A.1. Disclose full product formulations to The Wercs through WERCSmart

Description

The Wercs is a vendor to Walmart supporting chemical safety and regulatory compliance. Proprietary product formulations provided through the WERCSmart platform will remain confidential from Walmart.

Resources

About WERCSmart

Measurement

Percentage of products (by number of UPCs) with fully disclosed formulation by supplier to The Wercs through WERCSmart.

To capture this data, Walmart shares internal inventory data from Retail Link (a decision support system that is a bridge between Walmart and its suppliers) to The Wercs. The Wercs combines the Retail Link data with formulation data submitted by all our suppliers (for compliance purposes) into the WERCSmart system. This metric below shows the percentage of products with fully disclosed formulation by supplier to The Wercs through WERCSmart.

Business
% UPCs with full disclosure
% point change vs. 2015
% point change vs. 2014
Walmart US

96.1%

1.7%

8.1%

Sam’s Club

97.0%

1.3%

13.9%

A.2. & A.3. Disclose all product ingredients online by product beginning January 2015. Disclose priority chemicals on pack beginning January 2018.

Description

Walmart will create more transparency about ingredients contained in the products on its shelves by requiring all suppliers to provide full online ingredient disclosure beginning January 2015 and Walmart Priority Chemicals on pack beginning January 2018. Walmart expects online public disclosure to be publicly accessible from the supplier's website and to be displayed at the per-product level.1 For online and on pack disclosure content, Walmart advises suppliers to consult leading guides on public ingredient disclosure. Walmart recommends that suppliers, at a minimum, utilize the recognized elements of public ingredient disclosure provided by the US EPA and the CSPA, referenced below.

Resources

Two recommended guides for ingredient disclosure are:

  1. U.S. EPA's Safer Choice
  2. CSPA's Consumer Product Ingredient Communication Initiative

See Appendix 2 for a table outlining the US EPA and CSPA recognized elements of public ingredient disclosure.

Walmart recognizes that best-in-class online disclosure often goes beyond the minimum recommendations found in the guides listed above, and includes additional ingredient information, such as the following:

  • Ingredient CAS numbers
  • Full disclosure of all ingredients including those typically protected under trade secrets (e.g. fragrances)
  • Known residuals, contaminants, and by-products
  • Identification of ingredient function and uses
  • Product formula number
  • Hazard information (e.g. MSDS/SDS data)
  • Priority chemicals that have been removed from the product or portfolio of products, in conformance with FTC's Green Guides
Measurement
  • Percentage of reporting supplier's products with online ingredient disclosure
  • Completion of the Sustainability Index for relevant and available product categories
  • Responses to relevant Sustainability Index key performance indicators

Walmart uses the Sustainability Index to capture data on supplier practices regarding product ingredients disclosure online. The Sustainability Index uses questionnaires that are based on Key Performance Indicators (KPIs) developed by The Sustainability Consortium (TSC), a multi-stakeholder organization working to develop a science-based, sustainability measurement and reporting system for consumer goods. The table below summarizes supplier responses to ingredient disclosure KPIs for the departments covered by our Sustainable Chemistry Policy:

For the Consumables and Health & Wellness business, Walmart suppliers who represent 92.9% of sales and Sam's Club suppliers who represent 94.6% of sales have participated in the Index, where surveys are available. The Index does not cover all product categories for the policy and participation is voluntary.

51% more suppliers across Walmart US and Sam’s Club were queried in 2016 than 2015. All queried suppliers participated in the survey vs. 76% of queried suppliers last year. 57% of these respondents claim online disclosure of ingredient names for their entire product portfolio vs 78% of participating respondents last year. Because of 100% participation this year, 2016 results more accurately reflect disclosure trends in the marketplace.


Response Rate: Percentage of surveys where the online ingredient disclosure KPI was answered.

Average response to online ingredient KPI: Across all surveys within in a department, the average reported percentage of product (by revenue) for which ingredients are disclosed online. Calculations consider only surveys for which there was a response.

Percent of surveys where disclosure is claimed for 100% of products: Across all surveys within a department, the percent that claim online disclosure for all products sold. Calculations consider only surveys for which there was a response.

NOTE: Surveys are conducted on a product category basis, meaning one Sustainability Index survey submission represents one supplier's responses to KPIs for a particular product category. There is potential for a single supplier who sells in multiple product categories to answer a particular KPI multiple times or for a single supplier who sells multiple product types in the same department to answer a particular KPI multiple times."

[1] Public Disclosure for Walmart's Private Brands will be available on the Walmart Corporate Website