REI promotes sustainability through employee engagement and its operations. It aims to reduce its environmental impact while growing its business. REI uses an integrated sustainability framework to track metrics and hold itself accountable. It has successfully reduced waste in its distribution centers. REI also engages members to support public lands and mobilizes around issues of stewardship. Software companies like SAP are helping other businesses implement sustainability strategies through products that allow companies to holistically manage risks and opportunities across their economic, social, and environmental impacts.

1. Sustainability at REI:
Employee Engagement
Subtitle Here
(if applicable)

2. We inspire, educate, and outfit for a lifetime
of outdoor adventure and stewardship

3. Our Aspiration
To thrive as a co-op serving outdoor enthusiasts
100 years from now and beyond

4. What is sustainability for REI?
• Learning how to grow our business and reduce our impact
• Not just “what we do,” but “how we do it”
• Emerging skills to thrive in a resource-constrained world
• Identifying risks and opportunities we otherwise wouldn’t have seen

5. Integrated Sustainability Framework
2012 Environmental Lenses
• Integration Includes:
• Metrics & Reporting (Environmental Accounting)
• Forecasting & Budgeting
• Accountability

6. Distribution Center Waste Success

7. Wear With Pride

8. 2006

10. Industry Standard
2
Forest Stewardship Council

12. 2006
2007
2008
2009

14. REI in our community
Mobilizing members to support public lands

16. Software Innovation as a Force for
Transformative Sustainability
Jim Sullivan, SAP
© 2011 SAP AG. All rights reserved. Confidential 16

17. Our Customers
The Leading Companies of the World
17

18. With 190,000 Customers, Our Impact Is Significant
SAP Touches 60+% of the World’s Business
>50% >72%
>86% >70%
of the world‟s of the world‟s of the world‟s of the world‟s
athletic footwear packages chocolate beer production
provided couriered production
>30 million >2 million >77,000
households use energy people work automobiles
more responsibly with more safely manufactured
Smart Grid solutions using People per day
Safety solutions
18

19. Which Allowed Us To Refine Our Purpose
Help the World Run Better and
Improve People’s Lives
19

20. We Run A Holistic Approach to Innovation & Sustainability
Driving Value
SAP innovates SAP innovates SAP innovates
customer solutions its own operations social investing
Competitiveness Efficiency Talent
New Markets Risk Reduction Brand
20

21. Bringing It All Together
Integrated Strategy to Value Creation
Innovation Sustainability
Cloud Security & Privacy
Human
Mobile
Capital
Financial Intellectual
Applications Analytics Capital Capital
Database & Technology Energy & Efficiency
Powered by SAP HANA Governance, Conduct & Values
21

22. Measuring Success, Cascaded Across the Company
SAP 2015 Goals
Customer Success Employee Motivation Growth Margin
Customer Net Employee engage- Total revenue €20+ billion, Increase our operating
Promoter Score ment index ≥ 82% serving 1 billion people margin to 35%
Indicators of SAP’s ability Indicators of SAP’s
to drive future success actual level of success
22

23. Review 2011
Financial and Non-Financial KPIs
Financial FY 2011
Total Revenue €14.26bn
SSRS Revenue (Non-IFRS at cc) +15%
Operating Profit (Non-IFRS at cc) €4.71bn
Operating Margin (Non-IFRS, cc) 33%
Human
Employee Engagement +9pp
Business Health Culture Index +6pp
Intellectual
Customer Satisfaction Index 7.7
R&D expenses +12%
as % of total revenue (non IFRS) 13.9%
Environmental
Greenhouse Gas Emissions +8%
Total Energy Consumed +2%
23

24. Towards an Integrated Strategy
A Journey, Not an Event
Commit Report Engage Transform
Purpose Analysis Change Story New practices
Targets New products
Organization Benchmarking
Tools & process markets
New
Role models
Communication New behavior
Incentives (start next cycle)
Marketing

25. Report: Data Collection, Aggregation & Analysis
SAP Manages 400+ Sustainability KPIs

26. Report: Online and Mobile
Viral Experience

27. Report: Interactive, Forward Looking
SAP’s Current And Future Emissions
Total GHG emissions
g GHG per Euro Revenue

28. Engage: Social Media
Stories of Transformation

29. Engage: Consumer Applications
Non-Financial Incentives
Meet great people
Tell TwoGo the type of people you like Carrier 3G 8:30 AM
Back Next Action
Avoid un-cool people David Carol
Block unwanted people
8:35 AM – in 5 min
Be safe Farmstrasse 43
Worms
TwoGo only works with your company
email address - no fake identities
Have fun I’m late I’m here
Challenge each other on who„s the
greenest or most social of you all

30. Transform: Energy Management
Valero

31. Transform: Utility Service Offerings
Centrica

32. Transform: Supply Chains
Danone

33. Transform: Operations
Baker Hughes’

34. Transform: Product Safety
Varian Medical

35. Integrated Software for
Integrated Strategies
Recycle Design
Holistically manage
Sell & economic, social and Source
Use environmental risks
and opportunities
Store & Produce
Ship

36. Software Innovation as a Force for
Transformative Sustainability
j.sullivan@sap.com
© 2011 SAP AG. All rights reserved. Confidential 36

37. “We‟ve done all of this [sustainability] because it is
the right thing to do for the generations that will
follow us. But sustainability is also the right thing to
do for our business.
Every time we cut back on packaging or fuel or
electricity, we save money. Every penny we save
adds up for our customers, our shareholders and
our future.
This really is the EDLC model.”
Mike Duke
President and CEO
Walmart
Global Sustainability Milestone Meeting,
April 2012
38

38. Walmart’s broad sustainability goals
To be supplied 100%
by renewable energy
To create zero waste
To sell products that sustain
people and the environment
39

39. Sustainability Priorities
1 Reduce waste in
stores and
2 Reduce reliance on
fossil fuels & develop
renewable energy
3 Remove 20 mmt of
GHGs from our
distribution centers sources supply chain
4 Improve the
sustainability of our
5 Develop an index to
provide transparency
Ag supply chain for decision making
40

40. Overview of the go forward SVN design
Going forward, the SVNs will more fully align with the three aspirational goals, become more
global, and integrate with the business
Operations Sustainable
Council Products Council
Ops Waste Chemical 20MMT
Renewable Sustainable Sustainable Food
and Packaging Intensive Product Index
Energy Buildings Transportation and Ag
Recycling Products GHG
Project
Project
Teams
Project
Teams
Teams
Sustainability Office
41 Sustainable Value Networks Walmart Stores, Inc. Confidential

41. In 2009 we made a commitment to the sustainability Index
Sustainability Index: Tools that will…
• Improve the sustainability of the products our customers
love
• Integrate sustainability into our core business
• Drive the productivity loop by reducing cost, increasing
product quality and finding supply chain efficiency
“If we work together, we • Increase customer‟s trust in us and the brands we carry
can create a new retail by leading in transparency
standard for the 21st
century."
Many merchants are working on sustainability today. The Index helps them to do
it more efficiently and to focus on the biggest opportunities.
42 Sustainable Value Networks Walmart Stores, Inc. Confidential

42. Three Phased Approach to Index Development and Execution
Align and Standardize Integrate and Act Engage Customers
The Sustainability Tools and Resources for Customer Transparency
Consortium Merchants Tools
• Science and Standards • Category Sustainability • Lead industry in customer
Profiles transparency
• Industry Alignment
• Supplier and Category • Build customer trust
• Stakeholder Engagement Metrics • Engage across channels
• External Credibility • Business Processes
• Training and Incentives
Step 1 Step 2 Step 3
43 Sustainable Value Networks Walmart Stores, Inc. Confidential