Walmart on Track to Reduce 1 Billion Metric Tons of Emissions from Global Supply Chains by 2030
Walmart Inc. issued its inaugural Environmental, Social and Governance (ESG) Report, which details the company’s goals, progress and achievements for fiscal year 2019 toward its commitment to increase economic opportunity for associates and local communities, build sustainability in supply chains and activate climate change initiatives. “Throughout Walmart’s history, we have understood that for a business to last, it must have a fundamental reason for being, which is found in the value it creates for all – customers, associates, communities, shareholders, suppliers, future generations, and the planet,” stated- Doug McMillon, CEO of Walmart.
Activating Climate Change Initiatives
Walmart worked with an independent third-party consultant to better understand the nature of climate change and potential implications for the retail sector aiming to align with the scenario guidance set forth by the Task Force on Climate-related Financial Disclosures. Reducing Greenhouse Gas Emissions – Walmart reports a 6.1% reduction in Scopes 1 and 2 annual greenhouse gas emissions in 2017 compared with 2015.
Walmart made advancements on its Project Gigaton goals with suppliers reporting avoiding more than 93 million metric tons of emissions over the last two years. Launched in 2017, Project Gigaton is a global effort that invites suppliers to join Walmart in a commitment to avoid 1 billion metric tons of emissions in the company’s collective value chains by 2030. As part of Walmart’s goal of being supplied by 50% renewable energy by 2025, 28% of Walmart’s electricity needs are supplied by renewable sources.
In 2018 in the U.S., Walmart diverted 81% of unsold products, packaging and other waste materials from landfills. Walmart also recycled more than 430 million pounds of plastic film and rigid plastics globally.
Enhancing Sustainability in Supply Chains
Sourcing Responsibly – To help address worker safety issues in the Bangladesh ready-made garment industry, Walmart became a founding member of the Alliance for Bangladesh Worker Safety in 2013. The Alliance concluded its five-year commitment on December 31, 2018, and we have seen significant progress, including 90% of high-priority remediation items completed across all factories affiliated with the Alliance.
As of the end of FY2019, Walmart achieved a supplier Sustainability Index participation rate that covers 80% of the goods Walmart sells in U.S. stores and Sam’s Club locations for categories where the Sustainability Index is available.
“Through ESG initiatives, our goal is not only minimizing our own footprint or mitigating risk, but to inspire collective action to help transform the sector for long-term environmental, social and economic sustainability,” said Kathleen McLaughlin, Walmart’s Chief Sustainability Officer.
Source: Walmart Headquarters- Bentonville, Arkansas, United States
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