Waste: Circular Economy

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Food, products, and packaging move through our facilities each year. Wasting any of it ultimately drives up costs. Stakeholders want us to reduce waste in our own operations while also engaging suppliers and customers to help reduce waste upstream (in product production) and downstream (in households, including packaging and food waste).

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Our approach includes:

• Eliminating Operational Waste by addressing key operational waste streams
• Reducing Food Waste in our operations and value chain (e.g., improving sell-through, repurposing, donations, recycling to compost)
• Optimizing Packaging, including by eliminating, reducing, and increasing the circularity of packaging
• Enhancing Product Circularity to reduce product waste

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Eliminating Operational Waste

We aspire to divert 90% of operational waste (considered “zero waste” by ZWIA¹) in our U.S., Canada, and Mexico operations by designing end-to-end circularity programs for the key sources of our operational waste. The primary sources of our operational waste streams include secondary packaging, receptacle waste, food loss and waste, automotive, and assets (including construction and demolition waste).

Globally, in 2023, we diverted 83.5% of our operational waste from landfills and incineration (improved from 82.3% in 2022; flat compared to 2021). Key factors in improved year-over-year diversion include:

• improved data visibility which enables us to more accurately account for existing reduction, reuse, and repurpose programs in accordance with our global waste accounting methodology
• enhanced U.S. food waste recycling programs (e.g., Zero De-Pack) and increased auto waste recycling
• expanded international food donation programs.

Secondary Packaging

We aim to reduce, reuse, or recycle business to business waste (e.g., cardboard, wood pallets, plastics) needed to run our business. Examples include:

Cardboard, break pack boxes, reusable packaging: In 2023, Walmart U.S. and Sam’s U.S. recycled 5.8 billion pounds of cardboard, roughly the same amount as the previous year. In addition to our cardboard program, we utilize reusable break pack boxes (containers for mixed small volume items), which reduces overall cardboard usage. For example, in 2023, more than 85 million cardboard break pack boxes were reused in our U.S. supply chain network. We also utilize reusable plastic containers (RPCs) for select produce, fruit,  vegetables, meat, and eggs in key markets. In 2023, our vendor partners reported Walmart reused 237 million RPCs. 

Rigid plastics, films/shrink wrap: We contract with vendors to collect and recycle rigid plastics and plastic film from our operations and returned by customers. In 2023, our vendor partners reported Walmart recycled 280 million pounds of plastic film and rigid plastics globally. In our supply chain facilities (e.g., distribution centers), Walmart generates plastic film-only bales for recycling by collecting B2B pallet packaging (e.g., shrink wrap).

Mixed recycle bales (MRBs) and film bales: To increase recycling of materials we deal with day-to-day in our retail facilities, we train our associates to gather and/or bale mixed recyclables (e.g., plastic bags, stretch films, hangers, paper) as part of their responsibilities. In 2023, we sent 210 million pounds of materials in MRBs across our U.S. operations for recycling. We continue to improve process guidance and training for our associates to minimize contamination and improve overall recyclability of our bales.

Facility Receptacle Waste

The majority of our non-diverted waste streams are composed of waste found in our facility receptacles, for example:

• Compactors: intended to capture various facility waste (e.g., restroom waste, tenant waste, parking lot waste, interior sales floor waste, contaminated packaging).
• Open top dumpsters: intended to capture specific bulky waste for a limited period of time (e.g., cleanup after storm damage), but also act as backup for when our compactors are not operational.
• Customer trash: intended to capture customer waste in designated parking lots, stores, and clubs.

In addition to compliance audits, our teams conduct waste assessments periodically to improve our strategy and execution.

Operational Food Waste

Food waste is a component of our operational waste footprint. Goals, key strategies, and initiatives to reduce/divert food waste are highlighted in the next section.

Automotive Waste

We run large automotive programs (e.g., tires, motor oils, vehicle batteries). Much of the waste generated from these programs is recycled and/or diverted in accordance with state and federal regulations. Beyond compliance, we build interventions and pilot programs to divert waste away from landfills. For example, we convert used tires into shredded mulch and heavy-duty Member's Mark rubber mats.

Asset Restoration/Reuse

With more than 10,500 stores globally, we own and manage a large number of operational fixtures, products, and materials. We aim to reuse, repurpose, and/or restore the assets not intended for purchase by our customers (e.g., shopping carts, registers, displays, and shelving) as well as unsold general merchandise. In 2023, for example, in the U.S. we reused and/or restored 139 million wood pallets. 

Remodeling and construction of our facilities generates waste. In January 2024, Walmart announced a five-year plan to remodel 650 stores, and build and/or convert an additional 150 stores. When remodeling, we seek to reuse and/or refurbish operational fixtures (e.g., shelves, racking systems, store fixtures). During construction, we seek to recycle and/or divert as much material as possible. For example, during the demolition phase of our new home office project, we recycled and/or diverted from landfill more than 95% (by weight) of material (e.g., concrete, asphalt, metal, paper, plastic, reclaimed refrigerants).

Reducing Food Waste

Reducing Operational Food Loss and Waste

Walmart set a goal to reduce global operational food loss and waste by 50% by 2030 (vs. 2016 baseline) in support of the Consumer Goods Forum (CGF) Food Waste Coalition of Action, and U.S. Food Waste Pact (previously Pacific Coast Food Waste Commitment) initiatives.

Our objective is to ensure food is used for its highest purpose and reduce food disposal (to landfill) as much as possible.

As of 2023, we had reduced global operational food loss and waste intensity by 21.0% ^7,9 (vs. 2016 baseline), returning to a positive trajectory (after a performance decline in 2022) through improved food sell-through and donations. To accelerate progress, we continue to focus on improving execution of our food waste reduction programs at each stage of the food disposition pyramid (see below) through improved associate training and dashboards to track store-level management of unsold food.

Food Disposition Pyramid

REDUCE: Strengthening forecasting and supplier engagement to reduce food spoilage: We assess our food supply chain to identify interventions designed to reduce upstream on-farm food loss (e.g., recent assessment of fresh strawberry and frozen potato supply chains). In the U.S. and Mexico we are piloting remote sensing and data analytical tools designed to help reduce fruit spoilage. In Canada we are piloting an AI system designed to identify food spoilage reduction opportunities.

REPURPOSE: Converting near-expiry food into new products: To reduce spoilage and waste, we repurpose select food to extend shelf life. For example, where it is near expiry, Walmart U.S. blast chills hot rotisserie and fried chicken, and repackages as a new product to extend its shelf life from 4 hours to 3 days. By rapidly chilling these chicken products, we are also able to offer food at a discount and unlock eligibility for donation and Supplemental Nutrition Assistance Program (SNAP) benefits.

DISCOUNT & EDUCATE: Selling near-expiry, damaged, or imperfect foods at reduced rates; educating customers: We provide discounts where food is nearing its expiration date or to otherwise reduce food loss. For example, in Chile and Mexico, our Imperfect but Good program was established to help customers overcome the stigma of buying foods close to expiration or with aesthetic defects through discounts. Walmart also participates in the #TooGoodToWaste initiative, a public-facing campaign by the CGF Food Waste Coalition of Action to reduce food waste. In 2024, we partnered with CGF to launch Sustainable Kitchen, an online hub showcasing industry best practice to inspire healthier cooking and less food waste.

DONATE: Providing unsold food to local communities: When food goes unsold, Walmart works to get it to people and places that need it while it remains nutritious. Globally, in 2023 we donated 778 million pounds of food. In China, we created a surplus retail food donation program which donated the equivalent of nearly 9 million meals to local communities between July 2021 and June 2024. In addition to supporting food banks and other charities, Walmart and the Walmart Foundation have funded increases in the capacity of the charitable meal system to recover and distribute fresh food. For example, in FY2024, 91% of our U.S. stores, clubs, and distribution centers participated in food donations to support Feeding America, and over the last five years we have helped raised more than $100 million to support their efforts.

DISPOSE: Where no other options exist, we responsibly dispose of food to landfill or incineration. In 2023, we disposed of 1,262 million pounds.

Reducing Food Waste in our Value Chain

In addition to implementing food waste reduction practices in our retail and distribution operations, we engage with suppliers and others in the food industry to reduce food waste in our value chain, primarily by:

Engaging suppliers:

• Improving standardized date labeling: In line with the CGF Date Labeling Call to Action, we encourage suppliers to standardize date labeling as an aid to improved customer decision-making (e.g., using the standard term "Best If Used By" on packaged-food labeling where the date is related to optimal quality). In 2023, 90% of Walmart U.S. private-brand food supplier-reported sales came from items carrying standardized date labels.
• Encouraging action via Project Gigaton: We encourage our suppliers to introduce practices for emission reductions from diversion or reduction of organic waste (including food waste) as well as measure and report progress through Project Gigaton.

Driving systems change through multi-stakeholder coalitions:

• U.S. Food Waste Pact: Walmart was one of the first U.S. companies to sign onto the U.S. Food Waste Pact, which builds on the Pacific Coast Food Waste Commitment (a public-private partnership intended to reduce food waste by 50% by 2030), and is designed to drive meaningful progress on food waste reduction.
• CGF Food Waste Coalition of Action: Walmart is the Retail Co-Chair of the CGF Food Waste Coalition of Action, an organization focused on halving per capita global food waste at the retail and consumer levels through engaging with upstream suppliers, sharing best practices, and engaging in consumer education initiatives.
• Food Loss and Waste 2030 Champions Program: Walmart is a signatory to the U.S. Department of Agriculture and U.S. Environmental Protection Agency’s Food Loss and Waste 2030 Champions program.

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Optimizing Packaging

Packaging serves an important function, helping to ensure the safe transport of products and to keep food fresh and safe. Engaging stakeholders to optimize packaging can help preserve these benefits while also reducing materials cost and waste, conserving natural resources, enhancing transportation efficiencies, and reducing greenhouse gas emissions. Nearly a decade ago, we announced ambitious goals to increase recycled content, reduce virgin plastic usage, and enhance packaging recyclability. Our teams designed and advanced thoughtful strategies which have led to meaningful action against widely recognized challenges. While we have made significant progress, we expect to fall short of achieving our goals by 2025. We will continue to report progress on our ongoing efforts.

Walmart’s strategies include:

1. Optimizing packaging design, working with suppliers to eliminate packaging, design for recycling, and increase recycled content.
2. Facilitating a transition towards circularity by enabling customer recycling and supporting improved recycling infrastructure and collection access.
3. Promoting innovation and best practices, including through supplier engagement, developing and sharing resources, and collaboration.

Optimizing Packaging Design

We’re working to optimize packaging, engaging suppliers and addressing the assortment category-by-category and item-by-item, eliminating packaging where possible and making necessary packaging better. Our actions are guided by “golden design” principles and Walmart’s Sustainable Packaging Playbook. Although overall use of virgin plastic across our private brand assortment has increased as our sales have grown, our efforts have reduced virgin plastic packaging per net sales dollar across our private brand assortment.

Facilitating a Transition Towards Circularity

We aim to enhance packaging circularity by promoting customer recycling through clear labeling and providing outlets for hard-to-recycle waste. We also advocate for enhanced recycling infrastructure while providing resources to drive systemic change.

Promoting Innovation and Best Practices in Packaging

Walmart promotes packaging innovation and adoption of best practices across our business and our value chain.

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Enhancing Product Circularity

Donating, reselling or repurposing unsold General Merchandise and Customer Returns: When general merchandise goes unsold or is returned, our teams attempt to put them to the highest-value recovery channel, such as reselling to customers, stocking the clearance aisle, reselling to online platforms, liquidating to B2B resellers, and donating the products so that they do not find their way to landfills. If products cannot be donated or resold, in some cases we can recycle or repurpose components (for example, processing plastic components to create new products like pet containers, coolers, automotive, and seasonal items). 

Piloting reuse and end-of-life solutions:

• Pre-owned and Refurbished Merchandise: In 2024, Walmart Marketplace introduced Resold at Walmart, with five million pre-owned items from more than 1,700 sellers, including luxury fashion, electronics, collectibles, sporting goods and more. Resold at Walmart builds on the success of  Walmart Restored (launched in 2022).
• Trade In, Take Back Programs: We are piloting various programs, such as:
  • CExchange: we operate a technology trade-in program in the U.S. that allows customers to exchange qualifying technology (e.g., phones, tablets, laptops) for Walmart gift cards.
  • ecoATMs: we partner with ecoATM to offer technology trade-in kiosks in over 3,200 Walmart U.S. stores to make it more convenient for our customers to sell back used phones.  
  • Trashie: we partnered with Trashie on a limited apparel take-back program (e.g., unwanted clothing, shoes, accessories, undergarments, linens) to learn about customer interest in repurposing textiles.
• Device Repair: As of December 2024, customers can access device repair and technology services in over 350 U.S. stores (offered through third party partners) and online.

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• While recycled materials have at times been easily accessible and less expensive than virgin materials, increased consumer and corporate demand has created a global shortage of recycled materials that has increasingly made it difficult to source recycled feedstock in quantities and price points that support our recycled content and plastic reduction goals. Recycled content costs significantly more than virgin and is expected to remain more expensive well into the future. While a number of global brands have set ambitious targets to include more recycled content in their products, producers of recycled materials have struggled to keep pace with demand. As a result of this industry-wide problem, we do not anticipate meeting our recycled content and virgin material reduction goals without a breakthrough in cost and availability of recycled content.
• Reducing waste requires engagement and large-scale behavior change. Factors such as product quality, shelf life, inventory management, customer preferences and risk of product damage must be balanced when making packaging decisions. Suppliers must be willing and able to implement product design and packaging options consistent with Walmart's objectives, and customers need to make choices in favor of circularity when purchasing products and properly handling packaging material (e.g., reducing, reusing, recycling).
• Significantly more resources are needed to meaningfully support waste management and recycling. A report by The Recycling Partnership suggested that 40% of Americans still lack access to recycling and $17 billion in investment is needed to meaningfully close that gap. Given that customer behavior as well as recycling infrastructure varies across communities, recyclable materials (including recyclable plastics) may end up in landfills, regardless of our efforts to ensure technical recyclability. Additionally, despite engaging with suppliers to shift toward more compostable packaging, compostable facilities are not yet equipped to handle the growing amount of compostable plastic. Until infrastructure is revitalized and enhanced, and policy incentives and municipal spending aligned, compostable plastic may continue to find its way to landfills. 
• The global policy environment is not moving quickly enough to support business efforts to improve the circular economy. For example, despite some progress being made at the UN Plastics Treaty negotiations, there is not currently global alignment to scale up critical investment, strengthen regulatory frameworks, and avoid regulatory fragmentation.
• Optimizing product packaging labels involves accurately informing consumers about the best disposal methods (e.g., curbside recycling, reuse, store return, landfill)—while simultaneously encouraging customers to take actions that promote circularity—amid varying consumer behaviors and regional infrastructure disparities. It can be difficult to strike this balance.
• Breakthroughs require innovative materials and product designs. In particular, non-plastic materials are not currently available for most use cases in ways that match plastic’s ability to promote health, safety, cost and/or convenience.

1. Walmart has adopted the “Zero Waste” definition and business principles from Zero Waste International Alliance (ZWIA)―including achievement of 90% or more diversion of all discarded resources from landfills, incinerators and the environment. Our Zero Waste goal and reporting scope includes waste materials and products generated in Walmart’s owned facilities and its operations (e.g., stores, clubs, warehouses, return centers, truck maintenance garages).

2. Based on review of material handling and waste diversion processes, as reported by waste vendors, food banks and stores. In cases where certified or otherwise documented weights were not available due to industry challenges, they have been estimated based on waste audits, historical data, extrapolation for similar facilities in size and scope, etc.

3. Enhancements to Mexico's Zero Waste accounting methodology were undertaken in FY2022, which led to a recalculation of the waste diversion percentages reported in prior years. Recalculated metrics are provided here where relevant. In June 2022, the following metrics were changed to reflect the latest accounting methodology: (1) Mexico's diversion rate was adjusted from 75% to 71% for 2020; and (2) Walmart's global diversion rate was adjusted from 81% to 80% for 2020.

4. We updated our calculations for landfill and incineration metrics to include waste streams that were not previously included, to be compliant with our Zero Waste methodology. This alignment resulted in previously reported metrics to be updated.  The global waste diversion metrics for CY2021 and CY2022 were updated from 78% for both the years, respectively.

5. Our original goal covered U.S., Canada, Japan, and the U.K., and now includes Mexico. Walmart divested its retail operations in the U.K. and Japan in February and March of 2021, respectively. We updated our metric calculations to include waste streams that were not previously included, to be compliant with our Zero Waste methodology. This alignment resulted in previously reported metrics to be updated.

6. Based on review of material handling and waste diversion processes, as reported by waste vendors, food banks and stores. In cases where certified or otherwise documented weights were not available due to industry challenges, they have been estimated based on waste audits, historical data, extrapolation for similar facilities in size and scope, etc.

7. Walmart's operational food waste reduction goal is aligned with Target 12.3 of the United Nations Sustainable Development Goal (SDG). Progress towards food loss and waste reduction goal measured in conformance with the Food Loss and Waste Protocol's Food Loss and Waste Accounting Standard (or FLW Standard).  Global food loss and waste metric is measured as an intensity reduction vs baseline year (CY2016). The intensity is calculated as food waste weight divided by food sales for the corresponding period. Packaging weight and associated inedible parts are removed from the food supply chain. The FLW Standard enables consistent quantification of baselines and tracking of progress towards SDG Target 12.3 as well as other targets. The 2016 baseline was adjusted to remove markets (Argentina, Japan, U.K.) that have since been divested; reported reduction is as against this adjusted baseline. CY2021, CY2022, and CY2023 percentages may also include a small amount of non-food (e.g., floral, tobacco) that we believe has a negligible impact on our reduction. We continue to refine our data collection approach and analysis maturity per the FLW Standard to ensure the most accurate accounting of our food loss and waste. 

8. We updated our calculation for food loss and waste to better align with our methodology. This resulted in previously reported 2023 results changing from 12% reduction to 13.5% reduction (vs our baseline year).

9. Food loss and waste goal and reporting scope includes loss and sales data in food departments only within Walmart's facilities and its operations.

CY2023 global food loss and waste reporting includes retail formats for all markets except India. Supply chain data is included for U.S. and Canada only. Processing plants are not included in CY2023 global food loss and waste reporting where these operations exist. India is not included in CY2023 global food loss and waste reporting.

10. Packaging metrics are measured in weight and based on supplier reports through a supplier survey. Proxy data were calculated to provide data for suppliers that did not complete the survey or provided unusable data. Proxy data are meant to represent an estimate of how much packaging those suppliers / markets may utilize to provide an overall picture of Walmart’s entire packaging footprint. The calculation is based on supplier participation in the survey as a percentage of net sales and known packaging data. Walmart private brand suppliers representing 80% of Walmart global private brand net sales reported packaging data in 2021; in 2022 the figure was 89%, and in 2023 the figure was 91%.

11. Walmart divested its business in Argentina in 2020 and its businesses in the U.K. and Japan in 2021. Because of the sale of Walmart’s Argentina business in late 2020, we were unable to capture sufficient packaging data for the Argentina market; to represent this market’s business in 2020, we used the 2018-2019 private brand packaging survey for Argentina. Walmart divested its businesses in the U.K. and Japan in early 2021; because the businesses were divested early in the year, we did not proxy packaging data for the time Walmart owned those businesses and the 2021 packaging figures represented here do not include the U.K. or Japan.

12. Calculations include all private brand plastic packaging and single-use plastic and reusable bags in North America. For the time frame of the private brands packaging survey, we instructed suppliers to use their latest or most recent 12-month period for which they have data available. If they reported last year, use the same reporting period as the initial/prior reporting year to avoid gaps or overlap with the prior year’s submissions. "North America" refers to our businesses in the U.S., Canada, and Mexico.

13. Calculations include all private brand plastic packaging and single-use plastic and reusable bags globally. For the time frame of the private brands packaging survey, we instructed suppliers to use their latest or most recent 12-month period for which they have data available. If they reported last year, use the same reporting period as the initial/prior reporting year to avoid gaps or overlap with the prior year’s submissions. "Global" refers to all of our global retail businesses.

14. Based on average household access to materials management facilities. The 2021 calculations follow the 2021 Reporting Guidelines for The New Plastics Global Commitment, and includes all private brand primary, secondary, and tertiary plastic packaging, including single-use plastic and reusable plastic bags globally. For the time frame of the private brands packaging survey, we instructed suppliers to use their latest or most recent 12-month period for which they have data available. If they reported last year, use the same reporting period as the initial/prior reporting year to avoid gaps or overlap with the prior year’s submissions. For suppliers that did not complete the survey or provided unusable data, proxy data was substituted to provide a full estimate of global private brand packaging. For the proxy calculation, a market level approach was used.

15. Based on existing technology; according to Walmart supplier reporting provided through Project Gigaton.

16. How2Recycle is the leading product packaging labeling system, aiming to increase transparency, educate consumers, and improve recycling behavior and rates. Used by major U.S. retailers and consumer packaged goods companies, including Walmart, it provides standardized labeling based on applicable laws, technical recyclability, and the availability of curbside and drop-off recycling programs. The program's labels are backed by nationally harmonized data and are designed to adapt to evolving U.S. Federal and State legislation.

17. Our Zero De-Pack initiative supports our operational waste diversion goal, but not our food loss and waste goal. Some organic food waste in previous years was used primarily for direct cattle feed, which counts as food waste diversion/recycling as per the Food Loss and Waste Accounting Standard (FLW Standard). Our Zero De-Pack initiative diverts this organic food waste by converting it to compost/anaerobic digestion. This does not count as reducing food waste under the FLW Standard, however does count as diversion under ZWIA standards since it keeps food out of landfills.

18. This includes the total weight of single use plastic bags used at check-out, and for produce and meat across Walmart U.S., Sam’s Club U.S., Canada, and Mexico

19. Walmart utilizes the Ellen MacArthur Foundation’s definition of recyclability for purposes of measuring progress against our goals and aspirations. Additional details on this definition may be found in our Recycling Playbook (see pgs 8-10). We engage suppliers on what constitutes “Design for Recycling” through supplier training and guidance materials (see our Private Brands Packaging Survey Guidance, beginning on pg 35).

20. In 2023, Walmart U.S. and Sam’s Club U.S. increased post-consumer recycled content in private brand 24 and 40 count multipack water bottles to a national average of 16%.

21. In 2023, Sam’s Club U.S. added 25% post-consumer recycled content to its Member’s Mark fresh squeezed orange juice bottles, according to supplier reports.

22.  On occasion, in-store plastic bag and film recycling bins may be unavailable for logistical reasons.

23. Numbers refer to the ASTM International Resin Identification Coding System.

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