Walmart, the pioneering U.S. retailer, set an ambitious target to achieve zero emissions by 2040, without relying on carbon offsets. However, a recent news release from the retail giant indicates that it is likely to fall short of its greenhouse gas emissions reduction goals. The company had aimed to slash absolute scope 1 and 2 GHG emissions by 35% by 2025 and by 65% by 2030 from 2015 levels, but the path to these targets now appears uncertain. Walmart admitted, “We anticipate achieving our near-and mid-term emissions reduction targets later than our 2025 and 2030 target dates.”
By the end of 2023, Walmart managed to reduce its operational emissions (Scopes 1 and 2) by 19.3% compared to its 2015 baseline, with a commendable 45% decrease in carbon intensity during the same period. However, despite these strides, annual emissions in 2023 saw a 3.9% increase, leading to the company revising its original target. This rise underscores the challenges of balancing business expansion with sustainability.
External factors emerged as significant hurdles in Walmart’s sustainability journey. The company identified three key factors contributing to the emission increase: pollution from outdated refrigeration equipment, fuel emissions from U.S. transportation including fleet expansion and route changes, and slow adoption of renewable energy compared to business growth. These challenges highlight the complexities of transitioning to a low-carbon future.
Walmart recognizes that achieving its net zero emissions goals will not be a straightforward path, with obstacles arising from business growth and external influences. While the company remains committed to its 2040 net zero emission target, it acknowledges that meeting interim goals may require more time. Walmart emphasized the critical role of policies and infrastructure in driving emissions reductions across global markets, particularly in areas such as refrigeration systems and transportation.
In its efforts to increase renewable energy adoption, Walmart aims to power 50% of its operations with renewables by 2025 and achieve 100% by 2035. The company made significant progress in this area, with 48% of its electricity sourced from renewables last year. Walmart is actively pursuing the addition of 1 GW of solar and storage capacity by 2030, building on existing projects and partnerships to drive down Scope 2 emissions. The company’s flagship initiative, “Project Gigaton,” surpassed its emission mitigation target six years ahead of schedule, underscoring the importance of collaboration with suppliers and ongoing innovation.
Refrigerant emissions emerged as a significant contributor to Walmart’s Scope 1 emissions, primarily due to leaks in aging equipment. To address this, Walmart is implementing measures such as annual preventive maintenance, technician training, leak detection using machine learning, and transitioning to low-GWP refrigerants in facilities. Over 290 U.S. locations now utilize ultra-low GWP alternatives like CO2 and ammonia, demonstrating the company’s commitment to reducing its environmental footprint.
Walmart’s commitment to supporting electric vehicle (EV) adoption is evident in its plans to establish an EV fast-charging network at thousands of U.S. stores and Sam’s Clubs by 2030. This initiative, coupled with the existing 1,300 chargers at 280 locations, aims to enhance accessibility and convenience for EV users. The company’s focus on zero-emission vehicles in its supply chain, including EV deliveries for customers, reflects its dedication to sustainable practices despite potential challenges in meeting its net zero emissions target.
As Walmart navigates the complexities of sustainability and business growth, it remains steadfast in its commitment to achieving a net zero emissions goal by 2040. The company’s efforts to implement affordable low-carbon solutions, advocate for strong policies, and enhance infrastructure underscore its dedication to building a sustainable future for all.
