Walmart Cites Barriers in Clean Technology as Climate Goals Face Delays

BENTONVILLE, Arche, 20 December 2024 – Walmart announced that he hoped to lose ​his short-term climate goals, citing challenges such as the availability of affordable clean technologies and structural inefficiencies in ​energy infrastructure. While the ​retail giant remains determined not ​to issue operational emissions by 2040, this delay highlights the complexity of implementing large-scale environmental initiatives in global operations.

Progress ​towards long-term ​goals, but short-term challenges

Despite the setbacks, ​Walmart has made measurable progress in its ​sustainability path. The company reported a 19.3 per cent reduction in operational greenhouse gas (GHG) emissions ​since 2015, while the carbon intensity per dollar of revenue decreased ​by 45 per cent. However, Walmart’s 2023 operational emissions increased by 3.9 per cent during the ​year, reflecting business growth and reliance on ​aging and high-emission ​equipment. According to ​Walmart, these increases ​have prevented ​the achievement of their interim GHG absolute emission reduction targets by 35% by ​2025 and ​65% by 2030.

The use of renewable energy, another ​key parameter in Walmart’s sustainable development framework, represented 48% of the company’s global electricity needs in 2023. This puts Walmart on track to ​reach its target of ​50% renewable energy by ​2025, but highlights broader challenges in the field ​of renewable energy projects globally, particularly in regions with restrictive regulatory environments.

Structural challenges and external units

Walmart noted that external factors have a significant impact on their ability to achieve climate goals. These include energy policies, the availability of low-cost ​clean technologies and sectoral transitions in energy systems, transport ​and materials. For example, ​the ​high cost and limited availability of ​refrigeration and transport technologies for heavy tractors with low ​global ​warming potential remain major obstacles. According to Walmart, cost-effective solutions for these ​technologies are unlikely to appear before the ​2030s.

The company also faces regional disparities in access to renewable ​energy. In some international markets, local ​policies and infrastructure hinder the development of renewable energy capacities. “Our ​ability to achieve these goals is to overcome external barriers and implement internal initiatives,” says Walmart’s spokesperson on sustainability.

Supply chain achievements

On ​the supply chain front, Walmart welcomes ​the early ​achievement of ​its ​ambitious Gigaton project objective. Launched in 2016, ​this initiative aimed to reduce, avoid or sequester 1 billion tonnes of GHGs from the global value chain by 2030. Participating ​suppliers reported ​cumulative reductions that exceeded the gigaton threshold in 2024, six years prior to programming. ​Over 3,500 suppliers participated in the program, representing 77% of the U.S. Walmart ​net sales ​in 2023.

However, Walmart noted that supply ​chain emissions remain complex to quantify and mitigate, requiring coordinated action between industries, governments and civil society. Transformation of agricultural practices, optimisation of ​transport networks and innovation in product design ​are ​essential for progress.

Adaptation and advocacy for climate action

Walmart’s climate strategy extends beyond emission reductions to include adaptation ​and ​promotion. The company’s Global Emergency Management (EMM) team monitors the ​risks of extreme weather ​events using predictive data to increase resilience in all operations. ​For example, Walmart uses ​climate data to prepare for hurricanes and other disasters, ​minimizing disruption to its supply chain and services.

Lawyers also play a central role ​in Walmart’s approach. Society supports policies aligned with the Paris Agreement 1.5 ° C Railway, including those that promote renewable energy and transport innovation. Walmart ​has actively participated in initiatives such ​as ​the Inflation ​Reduction ​Act, which encourages the commercialization of clean ​energy and the development of EV freight infrastructure.

Looking forward: The road to zero emission

Despite the obstacles, Walmart remains firm in its ​zero emission vision by 2040. The main concerns are the increase ​in the use of renewable energy to 100 per cent ​by 2035, the increase in energy efficiency in operations and the transition to low-emission transport fleets. Walmart has committed to deploy 1 gigavatio (GW) of new ​clean energy capacity by 2030 and has already launched ​more than ​600 renewable energy projects worldwide.

Operational effectiveness ​is also a priority. Walmart improves aging and HVAC ​cooling systems to reduce emissions and energy costs. In the field of transport, the company is exploring low-carbon solutions for ​long-distance trucks, although evolving technologies are still under development.

Summary of key actions

Walmart’s progress is highlighted by a number of key performance indicators:

• Operational emissions reduced by 19.3% ​since 2015.
• Carbon intensity per ​dollar ​of revenue decreased by 45%.
• Renewable energy met 48% of global ​electricity needs ​in 2023.
• Over 1 billion metric tons ​of GHG emissions reduced in supply chains under Project Gigaton.

While the company plans to review ​its interim targets by 2025, ​these achievements underscore Walmart’s commitment to ​leadership in climate action, even in the midst of significant challenges.

“Climate change is a common challenge that requires collective solutions,” said Walmart’s sustainable development team. “As we continue our journey, we remain focused on the balance between ambition and the ​realities of global operations and technological progress. »