FAQ

ESG

• What it means to be a Regenerative Company?

  Being a regenerative company means going beyond compliance and doing what is right to have a positive socioeconomic and environmental impact that contributes to recovering the health and wellbeing of people, communities, and the planet, creating shared value for our stakeholders and, therefore, for our business. We are on the path to becoming a Regenerative Company, where nature and humanity are at the center of all our business practices.

• What are the 4 pillars of a Regenerative Company?

  Our ambition to become a Regenerative Company places the planet and society at the center of our decisions, focusing on four pillars:

  • Opportunity: Our actions are focused on creating opportunities that generate trust and promote the development of our associates and suppliers.
  • Community: We seek to be a valuable neighbor that contributes to the well-being and prosperity of each community in which we operate.
  • Sustainability: Our ambition to become a Regenerative Company means placing nature at the center of our business decisions.
  • Ethics and Integrity: The way we operate our business is as important as the products and services we offer to our customers, so we act in an ethical and honest manner to promote our stakeholders’ well-being.

  Annual Report, pag 12.

• How did you determine your ESG strategy?

  Our ESG strategy is based on our 2023 Double Materiality Analysis, in which those topics that have gained greater relevance for our interest groups and for the company are reflected.

  Based on the results obtained from our double materiality analysis, we identified the material ESG topics for the Company and for our stakeholders as well as risks and opportunities. That served as the basis for implementing action plans to improve our performance.

  We also have global goals for all the markets where Walmart operates, and we work in a collaborative way to achieve them. 

• Do you have a committee that reviews the goals and results for the initiatives?

  In 2024, we began conducting quarterly reviews of the information collected by different teams to assess our progress toward our tier 1 regeneration objectives. These reviews are conducted by the Executive Committee in Mexico, which is led by our President and CEO, as well as by the Executive Committee of Central America, headed by its President and CEO. Both committees are composed of our Company’s leadership, responsible for overseeing and directing the implementation of initiatives to achieve our objectives. 

  Subsequently, progress is reported to the Board of Directors of Walmart de México y Centroamérica. This regular follow-up enables efficient and timely decision-making. Additionally, to remain consistently aligned and coordinated with Walmart's different markets, the Executive President and CEO of Walmart de México y Centroamérica meets and reviews quarterly progress with the Regional CEO of Walmart Canada, Chile, Mexico, and Central America—who also chairs our Board of Directors—and with the Executive President and CEO of Walmart International.

  Annual Report, pag 60-61.

• How do you generate value to all your stakeholders?

  • Customers: Seamless access to affordable, trustable, and sustainable products and services.
  • Associates: Our associates are our priority, and we take them into account in all our decisions. We work every day on improving our value proposition for our associates to become the best place to be yourself, grow and belong based on policies regarding human rights, labor, and diversity & inclusion. 
  • Suppliers: Access to markets and ability to accelerate supply chain sustainability.
  • Shareholders: Superior long-term returns through financial and ESG leadership.
  • Business Partners: Strategic alliances for strengthening ecosystems.
  • Communities: Resources to build stronger and more inclusive communities.
  • Planet: Leadership on renewable energy, waste, and sustainability.

• Do you contribute to SDG?

  Yes. We are signatories of the UN Global Compact since 2019, fully incorporating sustainability into our business strategy and we make strategic decisions that help us achieve the UN Sustainable Development Goals (SDGs). Moreover, it provides us with the proper framework to reinforce our long-term commitment to commercial, responsible, and ethical practices.Every year, we publish a report on Our Contribution to the SDGs.

• Environmental: Which are your main goals and what is your progress on each one of them?

  We strive to have a positive impact that strengthens ecosystems, preserves biodiversity, and improves collective well-being. That is why we remain focused on our three priorities:

  • Climate Change: our emissions mitigation strategy includes working towards zero operational emissions, including emissions from refrigerants, fuels and electricity. In addition, we are committed to encouraging suppliers and other stakeholders to reduce emissions in our value chain.
  • Circular Economy: given the scale and scope of our operations, at Walmart de México y Centroamérica we understand the value of adequately managing waste and materials. We focus on implementing an operation that avoids or minimizes waste generation. We seek to utilize waste that can be reintegrated into new value cycles, following the most recognized international waste management hierarchies. 
  • Natural Capital: we are committed to the global goal set by Walmart Inc. to help more sustainably manage, protect and/or restore at least 50 million acres of land and 1 million square miles of ocean by 2030. 

  In our 2024 Annual Report in the Sustainability chapter and in the section of our Environmental Strategy on our website, we break down our goals and the progress we have made on each one of them.

• Environmental: Are you complying with GRI, SASB?

  Our annual report was structured and aligned with the principal guidelines published by the Global Reporting Initiative (GRI) with the comprehensive option and the Sustainability Accounting Standards Board (SASB). Similarly, frameworks such at the UN SDOs and the Task Force on Climate-Related Financial Disclosures (TCFD) are reflected in the key subjects included in our reports. We also disclose our external reporting programs, such as the Carbon Disclosure Project (CDP). 

  At Walmart de México y Centroamérica, we strive to provide continuity to the clear and transparent disclosure of our performance. More info available here.

• Social: Do you have a policy regarding human rights, labor rights, discrimination and harassment prevention and suppliers’ standards?

  Yes, we have different policies regarding human rights, labor rights, discrimination and harassment prevention and suppliers’ standards:

  • Human Rights Declaration 
    In our Human Rights Declaration we reinforce our commitment to fully comply with internationally-recognized human rights, not only within our own operations, but also throughout our entire value chain.
  • Labor Rights
    We are responsible for guaranteeing the labor rights of our associates, including wages and payments; benefits; and fair treatment. We have various policies that reflect our respect for the labor rights of our associates. In Mexico, our labor rights policy is aligned to the Federal Labor Law. Through our Working Hours Policy, our associates are guaranteed their rights, pursuant to labor legislature regarding work schedules and quality of life. Further, Our Equal Pay Policy ensures that Walmart de México y Centroamérica does not discriminate in wages due to gender, age, religion, sexual preference, or political ideology.
  • Discrimination and Harassment Prevention 
    In our Discrimination and Harassment Prevention Policy we have several disclosures that in the company is strictly prohibit discrimination or harassment because of individual traits such as race, color, ancestry, ethnicity, religion, sex, pregnancy, national origin, age, disability, marital status, veteran status, military status, genetic information, sexual orientation, gender identity or expression and any other legally protected status.

• Social: What are the standards you request from your suppliers?

  All suppliers must comply with the Walmart Supplier Standards. Among the requirements for both our suppliers and for those who supply them, are the following: 

  • Comply with the law. 
  • Be transparent.
  • Never use forced or child labor.
  • Maintain a fair decision-making process regarding employment.
  • Suppliers are charged with complying with these rules in all their operations and throughout the entire product supply chain, which are included in supplier agreements, published in seven languages.
  • Comply with all applicable laws and agreements on compensation and work hours.
  • Recognize the freedom to associate and collective bargaining.
  • Provide a safe work environment.

• Social: How do you interact with the communities where you operate?

  Walmart’s purpose is to save people money and help them live better. We help families find solutions that make their busy lives easier, by providing them convenient access to affordable food items and other products around the world, while also generating economic opportunities and seeking to improve social and environmental sustainability to strengthen local communities. We provide resources to build stronger, more inclusive communities.

• Corporate Governance: How can minority shareholders’ voice their interests and concerns?

  Minority shareholders, whose shares represent a minimum of 10% of owners’ equity have the right to choose a Director, who in turn may be removed only when other Board members are so removed. Adolfo Cerezo, the Chairman of the Audit and Corporate Practices Committees, as the Lead Independent Director, also has the main assignment of acting as a link between minority shareholders of the company and its management. Independent directors must constitute a minimum of 25% of the total of the Board of Directors.

  Bylaws, here page 11.

  Minority shareholders rights are located at Walmex’ articles of incorporation, i.e.:

  “ELEVEN.

  1. …

  4. The minority shareholders representing at least ten percent (10%) of the capital stock, represented by shares subscribed by the corporation, shall be entitled to:

  a) Appoint and remove a member of the Board of Directors.  Such appointment may only be revoked when the other members of the Board of Directors are also removed, in which case, removed members shall not be appointed as such for a period of 12 months immediately following the date of removal.  

  b) Request the Chairman of the Board of Directors or the Chairman of the Audit and Corporate Practices Committees, at any time, to call for a general shareholders’ meeting.

  …”

• Corporate Governance: How is the Board of Directors composed? How many women? How often does it meet?

  The Board of Directors is composed solely by statutory members, in total we have eleven directors of which 5 are independent (50%) and 4 are women (40%).

  The Board of Directors meets a minimum of four times a year, in 2024 there were 7 sessions. The average attendance to these meetings was 94.68%.

  Annual Report, pags 167-168.

• Corporate Governance: Which are the main responsibilities of the Board of Directors?

  • Choose the President and CEO of the company
  • Work actively with top management to develop overall strategies for the company and its subsidiaries
  • Approve information and communication policies with shareholders and the market
  • Act as adviser/ consultant for top management of the company
  • Oversee the management of the company and its subsidiaries
  • Ensure that overall strategy is in line with the company’s principles of Corporate Responsibility

  More information available here.

• Corporate Governance: Do you have an Audit Committee?

  Yes. Our Audit and Corporate Practices Committees is composed by five statutory Directors, all of them independent, and its primary responsibilities are:

  • Giving and opinion on the hiring and establishment of the fees of the independent auditors
  • Ensuring the existence of a proper internal control system for the company that meets any and all applicable accounting and legal provisions, and reviewing company and subsidiaries transactions with related parties
  • Reviewing the financial statements and ensuring they are a true and accurate reflection of the financial situation for the company. 
  • Reducing the risk of conducting operations such that could affect company worth or could result in the granting of favored conditions to any one group of shareholders
  • Approving policies for the use and enjoyment of properties pertaining to the net worth of the company
  • Authorizing transactions with related parties, remuneration for the Chief Executive Officer, and remuneration policies regarding relevant company officers
  • Serving as support for the Board of Directors in producing reports on accounting practices
  • Holding private meetings and receiving periodic reports from Internal Audit, Legal, Compliance, and Ethics
  • Calling Shareholders to meetings and ensuring that the order of business includes all matters deemed necessary

  Annually, we share information about this committee in our Audit and Corporate Practices Committee Report.

• Corporate Governance: How do you make sure all your associates comply with integrity standards?

  Our Code of Conduct establishes the guidelines for honest, fair, and objective decision making when operating regardless of where any of us works in full compliance with all corresponding laws and internal policies. Our Statement of Ethics applies to all associates, at all levels of the organization, around the world, and to all members of the Board and committees of the company. In addition, we expect all our suppliers, consultants, and contractors to adhere to our Statement, thus acting correctly and consistently. 

  We encourage our associates to feel free to express any concern, with the tranquility of knowing they will be heard. Different formal mechanisms for making a claim have been established whereby our associates may express their concerns or report unsuitable behavior, without the fear of facing any repercussions for having done so.

• Corporate Governance: How do you prevent corruption and bribery?

  Our Global Anticorruption Policy and the Global Anticorruption Procedures are a reflection of our commitment to maintain the highest standards in integrity and commitment, in keeping with all applicable legislation in the markets where we operate. By not tolerating any bribes, acts of corruption or dishonest practices of any nature, we are able to accomplish our objectives with full transparency. In the case our associates have any suspicion or information regarding the violation of company policies, or have data on improper requests, even though rejected, they must report them immediately to the Global Ethics contact points. Our associates receive mandatory online training in anticorruption, which must be taken each year. The Board of Directors also receive mandatory training once every year.

  We conduct annual risk evaluations to identify and assess risks associated with corruption to better assign the resources needed to tend to such matters. Our Continuous Improvement team regularly evaluates and implements the program and provides timely feedback, thus establishing the root-cause and providing the solution to identified situations. In addition, Global Internal Audit also conducts periodic and independent audits of our program.

• Corporate Governance: Do you have an information security program?

  Yes, the information security program was created to provide our brand portfolio worldwide with comprehensive, profitable, and risk-based security services.

  We guarantee protection for information and information systems against unauthorized access, use, dissemination, alteration, or destruction, thus providing confidentiality, safety, and availability. Our objective is to maintain company information safe through better understanding of this subject and guidelines by our associates and business partners. We also ensure best practices are followed to identify risks, protect information, detect suspicious activities and to be prepared to respond to future incidents.

  Our company has policies, standards, procedures, and security for information, with the purpose of regulating and raising awareness among our associates and suppliers concerning the importance of the information and the technological resources used in the company. We also provide mandatory training for our associates so they may better understand the importance of adopting behaviors in line with our information security guidelines.

  Our Audit and Corporate Practices Committees are committed to the strategy of information security, thus making the review process a fundamental part of their activities. A review is conducted every four months of all mitigation initiatives, trends, risks, and strategies. Furthermore, each market where we operate has its own information security leader who is also part of the committee that reviews and defines the cybersecurity strategy.

  More information available here.