2014 Financial and Corporate Responsibility Report slide image

2014 Financial and Corporate Responsibility Report

Performance indicators Economic Indicator EC1 Direct economic value generated and distributed Content Economic Value Generated (EVG) Total income (mp) Economic Value Distributed (EVD) Operational costs (mp) EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change Community investments (mp) 2013 Mexico 367,731 286,946 464 2013 CAM 57,430 44,591 43 2014 Mexico 378,778 295,088 466 2014 CAM 62,210 48,281 38 Walmex strategy, through corporate objectives and internal/external periodical communication, considers risk and opportunity evaluations, as well as initiatives for energy efficiency and reduction of Greenhouse Gas emissions. All initiatives are subject to a strict review process to ensure alignment with Walmart's general business strategy before approval. Risks and opportunities are evaluated at company, market and asset level, considering the scope of their impact. Information is continuously gathered to identify risks or opportunities from all possible sources: Corporate Offices, sales floor associates, industry contacts, consulting firms, government and NGOs, news agencies, professional organizations, lawmakers, investors and members of the financial community. Risks: • Increased energy costs. • Greater impact and frequency of natural disasters affecting location of stores, and their operation. • Disruption of distribution routes due to Natural Disasters. • Increase in the cost of raw materials and products due to limitated availability of non-renewable resources such as water and agricultural inputs. Changes on the Legislation on climate change, which can impact on raw material or operation costs. • Taxes or regulation limits on direct carbon emissions or the supply chain. Opportunities: • Renewable energy supply which offers greater stability in energy costs through time. EC3 organization's defined Coverage of the benefit plan obligations Retirement Plans • Economic incentives to reduce greenhouse gas emissions. • Less dependency on water supply from the network and increase in water reuse percentage. • Optimization in use of raw material, specifically packaging. • Enhance Logistics network efficiency and trip reduction. • Less number of associate commuting via the use of teleconferences. Pension benefits granted according to law. Mexican Social Security Institute grants retirees old-age pension. Requirements: Being 60 or 65 years of age, and having worked at least 500 weeks under the registration of the Mexican Social Security Institute (by the 1973 law), or 1,250 weeks (by the 1997 law). The Company grants the extra benefit of a three-month payment for retirees, included in its Severance Policy. Pension Plan in line with current legislation in each country. Pension benefits granted according to law. Mexican Social Security Institute grants retirees old-age pension. Requirements: Being 60 or 65 years of age, and having worked at least 500 weeks under the registration of the Mexican Social Security Institute (by the 1973 law), or 1,250 weeks (by the 1997 law). The Company grants the extra benefit of a three-month payment for retirees, included in its Severance Policy. CAM (except GT): Pension Plan as provided by each country's law. GT: As of april 30, the population recieves a life-long pension when retiring. Other programs Total associates benefited Transfers/ Relocations 5,385 %W 53 %W %W %W %W %W %W %W 47 2,878 35 65 4,652 51 49 2,814 35 65 Victims of natural disasters Supported associates Support amount (mp) 1,005 9 19 0.9 10 777 11 129 0.2 2014 Financial and Corporate Responsibility Report 110
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