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 emissionsi

and 6.1% reduction in Scopes 1 and 2 annual greenhouse gas emissions in

2017ii

 

John Jannarone, CorpGov.com

via Yahoo Finance/Walmart Media Release - May 8, 2019

 

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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