Walmart, one of the largest global retailers, has made significant strides toward achieving sustainability. The company’s sustainability initiatives focus on areas such as reducing carbon emissions, increasing energy efficiency, advancing circular packaging solutions, and enhancing social and community impacts. Walmart’s latest sustainability report outlines their ambitious goals, including achieving net-zero emissions by 2040 and integrating circular economy principles across their operations. This report also underscores the company’s commitment to regenerative agriculture, water stewardship, and promoting equity within its supply chain. Walmart has been recognized for its leadership in retail sustainability, earning notable awards such as inclusion in the Dow Jones Sustainability Index.

Sources:
https://corporate.walmart.com/sustainability
https://www.walmart.com/cp/sustainability

Sustainability Strategy and Goals

Walmart’s formal sustainability strategy is anchored in its commitment to drive a positive environmental and social impact across its entire value chain. The company’s efforts align with frameworks like the UN Sustainable Development Goals (SDGs) and the Science Based Targets initiative (SBTi), setting ambitious goals to create long-term sustainability.

• Net Zero and Carbon Emissions: Walmart aims to achieve net-zero emissions across its global operations by 2040. This includes reducing emissions in scope 1, 2, and 3 by working with suppliers and enhancing supply chain transparency.
  • Walmart reduced its carbon intensity per square foot of retail space by 16.2% between 2015 and 2020.
  • Walmart’s renewable energy initiatives helped the company achieve 36% renewable energy usage globally in 2020.
    (Source: https://corporate.walmart.com/newsroom/2020/09/23/walmart-announces-new-climate-goals)
• Water Stewardship: The company has committed to promoting water stewardship by focusing on water efficiency in operations and collaborating with suppliers to ensure sustainable water use in agricultural practices. Walmart has invested in programs to improve water use in agriculture, such as its supplier engagement programs on water risks.
  • Walmart’s global supply chain aims to improve water efficiency by 14% per unit of output by 2025.
    (Source: https://corporate.walmart.com/sustainability/environment)
• Regenerative Agriculture: Walmart is working with farmers to promote regenerative agriculture practices that enhance soil health, water retention, and biodiversity. The company’s ambition is to source key commodities like produce, meat, and cotton from regenerative systems by 2030.
  • In 2021, Walmart committed to sourcing 25% of its key agricultural products from regenerative sources by 2030.
    (Source: https://corporate.walmart.com/sustainability)
• Deforestation and Biodiversity: Walmart is addressing deforestation risks in its supply chains by working with partners and setting strict sourcing guidelines for products like palm oil, paper, and soy.
  • Walmart has been working to ensure that 100% of the palm oil it sells is sustainably sourced.
  • The company aims to eliminate deforestation from key commodities by 2025.
    (Source: https://corporate.walmart.com/sustainability/earth)
• Packaging and Circular Economy: Walmart has committed to achieving 100% recyclable, reusable, or compostable packaging by 2025 and is focusing on reducing plastic waste. Its efforts include redesigning product packaging to minimize waste and sourcing sustainable materials.
  • Walmart’s packaging sustainability program helped eliminate more than 1.5 million pounds of plastic waste in 2020 alone.
    (Source: https://corporate.walmart.com/sustainability/environment)
• Human Rights and Responsible Sourcing: Walmart places high importance on fair labor practices and ethical sourcing across its supply chain. This includes ensuring the protection of workers’ rights and transparency in sourcing raw materials.
  • Walmart’s sustainability programs reach more than 1 million workers globally, through labor rights protections, training, and support programs. (Source: https://corporate.walmart.com/community)
• Nutrition and Health: The company has committed to promoting health and wellness through product offerings and community health initiatives. Walmart offers healthier food options, promotes nutritious eating, and has committed to reducing sugar, sodium, and saturated fat in its private-label products.
  • In 2021, Walmart pledged to improve the nutritional profile of over 20,000 products.
    (Source: https://corporate.walmart.com/sustainability)
• Community and Social Impact: Walmart focuses on supporting communities by increasing access to healthy food, promoting education, and investing in local supply chains. The company has pledged $100 million in social impact initiatives.
  • Walmart has invested more than $1 billion in social and community support through grants, programs, and partnerships in 2020 alone.
    (Source: https://corporate.walmart.com/community)
• Governance and Transparency: The company adheres to strong governance practices to ensure responsible management of its sustainability efforts. This includes providing transparency on sustainability goals, performance, and progress through its public sustainability reports.
  • Walmart regularly publishes sustainability reports aligned with the Global Reporting Initiative (GRI) standards.
    (Source: https://corporate.walmart.com/our-story)
• Technology and Innovation: Walmart has been investing in technology to drive efficiency and sustainability. This includes leveraging AI for supply chain optimization, blockchain for traceability, and renewable energy technologies.
  • Walmart has implemented AI solutions for inventory management, which has helped reduce energy consumption and waste in its stores.
    (Source: https://corporate.walmart.com/technology)
• Global Partnerships and Advocacy: Walmart collaborates with organizations like the World Wildlife Fund (WWF) and The Nature Conservancy to support global environmental initiatives and advocate for policy changes related to sustainability.
  • Walmart partners with over 100 organizations globally to advance its sustainability agenda.
    (Source: https://corporate.walmart.com/global-partnerships)

Key Sustainability Innovations and Technologies

Walmart is pushing forward with sustainability innovations in several areas, including packaging, logistics, energy efficiency, and supply chain transparency.

• Energy Efficiency: Walmart continues to improve energy efficiency across its stores and warehouses through lighting upgrades, renewable energy adoption, and energy-saving technologies.
  • Over 15,000 Walmart stores are now equipped with energy-efficient LED lighting, reducing energy consumption by 20% per store. (Source: https://corporate.walmart.com/environment)
• Packaging and Circularity: The company has made substantial investments in packaging innovations. Walmart is working on initiatives such as redesigning packaging to reduce plastic use and increase recyclability, and using materials with lower carbon footprints.
  • Walmart’s packaging redesigns helped eliminate over 1.5 million pounds of plastic waste in 2020 alone.
    (Source: https://corporate.walmart.com/sustainability/environment)
• Blockchain for Supply Chain Transparency: Walmart is utilizing blockchain technology to enhance traceability in its food supply chain. This technology helps ensure product safety and integrity by tracking food products from farm to store.
  • Walmart’s use of blockchain technology has reduced the time needed to trace food products from days to mere seconds.
    (Source: https://corporate.walmart.com/technology)

Measurable Impacts

Walmart’s sustainability efforts have resulted in significant measurable impacts in areas like carbon reduction, renewable energy, and packaging waste.

• Carbon Reduction: The company reduced its carbon emissions intensity by 16.2% between 2015 and 2020, with an ongoing commitment to further reduce emissions. (Source: https://corporate.walmart.com/sustainability)
• Renewable Energy: Walmart achieved 36% renewable energy usage across global operations by 2020, and aims to source 100% of its energy from renewable sources by 2035. (Source: https://corporate.walmart.com/sustainability/environment)
• Circular Packaging: Walmart’s efforts to redesign packaging and reduce waste have significantly reduced plastic consumption, with more than 1.5 million pounds of plastic waste eliminated in 2020 alone. (Source: https://corporate.walmart.com/environment)

Challenges and Areas for Improvement

Despite substantial progress, Walmart still faces significant challenges in its sustainability journey.

• Scope 3 Emissions: The company is working to reduce emissions in its supply chain (Scope 3), which accounts for the largest portion of its total emissions.
  • Walmart has identified supply chain emissions as a key challenge to achieving its net-zero goal by 2040.
    (Source: https://corporate.walmart.com/sustainability)
• Plastic Waste: While significant strides have been made in packaging, plastic waste remains a challenge for Walmart’s large global operations. Reducing single-use plastics and increasing packaging recycling rates are key goals. (Source: https://corporate.walmart.com/environment)

Future Plans and Long-Term Goals

Walmart is setting ambitious long-term sustainability goals, including:

• Net Zero by 2040: Walmart is aiming for net-zero emissions across its entire global supply chain by 2040, with specific milestones to be achieved in the coming years. (Source: https://corporate.walmart.com/newsroom/2020/09/23/walmart-announces-new-climate-goals)
• Circular Economy by 2025: The company has committed to making 100% of its packaging recyclable, reusable, or compostable by 2025. (Source: https://corporate.walmart.com/sustainability)

Comparisons to Industry Competitors

Compared to industry giants like Target and Amazon, Walmart has made notable progress in sustainability, particularly in renewable energy adoption and packaging reduction. However, it faces competition in areas like carbon footprint reduction and plastic waste elimination.

• Target: Target’s sustainability efforts are similar to Walmart’s, with ambitious net-zero targets and investments in sustainable packaging. However, Target has a stronger emphasis on carbon offsets and community engagement. (Source: https://corporate.target.com/sustainability)
• Amazon: Amazon has also committed to reaching net-zero emissions by 2040 but is focused more heavily on technology-driven innovations, including electric vehicles and AI for energy optimization. (Source: https://www.aboutamazon.com/sustainability)

Our Thoughts

Walmart has made impressive strides in its sustainability efforts, particularly in renewable energy adoption and packaging innovation. However, the company must continue to focus on reducing Scope 3 emissions, tackling plastic waste, and scaling regenerative agriculture. Its efforts in technology and partnerships with global environmental organizations set a strong foundation for future progress, but continued transparency and execution will be key to meeting its 2040 net-zero goal. Other companies can learn from Walmart’s approach to integrating sustainability into its global operations, particularly the focus on circular economy principles.