Creating Shared Value

ESG Approach - Creating Shared Value

Shared value—addressing societal issues in ways that create value for our business and stakeholders—lies at the heart of Walmart’s enterprise strategy and our approach to ESG issues.

We believe we maximize long-term value for shareholders by serving our stakeholders: delivering value to our customers, creating economic opportunity for associates and suppliers, strengthening local communities and enhancing the environmental and social sustainability of our business and product supply chains. Addressing such societal needs builds the value of our business by extending our social license to operate, building customer and associate trust, creating new business opportunities, managing cost and risk, building capabilities for future advantage and strengthening the underlying systems we all rely on. In other words, business exists to serve society: business strengthens society and at the same time serving society strengthens business. We aspire to become a regenerative company—helping to renew people and planet through our business.

Convenient access to affordable food and other essential products and services Purpose-driven work; opportunity for good jobs and upward mobility Superior long-term returns through financial and ESG leadership Access to customers and ability to accelerate sustainable, regenerative supply chains Resources to build stronger, more inclusive communities Leadership on zero emissions, zero waste and regenerative approach to nature
~240 million customers and members served per week ~2.1 million associates globally ~33% institutional ownership representing millions of individual investors as of the end of CY2022 Cumulative total of $47B purchased towards the goal to purchase an incremental $350B on products supporting American jobs between 2021 and 2030 >10,500 stores and clubs and numerous eCommerce websites (as of January 2023) 23.2% decrease in combined Scopes 1 & 2 emissions vs. 2015 baseline (CY2021)1
>8,100 pickup and 7,000 delivery locations globally >$17
average US hourly wage; $21.75 average US hourly total compensation
$16 billion
total shareholder returns
diverse suppliers to U.S. businesses2
Stores and clubs in communities in 20 countries >2 million acres conserved by Acres for America program since inception
of US population within 10 miles of a Walmart store
>400,000 associates trained via Walmart Academies (in-person and virtual) $29.1 billion operating cash flow >$86 million
in Walmart Foundation grants to benefit smallholder farmers in India, Mexico and Central America since 2017
>$1.7 billion Walmart and the Walmart Foundation cash and in-kind donations >750 million metric tons (MMT) of reduced or avoided emissions (CO2e) reported by suppliers since 20173
$4.990 billion investments in U.S. store and club remodels >34,000 enrollment in Live Better U Engagements with shareholders representing 550 million shares (~39% of float)4 >$13 billion sourced from diverse suppliers to our U. S. businesses, goods and services2 >665 million pounds of food donated by Walmart U.S. and Sam's Club U.S. (CY2022) ~46% of global electricity needs supplied by renewable sources5

* All figures are for FY2023 unless otherwise noted.

Our shared value approach is informed by five imperatives:

Focus on Priority Issues

Walmart prioritizes ESG issues based on relevance to our business, importance to our stakeholders and Walmart’s ability to effect change with respect to those issues. The priority ESG issues for Walmart include providing economic opportunity for our associates, advancing racial and gender equity in our business and society, accelerating progress on the environmental and social sustainability of retail and product supply chains (including issues related to climate, nature, waste, and people in supply chains), strengthening the resilience of local communities and upholding the highest standards of ethics and integrity throughout our business. Read more: Our ESG priorities.

ESG Approach - Focus on Priority Issues

Develop an ESG Impact Thesis

For each priority ESG issue, we set out to develop an ESG impact thesis that articulates the relevance of the issue for society and Walmart’s business, reflects an understanding of stakeholder expectations and defines our aspirations, goals and strategies. Through such disclosures, we aim to provide stakeholders with an understanding of Walmart’s shared value approach and progress.

For example, regarding climate change, Walmart has committed to science-based targets to reduce emissions in our own operations to zero by 2040—without offsets—and to help draw down emissions in the retail and consumer goods sector overall through our advocacy and stakeholder engagement. We engage suppliers in initiatives related to energy, packaging, waste, product design, agriculture and forests. We collaborate with others to drive innovation in retail business practices and seek to accelerate systems change through strategic philanthropy. Through CDP and other ESG disclosures, we communicate our approach to climate risk assessment and governance, our climate mitigation and adaptation strategies, and results such as the company’s operational absolute and relative emissions over time, suppliers’ cumulative avoided emissions and their participation in company initiatives, and examples of innovations in retail product supply chains that help draw down emissions.

Lead Through Business

We seek to bring about positive change in society first and foremost by managing our business in a way that creates shared value. Our ESG aspirations and initiatives are embedded in how we do business — involving, for example, our enterprise strategy, annual planning, risk management and performance management processes; individual roles and responsibilities; operating policies and procedures; policy advocacy; systems and tools. For example, our Real Estate teams advance our renewable energy objectives. Our People teams and Operators shape our associate proposition, including upskilling and advancement strategies. Our Public Policy teams advocate on behalf of our customers and associates to shape effective policy regarding issues such as climate change, health and safety, marketplace trust and transparency, and privacy.

Collaborate To Transform Systems at Scale

Walmart’s reach, relationships and capabilities enable us to help scale impact. Our teams collaborate with suppliers, non-governmental organizations (NGOs), government agencies and others for collective action to transform systems on which society—including our business—relies: for example, accelerating the transition to renewable energy to lower greenhouse gas (GHG) emissions, helping change worker recruitment practices in southeast Asia to help eradicate forced labor, and encouraging innovations in workforce development to upskill and advance frontline workers in the retail and service sectors.

Use Philanthropy To Extend the Societal Impact of Business Initiatives

The transformation of complex systems requires collaboration among the public sector, private sector and civil society. Through philanthropy, we seek to complement and go beyond Walmart business initiatives in addressing important social and environmental challenges. In FY2023, through a combination of in-kind and cash gifts, Walmart and the Walmart Foundation gave more than $1.7 billion to fund efforts aiming to create economic opportunity, advance racial and gender equity, enhance sustainability of product supply chains and strengthen communities, among other issues. For example, while the Walmart business can provide access to affordable, nutritious food through our stores and eCommerce, our philanthropy includes donations of unsold produce and investments to expand the cold chain capacity of the charitable meal system to provide nutritious food to the vulnerable.

1. 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).

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

3. 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. 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.

4. As per the 2023 Walmart Inc. Annual Proxy Statement.

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 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.