Climate Change

SASB: CG-MR-130a.1, CG-EC-410a.2, FB-FR-110b.1

GRI: 3-3, 201-2, 302-1, 302-4, 305-1, 305-2, 305-3, 305-4, 305-5
TCFD: See table
UN SDGs: 7, 11, 13
E | Last updated: December 15, 2023

Walmart has committed to science-based targets for emissions reduction, including achieving zero emissions in our operations by 2040 and engaging suppliers through our Project Gigaton initiative to reduce or avoid supply chain emissions by 1 billion metric tons by 2030. We aim to galvanize collective action across the retail and consumer goods sector through our advocacy, supplier engagement, philanthropy, and innovation in product supply chain practices, while taking steps to strengthen the resilience of our business against the effects of climate change.

Climate change is one of the greatest challenges of our time, profoundly affecting all regions of the world and all sectors of society. Without mitigation or adaptation, climate effects such as warming, flooding, drought, extreme weather events, and rising sea levels are projected to reduce agricultural yields, force people from their homes, endanger livelihoods, and destroy infrastructure in the coming decades.

To avoid the worst effects of climate change, the Intergovernmental Panel on Climate Change (IPCC) has called for the world to reduce global greenhouse gas (GHG) emissions to net zero by 2050. Achieving this moonshot goal requires immediate and sustained action from all parts of society, including business. Companies need to be part of the solution to manage physical and transition risk, maintain societal license to operate and create value for business and society through mitigation and adaptation initiatives that draw on unique business capabilities.

As a large omni-channel retailer with millions of customers worldwide and a global sourcing footprint, Walmart is able to lead by reducing emissions in our operations and supply chain while galvanizing collective action across our industry. We believe a strong climate action strategy will help us manage the physical and transition risks associated with climate change, strengthen the resilience of our business, and help us create value for stakeholders.

We seek to lead on climate action. We focus on achieving our science-based targets for emissions reduction in our global operations and supply chain in ways that strengthen the performance and resilience of our business. We also advocate for and support initiatives to accelerate progress toward net zero by 2050 across the industry—and society more broadly—by drawing on our capabilities as an international retailer: our ability to engage suppliers across many categories, our retail and supply chain expertise, our digital capabilities, our leadership role in industry and multi-stakeholder coalitions and forums, and strategic philanthropy through Walmart.org. Our efforts include:

• Governing our climate strategy through accountable leadership and assessing climate risk
• Mitigating emissions to achieve approved science-based targets, covering our global operations (aiming to achieve zero emissions by 2040) and product supply chain (through our Project Gigaton initiative, Scope 3 footprinting, analyses, and target-setting)
• Adapting our business (e.g., facilities and sourcing) to be more resilient in the face of climate risk
• Advocating for 1.5º-C-aligned public policy through direct advocacy, engagement with trade associations and consortia, and corporate communication
• Reporting on our progress with transparency, verifiable data, and science-based methodologies, as well as encouraging our suppliers to set ambitious targets and report on their progress

Governance | Climate Risk Assessment | Mitigation | Adaptation | Advocacy | Reporting

Governance

Management Oversight

Climate strategy is a key part of Walmart’s Environmental, Social and Governance (ESG) strategy. Walmart’s corporate sustainability team leads the development of the company’s climate strategy, working with a cross-functional team including operations, merchandising, strategy, finance, real estate, legal, and public policy. Our climate strategy is reviewed at least annually by the Walmart executive leadership team.

The company assesses climate risk annually as part of our Enterprise Risk Management process. Periodically, we conduct an in-depth, scenario-based climate risk assessment (first completed in 2017; last updated in 2020). We also continue to monitor ongoing physical and transition risks (discussed in more detail below). Merchandising leaders have goals that support our climate mitigation and adaptation strategies, including emissions reduction initiatives.

Board Oversight

The Nominating and Governance Committee (NGC) of the Board of Directors oversees Walmart's climate strategy. In 2022, the NGC and management discussed recent trends, risks, and laws relevant to our climate work, Walmart's climate strategy (including our focus on energy transformation) and current progress towards our goals, our climate policy positions, advocacy strategy and external engagement, and philanthropic investments that enable climate action more broadly. Highlights of the committee’s discussions with management are shared with the full Board of Directors.

Climate Risk Assessment

To inform the company’s climate mitigation and adaptation strategies, Walmart periodically conducts a scenario-based climate risk assessment, aiming to align with the scenario guidance set forth by the Task Force on Climate-related Financial Disclosures (TCFD). We updated the physical risk analysis in 2020 with the help of a third-party consultant, considering climate-related risks in the short-, medium-, and long-term.

Methodology & Findings

To assess physical risk, we used Representative Concentration Pathway (RCP) 8.5, a GHG concentration scenario adopted by the IPCC that assumes the absence of further decarbonization on the planet (and is therefore an indicator of the inherent/unmitigated risk of climate change). We analyzed the impact of five associated climate effects—flood (riverine and coastal), heat, drought, extreme precipitation, and extreme winds—across five key geographies (Canada, China, India, Mexico, and the United States) for 2030 and 2050. We evaluated direct impacts of climate change on Walmart’s physical assets (retail stores and retail-related facilities), supply chain, and communities.

Such climate risks and potential impacts are not unique to Walmart; they will affect food and general merchandise retailers as well as other businesses and communities around the world. While the limitations of the analysis¹⁰ mean it cannot be used to predict the net impact on Walmart’s financial results of operations or business operations, and the improbable nature of the RCP 8.5 scenario means that it can’t be used to make materiality determinations, it nevertheless provides helpful insights into the relative impact of various climate effects and the relevance of Walmart’s mitigation and adaptation strategies. And while no single climate risk appears to be consequential for Walmart due to Walmart's relatively large scale, diversified product and service portfolio, and the long-term nature of the risks, taken together, they paint a sobering picture of potential impact to people and the planet and underscore the need for immediate business action to help prevent the worst effects of climate change.

Insights provided by the climate risk assessment help us set long-term strategy and drive innovation. Leaders from across the company, including merchandising, real estate, operations, and supply chain, discussed the results of the physical risk assessment and incorporated findings into their operating plans.

Retail Stores & Retail-Related Facilities

The climate risk assessment identified potential variables that could affect Walmart’s facilities over the next three decades: flooding and extreme storms, with potential damage to buildings and inventory; and temperature changes, which the modeling suggests could increase heating and cooling costs in two-thirds of Walmart locations by 2030 and 80% of locations by 2050. These underscore the relevance of Walmart clean energy initiatives and other mitigation and adaptation efforts.

Supply Chain

By 2050, climate change's impact on weather patterns, including increasing the likelihood of heat waves, heavy rainfall, and droughts, is likely to affect the production, distribution, and (in some cases) the viability of food and other consumer products. We analyzed the potential climate exposure of 25 commodities relevant to our business. For the 11 commodities that face the highest overall impact from climate change, we assessed three factors: land suitability, farming conditions for animal products, and heat stress for people. The analysis suggested that some commodities (e.g., coffee, cocoa, and cotton) may face significant challenges due to future climate effects, while others (e.g., avocados, animal feed, milk, oranges, and rice) may remain largely unaffected. Our merchants and global sourcing teams are working with suppliers to implement more sustainable practices that promote resilience, such as cultivating heat resistant crops to prevent future sourcing challenges (see Adaptation section below for more information). The analysis underscores the relevance of Walmart sustainable commodity initiatives and other initiatives focused on enhancing the resilience of supply chains.

Communities

We modeled the potential impact of several climate variables on Walmart U.S. store communities: flooding (from either coastal or riverine sources), extreme wind (e.g., hurricanes), and heat. Our analysis suggests that approximately 50% of communities currently served by Walmart U.S. facilities may face significant, long-term disruption by 2050. If these areas become less habitable, people could be forced to relocate—creating challenges to physical, financial, and emotional well-being for our customers and associates, and potentially requiring shifts to our stores and distribution/fulfillment network. The financial well-being of a community may deteriorate due to the loss of jobs and homes after a hurricane, and in some vulnerable U.S. counties, there could be an up to 230% increase in household power costs.

Numerous studies also demonstrate how the effects of climate change (e.g., extreme temperatures, poor air quality, increased disaster intensity) disproportionately affect vulnerable communities who may live in areas more prone to such extremes, and/or may have fewer resources to manage the impacts. We continue to advocate for climate solutions that can help communities we serve. For example, in Florida, we worked with utility companies, advocates and regulators to help negotiate the largest shared solar program in the country, which authorizes nearly 40 megawatts of clean energy for low-income Floridians.

Continuing to Monitor Physical and Transition Risks

We consider these risks as part of the company’s annual Enterprise Risk Management (ERM) process that encompasses strategic, operational, reputational, financial, and regulatory and compliance risks. The process includes development of mitigation plans against critical risks; ongoing or new issues are addressed through the strategic planning process. The results of these assessments are shared with Walmart’s Governance Risk Committee (GRC) and with the Audit Committee of the Walmart Board of Directors.

Business segments and functions also consider climate-related policy issues as part of developing their annual strategic and operating plans. Walmart has established policy councils to assess emerging legislation and regulations within and across key markets. The policy councils include internal stakeholders from various parts of the organization (e.g., Government Affairs, Legal, Real Estate, Communications, and Compliance).

Climate-related regulations and legislation can affect costs and create growth opportunities for our business, including our clean energy and transportation initiatives. The Inflation Reduction Act of 2022 (IRA), for example, seeks to reduce carbon emissions by roughly 40% by 2030 through measures that include financial incentives of nearly $400 billion to jump-start R&D and the commercialization of clean energy and clean transportation technologies. Similarly, the 2021 Infrastructure Investment and Jobs Act provides billions of dollars towards the expansion of renewables and clean energy, including EV charging capacity.

Because stakeholder views can differ regarding climate risk, mitigation and adaptation measures, our Corporate Affairs team monitors stakeholder sentiment and engages them to inform the development of Walmart business initiatives.

Read more about our ongoing climate risk assessment in our CDP Response.

Mitigation

Walmart’s climate change mitigation strategy centers on achievement of ambitious targets:

• Achieve zero emissions across our global operations (Scopes 1 & 2) by 2040
• Help reduce or avoid one billion metric tons (a gigaton) of greenhouse gases by 2030 through engagement with our suppliers targeting areas of emissions reductions that can impact key Scope 3 categories
  
  

Emissions From Our Global Operations (Scopes 1 & 2)

In 2020, we raised our aspiration to reduce emissions in our operations (Scopes 1 & 2) by realigning our science-based target to a 1.5-degree Celsius trajectory, the most aggressive trajectory approved by the SBTi. Our goal is to achieve zero emissions across Walmart’s global operations by 2040, which includes our SBTi-approved interim goals of reducing absolute Scopes 1 and 2 GHG emissions by 35% by 2025 and by 65% by 2030 from our 2015 base year. We were the first U.S. retailer to make a zero emissions commitment that does not rely on carbon offsets.

Since setting our first science-based targets in 2017 and increasing our ambition in 2020, we have generally achieved year-over-year reductions in combined Scope 1 and 2 emissions, even as the pace and scale of emissions reductions have fluctuated year over year. Between our 2015 calendar base year and 2022 we have achieved a 21.2% reduction in our combined Scopes 1 and 2 emissions.³ Meanwhile, our carbon intensity (MT CO2e per $M revenue) decreased by 43.5% between 2015 and 2022, including a year-over-year reduction of 3.3% from 2021-2022.^2,4

Walmart’s CY2022 Operational Emissions

Million metric tons (MMT) CO₂e²

Annual GHG Emissions (unadjusted)²

Carbon Intensity (unadjusted)^2,4

In 2022, on an adjusted basis, our year-over-year combined Scope 1 and 2 emissions increased for the first time since 2015. Year-over-year Scope 1 emissions rose by 7.6% and Scope 2 emissions rose by 0.3% (market-based), for a combined Scope 1 and 2 emissions increase of 4.1%,³ primarily due to:

• A shift in mix from third-party vendors to owned transportation in the U.S.
• Unexpected increase in use of onsite fuels: natural gas for heating in the U.S. (due to unseasonably cold weather); increased generator usage to overcome electricity shortages in China (due to drought conditions) and in South Africa (due to rolling blackouts)
• Renewable energy expansion insufficient to outpace business growth and emissions headwinds

While we expect emissions reductions will not be linear year over year, we continue to make progress towards our goal to achieve zero emissions by 2040. We are accelerating our initiatives to drive progress toward our goals, including approved capital deployment across offsite and onsite renewable energy investments as well as conversions to lower global warming potential (GWP) refrigerants within our facilities. We anticipate achieving our near-term goal of 35% reduction in emissions vs. our 2015 baseline later than our initial goal of 2025, while still targeting 2030 for our medium-term goal of 65% reduction in emissions, provided we are able to secure access to sufficient renewable energy capacity, development and construction timelines remain on track, and project operating performance meets expectations.

Continue reading below for more detail on these initiatives and the five primary workstreams in our Zero Emissions strategy:

• Renewable energy
• Energy efficiency
• Transportation
• Stationary fuels
• Onsite refrigerants

1. Renewable Energy

Electricity accounts for 100% of our Scope 2 emissions and ~46% of our overall 2022 operational emissions. To achieve our goal of zero emissions across global operations by 2040, we aspire to power 50% of our global operations with renewable sources of energy by 2025 and 100% by 2035. 

• In 2022, an estimated 47% of our global electricity needs were supplied by renewable sources⁵.
• Walmart directly procured an estimated 29% of our global electricity needs through renewable energy contracts in 2022⁶.

Our renewable energy projects include onsite installations and offsite projects (e.g., power purchase agreements (PPAs), utility partnerships, policy advocacy, and other clean energy investments).

• Onsite & offsite generation: As of the end of 2022, we had more than 600 onsite and offsite renewable energy projects in operation or under development in over 10 countries⁵ and have approved additional capital (FY2024-FY2029) to expand our onsite solar generation portfolio. We are also incorporating renewable energy projects into our new home office – including building solar panel-ready rooftops for our layout center. Walmart was recently ranked number 4th overall and 3rd in on-site generation on the 2022 Solar Means Business Report issued by the Solar Energy Industries Association, which tracks commercial solar installations in the U.S.
• PPAs: From FY2020 through FY2023, we executed PPAs that enabled construction of over 2 GW of new renewable energy projects (e.g., wind and solar). In addition, we executed a PPA to purchase 162 MW of renewable power in October 2023, and plan to further accelerate renewable energy purchases going forward. According to the U.S. EPA Green Power Partnership Top 30 Retail Ranking, Walmart was the top retail partner in terms of annual green power usage in the U.S. as of July 2023 with over 5 billion kWh of annual green power usage. We were also number 4 on the EPA Green Power Partnership National Top 100 for the same time period.
• Clean energy investments: Since 2021, Walmart has made equity investments that enabled the construction and operation of five new-build solar projects totaling 374 MWac of installed capacity. These solar projects are expected to produce on average 820,000 megawatt hours of electricity annually, delivering enough clean energy to power nearly 70,000 households. In 2023 we have accelerated our clean energy investment program, with a focus on driving positive impact for the communities we serve. For example, in November 2023, we closed our first community solar investment, which will provide savings on utility bills for residential customers and local organizations, focused in low-to-moderate income communities.
• Policy advocacy: We participate in and support coalitions like the Clean Energy Buyers Association, RE100, ZEROgrid and others to help shape renewable energy policies and advance cost-effective sustainable options in the regions where we operate (see below for more information on coalitions and read the Engagement in Public Policy brief for a broader view of our policy work).

2. Energy Efficiency

Our energy efficiency strategy includes evaluation and optimization of industrial systems, energy management, facility retrofits, and new facility design and construction for our retail and non-retail locations. For example:

• We use technology and data analytics to enable real-time monitoring and optimization of energy use in our buildings, and have installed energy meters at thousands of our facilities around the world. We aim to equip all U.S. stores with this technology by the end of FY2024.
• As our existing buildings and equipment age, we aim to replace or upgrade older equipment with the latest in high-efficiency technology.
• We are incorporating efficiency into new store designs in lighting, heating, ventilation and air conditioning (HVAC), refrigeration, and other categories such as plug loads.
• We are also incorporating energy efficiency projects into our new home office, including a central utility plant with energy-efficient cooling towers and heat recovery chillers, and LED lighting throughout.

3. Transportation

In 2022, our fleet (transport fuel and mobile refrigerants) contributed approximately 24% of our Scope 1 emissions (and approximately 13% of our overall operational emissions).

Electrifying and enhancing our fleet and reaching net-zero emissions from all our vehicles and transportation network, including long-haul trucks in the U.S. and Canada, are key priorities for reaching our zero-emissions target but technologies for the highest-emitting sources—including Class 8 tractors, refrigerated trailers, and yard trucks—are nascent and not yet scaled. 

In the U.S. and elsewhere, our truck fleet continues to grow to meet the demands of our business. In 2022, we increased the size of our U.S. fleet and the number of U.S. fleet miles while reducing the number of miles driven by third party vendors. These increases contributed to a ~21% year-over-year increase in our transportation fuel emissions. While the nascent state of scalable technology means that we do not anticipate significant reductions in our transportation emissions over the next few years, we are transitioning to zero-emissions solutions where possible, supporting innovation, testing new solutions for scalability, and advocating for public policy that will accelerate technological shifts.

Enhancing our fleet: While truck fleet efficiency remains a focus, we are working within our fleet to evaluate potential solutions to help us substantially reduce our emissions, including testing heavy-duty zero-emission vehicles, battery electric vehicles, and hydrogen fuel cell vehicles. We test certain new technologies through conversion to low-carbon fuels and technologies—such as transitioning diesel-operated forklifts to electric ones. These conversions are facilitated by Low Carbon Fuel Standard credit programs, such as those in California and Oregon, which provide a financial benefit for transitioning equipment. Our international markets are also focused on new technologies and innovations. For example, Walmart Chile recently worked with Engie to open the first industrial-scale renewable hydrogen plant in Latin America, the output of which will be used to power our hydrogen-powered forklifts in Chile.

Last mile: As much as possible, we are seeking to electrify our last-mile offerings to customers. In FY2023, Walmart U.S. deployed 1,100 Ford E-Transit electric vans. Walmart U.S. also announced an agreement with Canoo in 2022 to reserve the option to purchase 4,500 all-electric delivery vehicles over the next five years. These vehicles will be part of our growing last-mile delivery fleet. In India, our Flipkart business joined the EV100 initiative and committed to using electric vehicles for delivery by 2030.

Class 8 heavy-duty and yard truck innovations: We believe multiple technologies will play a role in decarbonizing long-haul/heavy-duty Class 8 tractors and yard trucks, including renewable diesel, electric battery, and hydrogen fuels. We support the development of these technologies by participating in feasibility testing and providing feedback to manufacturers to ensure vehicle technology meets the needs of Walmart’s fleet and other large fleets. For example:

• Walmart Canada announced that it has reserved 130 electric Tesla Semi trucks
• In January 2023, we placed our first all-electric Class 8 truck—the Freightliner eCascadia—into service in the U.S.
• We utilize multiple electric yard trucks with a plan to increase the number of these trucks in operation by the end of 2023. Currently, our electric yard trucks are estimated to provide approximately 50% emissions reduction compared to diesel trucks
  
  

Public policy: Walmart supports public policy that will create an enabling environment for the development, adoption and scaling of zero-emission commercial transportation fleets. Recent examples include:

• Working with many organizations (representing hundreds of companies and millions of members) to urge the Internal Revenue Service (IRS) and White House to issue guidance regarding the applicability of EV charging investment tax credits available in rural and low-income communities
• Supporting the establishment of EV-specific commercial electric rates designed to ensure fair pricing for DC Fast charging stations
• Working directly with U.S. state coordinators on their electric vehicle charging plans, including engaging individual states (e.g., California) to promote DC Fast Charging technology
• Supporting our trade associations in their engagement with the U.S. Department of Transportation to consider the retail sector during its planning for the implementation of the National Electric Vehicle Infrastructure (NEVI) Formula Program.

Read more: Zero Sum: How Walmart Transportation is Working to Reduce Emissions Now and in the Future

4. Stationary Fuels

Stationary fuels—including fossil fuels used for heating, cooling, and backup power—contributed approximately 23% of our Scope 1 emissions (and approximately 12% of our overall operational emissions) in 2022. Emissions related to stationary fuel use increased ~21% year-over-year from 2021-2022 (~26% increase against our 2015 baseline) for the following reasons:

• In the U.S., unseasonably cold weather led to the increased use of natural gas for heating purposes, raising our onsite fuel usage and consequent emissions.
• In China, drought conditions reduced water levels in the Yangtze and other rivers, negatively impacting grid energy supply including causing rolling black outs. To ensure continued service to our customers, we turned to onsite generators in stores and distribution centers.
• Similarly, in South Africa, rolling power outages required utilization of onsite generators to keep our operations running.

Such headwinds from extreme weather and disruptions in local electricity supplies underscore the importance of increasing our energy efficiency, electrifying equipment, and transitioning to cleaner options for onsite generation/storage. For example, at our U.S. stores we have added electrical connection points to refrigerated trailers (which provide temporary storage capacity during peak seasons) to reduce reliance on diesel-powered generators.

5. Onsite Refrigerants

Delivering affordable and safe fresh and frozen food to millions of people in pleasant shopping environments requires refrigeration and air-cooling equipment that uses considerable amounts of energy and refrigerants. Onsite refrigerant emissions contributed approximately 53% of our Scope 1 emissions (and 29% of our overall operational emissions) in 2022. Global onsite refrigerant emissions decreased by ~2% from 2021 to 2022.

We continue to address these emissions in three ways:

1. Managing leaks: We are working to minimize refrigerant gas leakage through repairing and maintaining our existing equipment, as well as by working with industry-leading consultants to implement innovative solutions for reuse. Such efforts have resulted in an average leak rate across our U.S. store operations that is lower than the supermarket industry average stated by the U.S. Environmental Protection Agency (EPA). Emissions associated with refrigerant leaks in our international operations also declined modestly in CY2022 as compared to CY2021.
   
   
2. Implementing low GWP systems: Most of our facilities use higher-GWP systems prevalent at the time of initial construction. We have earmarked significant capex towards replacing refrigeration equipment as it ages and is retired from service with lower GWP alternatives (including ultra-low GWP systems), and installing low-GWP systems in new builds where commercially available. In the United States, we now operate more than 200 facilities that fully or in-part utilize ultra-low GWP refrigerants including carbon dioxide (CO₂), glycol and ammonia. We are also utilizing lower GWP systems in our international stores and clubs, including in Canada, Central America, China, and Mexico.
   
   Because we have tied our conversion schedule to equipment end-of-life and local commercial availability of new technologies, we expect steady but uneven progress year-over-year toward our goal of zero emissions by 2040.
   
   
3. Advocacy to support scaled adoption of low-GWP technology: Walmart supports federal policy that would require the phasing out of high-GWP refrigerants, as that would support market changes necessary to implement low-GWP systems at scale and at reasonable cost. Examples of our advocacy include:

• We engaged lawmakers on implementation of the American Innovation and Manufacturing (AIM) Act and Kigali Amendment to the Montreal Protocol—an international agreement to gradually reduce the consumption and production of hydrofluorocarbons (HFCs). AIM requires a 15-year phasedown of HFCs at the national level.
• We joined members of the Air-Conditioning, Heating, and Refrigeration Institute in endorsing a petition to the EPA regarding the adoption of rules to prohibit the use of refrigerants with high-GWP, and submitted a letter to the EPA supporting regulatory actions for stationary refrigeration equipment that are environmentally effective (e.g., limiting new commercial systems with charges over 50 lbs. to use refrigerants with a GWP of 150 or less) and nationally consistent.
  

Value Chain Emissions (Scope 3)

In 2016, Walmart became the first retailer to set an approved Science-Based Target for emissions reduction, which includes a goal to help reduce, avoid, or sequester 1 billion metric tons (a gigaton) of CO₂e in global product value chains by 2030.

To catalyze immediate, significant, and sustained effort toward this goal, we worked in consultation with World Wildlife Fund, Environmental Defense Fund (EDF), and CDP to develop Project Gigaton: a program to engage suppliers, NGOs, and others in reducing major concentrations of emissions in global value chains, including actions in the following arenas: energy, transportation, product design, waste, packaging, and nature.

Since launching in 2017, participating suppliers have reported more than 750 MMT of cumulative emissions reduced, avoided, or sequestered through initiatives focused on decarbonizing product value chains—ahead of pace to achieve the 2030 goal. Over 5,200 suppliers have signed up, making Project Gigaton one of the largest private sector consortia of its kind. In FY2023, more than 3,000 suppliers reported having reduced, avoided, or sequestered more than 175 MMT of CO₂e.¹⁴

Project Gigaton Progress^7,8,15

MMT CO₂e Emissions Reported Reduced, Avoided, or Sequestered

Purpose of Project Gigaton

We designed Project Gigaton to accelerate industry-wide mitigation of emissions in product value chains around the world. Our aims include:

• Immediate and relevant action: The program encourages suppliers to take immediate, science-based action focused on the most relevant sources of emissions in product value chains, such as energy sources or agricultural practices. We also seek to raise the bar each year.
• Making it easy for all suppliers: We designed the program to accommodate suppliers who vary in their readiness and capability of undertaking intensive GHG reduction efforts. For example, in 2022, participating suppliers ranged from less than $1 million all the way through $14 billion in U.S. product net sales.⁹ We provide a wide range of support to build confidence and capability in mitigating emissions, from goal-setting to action to reporting.
• Industry-wide innovation: By engaging and supporting thousands of suppliers who span product categories and regions around the world (complemented by philanthropy), we aim to spark the innovation needed in industry practices and infrastructure to accelerate and expand emissions reduction and avoidance.

How Project Gigaton Works

Through Project Gigaton, Walmart encourages and supports suppliers to set emissions goals, take action, and report results on emissions reduction and avoidance efforts. The initiative offers resources such as guidance on goal-setting and reporting, workshops and playbooks on best practices, and other resources that help companies get started and increase their ambition and action over time.

Setting Goals
Project Gigaton encourages suppliers to set goals and take action across six action areas (pillars) that are among the most critical for mitigating emissions in product supply chains, as well as relevant to our suppliers’ businesses: energy use, nature, waste, packaging, transportation, and product use and design (see table below).

For each pillar/action area, we worked with WWF and EDF to develop emissions “calculators” that suggest opportunities for emissions reduction and avoidance as well as help suppliers calculate the emissions impact of their initiatives (e.g., transitioning factory energy supply from fossil fuels to renewables; altering packaging material).

We have refined our pillars/action areas over time to help improve relevance, increase comprehensiveness, and facilitate adoption. Examples of recent enhancements include:

• In 2021 we added a new Transportation pillar and combined the Agriculture and Deforestation pillars into a new Nature pillar.
• In 2022 we refined the Nature pillar to help suppliers identify the calculators most relevant to their business based on the commodities they supply to Walmart.

Taking Action

Through Project Gigaton, we engage our suppliers to understand and design interventions to mitigate emissions in particularly challenging and GHG-intensive categories (e.g., beef, dairy, soy supply chains). Our engagement ranges from individual merchant-supplier discussions as part of joint business planning to webinars and large-scale summits. To inspire action and innovation, we provide useful science-based resources, including calculators (described above), workshops, playbooks, and programs. The chart above provides examples of these resources, which include:

• Providing calculators, which help suppliers identify relevant opportunities to mitigate emissions as well as calculate emissions impact of their initiatives. For example, suppliers can answer a series of questions about packaging changes, and our calculators will help them determine the appropriate emission factor as well as provide data to spark ideas for additional improvements.
• Setting product standards and requirements (for example, Forest Policy; certification requirements) to help guide suppliers on practices relevant for mitigating emissions.
• Hosting webinars and summits to provide training and share best practices. For example, we provide coaching from NGOs on how to best use Project Gigaton calculators to further their emissions reduction efforts; and our topical summits (e.g., beef, row crops) share best practices on production practices (e.g., grazing, fertilizer optimization) to avoid or reduce emissions. 
• Offering programs to help accelerate impact. For example, with Ørsted and Schneider Electric, we co-created a collaborative Power Purchase Agreement (Gigaton PPA) open only to Walmart suppliers. The first cohort of Gigaton PPA is expected to generate approximately 250,000 MWh annually of new renewable power. Our Circular Connector highlights third parties offering packaging solutions. Our Nature Map initiative helps suppliers and others learn about place-based sourcing projects that support conservation, restoration and better management of commodity production.
• Providing tools and playbooks. For example, we developed a Factory Energy Efficiency tool to assist factories in becoming more energy efficient, tracking renewable energy and efficiency projects and associated benefits; over 1,300 factories have signed up for this tool to date, with over 1,000 factories reporting completed projects.
• Helping provide access to financing the transition. We worked with CDP and HSBC to provide an early-payment program for suppliers who set science-based targets or have achieved certain score thresholds from CDP.
• Advocating for policies and engaging in consortia to help companies make progress on mitigating emissions (e.g., the Department of Energy’s Better Buildings Alliance and the Clean Energy Buyers Association).
  
  

Reporting and Recognition

Project Gigaton is designed to encourage increased ambition and reporting or progress. After signing up, setting goals, and taking action, suppliers are encouraged to achieve "Sparking Change" status, then "Giga Guru" status; criteria for meeting these thresholds have increased over time. Walmart publicly recognizes suppliers achieving these milestones to thank them for their efforts and to inspire others to join and increase their ambition.

• Sparking Change: Suppliers that have set SMART (Specific, Measurable, Achievable, Relevant and Time‐limited) goals, agreed to share them publicly and reported reducing or avoiding emissions in the most recent reporting year. In the FY2023 reporting year, more than 900 suppliers were recognized for Sparking Change.
• Giga Gurus: Suppliers that have set SMART goals in three pillars, agreed to share them publicly and reported reducing or avoiding emissions in three pillars during the most recent reporting year. To keep the level of ambition high, in 2021 we increased the requirements to qualify for Giga Guru status from setting goals and reporting in a single pillar to setting goals and reporting in three pillars. In the FY2023 reporting year, we recognized more than 1,500 suppliers as Giga Gurus.
  
  

Walmart has aligned Project Gigaton with CDP to help facilitate the reporting process by enabling suppliers to leverage their CDP disclosures to report to Project Gigaton.

In 2023, we began asking suppliers to report on their Scope 1 and 2 emissions footprints (in addition to their emissions mitigation initiatives) through Project Gigaton.

Read more: Project Gigaton

Walmart Scope 3 Footprint Analysis and Target-Setting

Project Gigaton focuses on pursuing and reporting on specific initiatives to mitigate emissions in retail supply chains. Project Gigaton’s emissions calculators (including emissions factors and formulas to translate specific actions into emissions impact) are designed to help measure the emissions impact of specific activities undertaken at a particular scale in particular places.

Estimating the entire Scope 3 emissions footprint of a multi-category retail business like Walmart is a different story. It requires reliance on estimates, industry averages, and/or broad assumptions of all activities for tens of thousands of suppliers (e.g., their farming and manufacturing practices, energy sources and uses, transportation, waste, product and packaging materials) and hundreds of millions of customers (e.g., whether they cook food using gas or electricity; how many times they wash their clothing and the temperature of the water they use; the rate at which they waste food). As a result, estimates of Scope 3 footprint in retail tend to be very high-level, order-of-magnitude estimates. 

Estimates can also vary widely based on changes in methodology and assumptions that do not necessarily reflect changes in actual emissions. As accounting standards (e.g., GHG Protocol) and SBTi target-setting expectations continue to evolve, we are updating our Scope 3 emissions estimates and target to reflect increased breadth in products and geographies with enhanced quality. We will continue to focus on meaningful emissions and sectors driving action and accountability. Working with stakeholders, we aim to develop an approach to measurement that reflects improvement in Scope 3 emissions through efforts like Project Gigaton while relying on enhanced estimation methodologies for the remainder of Walmart's Scope 3 footprint.

Adaptation

Our climate strategy includes adapting our operations and sourcing to enhance resilience in the face of factors related to climate change, including warming, drought, and extreme weather events.

Disaster Resilience

In 2021, more than 40% of Americans — some 130 million people — were living in a county struck by a climate related disaster, and in 2022 the U.S. experienced 18 separate billion-dollar weather and climate disasters. As of November 2023, there had already been 25 confirmed U.S. weather and climate disaster events with losses exceeding $1 billion each. Annual global insured losses from natural catastrophes are on track to surpass $100 billion this year. This puts 2023 on track to become the 6th year since 2017 to exceed $100b in annual insured losses.

Walmart’s Global Emergency Management team—staffed by Walmart associates with experience in meteorology, emergency management, and resilience planning—uses data from past weather events and data from the National Oceanic and Atmospheric Administration's National Hurricane Center and Weather Prediction Center to assess weather risks. The Global Emergency Management team oversees preparation and response efforts, including preparedness, business continuity, crisis planning, emergency operations, and recovery. Walmart's Emergency Operations Center serves as the central command center for preparation and response activities, continually monitoring and coordinating response. In preparation, Walmart has deployed mobile generators to power stores, clubs, and distribution centers while grid electricity is unavailable and rescheduled and rerouted merchandise.

When designing facilities in storm-prone locations, we incorporate certain precautionary measures to help our facilities withstand storms and recover as quickly as possible with minimal disruption in service. To help sustain access to electrical power when we need it most, we have invested in a fleet of permanent and mobile generators to support our distribution centers, stores and clubs during hurricanes, wildfires, winter storms and day-to-day power surges. For example, given the probability of storms impacting stores in the U.S. Gulf Coast and along the Eastern Seaboard, nearly all stores within a certain range of the coast have a generator or quick connects for mobile generators. Because permanent generators are not financially justifiable at all stores, we also take other measures, including staging mobile generators, to reduce the time it takes to respond to power outages. In 2022, mobile generators kept stores, clubs, and distribution centers powered for more than 8,314 hours while grid electricity was unavailable. These measures not only enable us to serve customers when we would otherwise need to close stores, but also help to reduce food loss by avoiding powerless refrigeration systems.

Walmart and the Walmart Foundation also work to build capacity for preparedness and response in vulnerable communities through engagement of stakeholders, best practice sharing and philanthropic investments. For example, in FY2022 the Walmart Foundation granted $3 million to build capacity in underrepresented and vulnerable communities to help them prepare and mitigate against the impact of disasters, including to BIPOC-led organizations like the Institute for Diversity and Inclusion in Emergency Management.

Read more: Disaster preparedness & response

Energy-Efficient Operations

Energy is one of our top operating expenses. A few degrees of rise or fall in average temperature can translate to considerable costs, as HVAC and refrigeration systems must work longer and harder to keep temperatures in stores and product cases at optimal levels. To control expenses in the face of a warming climate (while also mitigating emissions), we have prioritized incorporating energy efficiency into new store designs and upgrading older equipment where economically feasible with higher-efficiency technology. We also use technology to monitor and optimize energy use in our buildings.

Sourcing: Surety of Supply

Managing Day-to-Day Disruptions

Our merchants and sourcing teams use a variety of tools to manage volatility and surety of supply day-to-day. Our sourcing teams manage food commodity supply risks by building upstream capacity, diversifying our sourcing regions, and exploring new technology and innovation. For example, our merchants use predictive weather data to adjust product deployment and replenishment rates in the short term, as well as leverage historical data on sales performance and customer buying patterns to inform product assortment shifts over time. This helps ensure that as the climate changes, we continue to offer the right products for our customers at the right time.

Country of Origin Strategies

While Walmart relies on locally-sourced products (for example, about two-thirds of what Walmart U.S. spends on products comes from items made, grown, or assembled in the U.S.), we depend on globally sourced products to complete our assortment. Walmart's global sourcing team, leveraging our climate risk assessment of various products, works with merchants to build a resilient global network of supply, identifying source geographies of excellence for product categories to enable trust, value, and resilience for our customers.

Transforming Product Supply Chains for Long-Term Sustainability

Because agricultural commodities can be especially susceptible to severe weather events and to climate change, Walmart has prioritized strategic initiatives to enhance commodity supply chain sustainability and resilience. Walmart’s efforts include setting sourcing requirements and product specifications for suppliers, engaging suppliers in measurement and best practice sharing, supporting industry collaboration, engaging our customers, public policy advocacy, and philanthropy.

Read more: Product Supply Chains: Sustainability Overview

Multi-Stakeholder Coalitions

In addition to working to shape climate strategies and advocacy within the groups discussed above, we are members of other coalitions advocating for an enabling policy environment, including:

• We Are Still In: We are a signatory to the coalition, which demonstrates our long-standing commitment to the Paris Climate Agreement. We also signed the We Mean Business/Ceres letter that supports a U.S. goal to cut emissions by at least 50% by 2030 and achieve net zero emissions by 2050. The group also endorsed the bipartisan Growing Climate Solutions Act, which reflects a valuable strategy for increasing carbon sequestration opportunities in the agricultural supply chain.
• Clean Energy Buyers Association (CEBA): Walmart currently sits on the board and is a long-time member of CEBA (formerly the Renewable Energy Buyers Alliance), a collaboration of clean energy buyers, energy providers and service providers that, together with NGO partners, seek a transition to a zero-carbon energy future. The group advocates for policies such as wholesale energy market expansion, flexible financing for renewables, retail access and a federal carbon-free green grid. We advised and endorsed CEBA’s statement on the Inflation Reduction Act, which emphasized market and policy-based measures to decarbonize the grid.
• Business for Nature (BFN): We are members of BFN, a global coalition that brings together business and conservation organizations to call for governments to adopt policies to reverse nature loss in this decade. Walmart is a participant of the Strategic Advisory Group (SAG) which provides input on direction and focus areas and helps BFN aggregate action across nature, climate, development, and food system agendas.
• LEAF Coalition: Walmart.org participates in the LEAF Coalition, a coalition bringing together the private sector and governments to provide finance for tropical and subtropical forest conservation commensurate with the scale of the climate change challenge, to learn along with our peers.

Read more: Engagement in public policy; Walmart Key Trade Associations and Member Organizations

Reporting

We believe that transparency cultivates trust, helps hold ourselves accountable and – we hope – inspires others to act. We provide an annual update on our climate progress through our ESG Reporting. In our Annual Report on Form 10-K, we highlight climate change as an ESG priority, and discuss certain potential impacts on our business of severe weather driven by climate change. We also report to organizations such as CDP. Walmart estimates its Scopes 1, 2, and 3 GHG emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and has disclosed this and other climate‐related information annually since 2006. See our third-party assurance statement for our 2023 Scope 1 and 2 emissions verification report for more information.

We encourage suppliers to report to CDP and have integrated CDP and Project Gigaton to make it easier for suppliers to report on metrics. We also support the Taskforce for Climate-related Financial Disclosure (TCFD) and use its reporting and guidance for climate risk assessment.

Read more: Walmart CDP Response Archive

• Climate change is one of the greatest challenges of our time, profoundly affecting all regions of the world and all sectors of society. While Walmart can play a leading role in its own business, supply chain and beyond, achieving the Intergovernmental Panel on Climate Change (IPCC) goal of reducing global greenhouse gas (GHG) emissions to net-zero by 2050 requires action from all parts of society.
• Uncertainties around federal regulation of climate-related disclosures and shifting stakeholder expectations for ever greater commitments, action, and reporting create tensions that are difficult to navigate and may leave some stakeholders unsatisfied.
• Certain factors beyond Walmart’s control impact Walmart’s ability to achieve its own targets, including changes to local energy grids; our physical presence in geographic areas without available necessary technology, equipment or capabilities; and weather patterns increasing the number of days requiring facility heating and cooling.
• Achieving our targets will require innovation and technology that is not available or fully scalable today, including the evolution and accessibility of refrigeration, electric vehicle (including Class 8, heavy-duty, long-haul tractors), renewable energy, manufacturing and agricultural technologies. A critical mass of potential consumers of these new technologies is a necessary precondition to their development, deployment and scaling.
• Walmart is dependent on the cooperation and performance of certain third parties, including business partners providing clean/green services and suppliers’ capacity and willingness to implement emissions reductions projects, and measure Scope 1, 2, and 3 emissions can pose challenges to our meeting targets.
• Shifting emissions inventory methodologies (e.g., GHG Protocol Corporate Standard, Land Sector and Removals Guidance, etc.) can complicate calculation efforts and can pose challenges to our meeting targets.
• Public policies may not support actions aligned with Walmart's science-based targets or the ambitions of the Paris Climate agreement, including by not encouraging the development and deployment of low-carbon or low-emissions technologies at scale and public policies that can negatively impact the supply or cost of renewable energy projects at scale.
• Walmart’s business will continue to evolve and grow. This growth and changes in our model may require additional facilities and/or an expansion of our footprint, which may create pressure on our targets.
• The capital and operating costs of implementing projects will remain a challenge for the foreseeable future (e.g., transitioning to low-GWP refrigerants, innovative electric vehicles). Low market prices and volatility of the price of fossil fuels can complicate the cost/benefit analyses.
• Value chain (Scope 3) emissions measurement and reporting remains an immature field; lack of standardized approaches and comprehensive data sets limit the ability to generate comparable, reliable, and decision-useful information. Please see our discussion above in Scope 3 Footprint Analysis and Target-Setting.
• National and global catastrophic events (e.g., recessions and economic downturns, natural disasters, geopolitical instability and war, health crises) can exacerbate many of the above factors.
  
  

About Our Reporting

• Walmart’s Pathway to a Zero-Emission Future
• Walmart Sustainability Hub
• Walmart Recycling Playbook
• CDP Response Archive
• Climate Policy
• Environmental Sustainability Statement
• Deforestation Policy
• Gigaton PPA
• ESG Oversight & Management
• Waste: Circular Economy
• Disaster Preparedness & Response
• Engagement in Public Policy
• Product Supply Chains: Sustainability Overview
• Regeneration of Natural Resources: Forests, Land, Oceans

1. In 2020, we raised our aspiration to reduce emissions in our operations (Scopes 1 & 2) by realigning our science-based target to a 1.5 degree Celsius trajectory, the highest ambition approved by the SBTi. Our goal is to achieve zero emissions across Walmart’s global operations by 2040, reducing absolute Scopes 1 and 2 GHG emissions 35% by 2025 and 65% by 2030 from our 2015 base year.

2. Annual Scopes 1 and 2 GHG emissions and carbon intensity metrics are updated from time to time in this ESG Climate Change Brief to account for changes in emission factors or the availability of more accurate activity data. Our emissions footprint in CO2e and carbon intensity per revenue are calculated to include emissions for our operations for the period which we owned the operations in the reporting year. This may result in updated emissions reported in the ESG Climate Change Brief not corresponding to results reported to CDP for our annual Climate Change questionnaire.

We engage Lucideon CICS to independently verify Walmart’s reported Scope 1 and scope 2 emissions as reported to CDP annually, pursuant to ISO 14064-3 (the international standard for verification of Greenhouse Gas inventories). The GHG Protocol outlines three emissions sources (referred to as “scopes”) that provide the framework for operational boundaries. The three scopes are:

Scope 1, “Direct Emissions,” represent emissions from the combustible fuels and other sources that occur directly onsite (e.g., refrigerants) and mobile emissions sources.

Scope 2, “Indirect Emissions,” represent emissions that occur off-site to produce electricity or steam purchased for use at corporate locations.

Scope 3, “Other Indirect Emissions,” represents emissions from activities down or upstream from a company’s core business such as product use, waste disposal, commuting, and business travel.

3. Annual Scopes 1 and 2 GHG emissions are updated from time to time for changes in emission factors or activity data when more accurate information become available. This may result in updated emissions reported in the ESG Climate Change brief that may not correspond to results reported to CDP for our annual Climate Change questionnaire.

We engage Lucideon CICS to independently verify Walmart’s reported Scope 1 and 2 emissions as reported to CDP annually, pursuant to ISO 14064-3 (the international standard for verification of Greenhouse Gas inventories). We follow Walmart’s Greenhouse Gas Inventory Methodology in calculating our GHG emissions, which is consistent with the principles and guidance of the World Resources Institute and the World Business Council for Sustainable Development’s Greenhouse Gas Protocol Initiative (“The GHG Protocol”) for corporate GHG accounting and reporting. Scope 2 (market-based) emissions include the carbon reduction value of renewable electricity procured from onsite and offsite projects. To account for structural changes in our business, we strive to adjust our emission reduction progress on Scope 1 and 2 emissions to add or subtract emissions for entities acquired or divested in the year the acquisition or divestiture took place, including adjusting for previous years (including the baseline year).

4. Carbon intensity (Scope 1 and 2 per revenue) calculation is based on calendar year emissions (January 1-December 31) and normalized by total annual revenues as measured by Walmart’s fiscal year (February 1-January 31).

5. This includes generation from active renewable and low-carbon projects. It considers the combined contribution of power generated from on-site and off-site projects as well as renewable energy generation feeding into the grids where our sites are located. Third-party-verified energy consumption data is one year in arrears for the CY2020 year. For CY2022 and CY2021, the latest energy consumption data was used. This was used in combination with the electricity procured from our renewable energy projects and the most recent grid fuel mix information obtained from the International Energy Agency for the regions where we operate. The CY2020 and CY2021 estimates do not include energy data for our Flipkart business. We believe excluding Flipkart data will have a negligible impact on our estimate.

6. Calculated in accordance with the RE100 technical criteria. RE100 defines renewable electricity consumption as the ability to make unique claims on the use of renewable electricity generation and its attributes.

7. Calculated in accordance with Walmart’s Project Gigaton Accounting Methodology, available on the Walmart Sustainability Hub. Suppliers submit information during a Project Gigaton reporting season; figures reported are for the reporting season that took place during the corresponding fiscal year.

8. Because Walmart does not restrict suppliers to reporting only on emissions avoidance and reduction efforts that are attributable to the suppliers’ business with Walmart, actions taken and reported through Project Gigaton cannot be used to measure Walmart’s Scope 3 emissions, either absolutely or in year-over-year reductions.

9. The U.S. product net sales figure used for the calculation includes Walmart U.S. and Sam’s Club product net sales for the previous four quarters (Q3 through Q2) prior to the start of the survey reporting window. The percentage represents U.S. product net sales of suppliers that reported to Project Gigaton in the reporting year versus all U.S. product net sales. The calculation excludes Walmart International segment product net sales from the calculation.

10. We considered each climate variable in isolation; we did not adjust for second- or third-order effects or interdependencies with other variables. We also did not consider potential offsetting impacts of new technologies, mitigating actions, or new business opportunities.

11. See for additional information, see the R-404A.

12. For more information on the assumptions, methodologies and scopes used to prepare these estimates, see Walmart’s original CDP submissions (linked under Additional Resources at the end of this page). Walmart reserves the right to employ different methodologies in the future and may restate these figures retroactively. Walmart has not estimated its full, global Scope 3 emissions for all Scope 3 categories but has estimated Scope 3 emissions for certain categories including certain jurisdictions or businesses.

13. Calculated from cumulative emissions reduction from 2015 (base year) until 2030.

14. WWF and EDF review select suppliers' submissions.

15. Sum of single year reported emissions may not add up to cumulative reported emissions due to rounding.

16. Sum of allocated funds equal the proceeds received by Walmart from the notes offering.