ESG Commitments & Progress

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 Brief to account for changes in emission factors or the availability of more accurate activity data. Flipkart emissions data is excluded from Walmart’s Scope 1 and 2 emissions footprint and progress calculation. We believe excluding Flipkart’s data will have negligible impact on the overall reporting.

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 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 on sites (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 Brief that may not correspond to results reported to CDP for our annual Climate Change questionnaire. Flipkart emissions data is excluded from Walmart’s Scope 1 and 2 emissions footprint and progress calculation. We believe excluding Flipkart’s data will have negligible impact on the overall reporting.

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). 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 arears for the CY2019 and CY2020 years. For 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.

This estimate does 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^TM 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. net sales figure used for the calculation includes Walmart U.S. and Sam’s Club product net sales for the 52-week period prior to survey reporting window. The percentage represents U.S. product net sales of suppliers that reported to Project Gigaton^TM in the reporting year versus all U.S. product net sales. The calculation excludes Walmart International segment product net sales from the calculation.

10-13. Not used

14. Tracked on the FishChoice platform, FisheryProgress.org. Publicly registered FIPs include FIPs and Pre-FIPs, both of which are registered with Fishsource.

15. Suppliers were asked to report through the Seafood Metrics System the total volume of the fresh and frozen, wild-caught and farmed, seafood shipped in FY2022 and the volume of that seafood that met Walmart’s requirements (certified by a designated program or in a FIP or AIP). Suppliers representing approximately 100% of Walmart U.S., 100% of Sam’s Club U.S., and 45% of Mexico volume of fresh and frozen, wild-caught and farmed, seafood shipped in FY2022 responded. Reported volumes were validated against Sustainable Fisheries Partnership records and Walmart business data showing supplier shipments. Central America reporting is based on reports from suppliers representing 100% of Walmart Central America fresh and frozen, wild-caught and farmed seafood in CY2021. Walmart Mexico's FY2022 reporting may not be comparable to prior years' reporting due to a change in methodology to include national and import suppliers in FY2022, with resulting impacts to both the scope of the calculation and supplier response rate. Canada figures are forthcoming in 2022 following the completion of data validation.

16. Sustainably sourced: Certified by a designated program or in a FIP. Suppliers were asked to report through the Seafood Metrics System the total volume of the fresh and frozen, wild-caught, seafood shipped in FY2022 and the volume of that seafood that met Walmart’s requirements (certified by a designated program or in a FIP or AIP). Suppliers representing approximately 100% of Walmart U.S., 100% of Sam’s Club U.S., 98% of Canada, and 45% of Mexico volume of fresh and frozen, wild-caught, seafood shipped in FY2022 responded. Reported volumes were validated against Sustainable Fisheries Partnership records and Walmart business data showing supplier shipments. Central America reporting is based on reports from suppliers representing 100% of Walmart Central America fresh and frozen, wild-caught seafood in CY2021. Walmart Mexico’s FY2022 reporting may not be comparable to prior years’ reporting due to a change in methodology to include national and import suppliers in FY2022, with resulting impacts to both the scope of the calculation and supplier response rate.

17. Sustainably sourced: Certified by a designated program or in an AIP. Suppliers were asked to report through the Seafood Metrics System the total volume of the fresh and frozen, farmed, seafood shipped in FY2022 and the volume of that seafood that met Walmart’s requirements (certified by a designated program or in an AIP). Suppliers representing approximately 100% of Walmart U.S., 100% of Sam’s Club U.S., 98% of Canada, and 45% of Mexico volume of fresh and frozen, farmed, seafood shipped in FY2022 responded. Reported volumes were validated against Sustainable Fisheries Partnership records and Walmart business data showing supplier shipments. Central America reporting is based on reports from suppliers representing 100% of Walmart Central America fresh and frozen, farmed seafood in CY2021. Walmart Mexico's FY2022 reporting may not be comparable to prior years' reporting due to a change in methodology to include national and import suppliers in FY2022, with resulting impacts to both the scope of the calculation and supplier response rate.

18. Based on price, availability, quality, customer demand, and unique regulatory environments across our global retail markets. Read the full policy. As tracked on the FishChoice platform, FisheryProgress.org. Publicly registered FIPs include FIPs and Pre-FIPs, both of which are registered with Fishsource.

19. Sustainably sourced: Certified by a designated program or in a FIP. Tuna suppliers were asked to report through the Seafood Metrics System the total volume of tuna shipped to Walmart in FY2022 and the volume of that product that met Walmart’s seafood policy requirements (certified by a designated program or in a FIP). Suppliers representing 100% of Walmart U.S. and Sam’s Club U.S. volume in FY2022 responded. Reported volumes were validated against Sustainable Fisheries Partnership records and Walmart business data showing supplier shipments. Walmart U.S. figures are for private brand and national brand tuna. Walmart U.S. and Sam’s Club U.S. figures are for all shelf-stable tuna (includes canned and pouched). Canada figures are forthcoming in 2022 following the completion of data validation.

20. Certifications: UTZ-Rainforest Alliance and/or Fair Trade USA.

21. Certification: UTZ-Rainforest Alliance. Covers tea sourced from July 1, 2021 through January 31, 2022.

22. Certifications include Rainforest Alliance, Sustainably Grown and Fair Trade USA. Goal originally included Asda, Walmart’s U.K. business. Walmart divested its retail operations in the U.K. in February 2021. Going forward, we will no longer disclose progress for our divested operations. Percentages are based on volume of bananas and pineapples sourced under an annual alignment. Spot buy volume due to sporadic increase of demand or rejections or delay of shipping to ensure surety of supply is not included. Spot buys may or may not be sustainability certified.

23. Supplier-reported data for total cotton volume sourced through one of the following: Cotton USA, Organic, Fair Trade USA, or Recycled Cotton. Results are based on supplier survey responses. Better Cotton Initiative data was derived from BCI’s Better Cotton Platform data.

24. Man-made cellulosic fibers include rayon/viscose, modal, lyocell, acetate and trademarked versions. Forest information is per non-profit organization Canopy. “Verified low risk” as indicated by a Canopy "Green Shirt" ranking.

25. Results are based on supplier survey responses. FY2021 results are based on reports from suppliers that represented 91.2% of Walmart U.S. private brand apparel net sales and 85.7% of Walmart U.S. home textiles net sales. FY2022 results are based on reports from suppliers that represented 97.7% of Walmart U.S. private brand apparel net sales and 94.4% of Walmart U.S. home textiles net sales; for Sam's Club, participation rates were participation rates were 91.8% and 93.8% for private brand apparel and home textiles, respectively; and for Canada, participation rates were 88.2%% and 92.7% for private brand apparel and home textiles, respectively. Walmart proxied supplier-reported volume data to determine the total volume of polyester in Walmart U.S. private brand apparel and home textile products, but did not assume that any portion of polyester from non-reporting suppliers was recycled.

26. In accordance with the principles and criteria of the Roundtable on Sustainable Palm Oil (RSPO) segregated supply chain systems, or equivalent standards. Prior years’ reporting on certified palm oil included both mass balance and segregated. Walmart reset its palm oil goal in 2021 to focus on segregated palm oil or equivalent. Suppliers supplying Walmart private brand products in departments most likely to contain palm oil were identified and encouraged to participate in Walmart’s palm oil survey. Excluding suppliers who responded to the survey and stated that they do not supply Walmart with products containing palm oil, suppliers representing 92% of the relevant business responded. The percentage of supplier-reported palm oil volumes in Walmart private brand products certified as sustainable is the quotient of the volume of certified palm oil divided by total volume of palm oil, per the supplier survey responses. For FY2022, in addition to 10% certified segregated/equivalent palm oil, 80% of reported palm oil was certified under a mass balance standard.

27. Certified by the Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), Sustainable Forestry Initiative (SFI). Suppliers supplying Walmart private brand products in departments most likely to contain pulp and paper were identified and encouraged to participate in Walmart’s pulp and paper survey. Excluding suppliers who responded to the survey and stated that they do not supply Walmart with products containing pulp and paper, suppliers representing 74% of the relevant business responded in FY2021 and 89% responded in FY2022. The percentage of supplier-reported pulp and paper volumes in Walmart private brand products certified as sustainable or containing recycled content is the quotient of the volume of certified or recycled pulp and paper divided by total volume of pulp and paper, per the supplier survey responses.

28. Based on data pulled from the Ethical Charter website on March 3, 2022.

29. Based on RBA membership (regular or full category) or implementing the RBA Validated Assessment Program for each disclosed facility.

30. See discussion of our progress in the "Innovation in housing systems" section of our Animal Welfare brief.

31. 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.

32. 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. In instances where the enhanced accounting methodology caused waste diversion percentages to decline, we have provided recalculated metrics here. 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.

33. As used here, "zero waste" means meeting or exceeding Zero Waste International Alliance (ZWIA) business recognition program requirements, which include adoption of ZWIA definition of zero waste and achievement of 90% or more diversion of all discarded resources from landfills, incinerators and the environment. Zero waste goal and reporting scope includes waste materials and products generated in Walmart’s owned facilities and its operations (stores, clubs, warehouses, return centers, truck maintenance garages, etc.).

34. 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.

35. 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.

37. Primary packaging is packaging that goes home with the consumer. This percentage excludes the net sales of private brand items that do not use primary packaging. For the time frame for 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.

38. Walmart previously reported this figure for additional markets. Walmart divested its retail operations in Argentina, the U.K., and Japan in November 2020, February and March 2021, respectively. 2019 and 2020 totals include markets that have since been divested. 2021 totals include only retained markets. The substantial decrease from 2020 to 2021 is largely due to the U.K. and Japan divestitures, as these markets were leaders in consumer recycling programs.

39. 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.

40. Walmart divested its U.K. and Japan businesses in 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.

41. The calculation includes all private brand plastic packaging and single-use plastic and reusable bags globally. The estimation was calculated by extrapolating supplier-reported packaging data (weight in metric tons) in relation to supplier participation percentage of net sales.

42. The 2021 calculation follows 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.

43. 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.

44. 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. "North America" refers to our businesses in the U.S., Canada, and Mexico.

45. The calculation excludes the following associates types: Home office, pharmacists, on-site-clinics, drivers, management trainees and, temporary associates.

46. The average hourly starting rate is calculated as the average hourly wage of U.S. associates that joined in the preceding 6 months. The starting wage metrics exclude the following associate types: Home office associates, pharmacists, on-site-clinics, drivers, management trainees and, temporary associates.

47. The calculation excludes the following associates types: Home office associates, pharmacists, on-site-clinics, drivers, management trainees and, temporary associates. Average total compensation for fiscal year 2022 includes average hourly pay, other compensation and benefits per hour for full and part time associates (excluding home office). This does not include special cash bonuses or paid leave related to COVID-19.

48. Salaried and truck driver associates: Eligible as of hire date. Full-time hourly associates: Eligible following 12 months of service. Part-time and temporary associates: Not eligible.

49. Salaried and truck driver associates: Eligible as of hire date. Full-time hourly associates: Eligible following 12 months of service. Part-time and temporary associates: Not eligible.

50. Data includes both hourly and management promotions and excludes Walmart Home Office promotions.

51. U.S. metrics include all hourly associates, excluding temporary associates. Global metrics exclude associates in India and eCommerce associates in Ireland and Israel. U.S. management metrics include all salaried, exempt associates. U.S. officer metrics include president, executive vice president, senior vice president and vice president positions. Data for the U.S. is as of January 31, and data for international markets is on a one-month lag and on a calendar year-end basis.

52. In FY2021 we reported that >49,500 veterans were hired. We are clarifying this metric to reflect that these were offers made to veterans for positions to work at Walmart.

53. In FY2021 we reported that >27,000 military spouses were hired. We are clarifying this metric to reflect that these were offers made to military spouses for positions to work at Walmart.

54. Where a facility is required to be disclosed to Walmart, “Active” status denotes that the supplier is able to use the facility for Walmart production.

55. Facility color ratings denote the seriousness of findings identified in the audits.

56. As of the end of FY2022, we were ~98% of expected progress to date.

57. A diverse supplier is defined as a U.S. privately held company that is recognized as 51% owned and operated by a woman, minority, veteran, disabled veteran, person with a disability or member of the lesbian, gay, bisexual or transgender (LGBT) community.

58. All sustainable chemistry metrics are on a calendar year basis and are reported for the prior corresponding calendar year. The three years reported in this table are calendar years 2018, 2019, and 2020. As part of our FY2020 reporting cycle, we restated our baseline year chemical footprint combined for Walmart U.S. stores and Sam’s Club U.S. locations from 220.8 million pounds of priority chemicals (PC) weight to 215.9 million pounds of PC weight based on formulations that our suppliers inadvertently assigned to the wrong Universal Product Code (UPC) registrations in UL’s WERCSmart. We updated the baseline to report the correct progress on our reduction goal. Suppliers provided product formulations to UL WERCSmart for 95% of in-scope UPCs.

59. Suppliers provided product formulations to UL WERCSmart for 95% of in-scope UPCs

60. Based on reports from Feeding America.

61. Amount provided by Walmart in local cash grants to organizations and programs that serve communities near our stores, clubs and distribution centers in the U.S.

62. Some of the data is self-reported by third-party organizations.

63. Fiscal Year 2022 numbers include donations to respond to COVID-19.

64. Emergency declarations issued by federal, state, county or city governments gathered by Global Emergency Management that may impact our operations, supply chain, or associates. The FY2021 number includes declarations related to COVID-19; excluding such declarations, the number would have been 22. In FY2022, Global Emergency Management transitioned the tracking of COVID-19 related declarations to another business unit, as managing these pandemic-related challenges became part of our regular operations, and therefore the FY2022 number does not include COVID-related declarations.

65. Activation of the Emergency Operations Center (EOC) beyond normal operations involves heightened coordination efforts by the EOC to respond to a situation or event, such as a weather event, civil unrest, or a public health issue. In FY2021, this metric included increased activations due to COVID-19. In FY2022, the EOC was not activated beyond normal operations for COVID-19 due to our improved operational preparedness and ability to manage pandemic-related challenges.