Walmart missed its latest emissions reduction goal: 3 reasons why

Walmart, the world’s biggest retailer, disclosed a 3.9 percent increase in greenhouse gas emissions for its own operations in 2023, blaming business growth and factors such as aging refrigerators and a higher transportation footprint.

As a result, Walmart is unlikely to meet its 2025 and 2030 interim targets, the company revealed Dec. 18. In 2025, the company will consider revising its goals “based on the best available information and assumptions at that time.” Walmart is the second large company, along with Coca-Cola, to offer an update on its climate goals in December.

“While we continue to work towards our aspiration of zero emissions by 2040, progress will not be linear,” Walmart said in a statement. “Our trajectory and challenges related to energy policy, infrastructure and the availability of cost-effective low-carbon technologies will likely delay achievement of our interim 2025 and 2030 goals.”

Walmart pledged in 2020 to reduce its Scope 1 and 2 emissions by 35 percent by 2025 and by 65 percent by 2030.

Walmart’s revelation pertains to Scope 1 and Scope 2 emissions, generated by its vast retail and distribution network and for its purchased electricity. That footprint was 15.06 million metric tons of carbon dioxide equivalent.  

• Cumulatively speaking, Walmart has cut Scope 1 and 2 emissions by 19.3 percent against its 2015 baseline.
• Another bright spot: Walmart reduced its emissions intensity per million dollars of revenue by 45 percent in the same time frame.

Source: Walmart

Time for new refrigerators

The retailer was, in part, a victim of its own success. Walmart grew sales almost 7 percent to $534 billion in 2023. It’s calling for growth of 4.9-5.1 percent for its current fiscal year, which ends Jan. 31, which will doubtless present a similar challenge as 2023.

Walmart also pointed to three other big factors that are inhibiting its ability to reduce greenhouse gas emissions faster.

• Aging “high-emitting” refrigeration equipment, which contributes almost 55 percent of Walmart’s Scope 1 and 2.
• An increase in transportation-related emissions when Walmart took over certain fleet operations from third parties. (Transport fuel accounts for almost 25 percent of its footprint.)
• A slowdown in renewable electricity procurement: 48 percent of Walmart’s operational load is matched by solar, wind or other sources. It signed power purchase agreements for more than 2 gigawatts between 2020 and 2023, and aims to contract for 10 more gigawatts between now and the end of the decade.

It’s also leery about the future of regulations and market incentives. “Public policies may not support actions aligned with Walmart’s targets and aspirations, including by not encouraging the development and deployment of low-carbon or low-emissions technologies at scale and/or that negatively impact the supply or cost of renewable energy projects at scale,” the company said.

An update on Project Gigaton

Walmart doesn’t report Scope 3 emissions for its Supply in a traditional way. Instead, it talks up the “avoided” impact of its Project Gigaton initiative, which engages with the company’s suppliers on factory efficiency improvements, packaging reductions and other measures that can cut greenhouse gas emissions.

It met the original goal of Project Gigaton — cuts of 1 billion metric tons from its supply chain — earlier this year. More than 3,500 Walmart suppliers, representing 77 percent of U.S. sales, are participants, compared with 3,000 one year ago.

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