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Walmart on Track to Reduce 1 Billion Metric Tons of Emission from Global Supply Chains by 2030
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Walmart on Track to Reduce 1 Billion Metric Tons of Emission from Global Supply Chains by 2030

Inaugural Environmental, Social and Governance Report (ESG) outlines
how Walmart drives change in the industry and creates shared value

Retailer achieves significant progress in ESG efforts, including 93
million metric ton reduction of supplier emissions
i
and 6.1% reduction in Scopes 1 and 2 annual greenhouse gas emissions in
2017
ii

BENTONVILLE, Ark.–(BUSINESS WIRE)–Walmart Inc. (NYSE: WMT) today 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.

Walmart is disclosing progress to date in several areas including:

Activating Climate Change Initiatives

  • Climate Change Impact Scenario Analysis – 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.iii
  • Project Gigaton – 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.
  • Using Renewable Energy – 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.iv
  • Mitigating Waste – 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

  • Human Rights – The ESG Report includes a discussion of salient
    human rights issues and progress on related initiatives within the
    company and through collective action, building on the human rights
    statement the company published last year bringing together in one
    place the company’s perspective on respecting human rights in its
    operations and 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.
  • Sustainability Index – 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.

Increasing Economic Opportunity for Associates

  • Advancing Economic Mobility – Walmart promoted more than
    215,000 people to jobs of greater responsibility and higher pay in
    Walmart U.S. stores in FY2019.
  • Fostering Inclusionv – 31% of Walmart’s
    corporate officers are women, 44% of associates with revenue
    responsibility are women and 57% of hourly promotions were women. Of
    the 800,000 Walmart U.S. store associates that have been through the
    Walmart Academy, 60% of those trained were women. Additionally, 34% of
    associates with revenue responsibility are people of color.vi
  • Wages and Benefits – Walmart is committed to the economic
    mobility of its associates and has shared that the average total
    compensation and benefits for a full-time, hourly field associate in
    Walmart U.S. stores is $19.31 as of March 2019.vii

“It’s not enough to just serve one stakeholder group, the opportunity
for business and their leadership is to add value for all stakeholders,”
said Doug McMillon, CEO of Walmart. “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.”

“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. “We’re engaged in efforts to source responsibly,
create economic opportunity for retail associates and people working in
supply chains, take action on climate change, and help improve
sustainability of the products we sell. We believe business exists to
serve society, and that when business engages to be part of the solution
not only can we help accelerate progress in the world, we make our
business better, too.”

Walmart’s ESG report is a newly-focused and streamlined update on how
the company approaches key issues facing society and initiatives across
its business segments that make a difference in both the communities it
operates and the world. In addition to the ESG report, Walmart also
announced today the release of its annual
update
on ethics and compliance which focuses on enhancements the
company has made to its Global Ethics and Compliance Program over the
years, as well as the launch of Walmart.org,
a new website featuring the philanthropic efforts of Walmart and the
Walmart Foundation.

Walmart’s ESG report is available at Walmart.com/ESGreport

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and
live better – anytime and anywhere – in retail stores, online, and
through their mobile devices. Each week, over 275 million customers and
members visit our more than 11,300 stores under 58 banners in 27
countries and eCommerce websites. With fiscal year 2019 revenue of
$514.4 billion, Walmart employs over 2.2 million associates worldwide.
Walmart continues to be a leader in sustainability, corporate
philanthropy and employment opportunity. Additional information about
Walmart can be found by visiting http://corporate.walmart.com,
on Facebook at http://facebook.com/walmart
and on Twitter at http://twitter.com/walmart.

i We previously reported year one results as “more than 20
million metric tons”; the exact figure was 21,518,699 metric tons, plus
13,233,733 of “roll-forward” emissions which were not publicly reported
and are retroactively being added to the year one total in line with the
clarified temporal allocation procedures described in the Project
Gigaton Accounting Methodology
.

ii Decline in emissions (Scope 1 and 2) between 2015 and
2017, is adjusted for most recent grid factors. On an unadjusted basis
(as reported to CDP, using grid factors available in the year of
reporting), the decline was 11.2%. Measurement accounts for changes in
majority-owned subsidiaries over time through corresponding adjustments
to baseline and year of measurement.

iii Decline in emissions (Scope 1 and 2) between 2015 and
2017, is adjusted for most recent grid factors. On an unadjusted basis
(as reported to CDP, using grid factors available in the year of
reporting), the decline was 11.2%. Measurement accounts for changes in
majority-owned subsidiaries over time through corresponding adjustments
to baseline and year of measurement.

iv This considers the combined contribution of the renewable
energy credits and power generated from onsite and offsite projects as
well as renewable energy that we receive from utility-owned renewable
generation feeding into the grids where our sites are located. At the
time this report was prepared, calendar year 2017 was the most recent
year for which we have third-party-verified energy consumption data.
This was used in combination with the electricity procured from our
renewable energy projects in 2018 and the most recent grid fuel mix
information obtained from the International Energy Agency for the
regions where we operate.

v Diversity & inclusion numbers are calculated based upon
total U.S. workforce, including associates in the U.S. regardless of
whether assigned to subsidiary that owns or operates an ecommerce
business, platform and/or marketplace.

vi Individuals with revenue producing responsibility are
those U.S. corporate and field managers with P&L responsibilities.

vii Based upon average hourly wage calculated for full time
associates assigned to Walmart U.S. stores, excluding Health and
Wellness, as of March 15, 2019, plus value of FY2019 benefits.

Contacts

Walmart Media Relations
Blair Cromwell, 1-800-331-0085
news.walmart.com/reporter

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