Walmart has long been a driving force in the retail industry, and its commitment to sustainability is no exception. As one of the world’s largest retailers, Walmart is influencing entire supply chains by setting ambitious sustainability goals that directly impact its suppliers (brands). If your company sells products to Walmart or hopes to do so, understanding and aligning with these sustainability objectives is crucial for long-term success, customer loyalty, and risk mitigation.
Walmart’s Sustainability (ESG) Goals
Walmart’s sustainability initiatives are driven by its larger mission to become a regenerative company. This means going beyond reducing harm and actively restoring and improving environmental and social conditions. Key sustainability (ESG) priorities that suppliers should be aware of include:
1. Project Gigaton: Climate & Reducing Greenhouse Gas Emissions
Walmart launched Project Gigaton with the aim of reducing or avoiding one billion metric tons of greenhouse gas (GHG) emissions across its global value chain by 2030. Suppliers are encouraged to join the initiative and set their own emissions reduction targets in six key areas:
- Energy
- Agriculture
- Waste
- Packaging
- Deforestation
- Product use
What Brands Should Know: If your brand sells to Walmart, you can increase your competitive advantage, increase customer loyalty, and mitigate risks by measuring your company’s scopes 1-3 greenhouse gas (GHG) emissions, setting science-based targets for reducing GHG emissions, and a Climate Action Plan for achieving your reduction goals. Check out our GHG Management Services.
2. Zero Waste in Operations, Products & Packaging
Walmart aims to achieve zero operational waste in its U.S. stores and reduce waste across its supply chain. Suppliers should consider:
- Reducing food waste
- Offering take-back or recycling programs
- Designing products with end-of-life solutions in mind
Walmart is pushing for a shift toward more sustainable packaging. The company expects suppliers to:
- Design for recyclability
- Reduce unnecessary packaging
- Eliminate problematic plastics
- Use post-consumer recycled (PCR) content where possible
- Provide clear labeling for consumer recycling guidance
What Brands Should Know: If your brand sells to Walmart, you can increase your competitive advantage, increase customer loyalty, and mitigate risks by reducing the amount of non-recyclable packaging being sent to Walmart, as well as providing packaging that is made from recycled materials and is 100% recyclable, your brand can not only minimize EPR for Packaging fees, but also reduce your carbon footprint. Check out our Waste Management Services.
3. Sustainable Products and Responsible Sourcing
Walmart prioritizes products that are sustainably sourced and responsibly produced. Suppliers should be prepared to:
- Adhere to Walmart’s Responsible Sourcing Standards
- Use third-party sustainability certifications (e.g., FSC, Fair Trade, Organic, etc.)
- Ensure ethical labor practices in their supply chain
- Produce more responsible and sustainable products
What Brands Should Know: If your brand sells to Walmart, you can increase your competitive advantage, increase customer loyalty, and mitigate risks by engaging with your supply chain to gain a better understanding of their social and environmental performance. For example, you will need to collect social and environmental data to do everything from measuring your brands scope 3 GHG emissions to ensuring that your supply chain is ethical. Learn more about our Sustainability Consulting Services.
4. Regeneration of Natural Resources: Forests, Land, Oceans
Walmart encourages suppliers to consider the impact of their business operations and supply chain on nature. Suppliers should be prepared to:
- Conserve and restore nature
What Brands Should Know: If your brand sells to Walmart, you can increase your competitive advantage, increase customer loyalty, and mitigate risks by setting Science Based Targets for Nature (SBTN). Emerger Strategies is now guiding companies in setting science-based targets for nature, ensuring that businesses can comprehensively address their environmental impacts across biodiversity, land, freshwater, and ocean systems, in addition to climate through the Science Based Targets initiative (SBTi). To learn more, check out Sustainability Consulting Services.
Why This Matters for Suppliers
Compliance with Retailer Expectations
Retailers like Walmart are setting sustainability requirements that suppliers must meet to maintain partnerships and shelf space. Understanding these goals ensures continued business relationships.
Consumer Demand for Sustainability
Customers are increasingly making purchasing decisions based on sustainability factors. Suppliers that align with Walmart’s goals are more likely to appeal to environmentally conscious consumers.
Competitive Advantage
Demonstrating leadership in sustainability can differentiate your brand from competitors and open doors to new retail and partnership opportunities.
Regulatory Readiness
Sustainability regulations are tightening worldwide. Aligning with Walmart’s goals can help your company stay ahead of regulatory changes related to carbon emissions, waste reduction, and ethical sourcing.
How Suppliers Can Align with Walmart’s Sustainability Goals
- Measure and Reduce Carbon Emissions – Participate in Project Gigaton by calculating your Scope 1, 2, and 3 emissions and setting reduction targets.
- Improve Packaging Sustainability – Transition to recyclable, compostable, or reusable materials and reduce packaging waste.
- Certify Sustainable Sourcing – Obtain third-party certifications that verify ethical and sustainable sourcing practices.
- Minimize Waste – Develop strategies to reduce waste in production, distribution, and product end-of-life.
- Enhance Transparency – Report sustainability progress to Walmart through platforms like the Walmart Sustainability Hub or CDP.
Need Help Meeting Walmart’s Sustainability Goals?
Navigating Walmart’s sustainability expectations can be complex, but suppliers don’t have to do it alone. At Emerger Strategies, we specialize in helping businesses measure, improve, and communicate their sustainability performance. Whether you need assistance with carbon accounting, sustainable packaging, or supply chain optimization, we can help you align with Walmart’s requirements while making the business case for sustainability. Learn more about our Sustainability Consulting Services.
Contact us today to learn how we can help your company meet Walmart’s sustainability goals and gain a competitive edge.
By understanding and implementing Walmart’s sustainability goals, suppliers can not only maintain their retail partnerships but also future-proof their businesses against evolving consumer and regulatory demands. Sustainability isn’t just good for the planet—it’s good for business.
