Walmart was the first U.S. retailer to make a zero-emissions commitment by 2040, without relying on carbon offsets. However, the company’s latest news release revealed that the retail giant is most likely to miss its greenhouse gas emissions targets. It aimed to cut absolute scope 1 and 2 GHG emissions by 35% by 2025 and by 65% by 2030 from 2015 levels. But these numbers now look foggy.
The company revealed,
“We anticipate achieving our near-and mid-term emissions reduction targets later than our 2025 and 2030 target dates.”
Walmart’s Operational Emissions: Gains and Setbacks
By the end of 2023, Walmart reduced its operational emissions (Scopes 1 and 2) by 19.3% compared to its 2015 baseline. Its carbon intensity declined by an impressive 45% in the same timeline. But despite these long-term gains, annual emissions in 2023 increased by 3.9%. This rise became the reason behind Walmart pushing its pre-determined target.
Most importantly, it showcased the challenges of balancing commercial expansion with sustainability.
Source: Walmart
What Slowed Walmart’s Progress?
Coming to the analysis directly, external factors played a significant role in stalling the retail giant’s sustainability journey. The three factors that Walmart has cited led to the rise in emissions were:
- Pollution from old and aging refrigeration equipment
- Fuel emissions from transportation in the U.S., including fleet expansion and third-party route changes.
- Slow adoption of renewable energy compared to its business growth.
Out with the Old, In with the New
The company has realized that achieving its net zero goals won’t be a straight path. There will be inevitable hurdles due to business growth and external factors. While the company will continue with its 2040 net zero emission goals, its interim targets might take longer to achieve.
Walmart’s statement stressed that curbing emissions relies on policies and infrastructure across global markets. For instance, reducing refrigeration emissions and HVAC systems or reducing emissions in heavy transportation require systemic solutions.
Additionally, broader sectoral shifts in transportation, materials, and agriculture can significantly reduce value chain emissions.
Source: Walmart
Renewable Energy Adoption
Walmart wants to power 50% of its operations with renewables by 2025 and 100% by 2035. Notably last year, 48% of its electricity came from renewable sources, with 30% directly procured through contracts.
The strategies to further bring down Scope 2 emissions are:
- Add 1 GW of solar and storage capacity by 2030, building on 600 projects already in progress.
- Since 2020, Walmart has facilitated over 2 GW of renewable projects through Power Purchase Agreements and is exploring international investments.
The company also reached a major milestone with its flagship “Project Gigaton” through which it aims to mitigate 1 billion metric tons of emissions in its value chain by 2030. The best part they achieved it six years early. Notably, the company credits supplier partnerships and continued innovation for this success.
Despite progress, achieving these goals depends on accessing renewable capacity, especially in international markets with regulatory challenges. The company is working to unlock opportunities but faces uncertainties in some regions.
Tackling Refrigerant Emissions
Refrigerant emissions accounted for 55% of Walmart’s Scope 1 emissions in 2023 mostly due to leaks in aging equipment. To address this, Walmart is working on:
- Annual preventive maintenance of the equipment, technician training, machine learning for detection of leaks, and reusing gases.
- Upgrading systems by transitioning to low-GWP refrigerants in new and existing facilities. Over 290 U.S. locations now use ultra-low GWP alternatives like CO2 and ammonia.
- Advocating policy changes and supporting legislation to phase out high-GWP refrigerants.
These efforts are a part of their continued progress aligned to equipment upgrades and technology availability.
Source: Walmart
Supporting EV Adoption
Walmart plans to build an EV fast-charging network at thousands of U.S. stores and Sam’s Clubs by 2030. This will be an addition to its existing 1,300 chargers at 280 locations. The company’s stats show that with 90% of Americans living within 10 miles of a Walmart, the initiative will make EVs more accessible and convenient.
Drivers can shop while charging- which shows how convenient that would be for customers. Additionally, they are testing zero-emission vehicles in its supply chain, with EV deliveries already in place for many customers.
Thus, despite challenges related to a possible delay in achieving its net zero emissions target, Walmart stays committed to its 2040 goal. This will require affordable low-carbon solutions, strong policies, and better infrastructure for a sustainable future.
