Walmart on Track to Reduce 1 Billion Metric Tons of Emission from Global Supply Chains by 2030
May 08 2019 - 8:08AM
Business Wire
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
emissionsi and 6.1% reduction in Scopes 1 and 2 annual greenhouse
gas emissions in 2017ii
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.
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Walmart Media RelationsBlair Cromwell,
1-800-331-0085news.walmart.com/reporter
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