Walmart's Environmental, Social and Governance (ESG) Report details on the company's goals, progress and achievements for fiscal year 2019 toward its commitment to increase economic opportunity for associates and local communities while building sustainability in its supply chain.
“It’s not enough to just serve one stakeholder group, the opportunity for business and their leadership is to add value for all stakeholders,” says 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.”
The report discusses progress in several areas such as:
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 percent reduction in Scopes 1 and 2 annual greenhouse gas emissions in 2017 compared with 2015.
- Project Gigaton - The company 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 percent renewable energy by 2025, 28 percent of Walmart’s electricity needs are supplied by renewable sources.
- Mitigating Waste - In 2018 in the U.S., Walmart diverted 81 percent 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 percent 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 percent 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 Inclusion - Thirty-one percent of Walmart’s corporate officers are women, 44 percent of associates with revenue responsibility are women and 57 percent of hourly promotions were women. Of the 800,000 Walmart U.S. store associates that have been through the Walmart Academy, 60 percent of those trained were women. Additionally, 34 percent of associates with revenue responsibility are people of color.
- 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.
“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.”