Walmart suppliers help deliver Project Gigaton goal more than 6 years early
Walmart has achieved a milestone in its efforts to reduce greenhouse gas emissions earlier than expected, thanks to its suppliers, according to a post on the retailer's website from Kathleen McLaughlin, executive vice president and chief sustainability officer, Walmart and president of the Walmart Foundation.
McLaughlin noted that in 2017, Walmart announced a bold ambition to work with its suppliers to reduce, avoid or sequester 1 gigaton — that’s 1 billion metric tons — of greenhouse gas emissions in product value chains by 2030.
"We called it Project Gigaton," McLaughlin said. "Our merchants and suppliers got to work — project by project, year by year, on practical things like energy efficiency, packaging redesign, food waste reduction and trucking load optimization. Today, I am thrilled to announce that our suppliers have now reported projects that are expected to exceed that 1 billion metric ton mark — helping us reach our goal six years early."
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McLaughlin provided several factors that were important for achieving this goal:
Science-based goals and actions: "From the beginning and throughout, we looked to scientists and product value chain experts, including World Wildlife Fund, Environmental Defense Fund, World Resources Institute and CDP, for advice on how to estimate emissions, set a pace for reductions, identify ways to lower emissions and provide resources to build supplier capability in emissions reduction and measurement."
Customer and supplier benefits: "The fact that our suppliers achieved such an ambitious goal so early is a testament to the positive customer and supplier business impact of innovative climate action. So often, the projects that reduce emissions are also the projects that enhance resilience, reduce cost, improve quality and create innovative new products for our customers."
Immediate and sustained action: "When we launched Project Gigaton in 2017, we designed the initiative to catalyze immediate, significant and sustained action. From the beginning, we asked our suppliers to set concrete goals for emissions reduction based on science-based, practical projects focused on the most relevant sources of emissions in their product value chains, such as energy use or agricultural practices."
Ease for suppliers: "We designed the program to accommodate suppliers who vary in their readiness and capability of undertaking intensive GHG reduction efforts – from small single category suppliers to multicategory ones. We have provided a wide range of support to build confidence and capability in mitigating emissions, from goal-setting to action to reporting. For example, we held best-practice sharing summits, built resources such as the Circular Connector and Factory Energy Efficiency tools, and developed programs such as Gigaton PPA to extend renewable energy procurement for suppliers."
Continuous improvement: "Every year we reengage suppliers and we repeatedly raise the bar for achieving what we call 'Giga Guru' status – excellence in target setting, action and results. For example, we recently asked suppliers to begin reporting their complete operational emissions footprint to Walmart, in addition to setting targets and reporting results of emissions improvement projects."
Industry-wide innovation: "To date, Project Gigaton is one of the largest private sector consortia of its kind with over 5,900 of our suppliers signed up since launching in 2017. And in FY23, reporting suppliers represented approximately 75% of U.S. product net sales dollars. By engaging and supporting thousands of suppliers who span product categories and regions around the world, we aim to spark innovation in practices and infrastructure that can accelerate and expand emissions reduction and avoidance across the industry."
"We will continue Project Gigaton — because as a society we have a long way to go," McLaughlin said. "Building a net zero emissions future will require a massive transition in our world’s energy and transport systems, materials and infrastructure. At Walmart we like to spend a minute celebrating success and then get on with doing something even better. So we are working to improve and expand Project Gigaton for the benefit of our customers, suppliers and the planet while staying the course toward our goal of zero operational emissions — Scopes 1 and 2 — by 2040."
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For example, McLaughlin said Walmart is enhancing estimates of its Scope 3 footprint, informed by emerging greenhouse gas standards and guidance. Walmart also is assessing which elements of its Scope 3 footprint are addressable and which elements are largely outside its control, which reductions can be achieved through low cost interventions and which ones are expensive or not feasible through today’s technology. "Such assessments will inform key actions and priorities for research into new ways to mitigate emissions, as well as our Scope 3 footprint targets."
Lastly, McLaughlin said, "We hope Project Gigaton will continue to set the standard for corporate climate action — because a more sustainable supply chain is a more resilient one. A more resilient supply chain isn’t just better for our business, it’s better for people, communities and the planet."