Walmart Commits to Reduce Emissions by 50 Million Metric Tons in China
Company unveils sustainability roadmap to engage its Chinese suppliers, seeks to reduce emissions equivalent
to the average annual electricity consumption for 40 million Chinese households
Today Walmart announced a goal to reduce greenhouse gas emissions in its China value chain by 50 million metric tons (MMT) by
2030 – equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. To
do this, the company aims to enroll all of its export and domestic suppliers in China, starting with 100 of its top suppliers, into
an emissions reduction program. Walmart president and CEO Doug McMillon announced the China launch of the program, called Project
Gigaton, in a speech at Tsinghua University.
“As a global company, we are proud to use our reach to help create a more sustainable future, for our customers, associates, and
the communities we serve,” said McMillon. “We believe that business can accelerate environmental progress while delivering economic
growth. That’s why we’re committed to taking a shared value approach to our work in China and around the world.”
McMillon delivered the speech to professors, students, Walmart associates, suppliers and NGO representatives at the Tsinghua
Forum, the University’s renowned lectureship series. Expanding Project Gigaton into China is part of Walmart’s global approach to
sustainability, in which China plays an important role.
Walmart was the first retailer to set an emissions-reduction plan approved by the Science Based Targets initiative and Project
Gigaton falls under this plan, in alignment with the Paris Climate Agreement. Through Project Gigaton, Walmart aims to work with
its suppliers to reduce emissions in its global value chain by one billion metric tons – a gigaton – by 2030, equal to the
emissions from more than 211 million average passenger vehicles in a year. The 50 MMT emissions reduction target in China is part
of this goal.
“Walmart has a rich history of collaboration with key stakeholders in China and we’re excited to bring our latest sustainability
initiative, Project Gigaton, to China,” said Wern-Yuen Tan, president and CEO of Walmart China. “Integrating more sustainable
practices into our operations, resource management and sourcing efforts can spur technological innovation, inspire brand loyalty
and increase associate engagement.”
Over 400 suppliers in China, India, the U.S. and other countries have joined Project Gigaton and Walmart plans to continue to
expand the program. To help provide resources to suppliers in China, Walmart has created a digital resource center in Mandarin and
English with tools, case studies, and program resources on emissions reduction in the value chain: www.walmartsustainabilityhub.com .
Enhancing energy efficiency
China’s Project Gigaton goal builds upon Walmart’s longstanding Factory Energy Efficiency Program through which the company is
working with its suppliers in China to promote energy efficiency. Walmart launched this program in 2014, with a commitment to have
70 percent of its China-sourced export businesses participating in the factory energy efficiency program by the end of 2017. The
company has exceeded the goal and to date, more than 800 factories have joined the program, reporting a savings of US$40 million in
operating expenses and emissions reduction of more than 270,000 metric tons per year. This program complements the China
government’s five-year goal of reducing energy intensity by 15 percent by 2020.
“We are pleased with the strides Walmart is making in efficiency initiatives while growing and investing in its business in
China,” said Dr. Zhang Jianyu, China representative, VP Environmental Defense Fund, China. “Their collaboration and innovation
within the industry is paving the way for others to do business responsibly in the country.”
Investing in sustainable operations
McMillon revealed Walmart’s new commitment to reduce the carbon intensity (on a per revenue basis) of Walmart’s own operations
in China, which include stores, clubs, distribution centers and other facilities, by an additional 25 percent by 2025, 70 percent
below 2005 levels. This is part of a global goal to reduce emissions in company operations 18 percent by 2025. The company plans to
accomplish this goal through continued innovation in operational efficiency and sourcing clean renewable energy, such as wind and
solar, reducing our emissions impact while continuing to expand our business in China. In 2018 alone, Walmart will open 30 to 40
new stores, including five Sam’s Clubs and a new supermarket format.
These new commitments in China are an extension of sustainability efforts Walmart has already started in the country. For
example, the company recently completed 1,400 retrofit projects to transform its existing facilities to reduce emissions and create
a better shopping experience for customers. The projects included converting lighting to energy-efficient LEDs, upgrading HVAC
systems, and improving refrigeration fixtures to protect food quality and save energy. These efforts, along with other operational
improvements, cut emissions by more than half on a per sales dollar basis over the last decade.
As a complement to the Chinese government’s goals to dramatically increase usage of renewable energy, Walmart plans to expand
on-site solar systems and work with developers to bring new large-scale off-site projects onto the grid. The company plans to
support renewable energy access by working with government, industry peers, suppliers and development partners. Walmart will also
be participating in the Chinese government’s Green Building Program for Hypermarkets in the coming year.
Additionally, Walmart is working with the government in China to develop new Green Packaging Standards for the logistics
industry in China and is committed to working with suppliers and organizations to reduce materials waste and support recycling in
our value chain through Project Gigaton. By sharing best practices in developing sustainable packaging, the company aims to help
promote “green consumption,” a priority for the China government this year.
About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores,
online, and through their mobile devices. Each week, nearly 270 million customers and members visit our more than 11,700 stores
under 59 banners in 28 countries and eCommerce websites. With fiscal year 2018 revenue of $500.3 billion, Walmart employs
approximately 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and
employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.
Walmart Media Relations
U.S.:
Micah Ragland, 1-800-331-0085
or
Felicia McCranie, 1-800-331-0085
or
Asia/China: 0755-23973913
news.walmart.com/reporter
View source version on businesswire.com: https://www.businesswire.com/news/home/20180329005301/en/