Walmart has reduced its operational greenhouse gas emissions by 25% compared to 2015 levels, according to its FY2026 ESG Report, while continuing to expand its business through e-commerce growth and artificial intelligence investments. The retailer currently serves 280 million customers weekly, with their first quarter fiscal 2027 results showing continued business growth alongside its environmental progress.
The emissions reductions were achieved through several operational changes, including transitioning more than half of Walmart’s global operations to renewable electricity, upgrades to in-store refrigeration systems, and improvements in energy efficiency across its store network. The company is also testing electric and hydrogen-powered trucks as part of efforts to reduce transportation emissions. These measures form part of Walmart’s broader commitment to reaching zero emissions across its operations by 2040.
Supply Chain Emissions Remain the Central Challenge
Despite progress on operational emissions, Walmart’s most significant environmental challenge lies within its supply chain. The company estimates that approximately 98% of its total emissions stem from the products it purchases, manufactures, and transports—a scope 3 emissions challenge that requires coordinated action across thousands of global suppliers.
To address this, Walmart launched Project Gigaton, an initiative designed to encourage suppliers to reduce emissions across manufacturing, farming, packaging, and transportation. Since the program’s launch in 2017, participating suppliers have collectively reported avoiding or reducing nearly 1.4 billion metric tons of greenhouse gases — a figure that underscores the potential scale of impact when large retailers leverage their supply chain relationships for climate action.
The retailer’s ability to demonstrate simultaneous business growth and emissions reduction challenges a common assumption that environmental responsibility comes at the cost of commercial performance. As one of the world’s largest retailers with operations spanning multiple countries, Walmart’s progress on emissions reduction carries significant implications for how large-scale retail businesses approach sustainability commitments, particularly in engaging their broader supplier networks on climate targets.
