Rica, the Compa-
     human papillomavirus and influenza,                  were used by more than 125,500 as-         ny supported and organized internal
     clinical tests, talks on nutrition and               sociates, thus allowing them to save       collection campaigns among associ-
     family planning. In addition, a program              over $20.9 million pesos.                  ates, in order to help our fellow associ-
     to help associates obtain their IMSS              • Risk control programs, courses and          ates who were the victims of personal
     identification card was also conducted.              campaigns have been offered, in ad-        and material losses during natural
• Our Intranet includes information and                   dition to the training of our safety       disasters. In some cases, the Company
     tips on health, centers for conducting               brigades in first-aid, evacuation          provided matching funds.



20      Social Responsibility and Sustainable Development Report 2010
 • Quality     medical    services    at   our
     Mexico City corporate headquarters
     that served our associates and an
     online medical questionnaire for rapid
     diagnosis, followed by subsequent
     visits by IMSS physicians to review and
     follow-up on the questionnaires.
 • We are aware that parents worry about
     finding places close to their work
     centers that can offer quality child care
     for their children. Consequently, as of
     this year, a list of daycare centers and
     support through Human Resources
     was offered to associates who seek this
     type of service.



                                                                                                  Principal challenges
                                                                                                   •	 The size of our Company and the
                                                                                                     geographic location of our units
                                                                                                     constitute an important challenge
                                                                                                     when implementing programs and
                                                                                                     projects of any kind.



     Communicating with our associates
Objectives. Maintain close communication with our associates, through clear and efficient
processes, enabling them to be informed and heard, follow-up to be performed, and alterna-
tives to be found in response to their doubts, concerns and/or suggestions, but always guar-
anteeing the strictest of confidentiality standards.
Strategies. Reinforce communication channels that can be easily accessed and confidently
used by all our associates.


Programs and actions
 •	 Our communication channels range                   and the Associate Opinion Survey,           •	 We reinforce communication by in-
    from policies established in Human                 where they may express their opinions,        forming associates of the Open-Door
    Resources, to printed or electronic                concerns, complaints or suggestions.          policy, which allows them to approach
    publications issued periodically to in-        •	 The People Division is always available        their immediate supervisor at any time,
    form on happenings, events, and news               to listen to and orient associates. Each      and if this is not possible for whatever
    within the Company. Likewise, there                human resource department acts as a           reason, they may seek any other level
    are other channels such as the Associ-             formal communication channel within           of supervision or management. We also
    ate Hotline, Ethics and Compliance                 the Company.                                  communicate the Associate Hotline



                                                                                                      Walmart de México y Centroamérica   21
       service, which serves as a call center to
       listen to our associates –via telephone,
       email or personally– who wish to
       report incidents, abuse or harassment,
       offer congratulations, etc. This depart-
       ment is charged with investigating and
       issuing a decision or recommendation
       for each case reported.
 •	 The       Associate      Opinion       Survey
       –conducted each year– helps measure
       the organizational climate of the Com-
       pany. A score is given for each depart-
       ment and for the company as a whole.




Principal challenges
 •	 Standardize communication media and systems in the six countries where we operate,
       considering current ethnic and cultural differences.
 •	 Preserve the efficiency of different means of communication so associates may
       express concerns, complaints or suggestions to their supervisors, with their communi-
       cation kept strictly confidential.
 •	 Prevent workload, distance, or any other circumstance from being a limiting factor in
       the associate’s right to communicate his/her issues.




       Minor volunteer baggers in Mexico


O
            ur Minor Volunteer Baggers program benefits young people between the               • They must be between 14 and
            ages of 14 and 16.                                                                    16 years old.
                This program was promoted by the Secretary of Labor and ANTAD (the             • Supply proof of school enrollment,
Mexican Retail Association) in order to provide a means of financial assistance for vol-          renewed every semester.
unteer baggers and their families in Mexico, and to prevent these youngsters from              • Permission from parent or guard-
dropping out of school due to economic issues or participation in criminal activity. The          ian and the appropriate authority.
objective is to help them grow in a sound and safe environment.                                • Medical certificate to attest that the
   The following requirements must be followed in order for these teenagers to be-                minor volunteer bagger is physical-
come volunteer baggers:                                                                           ly suited to perform the activity.




  22       Social Responsibility and Sustainable Development Report 2010
    The Company has policies and proce-             pre-agreed activity conditions, and type of
dures for volunteer baggers covering ac-            activities are observed.
ceptance requirements, bagger activities,              From the 22,583 volunteer baggers
support programs, and activity hours. More-         registered by the end of 2010, some 47%
over, the program’s policies and procedures         have benefited from school achievement
determine the mechanisms to ensure that             incentives.




                                                                                                     Commitments
                                                                                                     •	 Improve internal communication of
                                                                                                       vacancies.
                                                                                                     •	 Grow talent development programs.
                                                                                                     •	 Promote the development of female
                                                                                                       associates.
                                                                                                     •	 Quicker response to customer com-
                                                                                                       plaints and suggestions.
                                                                                                     •	 Develop and improve work-life balance
                                                                                                       programs.




    “Today we are initiating an exemplary health task with the execution of the PrevenIMSS in your
Company agreement, with Walmart de México y Centroamérica. Associates and their families alike
will have a means for taking care of themselves and not end up victims to diseases that could have
been prevented. The growth of the IMSS is undoubtedly linked to the growth of our country’s econo-
my. The fact that companies such as Walmart de México y Centroamérica care about the health of
their workers, helps to create a virtuous cycle.”
                                                                         Daniel Karam Toumeh
                                                                      Director General of IMSS




Awards and recognitions

   1.	 The National Women’s Institute recertified our Gender Equity Model (MEG:2003), constituting the fourth consecutive
       recertification.
   2.	 The Ministry of Labor, the Salvadoran Social Security Institute and 3M, in El Salvador granted the Occupational Health
       and Safety Award 2010 for the Retail Sector to those organizations committed to the occupational health and safety of
       its workers.


                                                                                                         Walmart de México y Centroamérica   23
Meeting the needs
 of our customers




      Social Responsibility and Sustainable Development Report 2010
In 2010, with the acquisition of Walmart Central America, we became a Company with
international operations, extending our offering of everyday low prices to more families in
Mexico and Central America, thereby helping to improve their quality of life and of course
their family budgets. Now, new growth opportunities are available to our associates and
suppliers since they can share their expertise and do business across new borders.




I
   n 2010 we opened 267 new units in
   Mexico –primarily the Bodega Aurrerá
   format, designed for communities with
smaller populations– and 30 units in Central
America, in addition to remodeling many
existing ones. This investment of $13.1 bil-
lion pesos was of considerable importance
to the region by driving development, gen-
erating direct and indirect jobs, fostering
competitiveness, increasing the use of local
suppliers, and above all for our customers,
it meant a reduction in prices and a greater                                                                       We opened

                                                                                                                    297
assortment of quality products they could
buy, with excellent service. These openings
resulted in the creation of 22,881 direct jobs
and thousands of indirect ones.
                                                                                                                   stores in the
                                    We invested $13.1 billion pesos throughout the region.                            region

Procedures and audits
   At Walmart de México y Centroamérica          plants that make our private label and per-    water in units where food products are sold.
we work for the customers and members            ishable products. In Mexico we also audit         Our Legal Department verifies that all
who buy our merchandise or seek our ser-         and inspect Medi-Mart products to ensure       of our campaigns and advertising are in
vices. It is for them that we are constantly     compliance with all food safety and quality    full compliance with the current legislation
making sure that the quality of the pro-         regulations as needed.                         regarding consumer protection, advertising
ducts we offer is simply the best. To               Moreover, we conduct monthly audits in      regulations, and all other applicable rules
achieve this goal, we have several audit         our stores and restaurants to verify compli-   and regulations.
and inspection processes conducted in            ance with strict hygiene controls; we also
our DCs throughout the region, and in the        conduct sanitary lab analyses of food and

“Give the customers and members what they want, and a little bit more. Make them know we care.”
                                                                                                                            Sam Walton


                                                                                                      Walmart de México y Centroamérica   25
Technology and systems
   One of the most important achieve-
ments of the year was the opening of the
Distribution Center (DC) in Villahermosa,
Tabasco, located in southeast Mexico, with
an investment of over $740 million pesos,
generating 1,000 permanent jobs and
1,000 indirect jobs during its construction.




$9.5 billion in price spread savings in
Mexico and $1.3 billion in
Central America.




       Customer satisfaction
Objectives. We work to offer new formulas that generate savings and a pleasant shopping
experience for our customers.
Strategies. Create campaigns in our stores and foster the development of products that
allow our customers and members to enjoy savings through price spreads, offering high
quality products and services.




                                                                                          F
                                                                                                 or Walmart de México y Cen-
                                                                                                 troamérica, the customer always
                                                                                                 comes first. Because of this, in addi-
                                                                                          tion to offering low prices we seek to create
                                                                                          a positive shopping experience through
                                                                                          quality service.
                                                                                             Our associates receive constant train-
                                                                                          ing to reinforce the Walmart Culture and
                                                                                          especially one of our basic beliefs: custom-
                                                                                          er service. For this year’s Customer Service
                                                                                          program at Superama, we developed a sys-
                                                                                          tem of recognizing those associates every
                                                                                          two weeks who offer premium service,
                                                                                          thus benefiting them personally, profes-
                                                                                          sionally and economically. In addition to
                                                                                          the Double Freshness Guarantee –which
                                                                                          guarantees the customer a complete mon-



  26    Social Responsibility and Sustainable Development Report 2010
etary reimbursement and the replacement
of the product in the case of not being sa-
tisfied with any perishable item– individual
customer service is always available in our
retail units, both in the store and through
telephone and electronic means. On the
websites for our different formats, there is
a section set aside for customers to make
comments, file a complaint, or make sug-
gestions. This year we made ourselves
available on social networks –Facebook
and Twitter– to be more approachable and
to be in constant communication with our
customers, members and friends.
   Moreover, our market research area con-
ducts different studies with outside agen-
cies in subjects related to customer satis-
faction, which are then followed up with
action plans to improve our performance.                                      $1.7 billion in savings in medicine for our customers.




     Greater savings for our customers
Programs and actions
 • In 2010, the Medi-Mart line of generic           in 2010, focusing on illnesses such as       launched over 20 sustainable prod-
    medications generated over $1.7 billion         diabetes and obesity, in addition to the     ucts in 2010.
    pesos in savings for its customers; a total     rational use of antibiotics, pursuant to   • In January, Walmart launched the
    of almost $6.2 billion since the program        new health regulations.                      campaign Over 1,000 Items at 2009
    was launched in 2007. We currently            • Our strategic brands continue to be          prices, where 169 Walmart stores in
    offer more than 330 generic medicines           an excellent means of saving money,          Mexico kept over 1,000 grocery, per-
    from different Mexican pharmaceutical           offering a wide variety of quality pro-      sonal hygiene, and home private la-
    labs and different therapeutic groups           ducts at low prices. In Mexico we work       bel and prestige brand products at
    audited under the strictest quality             with 262 local suppliers of our private      the same prices as the previous year.
    standards and made available to our             labels, the majority of them medium-       • At Bodega Aurrerá in México we in-
    customers in over 1,000 of our units.           sized companies. In Central America,         creased the number of items par-
    We have also begun the project of               our brands were produced by 145 re-          ticipating in our savings programs
    including a highly specialized catalogue        gional suppliers, 99 of which are SMEs,      Products at $9.90 and Products at
    with medication for cancer, sclerosis,          making up 68% of the total. Great Value      $1-$2-$3 by 130%.
    and viral ailments, among others.               offers over 600 items in our units and     • Suburbia launched two new pro-
    Operations associates at over 1,000 of          warehouse membership clubs. As part          grams: Item of the Week, offering a
    our units nationwide received training          of our social responsibility efforts, we     different item each week at the lowest



                                                                                                  Walmart de México y Centroamérica   27
                                                                                                      programs known as The Price Train
                                                                                                      and Point 90, which include grocery
                                                                                                      items and consumables.
                                                                                                    • The Hypermarts in Central America of-
                                                                                                      fer Hyper Fairs every Saturday, where
                                                                                                      the customers can find low-priced
                                                                                                      produce, poultry, meat, seafood and
                                                                                                      deli products. There are also programs
                                                                                                      known as Weekend Specials, and Pay-
                                                                                                      day Specials with grocery items, con-
     price on the market, and Estrenamás,               • Fresh Wednesdays offers excellent           sumables, general merchandise, and
     offering the possibility of buying more               prices midweek, especially for fruits      textile products.
     than one garment in the same catego-                  and vegetables. Dairy Mondays is a       • Despensa Familiar Guatemala and
     ry at an excellent price point.                       similar initiative in Central America.     Palí in Nicaragua offered programs
• At Vips and El Portón, we were the                    • MaxiBodega in Centroamérica consoli-        allowing customers to save money by
     preferred choice for our consumers by                 dated Los 3 bajitos –a pricing program     purchasing 80 seasonal basics, at prices
     highlighting our value proposition for                that offers sets of basic products at      up to 20% lower.
     dinners, offering them at Loco Prices.                three price points. We also developed



     Caring for the health of our customers
• This year Superama added a health
     section to its website. There is also a
     section with sustainable products, thus
     giving our customers the option of car-
     ing for the environment.
• At Vips and El Portón we are always
     concerned with providing healthy al-
     ternatives to the children that visit our
     units. Therefore, our kiddy menu in-
     cludes healthy and fun dishes.
• In light of high diabetes and obesity
     rates, Walmart en México launched The
     Health Fair, offering over 100 products
     at affordable prices.
• The Smart Shopping campaign was
     implemented in El Salvador, promoting
     a culture of responsible consumption
     and smart savings, with the assistance
     of informative talks on techniques re-
     garding the handling and preparation
     of different food products, and how to
     better manage their family budget and
     save money, among other useful tips.

28       Social Responsibility and Sustainable Development Report 2010
       The Walmart Bank                                                Banco Walmart provided some 60,000 customers with credit.

 • This year we contributed to the savings
      of our Mexican customers through the
      launching of the Super Debit bank ac-
      count at a low cost and without charging
      fees for its use. It provides an immediate
      1% cash refund over the total amount of
      purchases made in our stores, clubs and
      restaurants in Mexico. The debit account
      can also be used to conduct withdraw-
      als, deposits, and balance inquiries, at no
      cost, at our checkouts.                        financial difficulty, he/she may omit         “Mexican consumers improve their living
 • The Super Credit Card allows our                  making the minimum payment or              conditions by obtaining goods and services
      customers to access a revolving credit         fixed monthly payment once every six       at lower prices, with greater assortment, im-
      line for the immediate purchase of             months, and this card also provides        proved quality and service for their families.
      goods and services, with the lowest            an immediate 3% cash refund on                 It is therefore indisputable that the open-
      commission rates on the market.                total purchases made at any of our         ing up of trade in the last 10 years, and the
      Should any customer have a temporary           operating units in Mexico.                 greater availability of information, has fa-
                                                                                                vored competition among suppliers seeking
 The Vips Loyalty Card, Your Best Ally!                                                         to earn the preference of the consumers, thus
                                                                                                helping families save money.
 Our consumers have discovered that their best ally is the Vips Loy-
                                                                                                   An example of a competitive company
 alty Card because with it they can generate savings of up to 50% in
 their budget for dining out each time they visit one of our restau-                            whose actions support overall competition
 rants. Together with a wide variety of dishes, with that great Vips                            nationwide and the well-being of families, is
 flavor and service, we have managed to achieve the preference and                              Walmart de México y Centroamérica. Ongo-
 leadership in our industry.
     The benefits of the loyalty card also crossed the
                                                                                                ing investment, the creation of jobs, talent
 boundaries of our own restaurants and provided our                                             development, the development of capacity
 customers with benefits in Walmart, Superama, Sam’s                                            with its strategic partners, social responsibility
 and Suburbia, in addition to discounts when rent-                                              strategies, and above all, its value proposition
 ing movies, purchasing airline tickets and at different
 amusement centers.                                                                             of ‘Offering customers and members quality
                                                                                                merchandise with good assortment, service
                                                                                                and everyday low prices,’ confirms their com-
Principal challenges                                                                            mitment to the Mexican consumer.”
                                                                                                                     Armando Chacón Villar
 • Reinforce existing private label products and develop new ones.                                       Director of Analysis and Research
 • Grow our presence in the region in order to offer value to more Mexican and Central             Mexican Institute for Competitiveness
      American families.



Awards and recognitions                                                                         Commitments
 1. Strategy and Business, a magazine from Central America, for being the most admired           • To continue developing initiatives that
    company due to its commitment to improving the quality of life of families in the region.        translate into savings for our customers
 1. Information Week magazine México, together with Ernst & Young, recognized us as                  and members, with high quality and
    one of the top 50 innovative companies.                                                          service.



                                                                                                      Walmart de México y Centroamérica     29
development of suppliers
     Supporting the




         Social Responsibility and Sustainable Development Report 2010
At Walmart de México y Centroamérica we work hand-in-hand with our suppliers— small and
large, local and international. We therefore work continuously to strengthen programs that
drive competitiveness and development, and we establish programs with strategic partners,
growers and entrepreneurs that share our mission of improving the quality of life for Mexican
and Central American families.




A
        t Walmart de México y Centroamérica we work with over 26,200 suppliers. In
        2010, 95% of all the products we sold were purchased from suppliers based
        in Mexico and 81% from suppliers based in Central America, representing the
creation of many jobs. Moreover, through regional fairs and our supplier development
program, we drive the marketing of small and medium-sized companies and growers of
perishable goods.




Policies and procedures                                                                       Methodology and systems
   Our suppliers must comply with all lo-     adapting to our Ethical Standards Pro-             We have tools that provide data on the
cally applicable legal provisions regarding   gram for Suppliers, which defines the           location and status of suppliers who are
their line of business and with our State-    Company’s expectations regarding behav-         part of the Ethical Standards Program for
ment of Ethics and anticorruption policies,   ior in legal matters, hiring and employment     Walmart de México y Centroamérica.
which they commit to doing by signing the     practices, compliance with currently appli-        Through     our     Supplier     Advisory
Supplier Agreement. The purpose of this is    cable labor legislation, safety and hygiene,    Council, we work with suppliers throughout
to strengthen our commercial relationships    environmental protection, conflicts of inter-   the region, exchanging ideas and fostering
and to ensure ethical standards in all the    est, anticorruption measures, financial in-     best practices so as to achieve greater
countries where we operate.                   tegrity regarding production of our private     competitiveness.
   Likewise, before executing any agree-      label merchandise, and the direct importing        We also have a marketing system so
ments with third-parties, anyone acting on    of products to be acquired by Walmart de        suppliers may analyze the strategic perfor-
behalf of the Company must follow review      México y Centroamérica. Gifts and gratuities    mance of their products, with information
processes and commit to adhering to any       are forbidden, and we encourage the filing of   that allows them to make informed deci-
and all applicable regulations.               complaints regarding any violation of these     sions and be more competitive.
   Moreover, their responsibilities include   regulations at all times.



                                  We work with over 26,200 suppliers throughout the region.



                                                                                                   Walmart de México y Centroamérica   31
Audits and evaluations                                                                            2010 Audit results
   We have an external audit program for suppliers that was derived from a global pro-
gram. It uses and applies methodologies developed by nationally and internationally re-                              23%
                                                                                                                                  7%
nowned companies to verify compliance with labor and environmental practices, as per
standards and regulations. This program classifies suppliers into four levels, according to
the number and type of opportunities detected during the auditing process.                                  40%                30%
   When a situation is faced that can be corrected, an action plan is requested that will be
reviewed in a follow-up audit in the near future. Any supplier found having critical devia-
tions, will be subject to termination of the commerce relationship.




Audit classification                                                                                 Audits were also performed on our pri-
                                                                                                  vate label suppliers and on our outsourced
                                                                                                  plants for Medi-Mart products in Mexico to
                                                                                                  ensure quality, safety and compliance with
                                              Low risk                                            all applicable legal requirements. More-
                                              Audited every 2 years                               over, commercial brand suppliers are ac-
                                                                                                  countable for the quality of merchandise
                                                                                                  offered to our customers.
                                                                                                     This year and as part of the social
                                              Medium risk
                                                                                                  responsibility strategy, we conducted an
                                              Audited every year
                                                                                                  evaluation of suppliers on subjects such as:
                                                                                                  treatment and service, organization, use of
                                              High risk                                           technology, communication, commercial
                                              Audited every 180 days                              relations, payment processes, returns, and
                                              Those plants that are graded orange in a two-       others.
                                              year period will lose their “approved” status and
                                              be graded red for one year.

                                              Critical deviations
                                              (Child labor, forced labor, imprisoned workers,
                                              corporal punishment, harassment, bribery)




Audit performed on textile sector suppliers in Mexico
            2007                               2008                             2009                   2010

         16 audits,                       138 audits,                      214 audits,             233 audits,
        15 suppliers                      93 suppliers                    143 suppliers           147 suppliers

For further information, consult:
www.walmartstores.com/AboutUs/279.aspx and www.walmartstores.com/Sustainability/7951.asp


  32    Social Responsibility and Sustainable Development Report 2010
     Including local suppliers in our value chain
Objective. Generate opportunities for new regional companies to market their products in
Walmart de México y Centroamérica stores.
Strategies. Organize regional and national fairs and business discussions to provide local
regional companies the opportunity to become part of our value chain.                         We increased sales for SME
Reengineer New Supplier Services area to reduce response times.                               suppliers by 263% in Mexico.


Programs and actions
 • Individual business discussions were         • The supplier service process was re-           These fairs generated sales totaling
    held in Costa Rica, Nicaragua, Hondu-          structured to simplify proposal analy-        over $17 million pesos.
    ras, El Salvador and Guatemala, through        ses, to reduce response times from 90       • The 1st National SME Fair was held
    the program known as Lending a                 to 30 days in Mexico, and to offer en-        with suppliers from all over Mexico and
    Helping Hand, so as to inform regional         hanced service to regional suppliers.         with presence in all our Walmart and
    small and medium-sized potential sup-       • In Mexico, seven regional fairs were or-       Superama units and 12 Sam’s Clubs in
    pliers of the requirements to become a         ganized, in which 190 SMEs participat-        Greater Mexico City, and 56 Walmart
    supplier for our Company.                      ed, with over 800 items in 234 stores.        units located throughout Mexico.




     Supplier development
Objective. Strengthen relations with our strategic partners, driving their competitiveness,
sales growth and profitability.
Strategies. Work with allies to create training programs, promotions, market segmentation,
and specialized consultancy for small and medium-sized regional suppliers.
Jointly develop business plans.
Finance suppliers through Banco Walmart.




Programs and actions
 • In an alliance with the World Envi-             were able to increase their competi-          renowned in their fields, educational
    ronment Center, we developed an                tiveness, improve their environmental         institutions, organizations and govern-
    18-month long technical assistance             performance and use of resources, re-         ment involved, with 1,300 suppliers in
    program     for   selected    companies,       duce costs, and raise productivity and        attendance.
    Lending a Helping Hand, with the               the quality of their products.              • Together with FUNDES (the Founda-
    purpose of fostering clean production       • For the first time, nine information ses-      tion for Sustainable Development in
    practices and technologies, as well as         sions and seminars were held to im-           Mexico) we re-launched a specialized
    energy efficiency among small and              prove the capacity for business plan-         consultancy program for regional sup-
    medium-sized manufacturers in Gua-             ning, logistics, marketing, and sales in      pliers. In addition to strengthening our
    temala and El Salvador. Those selected         Mexico. There were speakers who are           program to increase SME supplier sales

                                                                                                   Walmart de México y Centroamérica   33
                                                                                                                We had a
                                                                                                             positive impact
                                                                                                          on more than 2,800
                                                                                                           suppliers through
                                                                                                            different training
                                                                                                                initiatives




       by using special signage on the sales              • Together with Banco Walmart, we be-           The subjects provided, in alliance with
       floor, training was given in subjects                 gan a support program for commercial         BAC Credomatic Network, included fi-
       such as brand positioning, negotiation                partners in Mexico through short-term        nancial excellence.
       techniques, inventory management,                     financing, without the need for guaran-
       and others.                                           tees, that fosters their growth, expan-   Principal challenges
 • We launched a market segmenta-                            sion and consolidation by providing
       tion program, prepared together with                  them with liquidity to strengthen their    • Create awareness among suppliers
       Nielsen, to help small and medium-sized               working capital.                             regarding the importance of partici-
       regional suppliers identify geographic             • Management training was provided for          pating in training and development
       areas for their business expansion.                   executives of SMEs in Central America.       programs.




       Developing suppliers of perishables
Objective. Drive the development of small and medium-sized agricultural suppliers to
boost their growth, training in farming practices, and inclusion in the retail market.
Strategies. Invest in equipment, transportation and personnel to offer training for farmers
to boost their development.




  34       Social Responsibility and Sustainable Development Report 2010
Programs and actions
  • Through Fertile Soil, we have sup-                           Some 89% of the fruits and vegetables we sell are purchased directly from
      ported farmers in Costa Rica, Nica-                        farmers in Mexico and 64% from those in Central America.
      ragua, Honduras, Guatemala and El
      Salvador to develop diversified crops
      based on real market needs. This                             of their business and administration        In 2010, the third year of the proj-
      program provides professional ad-                            skills. The program has enabled the         ect, sales amounted to $25.2 million
      vice on seed quality, soil use, yields,                      strengthening of productivity in the        pesos, of which 61% were to Grupo
      follow-up on crop quality, maturity,                         poorest rural area of Guatemala; the        Walmart stores.
      safety, responsible use of agrochemi-                        opening of profitable markets for over   • In one of the poorest municipalities
      cals, crop rotation, and others. Also                        30 groups of growers by delivering          in El Salvador, Caluco, with the sup-
      included are subjects pertaining to                          construction materials for 12 packag-       port of the municipal government
      Good Farming Practices and Good                              ing centers and 14 collection centers;      and FUSADES (Salvadoran Founda-
      Manufacturing Practices. Fertile Soil                        over 2,000 hours of training to 3,755       tion for Economic and Social Devel-
      has become a virtuous cycle that cre-                        people; and has generated 2,434             opment), we assisted a project that
      ates economic and social value for                           jobs (70% men and 30% women).               began with eight farmers and now
      all participants: small farmers, rural
      communities, companies, and cus-
      tomers who find a greater variety of
      fruits and vegetables at competitive
      prices, added to the benefit of local
      development.
  • Through Alliance for the Market
      Inclusion of Rural Entrepreneurs
      (IMARE), a project which began in
      2007, small and medium-sized grow-
      ers receive support so they can in-
      crease their productivity and quality
      of life through enhanced farm man-
      agement, added to the development



Fertile Soil – socioeconomic impact - 2010 (grains, fruits and vegetables)
 Variables                                              Costa Rica          Nicaragua        Honduras       El Salvador      Guatemala          Total

 Supplier farmers                                                  490              380            865             390               121            2,246

 Families benefitted*                                             4,271           3,970           3,610            390             1,451       13,692

 Departments / Municipalities                                       91               32              24             38                 96            281

 Alliances with farm organizations                                  22                4              14             16                  5             61

 Agricultural projects                                               8               37            232              92                 46            415

 Jobs created                                                      525              830            778             800               555            3,488

* Many growers are grouped in cooperatives, associations, etc.


                                                                                                                Walmart de México y Centroamérica      35
       includes 100 growers of parsley, co-                 supply 100% of all chicken and 58% of       fers similar working plans as that
       riander, radishes and chives, among                  all eggs sold in the Walmart stores of      described above, working with small
       others.   They supply stores in the                  that country. The company offers the        beef farmers devoted to raising beef
       country with these products. To date,                chicken, balanced feed, technology          cattle. The company provides the
       farmer income has increased over                     and technical and financial assistance,     animal stock, part of the feed, and
       500%.                                                while the farmers are responsible for       conducts necessary controls and
 • In Mexico, we have trained local grow-                   the facilities, equipment and labor.        sanitary check-ups. The beef farmers
       ers in production, packaging, and post-              At the end of each 45-day cycle, the        provide the facilities, equipment and
       harvest handling under proper food                   farmers receive their payment accord-       labor. Each growing period takes four
       safety standards. When the initiative                ing to previously-agreed yield charts.      months, at the end of which the farm-
       began in 2008, direct purchases from                 In the case of egg production and           ers receive their payment at market
       growers represented a mere 10.6%                     because it entails a process taking 85      prices, as per the incremental weight
       of all fruits and vegetables bought; in              weeks, Ricura sells laying hens and         value obtained since the arrival of the
       2010 this figure grew to 89%.                        balanced feed to the farmers at pref-       steers. This program has been devel-
 • Our meat businesses also support the                     erential credit conditions. The farmers     oped in Costa Rica and Nicaragua, en-
       development of local farmers. The                    receive periodic payments for the ki-       compassing some 2,000 steers.
       Ricura Poultry Farm involves 45 small                los of eggs delivered each week.
       poultry farmers in Costa Rica, who                • Industrias Cárnicas Integradas of-




Fertile Soil assisted 2,246 farmers and improved the quality of life of 13,692 Central American families by
purchasing over $1.1 billion pesos in fruit, vegetables and grains.




                                                                                                           2,434
                                                                                                      jobs were created
                                                                                                        by the IMARE
                                                                                                          project in
                                                                                                         Guatemala




  36      Social Responsibility and Sustainable Development Report 2010
     Textile industry supplier development
Objective. Promote the development of domestic textile suppliers for the production of
private label clothing.
Strategies. Strengthen the CAT-Mex (Textile Supply Chain) program, including ethical
standards for production processes.




Programs and actions
 • For six years now, Cat-Mex has de-           certification of the Ethical Standards     25,656 inspections were conducted
    veloped and trained textile-industry        and Quality program.                       to ensure product quality, represent-
    suppliers in categories such as sweat     • In the case of suppliers who do not        ing 29.9 million garments evaluated
    shirts, t-shirts, jeans, and others,        participate in the CAT-Mex program,        directly in the countries where the
    which help to strengthen the Mexi-          over a three-year period Corporate         merchandise was manufactured.
    can industry.                               Quality has trained over 270 suppliers   • Quality indicators are sent to 520
 • We have a supplier base of 79 domes-         who manufacture private and pres-          strategic partners each month. These
    tic companies with whom we syner-           tige label products; quality manuals       indicators are a tool that allows sup-
    gize in volume programs, acquiring          and virtual training were produced         pliers to improve their production
    over 38 million garments and devel-         to drive their development. Some           processes.
    oping 48.5 million products with a
    28% increase to supply 14 of our pri-
    vate labels.
 • To ensure product quality, some 2.3
    million garments were inspected
    from the initial production phase
    to receiving in our DCs. Due to their
    quality, 27 of these suppliers have
    also exported their products to Cen-
    tral America.
 • We reinforced our value proposition
    of offering our customers quality
    products at low prices. We also met
    our commitment to social respon-
    sibility in the production process
    because they comply with the strict




  For six years now, CAT-Mex has developed Mexican textile suppliers who provide us with our private label apparel.

                                                                                            Walmart de México y Centroamérica   37
Awards and recognitions

  1. Cemefi (Mexican Center for Philanthropy) and AliaRSE (Alliance for Social Re-
     sponsibility in Mexico) for promoting social responsibility in the value chain.


  2. Cemefi, AliaRSE and Forum Empresa, for Lending a Helping Hand program,
     as a best practice for social corporate responsibility in the category of
     value chains.


  3. INTECAP (Technical Training and Development Institute) in Guatemala be-
     stowed the Ricardo Castillo Sinibaldi award in recognition of our efforts
     supporting growers through the IMARE program.




                                                           Recognition for our suppliers
                                                         Walmart de México y Centroamérica recognizes the performance of its suppliers, and
                                                     each year the Company selects suppliers with outstanding performance in sales, inventory
                                                     reduction, fillrate, and price-gap programs. In 2010, awards were given to suppliers from
                                                     different categories such as groceries, perishables, general merchandise, apparel, and re-
                                                     gional suppliers, among others.




  An SME with well-polished shoes



 Brimas was created in Guatemala in 1986 to offer customers                    “Lending a Helping Hand allowed us to venture into the super-
 shoe wax to shine shoes. Since 2007 and as a result of the busi-           market segment. That market currently represents 10.6% of total
 ness discussions offered through the Lending a Helping Hand                company sales. Because we are part of the program, other institutions
 program, in the Villa Nueva municipality, Inversiones Carma now            such as the Secretary of the Economy, the World Environment Center,
 supplies Brimas products to several Walmart stores in Guatema-             and the Guatemalan Center for Cleaner Production have also lent us a
 la. This last year they decided to strengthen their operations to          hand in the implementation of quality systems and processes and to
 follow-up on the sell-thru of their products, increase their promo-        have environment-friendly processes.”
 tion activities, and develop new products to meet customer needs.
 The 94%-increase achieved in sales as compared to last year’s                                                                   Mario Fuentes
 figures is a reflection of their efforts.                                                                                    General Manager
                                                                                                                            Inversiones Carma



 38     Social Responsibility and Sustainable Development Report 2010
We All Lent a Hand
   I don’t remember the context within which        I not think that the small and medium-sized         pany with the capacity to change the world
I read the Aesop fable on the mouse and the         Central American enterprises can become             with the simple decision of placing a product
lion for the first time. According to Aesop, a      great allies with the lion of the globalized        on its shelves.
majestic lion one day captures a tiny mouse,        world? How not to think that maybe Walmart,            I have read that by introducing a fluores-
which by mistake ended up in the lion’s cave.       in all its might, could need allies with the last   cent light bulb in the market, Walmart has
When he sees he is about to be squashed             name of SME?                                        caused enough savings to light up a city of
and devoured by the lion, the mouse pleads             This afternoon I wish to applaud Walmart         two million inhabitants. With the program
for mercy with the most outrageous of argu-         in Central America for lending a hand to the        we celebrate today, another sort of energy
ments: he assures the lion that if released, he     SMEs; for understanding the mutual benefit          has been given to a country of 4.5 million
will one day return the favor. The lion cannot      that lies in the exchange of products and ex-       inhabitants –the brightest, the most powerful
stop laughing at the idea that one day, he,         pertise with micro, small, and medium-sized         of all energy types in the world: that of hope.
the King of the Jungle, may need the help of        companies, who employ the great majority of         May it be that with this sort of hope we man-
such an insignificant creature as a mouse.          Costa Ricans. That is the type of corporate re-     age to build a better future for our people, a
Nonetheless, on a whim he decides to free           sponsibility that has set Costa Rica apart from     future where some modern Aesop speaks not
him, in return for having entertained him so.       the rest: not only are favors done, but rather      of the cooperation between lions and mice,
Not much time goes by when one day the lion         opportunities provided; not only is charity         but rather between multinationals and local
ends up the victim of a hunter’s trap, and he       performed, but alliances created.                   enterprises.
urgently needs the help of the sharp gnawing           It is easy to forget that Walmart was once                           Dr. Óscar Arias Sánchez
teeth of a mouse. The mouse frees him and           a small company, operating in a small town                Former President of the Republic of
Aesop concludes his fable with the following        in Arkansas. It is easy to forget that some             Costa Rica, and recipient of the Nobel
line: small friends can prove to be great allies.   time ago this lion was a mouse trying to sur-                                  Peace Prize, 1987
         How can I possibly not think of this       vive and prosper. Today, Walmart is the larg-
fable written over 2500 years ago? How can          est private-sector employer on Earth, a com-



                                                                                                        Commitments
A very successful Union
                                                                                                         • Global commitment to sustainable agri-
   “The Regional Beef Union of Tabasco is a 100% Mexican company. For 10 years now we                        culture.
have maintained commercial relations with Walmart de México y Centroamérica, a company                   • Purchase 80% of fruits and vegetables
with which we have worked hand-in-hand on different initiatives and strict sanitary controls so              directly from Mexican growers, and a
as to prevent any public health risks.                                                                       30%-increase regarding purchases from
   The strict quality control and cold chain standards in Walmart DCs led us to customization,               small and medium-sized farmers by 2015.
with the purpose of offering a balance in cost and quality, and considerably reducing incidents          • International certification in Best Aquacul-
at the moment of product delivery.                                                                           ture Practices by 2012.
   Thanks to a 25% increase in sales in 2009, a 96% replenishment fillrate, and a competitive
price gap, in 2010 we were named 2009 Supplier of the Year in the perishables category.
   Thanks to the strengthening of our commercial relationship with Walmart, in 2009 alone,
our operations grew 28%, and we currently have 17,000 members located in the states of Ta-
basco, Campeche, Chiapas and Veracruz.”
                                                           Freddy Priego Priego, Veterinarian
                                                                         Chairman of the Board
                                                               Regional Beef Union of Tabasco



                                                                                                              Walmart de México y Centroamérica   39
Benefitting our
 communities




     Social Responsibility and Sustainable Development Report 2010
There are approximately one billion people who live in extreme poverty around the world,
surviving on less than one dollar a day. In Mexico and Central America millions of people live in
extreme poverty, that is, they lack the resources to purchase basic food items despite spending
all of their income for that purpose. Specifically regarding Mexico, it is 18% of its population; in
Honduras, 45%; Guatemala, 16%; Nicaragua, 15%; El Salvador, 11%; and Costa Rica, 5%; out of a
total of 145 million people who live in the region1.


       Working together to be a good neighbor

A
           t Walmart de México y Centro-                          On average, the families we assist have five members, eat twice a day, have a monthly
           américa we promote social de-                      income of less than $1,675 pesos, and set aside 80% of that income for food. For more
           velopment and support nutri-                       information on the Walmart de México Foundation, go to www.walmartmexico.com.mx
tion among those who need it the most,                            In Central America, each year we analyze several social support projects from re-
through financial and in-kind donations,                      nowned local organizations to lend them our assistance.
our infrastructure, and with the help of our
associate volunteers in each and every one
of the countries where we operate.
    The Walmart de México Foundation                                                                      We
was created in 2003 and since then we
                                                                                                     channeled over
have channeled over $2 billion pesos
through financial, in-kind and customer                                                                        $491
donations, supporting projects that foster                                                            million pesos
food security and reduce hunger by
increasing food availability and improving
                                                                                                      in the region
the income of millions of Mexican families
who live in extreme poverty. In 2010, we
supported projects in 31 states of Mexico
and the Federal District, including the
seven states classified as having the                        Donations
                                                                                                                                             $491.2*
greatest marginalization by SEDESOL (the                     (million pesos)
                                                                                                                                  $388.8
Secretary of Social Development).                                                                                       $365.5
                                                                                                              $334



                                                                                                  $141.7
                                                                                        $131.8

                                                                              $97.3
We supported the development of                                    $92.3

2.7 million people through 449                                                                                                                             * Includes information
                                                                                                                                                           for Central America
organizations in the region.                                      2003       2004       2005       2006      2007       2008       2009       2010




1 Source: Data from Coneval (National Council for the Evaluation of Social Development Policy), Mexico 2008; the National Statistics and Consensus Institute of Costa Rica; the
  National Statistics Institute of Guatemala; the National Statistics Institute of Honduras; the UNDP of El Salvador; and the National Institute of Information for the Development of
  Nicaragua.


                                                                                                                                   Walmart de México y Centroamérica           41
                                                                                                    Impact evaluation
                                                                                                       Fundamental to reducing food pover-
                                                                                                    ty is the fostering of food production and
                                                                                                    of growth in family income. On the one
                                                                                                    hand we measure achievements, and on
                                                                                                    the other the effectiveness of our projects
                                                                                                    regarding these subjects. We follow-up
                                                                                                    on all impact indicators that measure the
                                                                                                    status of health in children and the value
                                                                                                    generated by our projects, as related to
                                                                                                    initial investment. In addition, through-
                                                                                                    out the year we make evaluation visits to
                                                                                                    some 30% of all current projects, verify
                                                                                                    the information provided in reports, and
Structure, policies and procedures                                                                  check significant changes in work pro-
                                                                                                    grams originally presented.
   The Walmart de México Foundation has ten associates and a Volunteerism Leader in each
one of our stores, clubs, restaurants and distribution centers who conduct follow-up on the pro-
grams and their implementation. In our corporate offices we have specialized volunteers who
provide support in their areas of expertise. The Board is comprised by seven executives and four
independent directors.                                                                              Training and awareness
   The policy of channeling Walmart de México Foundation donations through not-for-profit
NGOs is done in keeping with our donation policy: financial, in-kind and the channeling of those       Throughout the year, on a monthly ba-
donated by customers and suppliers.                                                                 sis we send internal and external commu-
   The procedures for making donations can be found at:                                             nication materials both to raise awareness
   www.walmartmexico.com.mx/respsoc.html                                                            among customers and associates about the
                                                                                                    value we bring to communities and the im-
                                                                                                    pact we make, as well as the importance of
                                                                                                    our associate volunteerism.
Board of Directors for the Walmart de México Foundation
Directors                                 Position within Walmart de México y Centroamérica
Scot Rank                                 Chief Executive Officer, Walmart Mexico and Central America

Rafael Matute                             Executive Vice President and Chief Financial Officer, Walmart Mexico and Central America

José Ángel Gallegos                       Executive Vice President and Chief Officer of Business Development, Logistics, and Corporate Integrity
Gian Carlo Nucci                          Executive Vice President and Chief Operating Officer, Mexico
José Luis Rodriguezmacedo                 Senior Vice President, Legal and Corporate Relations, Walmart Mexico and Central America
Raúl Argüelles                            Senior Vice President of Corporate Affairs and President of the Walmart de México Foundation
Mario Romero                              Vice President of Logistics and Distribution
Marinela Servitje                         Independent Director
Martha Smith                              Independent Director
Mercedes Aragonés                         Independent Director
Jorge Familiar                            Independent Director

  42     Social Responsibility and Sustainable Development Report 2010
                                                                                                  2,860
                                                                                             family gardens
                                                                                             and farms were
                                                                                              built in 2010


    Increasing food availability
    to combat hunger
Objectives. Support projects that help to create a source of nutrition for family          eating, through educational cam-
subsistence.                                                                               paigns that are meant to inform and
Strategies. We offer comprehensive care to children and adults with malnutrition,          build positive habits and behavior in
through nutritional packages, education, and follow-up on the health condition of          primary school children; promote daily
the children.                                                                              physical activity; and teach them the
We drive self-sustainable projects like the creation of backyard gardens, which in         benefits of eating fruits and vegetables
most cases include vegetable gardens, farms, rain catchment systems, and technical         every day. This program currently in-
training so beneficiaries may grow their own food.                                         volves 33,200 kids and 1,500 teachers
                                                                                           from 101 public schools throughout
                                                                                           Sinaloa, Coahuila, Mexico City, Duran-
Programs and actions                                                                       go, State of México, Jalisco, Tabasco,
                                                                                           and Veracruz. Their Advisory Board
 • We supported the creation of 2,860           Health, benefiting five Children’s         will provide program continuity so as
    family gardens and farms during 2010,       Care Centers in areas of high social       to broaden the impact and thereby im-
    allowing inhabitants throughout the         risk who serve the needs of an aver-       prove the health and nutrition of these
    region to produce their own food and        age of 400 children. Each month we         children.
    market the surplus. Since 2005 we           donate non-perishables to each Cen-      • In Costa Rica we can highlight the hy-
    have helped to build 12,186 such gar-       ter, equaling an annual donation of        droponic vegetable garden, consisting
    dens and farms.                             over $164,000 pesos.                       partially of greenhouse production
 • In Mexico, our stores delivered over       • The Company is also committed to           and partially outdoors. In this manner,
    17,100 tons of food to 231 institutions     combating obesity in children attend-      the community was able to have fresh
    such as food banks, who in turn each        ing public primary schools. Therefore,     vegetables for their own consumption
    month helped feed 646,772 Mexicans          in 2007 the Walmart de México Foun-        and also to sell in our stores, which was
    in severe poverty.                          dation in alliance with Ogali and Pro-     up to 50% of the lettuce they grew.
 • In Costa Rica, since 2009 we have            ject Concern International developed
    developed a food support program            a program called Nutrition and Play
    in conjunction with the Ministry of         for a Healthy Life to promote healthy

                                                                                            Walmart de México y Centroamérica   43
  Our stores donated over 17,136 tons of food in Mexico.                                       Programs and actions
                                                                                                • The reinforcement of our Commercial-
Principal challenges                                                                              ization Program for Products from
                                                                                                  Marginalized Communities and In-
   • Greater efficiency in systems for channeling in-kind donations for the region.               digenous Groups, by generating over
   • Reinforce the development of productivity-enhancing technologies that also                   $2 million pesos in sales. Providing our
         reduce costs and are environment friendly.                                               infrastructure so these products could
   • Eliminate gender inequality and empower women to participate more in                         be distributed to several regions na-
         development.                                                                             tionwide. We display the product for
                                                                                                  sale within the central part of the store,
                                                                                                  ensuring appealing signage. The pro-
         Growing income                                                                           gram returns to the communities 100%
                                                                                                  of the profits achieved from the sale of
  Objectives. Provide economic and human resources and our infrastructure to drive                these goods.
  production processes in marginalized communities and for indigenous groups who live in        • In 2005 the commercialization project
  remote regions, so as to help them grow their income through the fruit of their labor.          began with the sale of embroidered
  Strategies. Financing and supporting production projects with infrastructure, training and      towels from the Mazahua community
  materials, marketing their products in our stores.                                              and baskets made by the Tarahumaras.
                                                                                                  We have currently broadened our
                                                                                                  catalog to include products such as
                                                                                                  amaranth,      coffee,    honey,   jamaica
                                                                                                  flower,   cheese,     marmalade,     bags,
                                                                                                  blankets, and baskets from the states
                                                                                                  of Mexico, Chihuahua, Guanajuato,
                                                                                                  Guerrero, Yucatán, Michoacán, Puebla,
                                                                                                  Campeche and Oaxaca, totaling over
                                                                                                  60 products from 2,000 growers.
                                                                                                • In   benefit     of      the   Tlamacazapa
                                                                                                  community in the state of Guerrero,
                                                                                                  Mexico, this year our El Portón
                                                                                                  restaurants renovated the tortilla and




                                                                                               We increased the income of our
                                                                                               beneficiaries 13% through support
                                                                                               for production projects.




    44      Social Responsibility and Sustainable Development Report 2010
   bread baskets that they have been           coop members and their families and           Autonomous University of Chapingo
   purchasing on a regular basis since         generating 150 indirect jobs through-         to offer consultancy and visits of pro-
   2009 in alliance with the Secretary of      out 9 counties. These vests are used by       fessors and students, so as to help im-
   Social Development in Mexico.               our volunteers whenever they partici-         prove production habits.
 • We purchased 20,000 vests from seam-        pate in a community support activity.      • In Chiapas, Mexico, together with the
   stress coops in Mexico City, who re-      • To benefit the marginalized commu-            ILO (International Labor Organization);
   ceive assistance from the city govern-      nity of Chimalhuacán, in the State of         COPARMEX (Federation of Employers of
   ment through the program titled A           Mexico, we signed an agreement with           Mexico); three universities in Chiapas:
   Stich in Time, benefiting a total of 79     the Municipal Government and the              UNACH (Autonomous University of
                                                                                             Chiapas); UNICACH (University of Arts
                                                                                             and Sciences of Chiapas); and UNICH
                                                                                             (Intercultural University of Chiapas);
                                                                                             and with the support of different state
                                                          Our                                and federal government agencies, we
                                                  commercialization                          began a project in which 60 students
                                                   program has sold                          and    graduates         accompanied       300
                                                                                             artisans from Chiapas in the design
                                                    over $7 million                          and creation of products that can be
                                                      pesos since                            sold in our stores. The pilot project
                                                                                             was launched in the municipality of
                                                         2005                                Zinacantán, Chiapas.
                                                                                          • In Guatemala, Alliance for the In-
                                                                                             clusion     of     Rural        Entrepreneurs
                                                                                             (IMARE)      offer-ed           training        to
                                                                                             30    groups         of     farmers,       thus
                                                                                             improving        their    productivity     and
                                                                                             achieving        sales    for     more     than
                                                                                             $25 million pesos.




                                                                                         Principal challenges
                                                                                          • Replicate the benefits of this model in
                                                                                             more communities.
                                                                                          • Develop retail-related skills.
We commercialize products from nine states of the country,                                • Include perishables in the commer-
generating sales of over $2 million pesos in 2010.                                           cialization process.




                                                                                              Walmart de México y Centroamérica         45
       Support to natural disaster victims
Objectives. Support to natural disaster victims in less than 12 hours.
Strategies. Provide natural disaster victims with staple food products.
Enable collection centers inside the stores.




Programs and actions

 • For the first time in history, Walmart de México Foundation assistance reached for-
       eign countries such as Haiti and Chile. We built alliances with companies such as
       Nextel and Grupo Radio Centro, for greater scope and impact, as far as the support
       provided to natural disaster victims is concerned.
 • Central America experienced the effects of tropical storm Agatha that hit Guatemala,
       El Salvador and Honduras; of the Pacaya Volcano eruption in Guatemala; and tropical
       storm Tomas that hit Costa Rica. The Company launched assistance campaigns in Guate-
       mala and Costa Rica, called Friendly Hands and Hand to Hand encouraging customers
       to help.                                                                                        We channeled 1,188 tons of food
 • We supported natural disaster victims in Mexico and Central America during 2010:                    in support of natural disaster victims.
       •   Haiti earthquake
       •   Chile earthquake
       •   Mexicali earthquake in Mexico
       •   Pacaya Volcano Eruption in Guatemala
       •   Tropical Storm Agatha in Guatemala, El Salvador and Honduras
       •   City dump explosions in Chimalhuacán, State of Mexico, Mexico                               Principal challenges
       •   Hurricane Alex in Nuevo León, Tamaulipas and Coahuila, Mexico
       •   Floods in Veracruz, Oaxaca and Tabasco, Mexico                                                • Natural disasters increase every year.
       •   Hurricane Karl in Veracruz, Mexico                                                            • Victims increase in number.
       •   Tropical Storm Tomas, Costa Rica                                                              • Assistance provided in the least time
       •   Explosion in Puebla, Mexico                                                                      possible.




                                                              Volunteerism
                                                        Objectives. Increase associate and customer participation in volunteer activities aimed
                                                        at contributing towards improving the quality of life of the communities we serve.
                                                        Strategies. Generate different options suitable to our associates’ availability, and encour-
                                                        age their participation.
                                                        Open our volunteer program to our customers.




  46       Social Responsibility and Sustainable Development Report 2010
Programs and actions                                                                                        86,901*




                                                                                                                            * Including volunteers in Central America
 • The most important and essential part            Associate volunteers
   of our community involvement actions
   is the committed, free and responsible
   work of our associate volunteer.
 • Several activities were carried out
   in 2010 such as school, orphanage
   and hospital maintenance projects;                   1,341
   support to food programs; garden,
   park and beach clean-up; and the
   building of farms, among others.
                                                        2003                                                  2010
 • We designed monthly programs for
   our different business formats. Some
   activities are periodically carried out
   and, in some cases, specific campaigns
   were   conducted      throughout     the
   region such as the celebrations that
   took place during Earth Month in June,
   entailing reforestation activities; World
   Food Day in October, with activities
   aimed at supporting food banks.
 • Another source of pride is the pro-
   gress achieved in Central America in
   the launching of the 2009 Volunteer
   Program. We also carried out an ini-
   tiative called My Sustainability Plan
   that allowed associate volunteers to
   become leaders in the improvement of
   their communities, their family health,
   and environmental protection.
                                               82,800 associates performed 2,593 volunteer activities in Mexico,
                                               15,971 associates participated in more than one volunteer activity.
                                               4,028 associates participated as volunteers in Central America.


                                                    Other social support programs
Principal challenges
                                               Objectives. Make our infrastructure available to customers so that they get involved and
 • Increase customer participation.            are willing to participate in social causes that are important to them, the community and
 • Encourage involvement of staff              our associates.
   associates.                                 Strategies. Promote several collection campaigns in our stores aimed at benefiting differ-
                                               ent social causes.



                                                                                                   Walmart de México y Centroamérica                                    47
Programs and actions
 • We provided our customers with
       Sweet Help in Nicaragua, Honduras, El
       Salvador, and Guatemala by delivering
       sweets in appreciation for their volun-
       tary contributions to support organiza-
       tions such as A Roof for my Country in
       Nicaragua; the Honduran Foundation
       for Children with Cancer in Honduras;
       the Agape Association in El Salvador;
       and the Aldo Castañeda Foundation
       in Guatemala. To date, the Sweet Help
       campaign has channeled $36 million
       pesos to several institutions.
 • 2011 calendars, illustrated with draw-                    fered training in the subject of nutri-         both cases, donations are directly de-
       ings made by customers’ children,                     tion and medical assistance for kids,           livered to the NGO and the customers
       were offered to our customers in Costa                thus doubling the contributions made            are provided with the institutions’ tele-
       Rica, Nicaragua, Honduras and Guate-                  by our customers.                               phone numbers and all the necessary
       mala; the illustrations were selected as           • In Mexico we offer Social Assistance             information for tax-deduction purpos-
       part of the contest called What I like                Cards where the costumer may re-                es. Our Company does not participate
       the most about my country, held to                    quest to be charged a certain amount            in “any rounding-off” campaigns.
       support children in the region.                       of money, which we hand directly over
 • Since 2008, we undertook a campaign                       to the NGO. In the case of the Peso
       in Honduras to collect food, in con-                  by Peso campaigns, our customers           Principal challenges
       junction with the Solidarity Charitable               buy a stamp, which is also charged to
       Association, to improve the nutrition                 their accounts and Walmart de México         • Encourage customer participation and
       of families in extreme poverty. We of-                Foundation matches the amount. In               involvement.



         Looking for best practices
   For ten years now, the CIDE (Center for
Economic Research and Education) has
acknowledged successful municipal ex-
periences aimed at supporting social de-
velopment, through the Governance and
Local Management award. In the light of                     In November 2010, Walmart de México Foundation and the Food Bank for Social
this award, Walmart de México Founda-                       Development (BADESO) opened a 1,000 square- meter hydroponic greenhouse in
tion launched a special recognition effort                  Pachuca, Hidalgo that will produce 100 tons of high-quality lettuce each year, for
to identify those outstanding municipal                     9,000 beneficiaries of the food bank. The greenhouse allows for water and nutri-
projects that that are capable of generat-                  ent efficiency and has a hydroponic system that reuses 100% of the water, thus
ing social impact. The Technical Evaluation                 ensuring up to 97% plant health. According to experts, and given the technology
Committee, consisting of representatives                    used, this greenhouse is the largest of its kind in Latin America.
from the CIDE, UNAM (National Autono-



  48       Social Responsibility and Sustainable Development Report 2010
mous University of Mexico) and the UNDP
selected the 3 winning projects: the mu-
nicipalities of Toluca, State of Mexico; Soli-
daridad, Quintana Roo; and Nuevo Laredo,               In Nicaragua, the Healthy Eating program, held in conjunction with World Vision,
Tamaulipas. Each winner was awarded with               provided farmers with training programs through SOYNICA institution, regarding the
$250,000 pesos so that they can continue               manufacturing of nutritional grains and honey, including the basics on food safety,
supporting families in extreme poverty in              food availability, manufacturing best practices, and foodborne diseases. The farmers
each municipality.                                     were also provided with materials and equipment to start the production processes.
   In order to foster professionalization of           By late 2010, participants had grown soy, oats, barley and honey, among others, ready
participating NGOs for the commercializa-              to be marketed with labels, nutrient data, and bar codes. Members of this work team
tion program, Walmart de México Founda-                were invited by the FAO (UN Food and Agriculture Organization) to participate in the
tion acknowledged CEDAIN (Alternative De-              2010 Food Fair. After completing this process, they will apply to become Walmart
velopment Center for Indigenous Groups)                suppliers under A Helping Hand program, for stores in Nicaragua.
in Chihuahua as the best institution in the
Commercialization Program.

   “Given the high level of brand recognition and reputation of Walmart de México y Centroamérica, the relationship with them has benefited us greatly.
Current and potential donors tend to relate the Walmart brand to a great company with reliable and winning features. By linking it to World Vision, custom-
ers and donors reinforce their confidence in our work because the excellent reputation Walmart has encourages them to contribute to causes it supports. “
                                                                                                                           Josué González Monroy
                                                                                                                National Director for World Vision


Awards and recognitions

  1. The Walmart de México Foundation was honored with the                     3. The Walmart de México Foundation received the Social
       World Business and Development Award 2010, bestowed                          Golden EFFIE Award, granted by the Mexican Association
       by the UNDP (United Nations Development Program), the                        of Advertising and Publicity Agencies, for its World Food
       International Chamber of Commerce (ICC) and the Interna-                     Day”campaign, recognizing the effectiveness of communi-
       tional Business Leaders Forum (IBLF). The award acknowl-                     cation campaigns and social marketing that are capable of
       edges the Walmart de México Foundation for its program:                      generating concrete results for the benefit of the community
       Commercialization of Products from Marginalized Com-                         and Mexico’s social development.
       munities and Indigenous Groups, as an innovative and                    4. The Walmart the México Foundation Campaign World Food
       productive business practice that contributes towards com-                   Day was a finalist in the Caracol de Plata awards, as best
       munity sustainable development.                                              message and social benefit advertising in Ibero-America.
  2. The Philanthropic Outreach in Child Nutrition Award                       5.   State Award for Altruism 2010 granted by the government of
       granted by DIANUI, the Mexican Health Foundation, and the                    the State of Mexico through SEDESOL (the Secretary of Social
       “Healthy Living” Institute of PepsiCo International, Mexico, for             Development) and the Private Welfare Board for its contribu-
       our Program Food and Play for Healthy Living, which pro-                     tion to and help for indigenous communities and vulnerable
       motes healthy food and exercise in public schools.                           groups with limited economic resources in the State of Mexico.



Commitments
 • Strengthen the program for the Commercialization of Products                  • Contribute towards community self-development, thus
     from Marginalized Communities and Indigenous Groups.                           improving the quality of life of the population.

                                                                                                                Walmart de México y Centroamérica     49
sustainable future
    Forging a




   50   Social Responsibility and Sustainable Development Report 2010
Environmental care is also a priority for Walmart de México y Centroamérica. This priority
is aimed at reducing the environmental impact of our operations in the short, medium and
long terms along five lines of action: energy, water, wastes, product, and fostering a culture
of sustainability.




                                                                    $248
T
       he long term sustainability goals for
       the Company consist in using 100%
       renewable energy, zero waste pro-
                                                              million pesos
duction, water efficiency, offering a wide                     invested in
range of products with sustainable pack-                      environmental
ages, and having trained and involved as-
                                                                protection
sociates.
   Global goals shape our sustainability                         projects
initiatives and practices throughout the re-
gion, and can be found in the Global Sus-
tainability Report at the Walmart Stores, Inc
website:     http://walmartstores.com/Sus-
tainability/7951.aspx
   The sustainability strategy at Walmart       suppliers to foster the development of envi-      neighboring areas chosen by environmen-
de México y Centroamérica includes mo-          ronment-friendly products; and driving the        tal authorities. Also contemplated in our ap-
dernizing stores through the development        sale of those products in our stores through      proach is community work to foster sustain-
of prototypes that use state-of-the-art         the reinforcement of environmental aware-         able agriculture, not only through programs
technologies with low environmental im-         ness campaigns.                                   focused on technical improvements, but
pact; encouraging the involvement of all            Our sustainability strategy also strives to   also the benefits that people derive from
its associates through training programs        have a low impact on biodiversity; the cons-      them.
and internal communication and informa-         truction of new units includes remediation            Some of our medium-term sustainabi-
tion campaigns about practices that can be      plans so that when green areas are affect-        lity commitments that we wish to achieve
implemented in their homes; working with        ed, trees can be replanted and relocated in       by 2015 are as follows:




            Energy                   Waste                         Water                      Products                         People
  Derive 50% of our energy       Recycle or reuse 80%         Reuse 60% of treated        Increase our selection of           Train and involve
   from renewable source            of our wastes                water in stores            sustainable products                  associates




                                                                                                          Walmart de México y Centroamérica       51
                                                                                                3
                                                                                                       Sustainable fisheries: Some 70%
                                                                                                       of the imported fish and seafood we
                                                                                                       purchase are internationally certi-
                                                                                                fied for being responsibly sourced. By 2012,
                                                                                                some aquaculture products will be certified
                                                                                                under Best Aquaculture Practices standards,
                                                                                                or the minimum equivalent. The fostering
                                                                                                of aquaculture in Costa Rica allowed 60%
                                                                                                of our supply of fish and seafood to be lo-
                                                                                                cally and sustainably produced. We are
                                                                                                also working on developing new suppliers
                                                                                                throughout the rest of Central America.




                                                                                                4
                                                                                                       Wood supply: The wood pallets
                                                                                                       used by our logistics network come
                                                                                                       from authorized sources, and we do
                                                                                                not purchase any wood from clandestine
                                                                                                operations.




                                                                                                5
                                                                                                       Printed material supply: We en-
                                                                                                       sure that any printed materials de-
                                                                                                       rived from cellulose contain a high
                                                                                                content of recycled fiber post-consumption
                                                                                                or come from certified forests.
   The following lines of action have been established in order to protect the soil and those
resources related to the production of food and products made from wood:

                                                                                                Policies and procedures

1
       Sustainable agriculture: Fostering the incorporation of fertile soil conservation
       technologies, the reasonable use of water and the reduction of pesticides among             Our Sustainability and Energy Efficiency
       our food suppliers by adopting biological pest control practices. We have also in-       Directorship is in charge of designing and
cluded organic products in our catalog, so as prevent the pollution of bodies of water.         carrying out comprehensive environmental
   In Central America, our Agro-industrial area, through the farmer support program             sustainability strategies. In addition, we have
known as Fertile Soil, certifies suppliers in Best Agricultural Practices. Through this pro-    a group of interdisciplinary experts and teams
gram, a group of agronomical engineers advises farmers on how to improve productivity,          to perform initiatives with the Operations,
the efficient and safe use of agro chemicals, and the use of environment-friendly produc-       Real Estate, Legal and Compliance, among
tion systems, among others. The consultancy, training, and processes ensure the supply of       others. We also have sustainability leaders
quality products for our stores, thus benefiting our customers with a variety of fruits and     in each of our units, whose duty is to meet
vegetables at very competitive prices. In addition, developing local production allows for      established goals and promote a culture
the reduction in greenhouse gases because transportation distances are greatly reduced.         of environmental responsibility with our
                                                                                                associates and customers.



2
       Phosphates in detergents: Our goal for 2011 is to achieve a 70% reduction in                The Sustainability department must
       the current level of phosphates found in the detergents we sell, in order to reduce      document policies and procedures en-
       pollution in lakes and prevent eutrophication –the increase of nutrients in a body       compassing the rules and responsibili-
of water.                                                                                       ties for each process that impacts the



  52    Social Responsibility and Sustainable Development Report 2010
environment. Each procedure contains a          medium and long-term objectives. Compli-      from supplier companies, and the Deputy Di-
flowchart diagram illustrating each acti-       ance is managed through a system that re-     rector of the Latin American Center for Com-
vity, the person in charge, and the manuals,    ceives monthly input on the progress/status   petitiveness and Sustainable Development,
guidelines and forms needed to provide clar-    in each department.                           of the Central American Institute for Business
ity, speed and accuracy to the sustainability      In Central America, this is done through   Management.
strategy and its implementation.                the Sustainability Board, whose purpose
   At the beginning of each year, sustain-      is to serve as an advisory body for the re-
ability indicators with clearly established     gion’s sustainability program; members of
metrics are defined to ensure the success of    the board include Company officers, leaders




                 Over
             1,000
        participants                            Audits
   for the Sustainability
           Forum                                   At Walmart de México y Centroamérica, periodic audits are performed to measure
                                                compliance with sustainability objectives, thus identifying risks and putting action
                                                plans into motion to mitigate them. These audits are performed under full supervi-
                                                sion and follow-up by Walmart Stores, Inc., which serves as our external verification.
                                                   Each year, Walmart de México y Centroamérica voluntarily publishes its inventory
                                                of greenhouse gas emissions in the spirit of transparency regarding the status of our
                                                commitments.




  “Our country has tremendous potential to save energy by using it much more efficiently. Walmart
 de México y Centroamérica has proven that energy savings are possible, an example for the rest of
                                                    the sector that these savings can be a reality.”
                                                                                   Georgina Kessel, Secretary of Energy

                                                                                                    Walmart de México y Centroamérica   53
       Energy
Objectives. Reduce greenhouse gas emissions and operate on 100% renewable energy.
Strategies. Promote the use of renewable energy.
Implement energy savings.
Redesign our stores with state-of-the-art equipment.




Programs and actions
 • Over the last five years in Mexico, we                    displays have LED lighting and more
       have made our stores between 19 and                   efficient motors.
       25% more energy efficient, as com-                 • In Central America we conducted an
       pared to 2005.                                        intensive program to reduce the over-
 • We have control systems for our refri-                    loading of coolant gas in our stores,
       gerators, air conditioning and lighting.              achieving 28% reduction over last year.
       These systems allow us to schedule                    We continued our interior lighting sub-
       when the lights are turned on and off,                stitution program, switching to T8 and
       thus increasing the possibility of ener-              T5 systems throughout the region and
       gy savings.                                           reducing energy consumption in each
 • All refrigeration and air conditioning                    store. We also substituted fluorescent
       in new stores work with coolants that
       do not harm the ozone layer. Open dis-
       play cases have nighttime curtains to                        90 million kWh of energy were saved throughout the region,
       prevent cold air from escaping when                          equivalent to the annual consumption of 30,000 households.
       stores are closed. In addition, closed
                                                                                                         refrigerator-door lights with LED. In
                                                                                                         addition, initiatives such as the use of
                                                                                                         alarms and sensors in cold rooms were
                                                                                                         implemented to prevent prolonged
                                                                                                         opening of cooling-equipment doors.
                                                                                                       • In the last three years we have imple-
                                                                                                         mented three different lighting tech-
                                                                                                         nologies in our parking areas, each
                                                                                                         more efficient than the previous one.
                                                                                                         We began with high-efficiency metal
                                                                                                         additives; then magnetic induction,
                                                                                                         which generates close to 40% savings;
                                                                                                         and in 2010, we implanted LED lighting
                                                                                                         technology. We also changed the spec-
                                                                                                         ifications for the lighting of facades in
                                                                                                         produce areas, and the lighting inten-
                                                                                                         sity of some of our stores. In Central
                                                                                                         America, LED lights were installed



  54       Social Responsibility and Sustainable Development Report 2010
In Mexico we reduced greenhouse gas emissions by 15%
and by 4% in Central America.



   in the parking and outdoor areas            cooperation among important players
   of over 350 stores, thus achieving          in the country’s energy sector, such as
   greater duration and less energy use.       the Secretary of Energy, the Federal
 • In Mexico this year we challenged           Electricity Board, and the Power Com-       Principal challenges
   each one of our units to an 8% reduc-       mission of Greater Mexico City, and
   tion in kilowatts/hrs through 8 very        Eléctrica del Valle de México with a           Implement projects that will allow us
   specific initiatives that were followed     common goal: to care for our planet.        to operate 100% on green energy; we are
   for 8 straight weeks.                     • In coordination with the Sustainable        continuously analyzing the viability of tech-
 • By late December 2009, Eléctrica del        Packaging System, we are more effi-         nologies we use for water, sun, wind and
   Valle de México completed construc-         cient in merchandise transportation.        biomass as primary energy sources.
   tion on the first wind farm of its kind     An example of this is the Culiacán Dis-
   for a retail company, in Juchitán, Oa-      tribution Center, which reduced the
   xaca. On April 1 , 2010 it began opera-
                   st
                                               number of trips to stores by 7,100, the
   tions, providing clean energy to 348 of     equivalent to not traveling some five
   our units located in Mexico City, the       million kilometers by no longer burn-
   State of Mexico, and Morelos state.         ing 2.1 million liters of diesel, thereby
   This project supplies 17% of our ener-      reducing CO2 emissions by 5,700 kilos.
   gy through renewable sources and is         Moreover, our Guadalajara DC is certi-
   expected to reduce some 137,240 tons        fied as a Clean Company and we are
   of CO2 emissions per year. Although         awaiting similar certification for our
   the wind farm was a great challenge         DC in Culiacán.
   for the Company, it is an example of



                                                                                                 Walmart de México y Centroamérica   55
        Wastes
Objectives. Generating zero wastes in stores so as to free up space in sanitary landfills or
municipal dump sites.
Strategies. The transformation of waste into valuable material and the recovery and treat-
ment processes that would enable us to return the majority of waste to the market for its
subsequent recycling, reuse, application in closed cycles, and enhancement of efficiencies,
including the reuse of plastic bags and byproducts.




Programs and actions
 • An audit on wastes was conducted this
       year to determine new types of waste,
       amounts generated, and the possibility
       of assessing and recycling.
 • At Walmart de México y Centroamérica
       we have classified five valuable types of
       waste, that is, which have market value
       or that can be used as raw material in
       other production processes; these can
       be sold directly to recyclers who ensure
       transformation into new products.
 • We are developing options for recy-
       cling waste generated in our stores and
       which can return to our units as a pro-
       duct for sale or for internal consumption.
 • We currently recover the cooking oil
       used in 242 of our restaurants through-
       out Mexico in order to prevent water
       pollution and recycle it for other pro-
       duction processes. We work with differ-               paper, cardboard, and glass. This pro-
       ent suppliers to ensure the oil’s correct             ject is part of Grupo Transforma initia-
       separation and then transformation                    tives, an alliance of companies in favor
       into biodiesel, soap, and a supplement                of sustainability, including Coca-Cola,
       for cattle feed.                                      Natura, Philips, Unilever and Walmart
 • We also offer options for customers                       de México y Centroamérica.
       seeking to recycle the wastes they                 • The Recycling Program, which pro-
                                                                                                        Mexico reduced the use of plastic bags
       produce at home, by way of dump-                      motes the separation and recycling         by 16%, and Central America by 36%.
       sters located in our Superama stores                  of wastes at our corporate offices in
       in Mexico and our Hiper Más units in                  Mexico City, eliminates the need for
       Costa Rica, which accept five types                   trash cans at work stations because all
       of waste: PET containers, laminated                   the wastes generated by our associates
       cardboard containers, aluminum cans,                  are separated and placed in Recycling



  56       Social Responsibility and Sustainable Development Report 2010
68% of wastes generated in
Mexico are recycled and 55%
in Central America.

    bins located throughout the buildings.
 • In 2008 we launched a program meant
    to replace the use of plastic bags for
    reusable ones. The goal of generating
    zero wastes includes reducing the use
    of plastic bags and substituting them
    for Green Bags, which this year came
    in three different styles: Blue Bag (sig-
    nifying water efficiency), the World
    Cup Bag, and the Mexican Bicenten-
    nial Celebration Bag (commemorating
    the Independence of Mexico in 1810).
    The reusable bag program in Central         • Whereas in Mexico, Superama devel-            Principal challenges
    America in sold more than double the           oped the Urna Verde ecological pro-
    amount of bags than the previous year.         gram to motivate customers in the             • Increase the number of clothes hang-
    Cashiers and baggers continuously re-          use of reusable bags for shopping,              ers reused and grow the supplier base
    ceive training on how to pack plastic          and therefore reduce the need for               benefitting from this program.
    bags more efficiently, which resulted in       plastic bags.                                 • Increase the number of stores partici-
    a 36% decrease in plastic bags given to                                                        pating in recycling programs.
    customers.                                                                                   • Develop programs that increase the
                                                                                                   use of reusable bags.



      Water
Objectives. Reduce water use and increase its treatment for reuse in order to achieve zero
contaminant discharge.
Strategies. Modify water consumption habits among associates, both at work and at home,
through water efficiency campaigns.
Invest in more efficient equipment and devices in addition to more wastewater
treatment plants.

Programs and actions
 • The     Save     Now    campaign     was        ing the dry urinals installed in 642 units      that affect the environment. A savings
    launched, providing suggestions on             throughout Mexico, which do not re-             of 3.8 liters per flush can be achieved,
    how to change associates’ water con-           quire water as they use gravity for liq-        equivalent to what is normally used in
    sumption habits, both at home as well          uid discharge. There is a membrane al-          traditional urinals.
    as at work.                                    lowing the passage of liquid and not air,     • Beginning in 2008, eco-faucets have
 • From 2007 to date, we have installed            which eliminates bad odors and elimi-           been installed in sinks of the different
    several water savings devices, includ-         nates the need for harmful deodorants           departments in 618 units throughout

                                                                                                     Walmart de México y Centroamérica   57
                                                                                                              We treated
                                                                                                                   1.1
                                                                                                            million m3 of
                                                                                                            wastewater in
                                                                                                              Mexico




Some 718 million liters of water were saved in Mexico.


    Mexico. They consist of devices made               • Since 2002, Walmart de México y Cen-         Principal challenges
    of chromed brass, reducing the water                  troamérica has installed 431 wastewa-
    flow in terms of pressure and produc-                 ter treatment plants to produce reus-        • Reinforce a culture of responsible use
    ing savings of up to 20%, equal to 95                 able-grade water, through activated            of water among all associates.
    million liters of water since the onset               sludge and tertiary treatments such as       • Optimize treatment plant manage-
    of the program. Water-saving devices                  filtration. The certified reusable water       ment to ensure the continuity of our
    were also installed in Central America                produced is used in restrooms facili-          treated water supply, and to increase
    –hydro economizers–which resulted in                  ties and for watering gardens. During          the percentage of treated water used.
    30% less water used.                                  2010, Mexico reused 1.1 million m of    3
                                                                                                       • Improve water efficiency in stores
 • The San Martin Obispo Distribution                     water; pilot testing was also conducted        through     the   implementation    of
    Center outside of Mexico City adapted                 in Costa Rica to analyze the results.          technology and the modification of
    its refrigeration system in order to use                                                             operating procedures to reduce con-
    treated water.                                                                                       sumption.
 • The first wastewater treatment plant                                                                • Increase percentage of treated waste-
    with the ability to treat rainwater was                                                              water used in stores.
    installed in Walmart Vicente Guerrero,
    located in Chalco, State of Mexico, en-
    abling the reuse of almost 95% of the
    wastewater in the store. Pilot testing has
    also been conducted in eight stores in
    Central America to test the performance
    regarding the reuse of rainwater.




  58    Social Responsibility and Sustainable Development Report 2010
      Product/Packaging
Objectives. Foster the development of environment-friendly products and packaging.
Strategies. Execute Sustainable Packaging Scorecard to achieve a considerable reduction in
wastes, in addition to greater supply chain efficiency.
Develop own lines of sustainable packaging, including guidelines and definitions.




Programs and actions
 • The Sustainable Packaging Scorecard               76 suppliers were already involved       has 31 items from different categories,
    is a global tool allowing suppliers to           with the project. For more informa-      such as phosphate-free detergents and
    discover how sustainable their item              tion, go to: http://walmartstores.com/   biodegradable cleansers. Member’s
    packaging really is, its environmental           sites/sustainabilityreport/2010/com-     Mark, an exclusive line for Sam’s Club
    impact, and ways to achieve improve-             mitments_waste.aspx                      members, has energy-saving bulbs
    ments. The purpose is to reduce wastes        • Great Value Terra and Member´s Mark       and biodegradable garbage bags. To
    and seek greater supply chain efficien-          Eco Responsible –private label prod-     reinforce all this, for the third consecu-
    cy. Benefits of the scorecard include            uct lines– were developed to help the    tive year in Mexico we conducted our
    waste reductions and less materials,             planet and offer our customers and       environmental awareness campaign
    transportation and storage costs. In             members environment-friendly prod-       –Earth Month– which is part of a sus-
    April 2010, a pilot phase was launched           ucts at affordable prices. Great Value   tainability agreement signed in 2007
    with 20 suppliers; by late 2010 our top          was launched in 2009 and currently       with SEMARNAT (the Secretary of the




                                                                                              Our catalog
                                                                                            has over 700
                                                                                          sustainable products
                                                                                             and packages




                                                                                               Walmart de México y Centroamérica   59
       Environment and Natural Resources)                   proper definitions allowing for better
       to broaden our catalog of environ-                   decision making on items and to de-
       ment-friendly    products      and     pro-          cide if they are truly sustainable and
       mote their use without affecting the                 environment friendly; an added bene-
       family budget.                                       fit is the sharing of glossaries with sus-
 • We worked with our Merchandis-                           tainability terminology and necessary
       ing teams to establish guidelines and                information.




        Culture of sustainability
Objectives. Involve our associates in environment-related issues and foster a culture of
sustainability.
Strategies. Encourage the development of the PSP (Personal Sustainability Plan), which of-
fers our associates tools and tips on how to reduce their footprint through daily actions, and
reinforce these concepts with training and communication activities throughout the year.



Programs and actions
 • Our stores and DCs have sustainability
       leaders that help inform their fellow
       associates on the different activities
       in which the Company is currently in-
       volved.
 • During their orientation courses, new-
       ly-hired associates are informed of
       what the Company does in this field.
 • We are generating and leveraging
       communication mechanisms with our
       strategic partners through the Sam’s
       magazine and the Superama website.
 • Leaders in all our business units were
       named Sustainability Guides, with the
       purpose of offering information and
       tips to our customers on how to care
       for the environment and to encour-
       age all associates to join the program.
       They can choose plans in favor of their
       health, the planet, and their commu-
       nity through the PSP.




  60      Social Responsibility and Sustainable Development Report 2010
    Conversion to LED lighting in parking lots
    and outdoor areas in Central America
   This year, over 350 units throughout Nicaragua, Guatemala,                    advantage to LED includes greater duration –approximately 12
   Costa Rica, Honduras and El Salvador converted their lighting                 years without the need for maintenance.
   systems in all parking lots and outdoor areas to LED.                             Considering that in Central America over 2,700 LED bulbs
       This lighting system provides more than 42% luminosity and                were installed, and that in a single year energy use can be re-
   consumes 50% less energy, as compared to traditional bulbs; it                duced by 2.4 million kWh, then it is fair to say that the initiative
   is also outdoor resistant and contains no harmful minerals. The               offers the following benefits:


                                                    By using less energy, 543 tons less of greenhouse gases (CO2) are
                        Planet                      produced, which is similar to removing 272 motor vehicles from
                                                    the road for an entire year.
                                                    Power companies can provide energy to over 800 households for
                        People
                                                    an entire year.
                        Budget                      Reductions in energy use amount to $5 million pesos per year.




   “I congratulate Walmart de México y Centroamérica as well as its strongest suppliers -Unilever,          Commitments
Procter & Gamble, Grupo Bimbo, La Huerta and Kimberly Clark- for joining the program we have
titled Environmental Leadership for Productivity, which entails the joining of efforts to promote           • Reduce greenhouse gas emissions by
the development of environmental management practices that lead to greater competitiveness and                20% by 2012 (2005 baseline).
economic growth.                                                                                            • Reuse 80% of wastes generated by 2015
   I wish to say that we are quite happy that these companies, true leaders, join Walmart de México         • Reduce the use of plastic bags by 50%
y Centroamérica in its efforts. If the entire private sector were to display that same strength, capacity     by 2013 (2007 baseline).
and development for presenting solutions to climate change issues, Mexico could be a developed              • Reduce water consumption by 20% by
nation that would set us apart from the rest –a green economy.”                                               2012 (2008 baseline).
                                                                                                            • Implement the Sustainable Packaging
                                                                       Juan Rafael Elvira Quesada             Scorecard with 80% of our top suppli-
                                       Secretary of the Environment and Natural Resources                     ers by 2015.
                                                                                                            • Involvement and training of all
                                                                                                              associates.



Awards and recognitions
    1.   Poder y Negocios magazine, for being one of the top 10 sustainable
         companies in Mexico.
    2.   AMCO (Mexican Association of Organizational Communication) awarded the
         Company a Cuicatl award for its sustainability strategy in 2010.




                                                                                                                Walmart de México y Centroamérica   61
indicators index
  Performance




    62   Social Responsibility and Sustainable Development Report 2010
Caring for our associates
      Performance                          2009 Results                                  2010 Results                                  2010 Results
       indicators                            Mexico                                        Mexico                                     Central America
Employee data by type        Total associates: 176,463.                    Total associates: 190,677 (2,181                Total associates: 29,090 (52 management)
of job, contract terms       • New associates: 6,449.                      management and 188,496 non-                     • New associates: 8,667.
and region                   • Permanent associates: 164,816 (93%)         management).                                    • Permanent associates: 29,090 (97%)
                               (86,798 women and 78,018 men).              • New associates: 14,214.                         (11,830 women and 17,260 men).
                               - Full-time: 90%.                           • Permanent associates: 175,799 (92%)             - Full-time: 90%.
                               - Part-time: 3%.                              (92,130 women and 83,669 men).                  - Part-time: 9%.
                             • Temporary associates: 11,647 (6%)             - Full-time: 82%.                             • Temporary associates: 954 (3%)
                               (5,658 women and 5,989 men).                  - Part-time: 10%.                               (361 women and 593 men).
                               - Full-time: 6%.                            • Temporary associates: 14,878 (8%)               - Full-time: 93%.
                               - Part-time: 0.6%.                            (7,240 women and 7,638 men).                    - Part-time: 6%.
                             • Temporary associates for Christmas            - Full-time: 6%.                              • Temporary associates for Christmas
                               season only: 16,542.                          - Part-time: 2%.                                season only: 16,542.
                                                                           • Temporary associates for Christmas
                                                                             season only: 15,800.

Annual training              • Training investment of $49.7 million        • Training investment of $76.7 million          • Training investment of $6.8 million.
hours per employee             (classroom and distance training).            (classroom and distance training).            • 439,470 man-hours in training.
                             • 8.3 million man-hours in training total     • 10.6 million man-hours in training total      • 42,037 trained associates (including
                               company (3.6 million through distance         company (5.4 million through distance           those who left the company).
                               training and 4.7 million in classrooms).      training and 5.2 million in classroom).       • 15.10 hours on average per associate.
                             • 198,264 trained associates (including       • 174,345 trained associates (including
                               those who left the company).                  those who left the Company).
                             • 54 hours per associate / manager level.     • 106 hours per associate / manager level.
                             • 45 hours per associate / department         • 56 hours per associate / department
                               manager level.                                manager level.
                             • 40 hours per associate / hourly level.      • 38 hours per associate / hourly level.

Skill management             • 15,287 promotions (51% men and 49%          • 16,705 promotions (50% men and 50%            • 3,353 promotions (66% men and 34%
and continuous training        women).                                       women).                                         women).
programs for employees       • Universal Talent Base: 12,266 non-          • Universal Talent Base: 13,354 non-            • Leadership Academy: 4,264 participants,
                               management associates, 5,978 women            management associates, 6,960 women              82,437 man-hours, including the
                               and 6,288 men, 3,377 associates were          and 6,394 men with development                  following programs and courses:
                               promoted (42% women and 58% men).             potential to one or more levels, 4,981          - Leadership basics.
                             • 8 associates in international development     associates were promoted (47% women             - Updates for District Managers.
                               Corporate training.                           and 53% men, equivalent to 37% of total         - Female leaders.
                             • 923 corporate courses.                        talent base and 30% of total company            - Development program for medium
                             • 8,113 associates trained.                     promotions).                                      and management levels.
                             • 240,698 man-hours.                          • Fast-lane development plans for 104 Top
                             • Open education together with                  Talent women and 34 Top women.
                               educational authorities: 3,308 associates   • 7 associates in international development.
                               benefited.                                  • Corporate training: 10,984 corporate
                                                                             courses, 124,221 trained associates,
                                                                             607,483 man-hours.
                                                                           • Open education together with
                                                                             educational authorities: 2,443 associates
                                                                             benefited.

Total hours of associate     • 100% of our associates in the security      • 100% of our associates in the security        • Communication strategies that contribute
training regarding aspects     area.                                         area.                                           towards reinforcing corporate culture
of human rights relevant                                                                                                     vis-à-vis service and excellence, such
to their activities          Corporate Training:                           Corporate Training:                               as a culture campaigns, leadership
                             • 6 courses                                   • Courses cover topics related to                 development, and others.
                             • 9,863 orientation sessions                    gender equality , equal development           • Design and development of printed
                             • 484,141 man-hours                             opportunities, respect for the individual       and electronic materials to reinforce the
                             • 59,932 associates trained                     and personal traits that a leader needs to      behaviors of respect and fair treatment:
                                                                             develop:                                        posters, stories through Intranet,
                             Internal Communication:                       • 6 courses                                       e-post cards and e-bulletins, associate
                             • Communication strategies that contribute    • 16,005 orientation sessions                     newspaper, among others.
                               towards reinforcing the corporate culture   • 553,729 man-hours                             • Open Door Policy, Hot Line, Ethics Hotline,
                               of Respect, Service and Excellence. For     • 66,533 associates trained                       Ethics e-mail, Associate Opinion Survey.
                               example: A+ in Culture, Leadership
                               Development and Best Habits, among          Internal Communication:
                               many others.                                • Communication strategies that contribute
                                                                             towards reinforcing corporate culture,
                                                                             equality, ethics and compliance, training,
                                                                             engagement with the Walmart de México
                                                                             Foundation, sustainability, among others.




                                                                                                                      Walmart de México y Centroamérica        63
      Performance                            2009 Results                                     2010 Results                                  2010 Results
       indicators                              Mexico                                           Mexico                                     Central America
Total hours of associate        • Design and development of printed             • Design and development of printed             • Design and development of printed
training regarding aspects        and electronic materials to reinforce the       and electronic materials to reinforce           and electronic materials to reinforce
of human rights relevant          behaviors of respect and fair treatment:        respect and fair treatment: informative         respect and fair treatment: informative
to their activities               posters, stories through Intranet, e-post       articles, videos, publications in associate     articles, videos, publications in associate
(continue)                        cards and e-bulletins, newspapers,              magazine and website, e-mail, posters,          magazine and website, e-mail, posters,
                                  among others. Communicate the function          stories through Intranet, e-post cards and      stories through Intranet, e-post cards and
                                  of the Associate Hot Line and the Ethics        e-bulletins, associate newspaper, among         e-bulletins, associate newspaper, among
                                  and Compliance Committee, covering              others. Communicate the function of             others. Communicate the function of
                                  associate’s human rights.                       the Associate Hot Line and the Ethics           the Associate Hot Line and the Ethics
                                                                                  and Compliance Committee, covering              and Compliance Committee, covering
                                                                                  associates for human rights.                    associates for human rights.


Percentage of associates        • 99% associates with normal contracts          • Permanent associates with more than           • A total of 5.3% of permanent associates
receiving regular                 and over one year in the company are            one year in the Company must be                 receive annual performance evaluations.
performance assessment            evaluated at least once a year using            evaluated at least once a year. A total of    • By 2011, these evaluations will entail all
                                  tools as per their position. For example:       130,268 associates were evaluated (this         associates.
                                  performance evaluation, potential               represents 74% of the total permanent
                                  evaluation or 360°.                             associate headcount) using tools as per
                                • Calibration sessions to identify the            their position. For example: performance
                                  potential of executive and management           evaluation, potential evaluation or 360°.
                                  associates, establishing development          • Calibration sessions to identify the
                                  needs.                                          potential of management and executives,
                                                                                  establishing development needs.


Percentage of associates        • The Statement of Ethics is given to all new   • The Statement of Ethics is a code of          • Every associate must sign a document
trained in the organization’s     associates and 97% of them signed the           conducts governing the behavior of all          stating that he/she has read and
anti-corruption policies and      document as proof of having read it. The        associates. It is communicated to every         understood the scope of the Statement
procedures                        remaining percentage represents new             new member of the company. This                 of Ethics.
                                  hires or people who left the company            statement includes a specific section on      • A total of 23,414 associates were trained
                                  without signing.                                anticorruption.                                 (21,084 in a classroom and 2,330 on-line)
                                                                                • A specific anticorruption on-line course        on different subjects pertaining to ethics
                                Corporate Training:                               has been developed, but it can also be          and compliance, inappropriate behaviors,
                                • 59,427 associates trained through 9,832         given in a classroom setting to people          anticorruption, labor issues, etc.
                                  sessions and 482,229 man-hours.                 from Merchandising.

                                                                                Statement of Ethics Training:
                                                                                • 104,646 CBL trained associates.
                                                                                • 256 On-line staff associates.

                                                                                Anticorruption Training:
                                                                                • 2,004 on-line associates.
                                                                                • 304 classroom associates.


Gender equality and equal       • 53% of our workforce is made up of            • 52% of our workforce are women.               • 41% of our workforce are women.
opportunities                     women.                                        • 599 executives are women (27%).
                                                                                • Gender breakdown of management:
                                                                                  - Managers: 1,242 men and 508 women.
                                                                                  - Assistant Directors: 237 men and 67
                                                                                    women.
                                                                                  - Directors: 70 men and 18 women.
                                                                                  - Vice-Presidents: 33 men and 6 women.
                                                                                • Initiatives to offer education and
                                                                                  information against sexual harassment:
                                                                                  open-door policy, Statement of Ethics,
                                                                                  training courses and program to vist units.



Composition of corporate        • 50% of the members of the Board of            • 36% of the Board Directors are women          • The Central American operations are
governance bodies                 Directors are women and 50% are men.            and 64% are men.                                governed by the Board of Directors for
                                • 67% of the members of the Audit               • 33% of the members of the Audit                 Walmart de México and Centroamérica.
                                  Committee are women and 33% men.                Committee are women and 67% are men.
                                • 67% of the members of the Corporate           • 33% of the Corporate Practices
                                  Practices Committee are women and               Committee are women and 67% are men.
                                  33% are men.




     64     Social Responsibility and Sustainable Development Report 2010
      Performance                             2009 Results                                   2010 Results                                  2010 Results
       indicators                               Mexico                                         Mexico                                     Central America
Diversity and total number      • 992 associates are senior citizens.          • 778 associates with different abilities.     • 287 associates with different abilities.
of discrimination incidents     • 839 associates with different abilities.     • 1,094 associates are senior citizens.
                                • There were no discrimination cases           • Channels to file discrimination claims:
                                  reported.                                      Associated Hot Line, Statement of Ethics
                                                                                 and internal policies and procedures.




Activities with potential for   Minor Volunteer Baggers Program:               Minor Volunteer Baggers Program:               • Horizons Program in El Salvador: A law-
child labor and measures to     • 23,187 volunteer baggers.                    • 22,583 volunteer baggers.                      abiding program that allows 128 young
contribute to its eradication   • 10,405 baggers received incentives.          • 10,584 baggers received incentives to          students to help customers pack their
                                • Total amount of incentives: $3.2 million       stay in school.                                products in their free time.
                                  (for baggers with outstanding grades,        • Baggers must also comply with the            • These are some of the requirements:
                                  awards for sports and other activities).       following requirements, aside from             - Be an active student in El Salvador.
                                • Baggers must also comply with the              proving they are still enrolled in school:     - Between 14 and 18 years old.
                                  following requirements, aside from             parental permission slip and permission        - Live and study near the store.
                                  proving they are still enrolled in school:     from the authorities to participate in the     - Parental permission slip.
                                  Parental permission slip and permission        program; special schedule requirements;        - Document signed by principal to prove
                                  from the authorities to participate in         non-risk activities; minimum 14 years of         that they are still enrolled in school.
                                  the program; special schedule so as            age and 16 years maximum.
                                  to not interfere with school activities;     • Activity supervised by authorities;
                                  they must leave before 10 p.m.; non-risk       good grades; and a healthy and safe
                                  activities; minimum 14 years of age and        environment.
                                  maximum 16 years; accident insurance
                                  in stores; uniforms (minor does not
                                  incur any cost); activity supervised by
                                  authorities; good grades; and a healthy
                                  and safe environment, far from gangs
                                  and delinquency.




Significant risk operations     • Walmart de México and Central America        • Walmart de México and Central America        • Walmart de México and Central America
that may give place to forced     complies with occupational safety              complies with occupational safety              complies with occupational safety
or compulsory labor               standards and laws, established by             standards and laws, established by             standards and laws, established by
                                  official authorities, thereby guaranteeing     authorities.                                   authorities.
                                  that our corporate performance and
                                  behavior prevent said practices.




Health and safety               • 30% of all associates participate in         • 4.8% of all associates participate in        • Safety, Hygiene and Occupational
                                  Health and Safety Committees.                  Health and Safety Committees.                  Health Committees (made up of
                                • Every unit and office has a risk control     • Every unit and office has a risk control       associate representatives), and first-aid
                                  team (Safety and Hygiene Commission)           team (Safety and Hygiene Commission)           brigades.
                                  formed by 5 - 10 associates.                   formed by 5 - 10 associates.                 • 1,763 accidents (an average of 3.2 per
                                • There are emergency brigades including       • There are emergency brigades including         business unit); no deaths have been
                                  fire evacuation and first aid. This year       fire evacuation and first aid. This year       recorded.
                                  over 27,000 associates received training.      over 35,000 associates received training.    • 29,597 leave of absence days (an
                                • A team of 9 professional associates          • A team of 12 professional associates           average of 53.5 days per business unit).
                                  working at the Corporate Offices.              working at the Corporate Offices.
                                • 14,451 accidents (work and commute-            They support all the units and address
                                  related).                                      issues related to health, safety and civil
                                • 373,792 leave of absence days.                 protection.
                                • 13,474 associates with leave of absence.     • 15,271 accidents (work and commute-
                                • 2 casualties from commute-related risks.       related risk).
                                                                               • 466,380 leave of absence days (work
                                                                                 and commute-related risk).
                                                                               • 14,242 associates with leave of absence
                                                                                 (work and commute-related risk).
                                                                               • 2 deaths from work-related risks
                                                                                 and 13 deaths from commute-
                                                                                 related risks.




                                                                                                                         Walmart de México y Centroamérica          65
      Performance                            2009 Results                                  2010 Results                                     2010 Results
       indicators                              Mexico                                        Mexico                                        Central America
Health and safety                                                            • In order to reduce the number of
(continue)                                                                     incidents and increase safety among
                                                                               associates, apart from our policies and
                                                                               procedures, each format has its own
                                                                               accident-prevention program that also
                                                                               includes customers. Safety training
                                                                               sessions are held every year, and a
                                                                               safety risk analysis is performed, so as to
                                                                               implement the required safety measures
                                                                               for the benefit of associates and facilities.


Formal union agreements        • Health, safety and hygiene issues are       • All of our associates nationwide have           • The company complies with the labor
and percentage of                included in the work-related company          been hired according to Mexican Federal           legislation of each of the countries
associates covered by a          rules and the corresponding regulations,      Labor Law.                                        where we operate.
collective agreement             pursuant to Federal Labor Law in Mexico     • The associates covered by collective
                                 and supplementary legal provisions.           bargaining agreements are 100% of
                                                                               those who, in keeping with the Federal
                                                                               Labor Law, are subject to said type of
                                                                               contract.
                                                                             • All matters pertaining to health, safety,
                                                                               and hygiene are foreseen in labor
                                                                               agreements, Internal Labor Regulations,
                                                                               and corresponding internal regulations,
                                                                               pursuant to the Federal Labor Law and
                                                                               its supplementary legal provisions.




Education, training,           Risk control programs for associates:         • There are different risk control programs,      • Accident prevention training programs:
counseling, prevention         • Courses for high risk specific positions.     including position-specific courses,              91,714 man-hours.
and risk-control programs      • Monthly reviews to facilities and             monthly facility reviews, permanent             • Disease control and reduction programs.
in place to assist workforce     inspection visits.                            communication campaigns to prevent              • Influenza vaccination plans.
members, their families        • Communication campaigns.                      unsafe conditions, and others, to               • Plan for preventing dengue fever and
or community members           • Forklift operation courses.                   promote a safe environment for                    other diseases.
                               • Accident prevention program.                  associates and customers.                       • 626 associates trained as emergency
                               • Safety and Hygiene Commission               • All formats have their own safety                 brigade members in different business
                                 verifying compliance of standards             program aimed at reducing the most                units.
                                 through a risk control team.                  significant risks. Progress and results are     • Monthly facility inspections.
                               • Operations Continuity Center prevents         monitored on a monthly basis.                   • Communication campaigns.
                                 risks, has the capability to contain the    • The Safety and Hygiene Commission               • Forklift operation training.
                                 impact of natural disasters, recovers         ensures compliance with standards by            • Accident prevention program.
                                 infrastructure, processes and service         means of the risk control team.                 • The Safety and Hygiene Commission
                                 recovery at units, and minimizes            • Full compliance with legal guidelines             ensures compliance with standards by
                                 resource losses in the least amount           pertaining to civil protection.                   means of the risk control team.
                                 of time possible.                           • The Center for Operational Continuity           • The Center for Operational Continuity
                                                                               prevents risks, contains the impact of            prevents risks, contains the impact of
                                                                               natural disasters, recovers infrastructure,       natural disasters, recovers infrastructure,
                                                                               processes and services at a store level           processes and services at a store level
                                                                               and minimizes loss of resources                   and minimizes loss of resources
                                                                               and time.                                         and time.



Social benefits not offered    • Same benefits for part-time and full-       • All associates have the same benefits.          • All associates have the same benefits.
to temporary or part-time        time associates alike: vacation periods,
associates                       Christmas bonus, food coupon, life
                                 insurance, associate productivity bonus,
                                 store discounts, savings fund and other
                                 agreed benefits.
                               • Temporary associates have the same
                                 benefits, except for: food coupon and
                                 savings fund.




     66     Social Responsibility and Sustainable Development Report 2010
          Performance                                   2009 Results                                    2010 Results                                   2010 Results
           indicators                                     Mexico                                          Mexico                                      Central America
 Coverage of the                          • Pension Plan: We have a plan in line with     • Pension Plan: We have a plan in line with      • Pension Plan: We have a plan in line with
 organization’s defined                     current legislation.                            current legislation.                             current legislation in each country.
 benefit plan obligations                 • With the relocation program to improve        • With the relocation program to improve         • Investment of $318,332 for 242 associates
                                            the quality of life, 6,694 associates were      the quality of life, 6,782 associates were       affected by natural disasters.
                                            transferred to units closer to their homes.     transferred.
                                          • Investment of $815,980 for 95 associates      • Investment of $12.1 million for 1,057
                                            affected by natural disasters.                  associates affected by natural disasters.
                                          • 259 agreements signed nationwide, over        • 252 agreements signed nationwide,
                                            $30 million in savings for associates.          over $20.9 million in savings for 125,524
                                                                                            associates.
                                                                                          • Vaccination campaigns, health talks and
                                                                                            social security identifications for 19,526
                                                                                            associates – with the support of the
                                                                                            Mexican Social Security Institute.


 Ratio between male                       • There are no salary differences based on      • There are no salary differences based on       • There are no salary differences based on
 and female base salary                     gender, age, religion, sexual preference or     gender, age, religion, sexual preference or      gender, age, religion, sexual preference or
                                            political ideology.                             political ideology.                              political ideology.
                                          • We have a salary pay band and differences     • We have a salary pay band and differences      • We have a salary pay band and differences
                                            may arise due to individual performance,        may arise due to individual performance,         may arise due to individual performance,
                                            which is evaluated annually based on merit.     which is evaluated annually based on merit.      which is evaluated annually based on merit.


 Ratio between initial                    • Depending on geographical area, our           • The Company complies fully with                • The Company complies fully with
 standard salary and                        general pay band is between 9 and               minimum wage levels established by law.          minimum wage levels established by law.
 minimum local wages                        15% above the general minimum wage.
                                            In regions with high human resource
                                            demand, the pay band is between 35 and
                                            45% above the general minimum wage.


 Procedure for local                      • Hiring procedure: interviews with             • Recruitment and selection processes            • Hiring procedure: interviews with
 hiring and ratio of high                   candidates, application of psychometric          follow that set forth in Mexican labor          candidates, psychometric tests and
 management coming                          tests and interview with the committee           legislation.                                    interview with the committee for the
 from local communities in                  for the corresponding business format.         • 99% of management and executives is             corresponding business format.
 locations with significant               • Associates throughout the country are            Mexican.                                      • 83% of management and executives are
 operations                                 hired pursuant to Federal Labor Law in                                                           Central American.
                                            Mexico, with benefits superior to those                                                        • 17% of management and executives are
                                            established by law.                                                                              expatriates.
                                          • 99% of management and executives is
                                            Mexican.


 Associate retention                      • Improved retention of our associates by       • Retention of associates went down 4.6          • Retention associates went down 2.4
 percentage                                 5.8 percentage points.                          percentage points.                               percentage points.


 Total number of associates               • Most new associates entering at hourly        • Most new associates entering at hourly         • Most new associates entering at hourly
 hired without work                         level have no prior work experience, thus       level have no prior work experience, thus        level have no prior work experience, thus
 experience                                 we focus on identifying the potential of        we focus on identifying the potential of         we focus on identifying the potential of
                                            all candidates following the company’s          all candidates following the company’s           all candidates following the company’s
                                            competencies.                                   competencies.                                    competencies.


 Actions to prevent conflicts             • All executives and management annually        • All executives and management annually         • All executives and management annually
 of interest                                report any situation that may generate          report any situation that may generate           report any situation that may generate
                                            conflicts of interest.                          conflicts of interest.                           conflicts of interest.
                                          • We currently have 1,757 questionnaires        • Our Statement of Ethics includes a section     • Our Statement of Ethics includes a section
                                            and new executives are being included           to keep all associates informed regarding        to keep all associates informed regarding
                                            every month.                                    this topic.                                      this topic.
                                          • Our Statement of Ethics includes a section
                                            to keep all associates informed regarding
                                            this topic.




Note: All figures are in Mexican Pesos.



                                                                                                                                      Walmart de México y Centroamérica        67
Meeting the needs of our customers
      Performance                           2009 Results                                  2010 Results                                 2010 Results
       indicators                             Mexico                                        Mexico                                    Central America
Improving the quality          • The opening of 275 units allowed us to      • The opening of 267 units allowed us to      • The opening of 30 units, allowed us
of life                           offer 10,539 new job options (hiring and      offer 14,214 new job options (hiring and     to offer 8,667 new job options (hiring,
                                  transfers).                                   transfers).                                  transfers and promotions).
                               • Availability of medicines, products and     • Availability of medicines, products and     • Availability of products and services for
                                  services for low income individuals,          services for low income individuals,         low income individuals, contributing
                                  contributing to improve their health and      contributing to improve their health and     to improve their health and financial
                                  financial capability.                         financial capability.                        capability.
                               • Promote social awareness on                 • Promote social awareness on                 • Promote social awareness on
                                  sustainability and community support          sustainability and community support         sustainability and community support
                                  topics.                                       topics.                                      topics.
                               • Strengthen different sectors, such as the   • Strengthen different sectors, such as the   • Strengthen different sectors such as small
                                  textile industry.                             textile industry.                            and medium farms and manufacturing
                               • Our openings offered indirect               • Our openings offered indirect                 enterprises.
                                  employment to over 12,600 people in the       employment to over 15,260 people in the    • Our openings offered indirect
                                  construction industry.                        construction industry.                       employment to over 2,300 people in the
                                • 95% of products sold came from suppliers    • 95% of products sold came from suppliers     construction industry.
                                  established in Mexico.                        established in Mexico.                     • 81% of products sold came from suppliers
                                                                                                                             established in the region.



Saving money to live better    • Medi-Mart: over $1.9 billion pesos in       • Medi-Mart: over $1.8 billion pesos in       • Savings for customers due to self-service
                                 savings for customers (15% increase vs.       savings for customers (over $ 6.2 billion     price spread: over $1.3 billion pesos.
                                 2008).                                        savings, accumulated since it was
                                 410 medicines in the market (20 launched      launched in 2007). 334 medicines in the
                                 this year).                                   market.
                               • Savings for customers due to self-service   • Savings for customers due to self-service
                                 price spread: over $11.4 billion pesos.       price spread: over $9.5 billion pesos.



Customer satisfaction          • Double Freshness Guarantee is a program     • Double Freshness Guarantee is a program     • Customer Service (SAC) or Call Center for
                                 that guarantees our customers will get        that guarantees our customers will get        customers receives information, poses
                                 their money back and a new similar item       their money back and a new similar item       questions, comments and suggestions;
                                 in case the fresh item they bought does       in case the fresh item does not leave         started operations on 2010; 37,492 calls
                                 not meet their standards.                     them fully satisfied.                         received, 11% of which were complaints
                               • Call Center for customers to receive        • Call Center for customers to receive          and 72% were solved.
                                 information, make comments and                information, make comments and
                                 suggestions; 282,000 calls received,          suggestions; 160,716 calls received,
                                 9% of which were complaints and 96%           7.5% of which were complaints and
                                 were solved.                                  100% were solved.



Direct economic value          See 2009 Annual Report                        See 2010 Annual Report                        See 2010 Annual Report
generated and donated


Financial aid form             • We do not receive financial aid from the    • We do not receive financial aid from the    • We do not receive financial aid from
governments                      government.                                   government.                                   the government



Programs regarding             • Our Legal area analyzes the advertising     • The company’s business practices are        • The program is scheduled to start
compliance with the law or       campaigns and ads to make sure they           based on a strict adherence to ethics         in 2012.
adherence to marketing and       meet all applicable standards and laws        and legality.
advertising standards            of the Consumer Protection Legislation,     • Our Legal area analyzes the advertising
                                 the Sanitary Regulation for Advertising,      campaigns and ads to make sure they
                                 Official Mexican Standards and all other      meet all applicable standards and laws
                                 applicable regulations.                       of the Consumer Protection Legislation,
                               • Comparative Advertising Procedure for         the Sanitary Regulation for Advertising,
                                 store associates to execute following         Official Mexican Standards and all other
                                 ethics and legal standards.                   applicable regulations.
                                                                             • Comparative Advertising Procedure for
                                                                               store associates to execute, following
                                                                               ethics and legal standards.




     68     Social Responsibility and Sustainable Development Report 2010
      Performance                             2009 Results                                    2010 Results                                   2010 Results
       indicators                               Mexico                                          Mexico                                      Central America
Incidents due to lack of        • There are no incidents recorded since         • Comparative Advertising Guidelines             Information not available.
compliance with marketing         the company performs an analysis to             came into force this year, which allows
and advertising guidelines        validate the campaigns and ads ensuring         PROFECO to conduct monitoring activities
                                  compliance with Consumer Protection             on Advertising.
                                  Legislation, the Sanitary Regulation for      • Walmart reported 22 cases, which were
                                  Advertising and all other applicable            solved immediately.
                                  regulations.
                                • Comparative Advertising Procedure for
                                  store associates to execute following
                                  ethics and legal standards.


Complaints regarding            • There are no complaints on record             • 3 customers complained of receiving            • There are no complaints on record
respect and confidentiality       regarding respect and confidentiality           promotional phone calls. It was                  regarding respect and confidentiality
of customer personal data         of customer personal data.                      established that customers had given             of customer personal data.
                                                                                  authorization to receive this type of
                                                                                  calls. PROFECO settled the cases without
                                                                                  imposing any penalty.


Complaints filed with           • Total number of complaints: 592, of which     • Total number of complaints: 636, of which      • Customer Service (SAC) has reported
PROFECO (Consumer                 538 have been solved and the remaining          477 have been solved due to customer             9 complaints; 7 of which have been
Protection Agency)                are pending resolution.                         satisfaction, consumer insistence, or            solved and the 2 remaining are pending
                                                                                  due to PROFECO’s inadmissibility. The            resolution.
                                                                                  remaining ones are pending resolution.


Significant fines due to        • There are no penalties or significant fines   • There are no penalties or significant fines    Information not available.
lack of compliance with the       on record regarding product and service         on record considering as significant those
law regarding product and         supply and use.                                 above the $1.2 million.
service supply and use

Nature, scope and               • At Walmart de México, each unit opened        • At Walmart de México y Centroamérica,          • At Walmart de México y Centroamérica,
effectiveness of programs         drives local development by creating            each unit opened boosts local                    each unit opened boosts local
and policies aimed at             direct and indirect jobs, fostering             development by creating direct and               development by creating direct and
evaluating and managing           competitiveness, strengthening the              indirect jobs, fostering competitiveness         indirect jobs, fostering competitiveness
operation impact on               inclusion of local suppliers, which results     and strengthening the inclusion of local         and strengthening the inclusion of local
communities                       in the reduction of prices and a larger         suppliers, which results in the reduction of     suppliers, which results in the reduction
                                  assortment of products for our customers,       prices and a larger assortment of products       of prices and a larger assortment
                                  with improved quality and better service.       for our customers, with improved quality         of products for our customers, with
                                                                                  and better service.                              improved quality and better service.


Analysis of business units      • 100% of the units analyzed.                   • 100 % of the units are aligned with our        • 100% of the units analyzed.
regarding corruption-related    • The company follows the highest ethical         anti-corruption policies.                      • The Statement of Ethics is the backbone
risks                             standards and has no knowledge of any         • The Statement of Ethics is the backbone          of Walmart’s Culture and ensures our
                                  act of corruption.                              of Walmart’s Culture and ensures our             compliance with the law.
                                                                                  compliance with the law.


Measures taken against          • There are no corruption incidents on          • There are no corruption incidents on           • The company follows the highest ethical
corruption issues                 record.                                         record.                                          standards and has no knowledge of any
                                • The Statement of Ethics sets forth            • The Statement of Ethics sets forth               act of corruption.
                                  that corruption may be grounds for              that corruption may be grounds for
                                  termination.                                    termination.
                                • Walmart’s Global Ethics Award was             • Walmart’s Global Ethics Award was
                                  granted to one of our associates by             granted to one of our associates by
                                  showing extraordinary ethical courage           showing extraordinary ethical courage
                                  under risky circumstances.                      and consistently demonstrating integrity.


Position and participation in   • We carry out public participation             • We participate in public activities            • The Company’s business practices are
public policy development         activities through different national and       through different national and local             based on a strict adherence to local law
and lobbying activities           local Chambers of Commerce.                     Chambers of Commerce.                            and respect for authorities.
                                • We also have recognized firms that
                                  follow our corporate governance and
                                  integrity policies.




                                                                                                                           Walmart de México y Centroamérica          69
          Performance                                   2009 Results                                     2010 Results                                    2010 Results
           indicators                                     Mexico                                           Mexico                                       Central America
 Donations in cash or in kind             • We do not make donations to political          • We do not make donations to political          • We do not make donations to political
 to political parties or related            parties or related institutions, thus there      parties or related institutions, thus there      parties or related institutions, thus there
 institutions                               have not been any actions in this regard.        have not been any actions in this regard.        have not been any actions in this regard.


 Actions taken against anti-              • No anti-trust or unfair trade activities       • No anti-trust or unfair trade activities       Information not available.
 trust or unfair trade activities           have been incurred. Competition                  have been incurred.
 and their results                          applicable legislation is followed.


 Penalties and significant                • There is no record of penalties, significant   • There is no record of penalties, significant   Information not available.
 fines resulting from lack                  fines or non-monetary penalties.                 fines or non-monetary penalties.
 of compliance with laws
 and regulations


 Distinctions, audits and                 • 327 business units holding the H               • 326 business units, including 71               • We have monthly Food Safety Audits
 quality inspections                        Distinction awarded by the Secretary of          Superama stores, holding the H                   conducted by third parties in all of
                                            Health and the Secretary of Tourism to           Distinction awarded by the Secretary of          our units. Said Audits are part of the
                                            those who follow the highest quality and         Health and the Secretary of Tourism to           Company’s global program in all stores,
                                            hygiene standards.                               those who follow the highest quality and         which is based on a review of proper
                                          • 100% of Superama units were certified.           hygiene standards.                               food handling and sale aimed at taking
                                          • Perishables: Inspection at distribution        • 100% of Superama units were certified.           care of our customers’ health.
                                            centers (DCs), ensuring compliance with        • Perishables: Inspection at distribution
                                            domestic standards, food safety and              centers (DCs), ensuring compliance with
                                            quality required. If the fresh product is        domestic standards, food safety and
                                            organic, we verify that it truly is organic.     quality required. If the fresh product is
                                          • Private Label: Quality inspection at DC,         organic, we verify that it truly is organic.
                                            verifying compliance with regulations,         • Private Label: Quality inspection at DC,
                                            food safety and quality. The in-bond             verifying compliance with regulations,
                                            manufacturing plants for these products          food safety and quality. The in-bond
                                            are also audited.                                manufacturing plants for these products
                                          • Pharmacy: Quality audit of Medi-Mart             are also audited.
                                            in-bond manufacturing plants to ensure         • Pharmacy: Quality audit of Medi-Mart
                                            quality, safety and compliance with              in-bond manufacturing plants to ensure
                                            applicable legal requirements.                   quality, safety and compliance with
                                          • Laboratory analysis program to evaluate          applicable legal requirements.
                                            safety and effectiveness of Medi-Mart          • Laboratory analysis program to evaluate
                                            products.                                        safety and effectiveness of Medi-Mart
                                          • Textiles: Quality inspection at DCs,             products.
                                            ensuring compliance with established           • Textiles: Quality inspection at DCs,
                                            standards and quality.                           ensuring compliance with established
                                          • Garment laboratory analysis program to           standards and quality.
                                            evaluate textile quality.                      • Garment laboratory analysis program to
                                          • Food Safety: Monthly audits to stores and        evaluate textile quality.
                                            restaurants (except Suburbia) to verify        • Food Safety: Monthly audits to stores and
                                            compliance with strict hygiene controls.         restaurants (except Suburbia) to verify
                                          • Laboratory analysis program for sanitary         compliance with strict hygiene controls.
                                            quality of food and water at units that        • Laboratory analysis program for sanitary
                                            sell food.                                       quality of food and water at units that
                                                                                             sell food.


Note: All figures are in Mexican Pesos.




        70       Social Responsibility and Sustainable Development Report 2010
Supporting the development of suppliers
       Performance                     2009 Results                                2010 Results                                   2010 Results
        indicators                       Mexico                                      Mexico                                      Central America
Local suppliers policy,   • 95% of store merchandise is              • 95% of store merchandise is                    • 81.5% of store merchandise is
practices, and spending     purchased in Mexico.                       purchased in Mexico.                             purchased in Central America.
ratio                     • Total Walmart de México suppliers:       • Total Walmart de México suppliers:             • Total Central America suppliers: 6,211
                            17,129 (86% national).                     20,022 (86.7% national).                         (63% local suppliers)
                          • Medi-Mart: 23 Mexican laboratories       • Medi-Mart: 22 Mexican laboratories.            • Private Label: 1,150 items in the
                            (new alliances: 3 laboratories).         • Private Label: 2,623 items in the                catalog of 145 suppliers (68% SMEs –
                          • Private Label: 1,643 items in the          catalog of 262 domestic suppliers,               99 companies).
                            catalog of 168 domestic suppliers,         representing 93% of private label              • Fruits and vegetables: 90% of
                            representing 92% of private label          sales.                                           all purchases come from local
                            sales; 67 new suppliers incorporated.    • Purchase of $2.6 million pesos                   producers, and 64% were purchased
                          • Purchased 55,471 products worth            for 65,512 products from 73                      directly from local producers.
                            $2.2 million pesos from 100                communities, benefiting 2,010                  • Meat: 95% of all purchases come
                            communities, benefiting 2,900              artisans in 9 states.                            from local farmers and suppliers,
                            craftspeople in 9 states.                • Fruits and vegetables: 91.9% of                  and 90% were directly sourced from
                          • Fruits and vegetables: 95% of all          all purchases come from Mexican                  farmers.
                            purchases come from Mexican                suppliers, 89% was purchased                   • Poultry: 92% of all purchases come
                            suppliers (since November, 84%             directly from local growers, and                 from local farmers and suppliers,
                            was purchased directly from local          83.7% are Mexican products.                      and 48% were directly sourced from
                            growers, achieving an annual             • Meat: 95.9% of all purchases come                farmers.
                            participation rate of 55%), 86% are        from Mexican suppliers (94% of                 • Fish and Seafood: 49% of all
                            Mexican products.                          the product was purchased from                   purchases come from local farmers
                          • Meat: 97% of all purchases come            Mexican producers).                              and suppliers, and 40% were directly
                            from Mexican suppliers (91% of the       • Fish and Seafood: 95% purchased                  sourced from producers.
                            product was purchased directly from        domestically (33% Mexican).
                            Mexican producers).
                          • Fish and Seafood: 53% purchased
                            domestically and 85% from Mexican
                            companies.




Supplier development      • Strengthened the SME Supplier            • Strengthened the SME Supplier                  • Strengthened the SME Supplier
                            Development Program, 50                    Development Program, 207                         Development Program: 3,476 SME
Significant indirect        suppliers in consultancy, 68 in sales      participants at information sessions,            suppliers; 528 of these suppliers
economic impacts            development, 30% profit increase,          387 suppliers in SME seminars                    participate in the A Helping Hand
                            28% sales increase, $26 million pesos      and 735 in merchandising-related                 program, aimed at developing
                            in sales.                                  training courses. The Sales Floor                manufacturing SMEs: 49% of
                          • Sales from new SME suppliers               Promoting Program increased sales                participants have increased their
                            incorporated in 2009: $12.7 million        by 8%, to 5.2 million pesos.                     sales in comparison to previous year.
                            pesos. Assistance provided to 473        • Sales from new SME suppliers                   • Every year there are product
                            companies on how to become a               incorporated: $22.6 million                      performance reviews: 5 reviews, 126
                            Walmart de México supplier.                pesos. Assistance provided to 457                SMEs assessed and 20 new suppliers.
                          • 9 Regional Fairs with 86 participating     companies on how to become a                   • 228 new suppliers (160 local and
                            stores, 201 participating suppliers,       Walmart de México supplier.                      33.4% of them are SMEs)
                            172 new suppliers, 717 new items,        • 7 Regional Fairs with 234                      • IMARE program in Guatemala: more
                            sales: $4.6 million pesos.                 participating stores, 190 participating          than 30 groups of farmers developed
                          • CAT-Mex: synergies with 85 Mexican         suppliers, 838 new items, sales: $17             for their inclusion in formal market;
                            suppliers, 13 new suppliers,               million pesos.                                   3,755 people benefited; generating
                            manufacturing 37.9 million products.     • CAT-Mex: synergies with 79 Mexican               sales of more than $25.2 million.
                            In order to assure their quality, 1.5      suppliers (8 new suppliers), 48.5              • Farming Diversification Program in
                            million garments were inspected,           million developed products, 2.3                  El Salvador: development of 100
                            14 private labels were supplied and        million garments inspected, 254,115              small producers; purchases of items
                            customer savings totaled $130.6            items exported to Central America,               for $1.2 million; participants’ income
                            million pesos.                             and 14 private labels were supplied.             increased by 500%.
                                                                     • Credit to suppliers through the                • Regional Program “Fertile Soil”:
                                                                       Walmart Bank with 90% rate of use                impact on 2,246 small and medium
                                                                       of granted credit lines against the              sized farmers; benefit for 13,692
                                                                       average 44% in industry.                         families, buying $1.1 billion pesos
                                                                                                                        worth of goods.
                                                                                                                      • Textile in Central America: 33
                                                                                                                        suppliers; 220 developed products;
                                                                                                                        purchases for $8.8 million pesos.




                                                                                                                 Walmart de México y Centroamérica        71
      Performance                            2009 Results                                 2010 Results                              2010 Results
       indicators                              Mexico                                       Mexico                                 Central America
Significant investment         • In order to be a supplier or service       • In order to be a supplier or service      • In order to be a supplier or service
agreements including             provider for Walmart de México, the          provider for Walmart de México, the         provider, companies must define
human rights clauses             companies must sign the Vendor               companies must sign the Vendor              the terms and conditions of the
                                 Agreement, which establishes the             Agreement, which establishes the            commercial relationship, including
                                 terms of procurement and includes            terms of procurement and includes           compliance with applicable legal
                                 clauses regarding compliance                 clauses regarding compliance with           provisions, depending on the activity
                                 with applicable legal provisions,            applicable legal provisions, for the        performed by the supplier and based
                                 depending on the activity performed          activity performed by the supplier          on their manufacturing, production
                                 by the supplier and based on their           and based on their manufacturing,           or import description, including
                                 manufacturing, production or import          production or import description,           provisions pertaining to underage
                                 description, and compliance with             and full compliance with Mexican            and illegal foreign employment and
                                 Labor Law in Mexico.                         Labor Legislation.                          payment of fringe benefits included
                                                                                                                          in the corresponding labor law.




Supplier reviews and           • The Vendor Agreement includes a            • The Vendor Agreement includes a           • The Supplier Registration Form
human rights analysis            clause regarding compliance with             clause regarding compliance with            (RFP) includes a clause regarding
                                 labor law.                                   labor legislation.                          compliance with applicable local
                               • Social Compliance program to               • The Ethical Standard Program                regulations.
                                 conduct random labor compliance              (previously known as Social
                                 reviews to suppliers through audits          Compliance program) performed 233
                                 performed by an outside firm. 214            audits among 147 textile suppliers
                                 audits to 143 suppliers in the textile       to review compliance with labor law,
                                 sector.                                      performed by an outside firm.
                                                                              Audit outcome: 40% orange, 23%
                                                                              yellow, 30% green and 7% rejected.




Activities with potential      • The Vendor Agreement includes              • The Vendor Agreement includes             • In order to be a supplier or service
for child labor and               a labor liability clause related to         a labor liability clause related to         provider, companies must define
measures to contribute            compliance with Labor Law in                compliance with Labor Law in                the terms and conditions of the
to its eradication                Mexico.                                     Mexico.                                     commercial relationship, including
                               • Social Compliance program                  • The Ethical Standard Program                compliance with applicable legal
                                  to conduct 214 random labor                 to conduct 233 random labor                 provisions, depending on the activity
                                  compliance reviews of suppliers,            compliance reviews of suppliers,            performed by the supplier and based
                                  through audits performed by an              through audits performed by an              on their manufacturing, production
                                  outside firm.                               outside firm.                               or import description, including
                               • Through these Social Compliance            • Through theses compliance audits,           provisions pertaining to underage
                                  audits, a working relationship with         a working relationship with two             and illegal foreign employment and
                                  an in-bond manufacturing plant was          in-bond manufacturing plants was            payment of fringe benefits included
                                  prevented, due to the discovery of          prevented, due to the discovery of          in the corresponding labor law.
                                  the use of child labor.                     the use of child labor.




Product and services life      • Manufacturers assign life-cycles           • Manufacturers assign life-cycles          • There are regional charts based on
cycle to assess impact           to the product based on product               to the product based on product            the supplier-reported useful life
on customer health and           nature.                                       nature.                                    of products to avoid the selling of
safety                         • The company maintains strict control       • The company maintains strict control        items with expired life-cycles. The
                                 to avoid the selling of items with            to avoid the selling of items with         area charged with auditing food
                                 expired life-cycles.                          expired life-cycles.                       security maintains a strict control and
                               • Each business unit performs daily          • Each business unit performs daily           performs unannounced audits of all
                                 reviews to confirm validity of product        reviews to confirm validity of product     the units.
                                 life-cycles.                                  life-cycles.                             • Asset Protection performs daily
                               • In addition to shelf-life reviews           • In addition to shelf-life reviews          reviews of the expiration date of
                                 to withdraw product reaching its              to withdraw product reaching its           products.
                                 expiration date, the Corporate                expiration date, Corporate Quality       • More than 6,240 audits were
                                 Quality area performs unannounced             performs unannounced audits                performed in the region.
                                 audits of all its units; 13,772 audits        of all its units; 15,212 audits were
                                 were performed.                               performed.




     72     Social Responsibility and Sustainable Development Report 2010
         Performance                      2009 Results                              2010 Results                                    2010 Results
          indicators                        Mexico                                    Mexico                                       Central America
 Issues derived from        • There are several monitoring            • There are several monitoring                   • There are several monitoring
 noncompliance with           processes in place to ensure the          processes in place to ensure the                 processes in place to ensure the
 regulations or voluntary     quality and safety of the items sold.     quality and safety of the items sold.            quality and safety of the items
 codes related to the       • 26 items were removed from the          • Based on company-defined quality                 sold. There is also a list of recalled
 impact on health and         shelves. 13 of the 2,693 health and       standards and alerts issued by                   products. Rejected items: 50.
 safety of product and        PROFECO visits had product with           sanitary authorities, 37 items were
 services during their        expired life-cycles. We presented         removed from the shelves. 11 of
 life cycle                   the authorities a plan to correct         the 3,866 health verifications and
                              opportunities and requested the           PROFECO visits detected products
                              destruction of the product.               with expired life-cycles. We
                                                                        presented the authorities a plan to
                                                                        correct opportunities and requested
                                                                        the destruction of the product.
                                                                      • Additionally, items with quality and
                                                                        security-related problems for more
                                                                        than $1 billion pesos were rejected
                                                                        in 2010 as a result of internal process




 Product and services       • Commercial agreements with              • Commercial agreements with                     • The Supplier Registration Form
 information required by      suppliers include obligations to           suppliers include obligations to                (RFP) includes a clause regarding
 current procedures and       comply with regulations.                   comply with regulations.                        compliance with applicable local
 regulations                • Corporate Quality performs random       • Corporate Quality performs random                regulations.
                              inspections of private label products      inspections of private label products         • The Product Security and
                              located at DCs1.                           located at DCs.                                 Environmental Issues department
                            • The Legal department, through            • The Legal department, through                   is preparing a series of guidelines
                              a specialized firm, analyzes and           a specialized firm, analyzes and                concerning labeling requirements
                              reviews labels of all non-textile          reviews labels of all non-textile               for centralized products.
                              private labels to ensure compliance        private labels to ensure compliance           • Quality Assurance product audits
                              with current standards.                    with current standards.                         to ensure compliance with said
                                                                                                                         guidelines.




 Noncompliance with         • Of the more than 1.2 million            • Of the more than 1.3 million                   • In terms of sanitary registration
 regulations and              products we sell, 158 instances           products we sell, 113 instances                  and food labeling regulations, a
 voluntary codes on           were registered with by the               were registered by the authority                 compliance guide based on the laws
 products and services        authority due to non-compliance           due to non-compliance with current               of each country and the brand-new
 information and labeling     with current regulations on the           regulations on the commercial                    technical labeling regulations for
                              commercial information included           information included in product                  Central America.
                              in product labels; 4 of them were         labels; 2 of them were private label           • Training for associates in charge of
                              private label products:                   products:                                        food-related areas. Application of
                            • A tuna product had erroneous              - A salad dressing without lot                   country-specific compliance tool
                              information regarding the generic           number                                         to have a clear idea about labeling
                              description of the product, related       - An electric extension without                  requirements for different product
                              to the ingredients.                         the terms and conditions of                    categories.
                            • Two rice products did not include           the warranty, even though the                • A review of grocery items, as
                              the time limit of the warranty.             package states “guaranteed”.                   well as some perishables, such as
                            • A juice product, because of the size    • Both of the aforementioned                       meat, fruits and vegetables, all of
                              of the font, in the guarantee             products had theirs irregularities               which did not comply with label
                              of origin.                                corrected.                                       and health registration norms,
                                                                                                                         was carried out. A detailed audit
                                                                                                                         will be performed in 2011 right
                                                                                                                         after training associates and
                                                                                                                         implementing guidelines.




1 Distribution Centers.




                                                                                                                  Walmart de México y Centroamérica               73
          Performance                                   2009 Results                                2010 Results                              2010 Results
           indicators                                     Mexico                                      Mexico                                 Central America
 Logics, actions or                       • Crosby Bar: Suppliers are allowed         • Crosby Bar: Suppliers are allowed         • Higher percentage of backhaul
 programs to benefit                        to stow pallets on the trailer, thus        to stow pallets on the trailer, thus        freight service to support suppliers
 suppliers                                  reducing supplier fleet by half.            reducing supplier fleet by half.            through the use of our own
                                          • Bulk deliveries: Pallet-free deliveries   • Bulk deliveries: Pallet-free deliveries     distribution fleet, thus reducing
                                            that reduce transportation costs.           that reduce transportation costs.           costs.
                                          • Regional Fairs: Logistics with            • Regional Fairs: Logistics with            • Implementation and standardization
                                            preferential treatment to coordinate        preferential treatment to coordinate        of pallet deliveries throughout
                                            and optimize merchandise delivery           and optimize merchandise delivery           the region so as to reduce shrink,
                                            at DCs.                                     at DCs.                                     improve efficiency and develop
                                          • Communities with food poverty             • Communities with food poverty               local pallet-rental companies with
                                            supported by the Walmart de México          supported by the Walmart de México          competitive prices.
                                            Foundation: Training at DCs and             Foundation: Training at DCs and           • Acquisition of DC equipment
                                            distribution of merchandise with            distribution of merchandise with            to receive merchandise using a
                                            preferential treatment to sell their        preferential treatment to sell their        slip sheet methodology, so as to
                                            products.                                   products.                                   efficiently use available truck spaces
                                          • Scheduler: Walmart de México                                                            and reduce costs.
                                            system allowing the supplier to set                                                   • Program to forecast demand
                                            up appointments with DCs from their                                                     levels, so as to contribute towards
                                            own location via Internet.                                                              the achievement of our suppliers’
                                                                                                                                    production and distribution plans.



 Audit of private label                   • Audits performed on private label         • Audits performed on private label         • Actions included in integration
 in-bond manufacturing                      textile suppliers: 210 audited.             textile suppliers: 233 audits among         process.
 plants                                   • Audits performed to private label           147 textile suppliers.
                                            in-bond manufacturing plants:             • Audits performed to private label
                                            - Food: 189 plants audited and 40 not       in-bond manufacturing plants:
                                              approved.                                 - Food: 180 plants audited and 28 not
                                            - General Merchandise: 66 plants              approved.
                                              audited and 3 not approved.               - Certification of 44% of private
                                            - Medicines: 38 plants audited and            label food suppliers under the
                                              1 not approved,6 products were              GFSI scheme (Global Food Safety
                                              recalled.                                   Initiative).
                                          • Based on the procedure,                     - General Merchandise: 85 plants
                                            manufacturing plants that did not             audited and 1 not approved.
                                            pass inspection have 3 opportunities        - Medicines: 35 plants audited (100%
                                            to correct the failures detected or           of Medi-Mart suppliers) and zero
                                            their contract will be terminated.            not approved.



 Actions to prevent the                   • Company analysis programs for the         • Company analysis programs for the         Information not available.
 use of Clenbuterol in                      existence of Clenbuterol, pesticide         existence of Clenbuterol, pesticide
 beef and pork                              and heavy metals in meat to prevent         and heavy metals in meat to prevent
                                            public health risks, receiving the          public health risks, receiving the
                                            support of the Mexican Agricultural         support of the Mexican Agricultural
                                            Secretary’s central lab for analysis        Secretary’s central lab for analysis
                                            (SAGARPA).                                  (SAGARPA).
                                          • 98% of suppliers delivering directly      • 100% of suppliers delivering directly
                                            at DCs undergo a monthly random             at DCs undergo a monthly random
                                            analysis of one batch, 1,036 analyses       analysis of one batch, 977 analyses
                                            done, only 0.19% tested positive or         done, zero tested positive or
                                            detected.                                   detected
                                          • Preventive actions: All suppliers sign    • Disposal actions: procedure ordering
                                            a Letter of Intent specifying they will     the detention of the affected batch
                                            not use Clenbuterol and accepting           and informing the authorities for
                                            the consequences in case it is              final disposal.
                                            detected.
                                          • Disposal actions: procedure ordering
                                            the detention of the affected batch
                                            and informing the authorities for
                                            final disposal.




Note: All figures are in Mexican Pesos.



        74       Social Responsibility and Sustainable Development Report 2010
Benefitting our communities
      Performance                             2009 Results                                2010 Results                                    2010 Results
       indicators                               Mexico                                      Mexico                                       Central America
Economic value generated        • Total resources channeled to              • Total resources channeled: $477.8               • Total resources channeled to
and donated                       community projects: $386.8 million          million in kind and cash, 8.5% as                 community projects: $13.4 million in
                                  in kind and cash, 7% as customer,           customer, member and supplier                     kind and cash.
                                  member and supplier donations,              donations, and 91.5% from the                   • 395,000 people from 42 provinces in
                                  and 93% from the Company and the            Company and the Walmart de México                 5 countries were benefited through
                                  Walmart de México Foundation.               Foundation.                                       189 institutions.
                                • 3.4 million people in 31 states and       • 2.3 million people in communities
                                  Mexico City were benefited through          in 31 states and Mexico City were
                                  202 institutions.                           benefited through 260 institutions
                                • Food donations: Monthly support             or NGOs.
                                  to 533,559 people in 31 states and        • Food donations: Monthly support
                                  Mexico City. The amount of this             to 646,772 people in 31 states
                                  donation totals $331 million.               and Mexico City. The amount of
                                                                              this donation totals $401.5 million
                                                                              (equivalent to 17,136 tons of food).



Initiatives to reduce hunger,   • 13,593 children benefited through         • 12,507 children treated for                     • 21,500 children and 7,167 women in
increase food availability        programs to combat malnutrition in          malnutrition (34% of them are                     27 communities of Guatemala were
and improve the quality           Jalisco, Sinaloa, Veracruz, Hidalgo,        already healthy) in the State of                  recipients of United Nations World
of life                           Puebla, Chihuahua, Oaxaca, Nayarit,         Mexico, Mexico City, Oaxaca,                      Food Program donations, amounting
                                  the State of Mexico, Michoacán,             Chihuahua, Veracruz, Puebla, Jalisco,             to 86 tons of food.
                                  Chiapas and Campeche.                       Guerrero and Guanajuato.                        • 400 children benefited from food
                                • 7,902 children received nutritional       • 39, 357 children received nutritional             donations every month, from 5
                                  training in the State of Mexico,            training in the State of Mexico,                  Priority Care Centers in Costa Rica.
                                  Jalisco, Veracruz, Oaxaca, Nayarit and      Mexico City, Oaxaca, Veracruz,                  • 56 family vegetable gardens were
                                  Chiapas.                                    Puebla, Jalisco, Guerrero, Tabasco,               built in Nicaragua alongside with
                                • The “Nutrition and Play for a Healthy       Coahuila, Durango, Sinaloa and                    “World Vision” benefiting 85 children
                                  Life” program grew 194% with                Guanajuato.                                       and 70 adults through their “Healthy
                                  its implementation at 100 public          • The “Nutrition and Play for a Healthy             Food” project .
                                  elementary schools, benefiting              Life” program was implemented                   • 78 children benefited from a
                                  34,381 children, over 1,200 teachers        at 101 public elementary schools,                 Hydroponic garden and a chicken
                                  and 3,500 parents in 8 states               benefiting 33,275 children and 1,592              farm in 2 provinces of El Salvador.
                                  throughout the country: Sinaloa,            teachers in 8 states throughout the             • 80 children benefited from the
                                  Coahuila, Durango, Jalisco, Tabasco,        country: Mexico City, State of Mexico,            construction of a hydroponic garden
                                  Veracruz, the State of Mexico and           Coahuila, Veracruz, Jalisco, Durango,             in Costa Rica.
                                  Mexico City. New allies were added          Tabasco and Sinaloa. Primary results
                                  to the program. The main results            regarding children, teachers and
                                  include an increase in:                     parents include the following:
                                • 35% more water consumption in             • 58% increase in water consumption
                                  classrooms.                                 in classrooms.
                                • 51% more physical activity.               • 60% more physical activity.
                                • 62% of teachers eat fruits and            • 62% of teachers eat fruits and
                                  vegetables.                                 vegetables.
                                • 47% of school cafeterias offer fruits     • 54% of school cooperatives offer
                                  and vegetables.                             fruits and vegetables.
                                • 4,198 family farms and vegetable          • 2,801 family farms and vegetable
                                  gardens developed, thereby                  gardens developed, thereby
                                  benefiting 15,638 people in                 benefiting 26,512 people in
                                  Guanajuato, Puebla, Tamaulipas,             Chihuahua, Veracruz, Puebla, Oaxaca,
                                  Jalisco, Michoacán, Oaxaca, Guerrero,       Querétaro, Mexico City, Guanajuato,
                                  Chihuahua, Veracruz, Hidalgo and            Morelos, Hidalgo, State of Mexico
                                  the State of Mexico.                        and Guerrero.
                                • 334 rainwater catchment and supply        • 404 rainwater catchment and supply
                                  systems benefiting 18,284 people            systems benefiting 2,020 people in
                                  in Chihuahua, the State of Mexico,          Oaxaca, Puebla, Hidalgo, Mexico City,
                                  Michoacán, Oaxaca, Guerrero,                Veracruz and Chihuahua.
                                  Hidalgo and Veracruz.                     • 315 dry sanitation facilities benefiting
                                • 70 dry sanitation facilities benefiting     1,575 people in Veracruz.
                                  350 people in Hidalgo and Veracruz.       • 582 green stoves benefiting 2,910
                                • 950 green stoves benefiting 4,750           people in Chihuahua, Guerrero and
                                  people in Chihuahua and Oaxaca.             Oaxaca.
                                                                            • 50 houses built for 250 people in the
                                                                              state of Guanajuato.




                                                                                                                         Walmart de México y Centroamérica       75
       Performance                            2009 Results                                 2010 Results                               2010 Results
        indicators                              Mexico                                       Mexico                                  Central America
Initiatives to increase         Indigenous Product Commercialization         • Indigenous Product                         • The IMARE program in Guatemala
indigenous income               Program:                                       Commercialization Program:                   developed more than 30 groups
                                • Supported 11 institutions and 100            Supported nine institutions                  of farmers so that they could be
                                  communities in 9 states (Chihuahua,          and 73 communities in 9 states               integrated in the formal market,
                                  State of Mexico, Oaxaca, Guerrero,           (Oaxaca, Guerrero, State of Mexico,          generating sales for more than $25.2
                                  Chiapas, Mérida, Puebla, Guanajuato          Chihuahua, Yucatán, Michoacán,               million and benefiting 3,755 people
                                  and Michoacán) to improve                    Puebla, Campeche and Guanajuato)             in the country.
                                  production andthe sale of products           to improve production, processes
                                  and handicrafts in our stores. 100% of       and sale of products and handicrafts
                                  sales, including profits, were returned      in our stores. 100% of sales, including
                                  to the communities.                          profits, were returned to the
                                • Total purchases: $2.2 million and            communities.
                                  55,471 items.                              • Total purchases: $2.6 million and
                                • Total donations: $204,332 through            65,512 items.
                                  the return of profits.                     • Total donations: $206,892 (return of
                                • Direct beneficiaries: 2,900 people.          profits).
                                • Indirect beneficiaries: 14,500 people.     • Direct beneficiaries: 2,010.
                                • Total participating stores: 198            • Indirect beneficiaries: 7,226.
                                  Superama, Walmart, Bodega, Sam’s           • Total participating stores: 257.
                                  Club and El Portón business formats.         Superama, Walmart, Bodega, Sam’s
                                • 19 projects to support self-                 Club and El Portón business formats.
                                  sustainability of 18,638 people in         • 14 projects to support the self-
                                  Guanajuato, Puebla, Tamaulipas,              sustainability of 3,973 people in
                                  Michoacán, Oaxaca, Guerrero,                 Querétaro, State of Mexico, Oaxaca,
                                  Chihuahua, Veracruz, Hidalgo, the            Guanajuato, Chihuahua, Guerrero,
                                  State of Mexico, Mérida and Chiapas.         Michoacán, Yucatán, Campeche,
                                • The investment for the funding of            Puebla and Chiapas.
                                  farms and family gardens resulted in       • By increasing food availability, 3.5%
                                  a production increase of 180%.               of their income was made available
                                • As a result of the backing of                for use in health and education.
                                  production projects, 1,165 families        • As a result of the backing of
                                  had a 54% increase in their income,          production projects, beneficiaries
                                  implying that $35 of every $100 is           increased their income by 13%.
                                  destined to better nourishment,            • The rights of the indigenous
                                  being able to satisfy diverse needs.         communities are respected, and no
                                • The rights of the indigenous                 incidents of rights violation have
                                  communities are respected, and no            been recorded.
                                  incidents of rights violation have
                                  been recorded.



Support for natural             • The fund to reactivate the economies       • We channeled 1,149 tons of food,           • We channeled 38.5 tons of food
disasters                         of the states of Tabasco and Chiapas         donated by customers, associates             and $3.1 million were donated to
                                  is a continuous effort. 555 new              and Walmart de México Foundation             support over 43,000 victims of Chile
                                  micro-projects have been financed,           to support over 515, 000 victims             and Haiti earthquakes; Tropical storm
                                  benefiting 2,500 people. The fund            of the Haiti and Chile earthquakes;          Agatha in Guatemala, El Salvador and
                                  has benefited 5,360 people in total.         floods in Mexico City, State of              Nicaragua; Pacaya Volcano eruption
                                • Food supplies were distributed in            México and Michoacán; Mexicali               in Guatemala and Tropical Storm
                                  Veracruz, Tabasco and the State of           earthquake; city dump explosions             Tomás that hit Costa Rica.
                                  Mexico, benefiting 52,136 victims of         in Chimalhuacán, State of Mexico;          • Donations were made by the
                                  natural disasters. Food was provided         Hurricane Alex in Nuevo León,                Company, by the US Walmart
                                  to feed 2,000 people over three days         Tamaulipas and Coahuila; floods              Foundation, by associates and
                                  at the shelters implemented                  in Veracruz, Oaxaca and Tabasco;             customers and were sent to Haiti
                                  in Tabasco.                                  Hurricane Karl in Veracruz and the           through the Costa Rican Red Cross;
                                                                               gas explosion in Puebla.                     Chilean Embassy in Costa Rica;
                                                                             • Donations were delivered to the              the National Disaster Reduction
                                                                               Mexican Red Cross, state and                 Commission, World Vision and the
                                                                               municipal DIF (Mexican Social                Villanueva, Amatitlán and Pacaya
                                                                               Services) as well as several other local     Volcano Communities in Guatemala;
                                                                               institutions, so as to better serve          Secretary of Social Inclusion in El
                                                                               victims of natural disasters.                Salvador; the Chamber of Commerce
                                                                                                                            in Tegucigalpa, Honduras; and the
                                                                                                                            National Commission of Emergency
                                                                                                                            in Costa Rica.




     76      Social Responsibility and Sustainable Development Report 2010
          Performance                                   2009 Results                                   2010 Results                                     2010 Results
           indicators                                     Mexico                                         Mexico                                        Central America
 Volunteering                             • 63,144 volunteers in 2,606 activities,       • 82,873 volunteers in 2,593 activities,           • 4,028 volunteers in 95 activities that is
                                            that is, 243,260 man-hours in 31 states        that is, 376,911 man-hours in 31 states            24,680 man-hours in 5 countries.
                                            and Mexico City, benefiting 2.1 million        and Mexico City, benefiting 1.1 million          • Volunteering actions included:
                                            people.                                        people.                                            - School and park maintenance, beach
                                          • 34,142 associates participated more than     • 15,971 associates participated more than             cleanup, reforestation activities and
                                            once (54% of the total).                       once (19% of the total).                             support to hospitals, nursing homes
                                          • Activities list:                             • Activities list:                                     and orphanages, among others.
                                            - 508 school maintenance.                      - 933 school maintenance.                          - Activities to celebrate the Earth Month
                                            - 614 traffic island cleanup.                  - 355 traffic island cleanup.                        in April and the World Food Day in
                                            - 827 park maintenance.                        - 552 park maintenance.                              October.
                                            - 617 non-profit institutions maintenance.     - 541 non-profit institutions maintenance.         - Volunteering activities regarding
                                            - 40 beach cleanup and reforestation           - 215 beach cleanup and reforestation                “My Sustainability Plan”.
                                              activities.                                    activities, assistance in natural disasters.
                                          • During the World Food Day campaign, we       • During the World Food Day campaign, we
                                            held the Community Food Day with the           had the participation of 7,376 volunteers;
                                            participation of 8,001 volunteers; 42,277      45,573 man-hours.
                                            man-hours.                                   • Volunteers who participated in our
                                                                                           campaigns: 1,634 customers and their
                                                                                           families; 6,020 man-hours.

 Customer programs                        $27.1 million in customer, member and          $40.7 million in customer, member and              $3.5 million in customer donations:
                                          supplier donations:                            supplier donations:                                • “Notebooks with a Heart” Campaign in
                                          • Peso a Peso Campaign: $6.7 million used      • Social Assistance Cards: $8.4 million; The         Guatemala: Customers donated $157,703
                                            to help feed 633,218 people, 40% was           Walmart de México Foundation donated               in kind for 130,220 children of 1,161
                                            donated by customers and 60% matched           nearly $1 million for operating costs,             schools. The company donated $197,547.
                                            by the Walmart de México Foundation.           benefiting 7,055 people.                         • Hiper Soli Campaign in Honduras:
                                          • Social Assistance Cards: $8.3 million. The   • Program for products from marginalized             Customers donated $70,966 and the
                                            Walmart de México Foundation donated           communities and indigenenous groups.               company donated $70,966 too for food
                                            $802,177 to the operating cost; 5,532        • Some $2 million and 53,677 pieces in               aimed at helping 870 malnourished
                                            people benefited.                              sales, benefiting 2,010 people.                    people.
                                          • Indigenous products and handicraft           • Our suppliers donated $27.1 million in           • “Sweet Help” Campaign: A Social
                                            sales program: Some $1.6 million in sales,     kind.                                              Assistance Campaign to support children-
                                            benefiting 2,900 people.                     • Banco Walmart account 111 was created              related institutions.
                                          • Our suppliers joined this effort by            to support victims of the Haiti and                - Guatemala: $2.1 million channeled to
                                            donating $14.3 million in kind.                Chile earthquakes and Hurricanes Alex                Aldo Castañeda Foundation serving
                                                                                           and Karl. $3.1 million were donated                  children with heart malformations. The
                                                                                           by customers; Walmart de México                      Company donated $120,661.
                                                                                           Foundation donated $345,302.                       - El Salvador: $290,173 channeled to
                                                                                                                                                support 600 people through the Ágape
                                                                                                                                                Association. The Company donated
                                                                                                                                                $105,080.
                                                                                                                                              - Honduras: $541,891 were donated
                                                                                                                                                to support “Fundación Hondureña
                                                                                                                                                for Children with Cancer”, serving
                                                                                                                                                3,000 children. The Company donated
                                                                                                                                                $156,340.
                                                                                                                                              - Nicaragua: $296,985 donated to “A Roof
                                                                                                                                                for my Country”, which offers shelter
                                                                                                                                                for low-income families. The Company
                                                                                                                                                donated $156,681.

 Christmas season                         135,514 people benefited.                      Customers and associates benefited 78,035          • Palí Calendar and Family Basket: At the
                                          • Suburbia’s Nourish and Protect a Hope        people.                                              end of the year, discount stores sell
                                            program benefited 125,000 people with        • Suburbia Campaign: benefited 62,792                calendars illustrated with drawings made
                                            56,000 winter garments. The Walmart            people with 62,792 garments delivered              by customers’ children. Donations were
                                            de México Foundation and Suburbia              to the Mexican Red Cross; The Walmart              made to several social Institutions.
                                            donates 56 tons of grains.                     de México Foundation and Suburbia                  - Costa Rica: Pro Palliative Care Unit
                                          • Nourishing Smiles from the Heart in            donated 62.7 tons of food.                           Foundation at the Children’s National
                                            Walmart, Superama, Sam’s Club and            • Walmart, Superama, Sam’s Club,                       Hospital.
                                            Bodega Aurrerá delivered 10,514 gifts          Bodega Aurrerá, DCs and home offices:              - Nicaragua: Belén Orphanage.
                                            to children and the elderly, and over 8.9      Campaings delivered 14,242 gifts to                - Honduras: SOS Children’s Villages.
                                            tons of seed.                                  children and the elderly, and over 10 tons         - Guatemala: Home for Children with
                                                                                           of seeds to NGOs.                                    Special needs Hermano Pedro.
                                                                                         • Some 2,732 toys were donated to TV
                                                                                           Azteca’s Toy fair benefiting 1,001 children.


Note: All figures are in Mexican Pesos.



                                                                                                                                      Walmart de México y Centroamérica         77
Forging a sustainable future
         Performance                                  2009 Results                                       2010 Results                                2010 Results
          indicators                                    Mexico                                             Mexico                                   Central America
 List of total expenses                 $131.5 million pesos were invested in                $165 million pesos were invested in          $83.2 million invested in taking care of
 and environmental                      energy-saving initiatives*, such as:                 energy-saving initiatives, such as:          the environment, such as:
 investments                            • High efficiency lighting.                          • High efficiency lighting.                  • High efficiency lighting.
                                        • Conversion to natural gas.                         • Conversion to natural gas.                 • Conversion to LED lighting.
                                        • Capacitor banks.                                   • LED lighting in parking lots.              • Energy-control devices.
                                        • Energy control and management                      • Energy control and management              • Refrigeration system improvements.
                                          equipment.                                           equipment.                                 • Dehumidifiers.
                                        • Water-saving devices.                              • Water-saving devices.




 Strategies and actions                 • 6,091 trees were planted with                      • Our sustainability strategy also           Information not available.
 to manage impact on                      volunteer work from the Walmart                      strives to have low-impact on
 biodiversity                             de México Foundation.                                biodiversity. The construction of our
                                                                                               units considers remediation plans,
                                                                                               so that in case of impacting green
                                                                                               areas, trees can be transplanted
                                                                                               to nearby areas approved by
                                                                                               environmental authorities.
                                                                                             • 44,123 trees were planted with
                                                                                               volunteer work from the Walmart
                                                                                               de México Foundation.




 Climate change and emissions

 Financial consequences,                Risks:                                               Risks:                                       Risks:
 risks and opportunities                • Increase in energy costs.                          • Increase in energy costs.                  • Increase in energy costs.
 due to climate change                  • Greater impact and frequency of                    • Greater impact and frequency of            • Greater impact and frequency of
                                          natural disasters affecting areas where              natural disasters affecting areas where      natural disasters affecting areas where
                                          stores are located and their operations.             stores are located and their operations.     stores are located and their operations.
                                        • Increase in raw material costs and,                • Increase in raw material costs and,        • Increase in raw material costs and,
                                          consequently, in product costs due to                consequently, in product costs due to        consequently, in product costs due to
                                          limits in availability of non-renewable              limits in availability of non-renewable      limits in availability of non-renewable
                                          resources like water and agricultural                resources like water and agricultural        resources like water and agricultural
                                          inputs.                                              inputs.                                      inputs.
                                                                                             • Climate change legislation                 • Climate change legislation
                                        Opportunities:                                       • Taxes or regulatory boundaries for         • Taxes or regulatory boundaries for
                                        • Supply with renewable energy.                        GHG emissions.                               GHG emissions.
                                        • Financial incentives to reduce
                                          greenhouse gas emissions.                          Opportunities:                               Opportunities:
                                        • Less dependency on water supply                    • Supply with renewable energy.              • Supply with renewable energy.
                                          from the network and increase in the               • Financial incentives to reduce             • Financial incentives to reduce
                                          percentage of water reuse.                           greenhouse gas emissions.                    greenhouse gas emissions.
                                        • Drive product development and                      • Less dependency on water supply            • Less dependency on water supply
                                          packaging that require fewer raw                     from the network and increase in the         from the network and increase in the
                                          materials.                                           percentage of water reuse.                   percentage of water reuse.
                                        • Increase efficiencies in logistics                 • Optimize raw material use, especially      • Optimize raw material use, especially
                                          network.                                             regarding packaging.                         regarding packaging.
                                                                                             • Increase efficiencies in logistics         • Increase efficiencies in logistics
                                                                                               network and travel reduction.                network and travel reduction.
                                                                                             • Fewer associate trips through the use      • Fewer associate trips through the use
                                                                                               of video conference and conference           of video conference and conference
                                                                                               call technologies.                           call technologies.




* We updated the actual figure for 2009 since previously we had included only an estimate.



       78       Social Responsibility and Sustainable Development Report 2010
           Performance                                   2009 Results                                           2010 Results                                         2010 Results
            indicators                                     Mexico                                                 Mexico                                            Central America
    Actions to reduce climate             • Energy savings initiatives including                 • Energy savings initiatives including                  • Energy saving initiatives including
    change                                  lighting changes, energy controls, low                 lighting changes, energy controls, low                  lighting changes, energy controls, low
                                            energy refrigeration equipment, and                    energy refrigeration equipment, and                     energy refrigeration equipment, and
                                            implementation of energy saving best                   implementation of energy saving best                    implementation of energy saving best
                                            practices in operational areas.                        practices in operational areas.                         practices in operational areas.
                                          • Waste recycling has reduced the                      • Waste recycling has reduced the                       • Waste recycling has reduced the
                                            amount of wastes sent to landfills,                    amount of wastes sent to landfills,                     amount of wastes sent to landfills,
                                            reducing methane emissions.                            reducing methane emissions.                             reducing methane emissions.
                                          • Efficiencies in Logistics, for example:              • Efficiencies in Logistics, for example:               • Efficiencies in Logistics, for example:
                                            optimization of freight volume to                      optimization of freight volume to                       optimization of freight volume to
                                            reduce the number of trips and,                        reduce the number of trips and,                         reduce the number of trips and,
                                            consequently, reduce the consumption                   consequently, reduce the consumption                    consequently, reduce the consumption
                                            of fossil fuels.                                       of fossil fuels.                                        of fossil fuels.
                                                                                                 • Energy-saving campaign by                             • Energy-saving campaign by
                                                                                                   implementing best practices in stores.                  implementing best practices in stores.
                                                                                                 • Renewable energy supply.                              • Renewable energy supply.
                                                                                                                                                         • Backhaul practice was implemented in
                                                                                                                                                           Logistics to improve freight efficiency
                                                                                                                                                           between suppliers and our DCs by
                                                                                                                                                           reducing the number of trips.




    Pollutant materials used by           • Diesel: 11,463,207 liters.                           • Diesel: 5,164,866 liters.                             • Diesel: 1,089,630 liters.
    weight or volume and that             • We have worked closely with the                      • Natural gas : 28,054,872 m3.                          • Gasoline: 246,403 liters.
    have actions implemented                energy supply company to ensure                      • L.P. Gas: 75,547,742 kg.                              • LP gas: 1,995,271 liters.
    to reduce use 1                         the connection of stores to the grid                 • Installation of low-fuel consumption
                                            and remove the energy plants used to                   equipment.
                                            supply electricity.                                  • Implementation of best practices in
                                                                                                   order to reduce fuel consumption.
                                                                                                 • Preventive and corrective maintenance
                                                                                                   of combustion equipment.



    Breakthroughs in the period           • 10% emission reduction measured as                   • 14.9% emission reduction measured as                  • 4% emission reduction measured as
    to reduce greenhouse gas                the equivalent of tons of CO2.                         the equivalentof tons of CO2 3.                         the equivalent of tons of CO2 3.
    emissions and accomplish              • 50% of 2012 objective achieved.                      • 74.5% of the 2012 objective achieved.                 • 20% of the 2012 objective achieved.
    a 20% reduction by 2012 2


    Total greenhouse gas                  Direct (scope 1) 5                                     Direct (scope) 6                                        Direct 8
    emissions 4                           • Total emissions: 410,714 tons.                       • Total emissions: 613,459 tons.                        • Total emissions: 44,940 tons.
                                          • Emissions related to the area built:                 • Emissions related to the area built:                  • Emissions related to the area built:
                                            58.97 kg/m2.                                           87.61 kg/m2.                                            39.82 kg/m2
                                          Indirect (scope 2)                                     Indirect (scope 2) 6                                    Indirect 8
                                          • Total emissions: 521,209 tons.                       • Total emissions: 847,918 tons.                        • Total emissions: 54,592 tons.
                                          • Emissions related to the area built:                 • Emissions related to the area built:                  • Emissions related to the area built:
                                            84.67 kg/m2.                                           121.10 kg/m2.                                           48.37 kg/m2
                                          • Emissions resulting from merchandise                 • CO2 Emissions resulting from
                                            transportation: 139,821 tons.                          merchandise transportation: 143,684
                                                                                                   tons. 7
                                                                                                 • Emissions not generated by wind farm
                                                                                                   energy supply: 78 tons.




1     Period compared: January to November.
2     Reduction vs. store base in 2005.
3     November figures.
4     January-August period for indirect emissions from energy use; for emissions from merchandise transportation, the period is January to November and for coolant use, January to October. 2010
      data runs through to the end of November.
5     Direct emissions (scope1) relate to emissions from the generation of electricity, fossil fuel and coolant use. Indirect emissions (scope 2) relate to emissions from the use of energy acquired from the
      power company.
6     2009 data is from January to August. 2010 data runs through to the end of November.
7     Emissions were calculated according to the methodology for mobile sources of GEI Protocol Mexico (based on the GHG Protocol from the WRI and WBCSD).
8     Forecast at December 2010.



                                                                                                                                                  Walmart de México y Centroamérica               79
          Performance                                 2009 Results                                        2010 Results                                      2010 Results
           indicators                                   Mexico                                              Mexico                                         Central America
    Initiatives to reduce               • Changed lighting to energy efficient              • Wind farm energy supply.                          • Changed lighting to energy efficient
    greenhouse gas emissions              fixtures.                                         • Changed lighting to energy efficient                fixtures.
                                        • Efficient refrigeration in stores.                  fixtures.                                         • Efficient refrigeration in stores.
                                        • Energy control devices.                           • Efficient refrigeration in stores.                • Energy control devices.
                                        • Improvement in logistic routes.                   • Energy control devices.                           • In-store humidity control.
                                        • Trailer space efficiency.                         • Improvement in logistic routes.
                                        • Installation of solar cells on the roofs          • Efficiency regarding space in trailers.
                                          of stores.                                        • Installation of solar cells on the roofs
                                                                                              of stores.
                                                                                            • Implementation of operating energy
                                                                                              saving campaigns.
                                                                                            • Optimization strategies implemented
                                                                                              in the operation of energy control
                                                                                              systems.


    Emissions of ozone-layer            • R-22 Coolant, which poses a low                   • R-22 Coolant: 43,018 kg. Consumption              Information not available.
    destructive substances                ozone destruction risk compared to                  was reduced due to improved control
                                          same family coolers: emissions                      over equipment leaks.
                                          29,396 kg.


    NO, SO and other types of           Information not available.                          Emissions resulting from merchandise                Information not available.
    emissions into the air by                                                               transportation 9:
    weight and kind                                                                         • NOx 1,137 tons.
                                                                                            • SOx 257 tons.


    Significant environmental           • Emissions resulting from merchandise              • CO2 Emissions resulting from                      Information not available.
    impact caused by the                  transportation: 139,821 tons.                       merchandise transportation: 143,684
    transport of products, people                                                             tons. 10
    and other goods, as well as                                                             • Emissions resulting from staff air
    any other material used by                                                                transportation: 3,749 tons. 10
    the organization


    Energy

    2025 goal: 100% powered             • 27% of the energy we use comes from               • 44% from the Wind Farm, which                     • 60.9% renewable energy used in
    by renewable energy                   renewable sources. 11                               covers 17% from installed capacity                  Central America 12. Renewable energy
                                                                                              and 27% from the Supplier: Comisión                 from state electric power companies.
                                                                                              Federal de Electricidad (Federal
                                                                                              Electricity Commission.)


    Energy saved due to                 • Reduction percentage: 6.12%.                      • Reduction percentage: 4.4%                        • Energy reduction equivalent to
    conservation and efficiency         • 41 million kWh saved vs. last year.                 equivalent to 236,527 GJ.                           87,483 GJ.
    improvement                                                                             • 65.7 million kWh saved vs. 2009.                  • 24.3 million kWh saved vs. last
                                                                                                                                                  year 13, 14.


    Energy saving initiatives           • Changes in lighting.                              • List of energy-saving initiatives                 • Changes in lighting.
                                        • Comprehensive energy loss                           implemented during the year in our                • Energy control, low energy
                                          prevention system in lighting                       different business formats including                consumption refrigeration
                                          equipment, motors and refrigeration.                estimated energy-saving percentage                  equipment, and implementation
                                        • Magnetic induction lamps in parking                 per initiative:                                     of energy saving best practices in
                                          lots.                                             • Energy management system: 9%.                       operating areas.
                                        • Efficient refrigeration equipment and             • Conversion to T5 lights: 12%.                     • Energy-saving campaign by
                                          air conditioning.                                 • Magnetic induction in parking lots:                 implementing in-store best practices.
                                        • Use of LED bulbs for accent lighting                5.7%.                                             • Renewable energy supply.
                                          and LED lamps in parking lot.                     • Remote metering systems: 2.5%.



9     Emission estimated based on Corinair emission factors (Commission of the European Communities (1993). Corinair Working Group on Emission factor for calculating 1990 emissions from road
      traffic. CEC: Belgium).
10    Emissions were calculated according to the methodology for mobile sources of GEI Protocol Mexico (based on the GHG Protocol from the WRI and WBCSD).
11    Based on energy supply information provided by the Federal Electricity Commission www.cfe.gob.mx/es/La Empresa/generacionelectricidad.
12    2009 Information on the amount of renewable and nonrenewable energy was obtained from the ECLAC. 2010 data will be generated until April 2011.
13    Forecast at December 2010.
14    Power supply in CA is measured differently than in Mexico.



         80      Social Responsibility and Sustainable Development Report 2010
         Performance                                 2009 Results                                        2010 Results                                        2010 Results
          indicators                                   Mexico                                              Mexico                                           Central America
 Direct energy use by                  • Non renewable energy sources: diesel,              • Non-renewable energy sources:                     • Non-renewable energy sources: diesel
 primary energy source 15, 16            LP gas, natural gas and electricity.                 diesel, LP gas, natural gas and                     and bunker.
                                       • Total direct energy consumed:                        electricity.                                      • Renewable energy sources: water,
                                         6,541,088 GJ 17, 18.                               • Renewable energy sources: Wind                      wind, geothermal and biomass.
                                       • LP Gas: 4.65 kg/m2 built (1,640,431 GJ) 19.          power.                                            • Total energy use directly supplied by
                                       • Natural Gas: 1.86 kg/m2 built (661,759             • Total direct energy use: 11,582,159 GJ.             the network: 851,418 GJ 20.
                                         GJ) 19.                                            Breakdown of direct energy use:
                                       • Diesel: 0.59 L/m2 built (233,743 GJ) 19.           • LP Gas: 3,777,387 GJ.
                                       • Electricity: 129.27 kWh/m2 built                   • Natural Gas: 1,001,559 GJ.
                                         (4,005,155 GJ).                                    • Diesel: 209,977 GJ.
                                                                                            • Energy supplied by the network:
                                                                                              6,036,371 GJ.
                                                                                            • Energy supplied by the wind farm:
                                                                                              556,865 GJ.



 Indirect energy use                   Information not available.                           • According to the definition                       Information not available.
 by primary source 21                                                                         of indirect energy in the GRI G3
                                                                                              Protocols, we do not use this type
                                                                                              of energy.



 Waste

 2025 goal: Generate zero              • 67% of waste was not sent to landfills             • 68% of waste were recycled and not                • 55% of waste were recycled and not
 waste                                   for final disposal because of being                  sent to landfills for final disposal.               sent to landfills for final disposal 22.
                                         recycled or transformed into compost.              • 147,900 tons of corrugated cardboard              • 17,017 tons of cardboard were
 2008 – 2012 goal: Reduce              • 141,900 tons of corrugated cardboard                 were collected for recycling,                       recycled, the equivalent of saving
 our waste by 25%                        were collected for recycling, thus                   preserving 2,514,300 trees.                         289,287 trees.
                                         saving 2,412,300 trees.                            • 11 tons of cellulose materials were               • 1,856 tons of plastic were recycled,
                                       • 448 tons of cellulose materials were                 recycled through waste recollection                 avoiding the use of 20,400 barrels
                                         recycled through waste recollection                  campaigns with customers, saving                    of oil.
                                         campaigns with customers, saving                     184 trees.
                                         7,616 trees.                                       • Despite our program to digitize
                                       • 3% less printed paper than in 2008,                  documents and processes in order to
                                         the equivalent to 961,809 sheets,                    reduce paper use, our consumption
                                         saving 115 trees.                                    increased by 43%, the equivalent of 4
                                                                                              million sheets.



 Breakthroughs in the period           • 3% savings through the reduction of                • 2010 goal: 15% reduction vs 2008                  • 2013 goal: 50% reduction in plastic
 to accomplish the goal of               plastic bags (kilograms).                            baseline.                                           bag use in all stores vs. 2007 baseline.
 reducing plastic bag use                                                                   • 16% savings due to reduced use                    • 36.4% reduction in total plastic bag
                                                                                              of plastic bags (kilograms).                        use vs. 2007 (kilograms) 20.
 2008-2013 goal: Reduce                                                                     • 100% mission accomplishment.
 plastic bag use by 50%
 (kilograms)                                                                                2013 mission status:
                                                                                            • 2013 goal: 50% reduction in use of
                                                                                              plastic bags in all stores vs. 2007.
                                                                                            • 59% reduction in total plastic bag use
                                                                                              vs. 2007 (kilograms).




15 Periods compared: January to October.
16 2009 areas: 6, 694,818m2.
17 Information at August, 2009.
18 Forecast at December 2010.
19 So as to comply with guidelines provided by G3 indicators protocols, used energy data are expressed in Gigajoules.
20 Forecast at December 2010.
21 Periods compared: January to August. Due to the disappearance of the Electricity Company in Mexico (Compañía de Luz y Fuerza del Centro), deliveries of energy use bills have been delayed, thus
   there are records missing for some units.
22 Information based on statistical forecasts from third party experts on the subject matter.



                                                                                                                                          Walmart de México y Centroamérica             81
         Performance                                   2009 Results                                   2010 Results                                 2010 Results
          indicators                                     Mexico                                         Mexico                                    Central America
 Landfill released and                   •   Cardboard: 976,343 m3                        • 1,038,246 cubic meters of landfill were     • 43,464 cubic meters 23 of landfill were
 actions to achieve                      •   Shrink-wrap: 21,250 m3                         no longer needed due to the recovery          no longer needed due to the recovery
 this result                             •   Clothing hangers: 1,541 m3                     of solid waste for recycling.                 of solid waste for recycling.
                                         •   Cardboard, shrink wrap and hangers           • Cardboard, shrink-wrap and clothing         • 17,017 tons of cardboard were
                                             clothing are regularly collected               hangers are regularly recovered in            recovered, avoiding the need for use
                                             at stores and sent to authorized               stores, collected and sent for recycling      of 117,085 cubic meters of landfill.
                                             recycling plants.                              with approved recycling companies.          • 1,856 tons of plastic were recovered ,
                                                                                          • 147,900 tons of cardboard were                avoiding the need to use 4,640 cubic
                                                                                            recovered, avoiding the need to use           meters of landfill.
                                                                                            1,017,626 cubic meters of landfill.         • 24.5 tons of plastic clothing hangers
                                                                                          • 348 tons of plastic clothing hangers          were recovered, avoiding the need to
                                                                                            were recovered, avoiding the need for         use 169 cubic meters of landfill.
                                                                                            use of 2,398 cubic meters of landfill.
                                                                                          • 7,288 tons of shrink-wrap were
                                                                                            recovered, avoiding the need for use
                                                                                            of 18,222 cubic meters of landfill.


 Total weight of waste                   •   Recycled: 155,292 tons.                      • Recycled: 173,163 tons.                     • Recycled: 18,873 tons.
 managed                                 •   Compost: 516 tons.                           • Final disposal in municipal landfills and
                                         •   Final disposal: 74,340 tons.                   dumps: 81,768 tons.
                                         •   Total managed wastes: 230,148 tons.          • Total managed waste: 254,932 tons.
                                                                                          • 68% of wastes are recycled.


 Volume of wastes classified             • Organic: 75,354 tons.                          • Organic: 105,685 tons.                      • 100% of our stores, DCs, production
 as organic and inorganic,               • Inorganic: 154,794 tons.                       • Inorganic: 149,247 tons.                      plants and offices have at least one
 and number of stores with               • 838 units have at least one recycling          • 1,021 units have at least one recycling       recycling program.
 recycling programs                        program.                                         program.


 Percentage of materials                 Information not available.                       • 41,370 m3 of wood were                      Information not available.
 used that are recycled input                                                               recovered due to pallet repair and
 materials                                                                                  reconditioning.
                                                                                          • 7,288,998 kg of shrink-wrap were
                                                                                            recovered for recycling.
                                                                                          • Plastic bags contain 30% of recycled
                                                                                            resin, representing 3,331,386 kg of
                                                                                            revalued plastic.
                                                                                          • 1,818,944 m3 of wood for merchandise
                                                                                            transportation.
                                                                                          • 9,094,722 kg of polyethylene film for
                                                                                            merchandise shrink-wrap.
                                                                                          • 11,104,622 kg of plastic bags.


 Total number and volume                 Information not available.                       There were no significant spills.             There were no significant spills.
 of accidental spills

 Water

 Breakthroughs in the period             • 7.7% less drinking water used.                 • 17.15% savings in drinking water use.       Information not available.
 to accomplish goals related             • 100% achievement vs. last year’s goal.         • 116% mission accomplishments vs.
 to water 2025 goal: Generate            • 30% of all units have an advanced                last year.
 zero pollutant discharges                 wastewater treatment plants.                   • 30% of all units have advanced
 2008 – 2012 goal: Reduce                                                                   treatment through wastewater
 drinking water use by 25%                                                                  treatment plants.


 Total water catchment                   • 100% is obtained from the drinking             • Total use: 5,407,100 m3                     Information not available.
 per source 24                             water public network, including pipes.           - Public network water: 5,380,064 m3
                                         • Total water consumption: 5,083,099 m3.           - Wells: 27,036 m3
                                         • Consumption: 0.93 m3/m2 built.                 • Comp unit water use: 3,470,447 m3
                                                                                          • Use: 0.76 m3/m2 built.




23 Forecast at December 2010.
24 Office use is not included. Built areas considered areas for 2009 are: 5,445,055 m2.



        82       Social Responsibility and Sustainable Development Report 2010
        Performance                               2009 Results                               2010 Results                                    2010 Results
         indicators                                 Mexico                                     Mexico                                       Central America
 Percentage and total volume          • 1,329,135 m3 of wastewater was           • 1,110,632 m3 of wastewater was                 • Total water treatment plants: 116
 of water recycled and reused           treated and reused in toilets, green       treated and reused in toilets and                (29 new).
                                        areas and for cleaning purposes.           green areas.
                                      • Volume of reused water: 0.19m3/m2        • Volume of reused water: 21% of
                                        built, representing 29% of total use.      total use.
                                      • Total water treatment plants: 390        • Total water treatment plants: 431
                                        (52 new).                                  (41 new).



 Drinking water saved 25              • Total use: 5,083,099m3.                  • Total water savings (comp stores):             • Installation of water saving devices in
                                      • Use: 0.93m3/m2 constructed.                718 million liters.                              sinks and wash basins of 6 units.
                                      • Total water saved: 366 million liters.   • Comp units reduction percentage:               • Installation of 29 new water
                                      • Reduction percentage of drinking           17.1%.                                           treatment plants.
                                        water use per m2 built: 7.7%.            • Total units reduction percentage:
                                      • Total stores percentage of reduction:      18%/ m2 built.
                                        3%/m2 built.
                                                                                 Initiatives:
                                      Initiatives:                               • Installation of water saving devices in
                                      • Installation of water saving devices       sinks and wash basins of 155 stores.
                                        in sinks and wash basins of 88           • Installation of dry urinals in new and
                                        restaurants and 472 stores.                remodeled units.
                                      • Installation of dry urinals in new and   • Treatment of 1,110,632 m3 of
                                        remodeled units.                           wastewater for reuse.
                                      • Treatment of 1,392,135 m3 of             • Water savings and best practices
                                        wastewater for reuse.                      internal awareness campaign for the
                                      • Installation of 52 wastewater              drinking water saved.
                                        treatment and reuse plants.              • Installation of 41 wastewater
                                                                                   treatment and reuse plants.



 Total waste water dumped             • 0.52m3/m2 constructed.                   • Total volume of discharged waste               Information not available.
                                                                                   waters: 4,296,468 m3.
                                                                                 • 100% of waste water is discharged
                                                                                   into municipal drainage system.
                                                                                 • 28% of discharged water is treated
                                                                                   with biological systems and complies
                                                                                   with NOM 002 and 003 criteria. The
                                                                                   remaining water is not treated.



 Initiatives to decrease              • 1,096 ecological products, 71 from       More than 700 eco-friendly products,             • The promotion and
 environmental                          private label.                           among which we can find:                           commercialization of eco-friendly
 impact from products and             • Sale of ecological products was          • 247 organic and hydroponic grocery               products were maintained
 services                               maintained throughout the year, in         products.                                        throughout the year besides the
                                        addition to the celebration of Earth     • 238 energy and water saving                      Earth Month special event in April.
                                        Month in April.                            products (including 37 Great                   • 44 organic farm products.
                                      • 389 organic and hydroponic grocery         Value Terra and Member’s Mark                  • 12,800 units of energy-saving
                                        products (including Member’s Mark)         EcoResponsible private label                     equipment were sold, such as
                                      • 31 organic perishables.                    products).                                       television sets, refrigerators, washing
                                      • 185 energy and water saving              • 112 biodegradable and                            machines and computers, among
                                        products (with Energy Star and             environmentally friendly products.               others.
                                        Electric Energy Savings Fund – FIDE).    • 70 products made with recycled
                                      • 488 biodegradable and water-saving         fibers.
                                        products (including Member’s Mark).      • 16 products with packaging or
                                      • 75 products made with recycled             disintegration time reduction.
                                        materials.                               • 16 products made with recycled or
                                      • Great Value Terra brand was launched       reusable materials.
                                        with 5 products.                         • Great Value Terra and Member’s Mark
                                                                                   EcoResponsible energy-saving light-
                                                                                   bulbs were developed.




25 Comp store savings 2009 vs 2008.



                                                                                                                             Walmart de México y Centroamérica          83
        Performance                             2009 Results                               2010 Results                              2010 Results
         indicators                               Mexico                                     Mexico                                 Central America

 Cost of significant                • No significant fines or penalties have   • No significant fines or penalties have   • No significant fines have been
 fines and number of                  been reported and confirmed by the         been reported and confirmed by the         reported and confirmed by the
 non-monetary sanctions               authorities.                               authorities.                               authorities.
 due to environmental
 regulation
 non-compliance




 Number of acoustic                 Noise pollution:                           Prevention of noise pollution:             Information not available.
 booths and description             • 231 acoustic booths (40 new).            • 250 acoustic booths (20 new).
 of the benefits obtained           • 23 electric rooms were made              • 60 electric rooms were made
 from this initiative                 soundproof.                                soundproof.




Note: All figures are in Mexican Pesos.




       84      Social Responsibility and Sustainable Development Report 2010
     Category                       Indicator        Page

Strategy and analysis                  1.1      1, 4, 10, 11, 23, 29, 39, 49, 61
                                       1.2      4, 10, 11

Organizational profile                 2.1      1
                                       2.2      1-3, 7
                                       2.3      1-3, 7
                                       2.4      Back cover
                                       2.5      1-3
                                       2.6      1
                                       2.7      2, 3
                                       2.8      1, 4, 15
                                       2.9      1, 4, 25
                                       2.10     23, 29, 38, 49, 61

Report parameters                      3.1      6
                                       3.2      6
                                       3.3      6
                                       3.4      88

Report scope and coverage              3.5      7, 12
                                       3.6      1-3, 7
                                       3.7      7
                                       3.8      7
                                       3.9      7, 11
                                       3.10     7
                                       3.11     6
                                       3.12     85
                                       3.13     6

Corporate governance                   4.1      8
                                       4.2      8
                                       4.3      8
                                       4.4      8, 21
                                       4.5      11
                                       4.6      8, 9, 67
                                       4.7      11
                                       4.8      6, 8, 9
                                       4.9      8, 10, 11, 52
                                       4.10     10, 11

Commitment to outside initiatives      4.11     9-11, 13, 52, 60, 61
                                       4.12     13, 19, 22, 23, 33, 35,
                                                45, 49, 52, 56
                                       4.13     10, 13, 19, 43

Stakeholder participation              4.14     12
                                       4.15     12
                                       4.16     13, 26, 31, 33, 61, 68
                                       4.17     11, 13, 33, 49




                                                                          Walmart de México y Centroamérica   85
             Category                                    Indicator        Page


       Economic indicators                                   EC1     25, 41, 68, 75
                                                             EC2     78
                                                             EC3     43, 44, 46, 67
                                                             EC4     68
                                                             EC5     67
                                                             EC6     27, 31, 33, 35, 37, 71, 74
                                                             EC7     15, 25, 67
                                                             EC8     25, 42, 43, 44, 46, 47, 75-77
                                                             EC9     4, 19, 25-27, 29, 33, 35, 41,
                                                                     44-47, 68, 71, 75, 76

       Environmental indicators                              EN1     79
                                                             EN2     82
                                                             EN3     81
                                                             EN4     81
                                                             EN5     54, 55, 80
                                                             EN6     54, 55, 61, 80
                                                             EN7     54, 55, 61
                                                             EN8     82
                                                             EN10    58, 82, 83
                                                             EN12    51, 52
                                                             EN14    52, 56, 59, 78
                                                             EN16    79
                                                             EN18    55, 61, 79, 80
                                                             EN19    79, 80
                                                             EN20    80
                                                             EN21    83
                                                             EN22    82
                                                             EN23    82
                                                             EN 24   Non applicable
                                                             EN 25   Non applicable
                                                             EN26    51, 56, 59, 81, 83, 84
                                                             EN27    57, 82
                                                             EN28    84
                                                             EN29    55, 79, 80
                                                             EN30    51, 78

       Labor indicators                                      LA1     19, 63, 64
                                                             LA2     19, 67
                                                             LA3     66
                                                             LA4     66
                                                             LA6     65
                                                             LA7     65
                                                             LA8     19, 27, 28, 43, 66, 75
                                                             LA9     66
                                                             LA10    63
                                                             LA11    16, 63
                                                             LA12    64
                                                             LA13    8, 19, 64
                                                             LA14    18, 67




86   Social Responsibility and Sustainable Development Report 2010
              Category                      Indicator                         Page

        Human rights indicators                  HR1                     31, 72
                                                 HR2                     31, 32, 72
                                                 HR3                     63
                                                 HR6                     22, 32, 65, 72
                                                 HR7                     65
                                                 HR8                     63

        Social indicators                        SO1                     25, 51, 69
                                                 SO2                     69
                                                 SO3                     9, 64
                                                 SO4                     9, 69
                                                 SO5                     69
                                                 SO6                     70
                                                 SO7                     70
                                                 SO8                     70

        Product responsibility indicators        PR1                     25, 52, 70, 72, 74
                                                 PR2                     73
                                                 PR3                     73
                                                 PR4                     73
                                                 PR5                     26, 68, 69
                                                 PR6                     25, 68
                                                 PR7                     69
                                                 PR8                     69
                                                 PR9                     69




 Indicator                                    Page                 Indicator                                                Page

Sector Supplement Indicators, Apparel and Footwear               Sector Supplement Indicadors, Food Processing

AF1                                         8, 31                FP 4                                                     19, 20, 28, 43,
AF3                                         32, 72                                                                        66, 75
AF4                                         8, 68                FP (Comment to indicator GRI EC1)                        44, 76
AF5                                         33, 71               FP (Comment to indicator GRI PR1)                        59, 72
AF6                                         31, 32, 72
AF8                                         32
AF12                                        72                   In order to demonstrate our commitment to women and strengthen our
AF16                                        8, 9, 32             indicators related to gender, we have drawn from a report entitled “Inclu-
AF32                                        64, 67               ding Gender in Sustainability Reports: A Guide for Professionals”, published
AF (Comment to indicator EN26)              55, 57, 58, 80, 81   by the International Finance Corporation (IFC) and the Global Reporting
                                                                 Initiative (GRI).




                                                                                                Walmart de México y Centroamérica      87
www.walmartmexico.com.mx

For further information regarding this Report, please contact:
María Gisela Noble Colín
fundacion@wal-mart.com
Phone: (55) 5283 0100 ext. 8106

All efforts are important and, although the press run of this Report is relatively
small, we reiterate our commitment to the environment by using environmentally-
safe materials.

The following are savings resulting from the use of recycled fiber, instead of virgin
fiber for this project. We used 11,775 lbs. of paper, meaning 10% of post- consumer
fiber, thereby allowing us to:

      Preserve 14 trees.

      Save 5,804 gallons of water.

      Prevent the generation of 1,204 lbs. of greenhouse gas emissions.

      Stop using 3.1 million BTUs of energy.

      This Report was printed on Sterling Ultra Paper, FSC certified,
      free of elemental chlorine and acids.
     We would like to thank our customers, suppliers,
associates and the community in general for allowing us to
 contribute to improving the quality of life of Mexican and
 Central American families through initiatives that mark us
             as a responsible corporate citizen.

We will continue our efforts so that our value proposal may
 impact the development of Mexico and Central America
                     in a positive way.
Blvd. M. Ávila Camacho 647
    Colonia Periodistas
Delegación Miguel Hidalgo
    11220 México, D.F.
 Phone: (52) 55 5283 0100




                 www.walmartmexico.com.mx