Climate Change Data

Walmart Inc.

Climate Impact & Sustainability Data (2006, 2010-02 to 2011-01, 2016-02 to 2017-01, 2017-02 to 2018-01, 2020-02 to 2022-01, FY2022 (ending January 31, 2022), FY2023)

Reporting Period: 2006

Environmental Metrics

ESG Focus Areas

  • Ethical Sourcing
  • Labor Practices
  • Environmental Practices

Environmental Achievements

  • Expanded audit criteria to include waste identification, handling, disposal, wastewater treatment, air emissions, and banned substances (though not yet factored into factory ratings).

Social Achievements

  • Conducted 16,700 audits in 8,873 factories globally.
  • Increased unannounced audits to 26%.
  • Implemented a local helpline for workers to report concerns.
  • Awarded a grant to The Asia Foundation for a migrant women scholarship program in China.
  • Improved working conditions in Jordan through collaboration with other retailers and the government.

Governance Achievements

  • Established the Wal-Mart Award for Ethical Courage.
  • Increased internal alignment between social and commercial objectives.

Climate Goals & Targets

Short-term Goals:
  • Pre-qualification of factories in phases (starting with non-resale merchandise, then toys and apparel).

Environmental Challenges

  • Improving factory working conditions globally.
  • Complex root causes of non-compliance.
  • Undeclared subcontracting.
  • Excessive working hours.
  • Audit fatigue.
  • Non-payment of wages and benefits.
  • Overtime violations.
Mitigation Strategies
  • Increased collaboration with governments, industry peers, academics, and NGOs.
  • Enhanced training for Wal-Mart buyers and sourcing managers.
  • Pre-qualifying factories before production.
  • Incentivizing suppliers for compliance.
  • Working towards code convergence and industry-wide standards.
  • Capacity building for supplier factories.
  • Addressing internal processes contributing to non-compliance (short lead times, last-minute design changes).

Supply Chain Management

Supplier Audits: 16,700 audits in 8,873 factories

Responsible Procurement
  • Standards for Suppliers
  • Supplier training
  • Pre-qualification of factories
  • Incentives for compliance

Climate-Related Risks & Opportunities

Reporting Period: 2010-02 to 2011-01

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Energy
  • Waste
  • Products
  • Associates
  • Communities
  • Customers
  • Supply Chain
  • Global Supply Chain
  • Sustainable Agriculture
  • Greenhouse Gas Emissions
  • Diversity and Inclusion
  • Health and Safety
  • Hunger Relief
  • Ethical Sourcing
  • Product Safety
  • Food Safety

Environmental Achievements

  • Globally, a 10.61% reduction in greenhouse gas emissions from 2005 baseline (stores, clubs, distribution centers) by the end of 2009.
  • 119 factories in China demonstrated >20% energy efficiency improvement compared to 2007 baseline.
  • 81% waste redirection in California (Jan-Oct 2010).
  • Reduced plastic bag waste by 47.95 million pounds globally.
  • Walmart de México reduced water use by 17% compared to 2008 baseline.
  • 73% of wild fish and farmed seafood sold in Walmart U.S. and Sam's Club was certified (as of Jan 28, 2011).

Social Achievements

  • Launched My Sustainability Plan (MSP) toolkit to engage associates in sustainability.
  • Pledged to reduce sodium by 25%, added sugars by 10%, and remove industrially produced trans fats in thousands of U.S. food products by 2015.
  • Pledged to save customers $1 billion/year on fresh fruits and vegetables.
  • Pledged $2 billion in cash and in-kind donations to fight hunger in America through 2015.
  • Donated more than 1 billion pounds of food.
  • Walmart China engaged over 757,000 farmers in Direct Farm program by 2010.
  • Bharti Walmart training centers in India prepared nearly 5,000 students for retail careers.
  • Women's Leadership Councils active in all markets.
  • Launched Walmart Lifelong Learning Program, offering 15% tuition grant to associates at American Public University.

Governance Achievements

  • Renamed report to 'Global Responsibility Report' to reflect broader scope.
  • Report reviewed by a committee of social and environmental NGOs.
  • Launched walmartethics.com, an interactive ethics website.

Climate Goals & Targets

Long-term Goals:
  • Be supplied 100% by renewable energy
  • Create zero waste
  • Sell products that sustain people and the environment
  • Be packaging neutral globally by 2025
  • Eliminate 20 million metric tons of GHG emissions from global supply chain by 2015
  • Sell $1 billion in food sourced from 1 million small- and medium-sized farmers by 2015
  • Increase income of farmers by 10-15% by 2015
  • Train 1 million farmers (half women) in sustainable farming by 2015
  • Double sales of locally sourced produce in U.S. by 2015
Medium-term Goals:
  • Eliminate landfill waste from U.S. stores by 2025
  • Reduce GHG emissions at existing stores by 20% by 2012
  • Improve energy efficiency by 20% in top 200 Chinese factories by 2012
  • Double fleet efficiency in U.S. by 2015
  • Reduce food waste in emerging markets by 15% and other markets by 10% by 2015
  • Require 95% of direct import factories to receive top two audit ratings by 2012
  • Drive customer returns on defective merchandise to <1% by 2012
  • Require sustainably sourced palm oil in all private brand products by 2015
  • Expand Walmart Brazil's deforestation-free beef policy globally by 2015
  • Double sales of energy-efficient products in U.S. by 2011
Short-term Goals:
  • Reduce water consumption by 20% by 2013 (Walmart de Mexico)
  • Reduce packaging by 5% globally by 2013
  • Reduce phosphates in detergents by 70% in Americas by 2011

Environmental Challenges

  • Challenging economic environment impacting ROI on low-carbon technologies.
  • Retrofitting stores increases energy load.
  • Difficulty finding enough GHG-reduction projects to offset energy growth.
  • High refrigerant emissions.
  • Procuring clean technologies and expertise in some global markets.
  • Extreme weather patterns hindering energy consumption reduction.
  • Truck size and weight restrictions in the U.S.
  • Scale of implementation for waste-reduction programs.
  • Lack of recycling infrastructure in some U.S. areas.
  • Regulatory challenges related to waste management.
  • Difficulty in achieving 100% renewable energy due to varying global regulations.
  • Difficulty tracing diamonds and silver in jewelry.
  • Challenges in measuring packaging sustainability due to varying reporting requirements.
  • Global expansion challenges in translating cultural values into specific actions.
  • Different stages of development in various markets for ethics programs.
Mitigation Strategies
  • Collaboration with Daimler Trucks North America to develop hybrid-electric trucks.
  • New store prototypes designed for reduced energy consumption (e.g., Walmart China prototype 40% less energy).
  • Refrigerant leak reduction program.
  • Partnership with EDF for thin-film solar projects.
  • Renewable energy projects (solar, fuel cells, wind).
  • Improved waste tracking program (state-by-state in U.S.).
  • Waste-to-energy technologies.
  • Reusable bag programs.
  • Incentive programs to reduce plastic bag use.
  • Global Ethics Office and walmartethics.com for ethical guidance and reporting.
  • Ethics Awareness Month with Integrity in Action Award and Leadership Speaks Series.
  • Standardized ethics education content and train-the-trainer sessions.
  • Supplier Development Program and Orange School Program to improve factory audit ratings.
  • Collaboration with other brands on ethical sourcing and fire safety.
  • Web-based product information system pilot for supply chain transparency.

Supply Chain Management

Supplier Audits: 8,322 audits conducted on 6,722 factories in 2010

Responsible Procurement
  • Global Food Safety Initiative certification
  • Go Green Pest Management Program
  • Food Safety High Five
  • Ethical Sourcing audits
  • Supplier Development Program
  • Orange School Program
  • Collaboration with ILO/IFC Better Work Program
  • ICTICARE Process for toy manufacturers
  • GSCP for social and environmental compliance

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Renewable energy sources

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • PoochPlanet® and SmartyKat® pet products made from recycled materials
  • MaticEco phosphate-free detergent in Chile
  • Bom Preço line of food and cleaning supplies in Brazil with reduced packaging

Awards & Recognition

  • Numerous awards listed in the report across various categories and regions.

Reporting Period: 2016-02 to 2017-01

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:26%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Economic Opportunity
  • Sustainability
  • Community

Environmental Achievements

  • 77% of global waste diverted from landfill
  • Approximately 26% renewable energy globally
  • 96% suppliers reduction of high priority chemicals by weight in Walmart U.S. stores since 2014
  • 76 million acres committed to fertilizer optimization programs

Social Achievements

  • Completed our $2.7 billion investment in the U.S. that includes increases in training, education and higher wages
  • Fulfilled commitment to source $20 billion from women-owned businesses over 5 years
  • Walmart enabled over a half million people to grow and succeed
  • 1.2 million associate volunteer hours
  • 20,000+ associates completed the Academy training program

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Source $250 billion in products supporting American jobs by 2023
  • Work with suppliers to reduce 1 Gigaton of emissions between 2015 and 2030
  • Expand sourcing of commodities produced with zero net deforestation by 2020
Short-term Goals:
  • Achieve zero waste to landfill in our own operations in the U.S., U.K., Japan, and Canada by 2025
  • Reduce emissions in our own operations by 18 percent by 2025
  • Be powered by 50 percent renewable energy by 2025

Environmental Challenges

  • Growing population, globalization and technological disruption have created new social and environmental challenges. Inequality is increasing in many countries, while water supply, forests, air quality, biodiversity and our climate are under unprecedented pressure.
Mitigation Strategies
  • Our “Leadership 2025” agenda reaffirmed and extended our aspiration to help increase economic opportunity, enhance sustainability of value chains and strengthen local community resilience.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainability Index

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2017-02 to 2018-01

Environmental Metrics

Renewable Energy Share:28% (2017)

ESG Focus Areas

  • Economic Opportunity
  • Sustainability
  • Local Community
  • Governance

Environmental Achievements

  • Reduced global carbon intensity per total revenue (CO2e/$) by 30 percent since 2005
  • 28 percent of electricity needs globally supplied by renewable sources in 2017
  • 78 percent of global waste diverted from landfill by the end of 2017
  • Reduced total annual waste generated from operations in the U.S. in 2017 by 1 percent compared to 2016

Social Achievements

  • Bonuses for hourly Walmart U.S. associates totaled $625 million in FY2018
  • More than 230,000 associates promoted in Walmart U.S.
  • Walmart and the Walmart Foundation funded the training of more than 1 million small- and medium-scale farmers, of whom more than half are women
  • Expanded maternity and parental leave for full-time hourly and salaried associates in the U.S.
  • Donated 2.5 billion pounds of food in the U.S. alone since FY2015
  • Walmart associates volunteered more than 850,000 hours in the U.S. in FY2018

Governance Achievements

  • Approximately 75 percent of Named Executive Officer (NEO) compensation is performance-based
  • NEO’s cash incentive payment can be reduced by up to 15 percent if diversity objectives are not met
  • CMDC may reduce or eliminate NEO annual cash incentive for failure to meet annual compliance objectives

Climate Goals & Targets

Long-term Goals:
  • 100 percent renewable energy
Medium-term Goals:
  • Work with suppliers to reduce emissions by 1 gigaton by 2030
  • Source 100 percent sustainable palm oil by 2020
  • Achieve 100 percent recyclable packaging in Walmart private brand by 2022
Short-term Goals:
  • Reduce emissions in own operations by 18 percent by 2025
  • Source half of energy needs from renewable sources by 2025
  • Achieve zero waste in own operations in Canada, Japan, the U.K., and the U.S. by 2025

Environmental Challenges

  • Climate change impacts on sourcing, distribution, and operations
  • Water scarcity in many operating regions
  • Global waste generation and lack of recycling infrastructure
  • Food waste throughout the supply chain
  • Challenges in achieving net-zero deforestation
  • Risks to worker dignity in certain supply chains
Mitigation Strategies
  • Science-based targets for emissions reduction
  • Investments in renewable energy and energy efficiency
  • Waste reduction and diversion programs
  • Food waste reduction initiatives (donations, improved forecasting, etc.)
  • Collaboration with suppliers on deforestation-free sourcing
  • Responsible sourcing program with audits and supplier engagement

Supply Chain Management

Supplier Audits: More than 13,000 audit reports reviewed in FY2018

Responsible Procurement
  • Standards for Suppliers
  • Responsible Sourcing program
  • Project Gigaton

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Renewable energy
  • Energy efficiency

Reporting Standards

Frameworks Used: GRI, CDP, Science Based Targets initiative

Sustainable Products & Innovation

  • EDLTC products
  • Uniquely J brand

Awards & Recognition

  • Fleet Owner’s Green Fleet of the Year

Reporting Period: 2020-02 to 2022-01

Environmental Metrics

Renewable Energy Share:46% (as of end of 2021)

ESG Focus Areas

  • Opportunity
  • Sustainability
  • Community
  • Ethics and Integrity

Environmental Achievements

  • Generated 1,837,103 MWh of renewable energy and saved 771,898 metric tons of CO2e in CY2020; Generated 4,071,844 MWh of renewable energy and saved 1,968,463 metric tons of CO2e in CY2021
  • Diverted 5,124,180 tons of waste from landfill in CY2020, including 3,063,193 tons of cardboard and 112,404 tons of tires; Diverted 5,377,392 tons of waste from landfill in CY2021, including 3,170,954 tons of cardboard and 178,159 tons of tires
  • Protected 105,637 acres of natural habitat through Acres for America program in CY2020; Protected 227,121 acres of natural habitat through Acres for America program in CY2021

Social Achievements

  • Used minority- and women-owned firms as active bookrunners for the Green Bond issuance
  • Worked with Plug Power Inc. to scale the use of hydrogen-powered forklifts, growing the fleet from 50 in 2012 to over 9,500

Governance Achievements

  • Established a Sustainable Finance Committee to determine allocations of Green Bond proceeds
  • Received a second-party opinion on the Green Financing Framework pre-issuance from Sustainalytics
  • Annual reporting on Green Bond allocation with attestation from Ernst & Young

Climate Goals & Targets

Long-term Goals:
  • 100% renewable energy by 2035
  • Zero emissions target
Short-term Goals:
  • Power 50% of global operations with renewable energy by 2025

Environmental Challenges

  • Lack of ready solutions for zero-emission transportation
  • Industry challenges in obtaining certified waste weights
Mitigation Strategies
  • Investing in testing new technologies for sustainable transportation (e.g., hydrogen forklifts)
  • Estimating waste weights based on waste audits, historical data, and extrapolation for similar facilities

Supply Chain Management

Responsible Procurement
  • Project Gigaton initiative encouraging suppliers to switch to renewable energy

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: Green Bond Principles (2021)

Third-party Assurance: Ernst & Young LLP

Sustainable Products & Innovation

  • Commercial entrance mats made from recycled tires and PET bottles

Awards & Recognition

  • EPA Green Power Partnership Top 30 Retail Ranking (top retailer in terms of annual green power usage in the U.S. as of July 2022)

Reporting Period: FY2022 (ending January 31, 2022)

Environmental Metrics

ESG Focus Areas

  • Opportunity
  • Sustainability
  • Community
  • Ethics & Integrity

Environmental Achievements

  • Reduced combined scopes 1 and 2 emissions by 17.5% between 2015 and 2020.
  • More than 574 million metric tons of CO2e reduced or avoided cumulatively since 2017 through Project Gigaton™.
  • 78% of waste diverted from landfill and incineration globally in 2021.
  • 80% of Walmart U.S. and 84% of Sam's Club U.S. private brand food/consumables supplier-reported sales had How2Recycle labels in 2021.

Social Achievements

  • Increased average hourly wage to over $16.50 as of the end of FY2022.
  • 40% of U.S. management promotions went to people of color and 45% to women.
  • More than 72,000 associates enrolled in Live Better U since 2018; over 11,000 completed programs.
  • Over $13.3 billion in goods and services sourced from approximately 2,600 diverse suppliers for Walmart’s U.S. businesses in FY2022.
  • More than 18,000 U.S. associates volunteered more than 356,000 hours for local causes in FY2022.

Governance Achievements

  • Provided anti-corruption training to over 2 million associates.
  • New Code of Conduct in 2021 focused on acting with integrity.
  • Board of Directors includes 7 of 11 independent directors and 27% female representation in 2021.

Climate Goals & Targets

Long-term Goals:
  • Achieve zero emissions in operations by 2040.
Medium-term Goals:
  • Reduce absolute scopes 1 & 2 emissions by 65% by 2030 (vs. 2015 baseline).
  • Reduce food waste by 50% by 2030 (vs. 2016 baseline).
  • Help conserve, restore, or more sustainably manage at least 50 million acres of land and 1 million square miles of ocean by 2030.
  • Reduce private brand packaging by 15% by 2025 (vs. 2020 baseline).
Short-term Goals:
  • Reduce absolute scopes 1 & 2 emissions by 35% by 2025 (vs. 2015 baseline).
  • Achieve 90% waste diversion from landfill and incineration by 2025.
  • Achieve 100% How2Recycle label on Walmart U.S. private brand food and consumable products by 2022.

Environmental Challenges

  • Global shortages of post-consumer recycled content increased prices and reduced availability, impacting packaging goals.
  • Increased scope 1 emissions in 2020 due to increases in onsite refrigerant and transport fuel emissions.
Mitigation Strategies
  • Focusing on renewable energy procurement, energy efficiency, refrigeration, transportation and stationary fuels to reduce emissions.
  • Working to help suppliers secure additional supplies of post-consumer recycled content and implementing other packaging reduction strategies.

Supply Chain Management

Supplier Audits: Approximately 14,000 third-party audits of facilities in FY2022.

Responsible Procurement
  • Standards for Suppliers
  • Responsible Sourcing and Forced Labor Prevention policies
  • Project Gigaton™

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Renewable energy procurement, energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, CDP

Third-party Assurance: Third-party assurance for certain emissions information.

UN Sustainable Development Goals

  • Goal 12.3 (responsible consumption and production)

Food waste reduction goal aligned with SDG 12.3.

Reporting Period: FY2023

Environmental Metrics

Renewable Energy Share:46% (through 2021)

ESG Focus Areas

  • Opportunity
  • Sustainability
  • Community
  • Ethics & Integrity

Environmental Achievements

  • Decreased combined Scope 1 and 2 emissions by 23.2% (through 2021)
  • Increased percentage of electricity supplied by renewable sources to 46% (through 2021)
  • Achieved >750MMT CO2e reduced, avoided, or sequestered through Project Gigaton
  • 63% of global private brand packaging was recyclable, reusable, or industrially compostable

Social Achievements

  • Increased average total hourly compensation to >$21.75/hour
  • Enhanced engagement capabilities, including through digital Engagement Pulse Surveys and the MyFeedback portal
  • Connected U.S. frontline associates to career paths, with 88% of roles above entry level filled internally and >180,000 promotions
  • Sourced more than $13 billion from ~2,400 diverse suppliers to our U.S. businesses
  • Donated more than $1.7 billion in cash and in-kind donations globally
  • Reduced food waste 12% (vs. 2016 baseline); diverted >900M lbs. of food waste to composting, animal feed, anaerobic digestion, and biochemical processing; and donated >760M lbs. of food globally

Governance Achievements

  • Updated our Ethics & Compliance program to focus on nine core program foundations
  • Offered 29 languages on the 24/7 Walmart ethics helpline
  • More than 1.4 million associates globally completed Code of Conduct training
  • Walmart private fleet drivers drove more than 1 billion safe miles

Climate Goals & Targets

Long-term Goals:
  • Achieve zero emissions by 2040
  • Reduce, avoid, or sequester 1 billion metric tons of emissions through Project Gigaton by 2030
Medium-term Goals:
  • Build out EV fast-charging network to at least 10,000 chargers across 2,500+ Walmart and Sam’s Club locations in the U.S. by 2030

Environmental Challenges

  • Climate change impacts on supply chains
  • Waste management challenges
  • Maintaining ethical standards across a global supply chain
Mitigation Strategies
  • Project Gigaton to reduce emissions
  • Investing in renewable energy
  • Implementing circular economy initiatives
  • Strengthening ethics and compliance programs
  • Supplier audits and responsible sourcing standards

Supply Chain Management

Supplier Audits: ~13,100 third-party responsible sourcing facility audit reports

Responsible Procurement
  • Product specifications and sourcing policies
  • Certifications for sustainable commodities
  • Collaboration with suppliers and other stakeholders

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UN SDGs

Third-party Assurance: Lucideon CICS (for certain emissions-related information)

Sustainable Products & Innovation

  • Built for Better online shop
  • Relaunched Member’s Mark brand

Awards & Recognition

  • Fortune Change the World
  • One of America’s Top Corporations for Women’s Business Enterprises
  • 100% on the 2022 Human Rights Campaign’s Corporate Equality Index
  • 2022 Disability Equality Index
  • 2023 Bloomberg Gender Equality Index
  • 2023 DiversityInc Top 50 Companies for Diversity
  • EPA’s Green Power Partnership rankings
  • American Trucking Association’s National Truck Safety Award
  • 2022 Food Safety Innovation Award