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. 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 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 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 Change 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 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 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. For additional information, see the R-404A Refrigerant Fact & Info Sheet.
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.