Walmart Sustainability – Reducing Waste and Emissions Across a Greener Supply Chain

Begin with sbti-aligned targets now: reduce waste to landfill by 15% and cut diesel fuel use in trucking by 20% within 24 months through route optimization, load consolidation, and upgrading cold centers. See httpscorporatewalmartcomsustainabilityenvironment for baseline metrics and progress data this year.

To protect earth and lower waste, redesign packaging for grocery items to cut material, boost recyclability, and scale reusable totes; pilot programs in DCs show 12% less packaging waste when suppliers participate. enhancing packaging standards helps reduce emissions.

Implement real-time routing and dynamic scheduling using data from centers; dashboards enable teams to make rapid adjustments that reduce fuel use and waste. This approach has worked in several pilot markets. For baseline figures, consult httpscorporatewalmartcomsustainabilityenvironment.

Push for cold-chain optimization: upgrade refrigerators, seal shipments to minimize spoilage, and install solar or micro-grid at DCs; shift yard operations toward electrified or low-diesel equipment to reduce fume emissions from diesel engines. advancing fuel strategies and collaboration with suppliers and transport vendors.

Commit to transparent reporting and sbti-aligned targets: share progress with the community and sbti alignment; this builds trust and unlocks efficiencies across the entire supply chain, improving grocery outcomes for customers who shop online and in stores.

Practical steps to cut waste and emissions across Walmart’s greener supply chain

Begin with a zero-waste packaging redesign for several pilot SKUs and scale to the next 100 items by the next fiscal year. Use 100% recycled-content paperboard where possible, switch to fiber-based liners, and eliminate single-use plastics in primary packaging. Set a target to recycle or compost at least 85% of all packaging waste across distribution centers by 2027, and establish a central dashboard to track progress. Know baseline waste levels and communicate gains via email updates to stakeholders. This plan targets zero waste.

Upgrade engines and trailers with low-emission tech; install fuel-efficient engines in long-haul trucks; pilot aerodynamic trailers and alternative-fuel fleets; expect fuel reductions of approximately 12-20% per mile and reduced emissions across routes. This strategy doesnt rely on fully new fleets; it prioritizes upgrades to current assets where feasible, complemented by pilots of electric yard equipment.

Adopt an optimized routing and load-planning strategy: use AI to cut total miles by around 8-15%, reduce empty miles, and consolidate shipments with several carriers to lower emissions and fuel burn.

Chemicals and fertilizer: require suppliers to evaluate safer formulations, substitute hazardous chemicals, and track fertilizer usage in agricultural shipments. Target a 20% reduction in chemical intensity by 2026; share updates with policymakers via monthly email briefs, and reflect learnings in procurement decisions. This doesnt rely on a single solution.

Packaging and waste-to-value: pilot dust-free pallets; reuse pallets; partner with recyclers to improve diversion at distribution centers. Set a target of 75-85% waste diversion by 2026 and monitor progress with quarterly dashboards, adjusting tactics to stay on track.

Governance and culture: create a cross-functional Walmart Greener Chain team; publish annual climate strategy progress; align with amazon and other retailers for best practices; set optimistic goals for the next cycle.

Waste Segmentation and Recycling Targets by Facility Type

Implement a facility-type waste segmentation map now and cascade targets across the chain. This approach clarifies responsibilities and keeps teams focused on the right streams at the right sites; thats why segmentation matters for stores, distribution centers, and manufacturing partners. By 2026, establish concrete goals: stores divert 50% of recyclable waste; DCs 70%; manufacturing partners 60%. Organics programs should contribute 15–25% of total diversion in high-volume facilities, with a plan to scale.

Segmentation by facility type yields stream-specific actions: Stores generate cardboard, paper, food waste, and plastic film; DCs handle packaging waste, pallets, plastic film, metal; manufacturing partners contribute packaging waste and process residues. Prioritize refrigeration equipment and refrigerant management; actively capture refrigerants and recover gases to reduce global warming potential.

Stream-level targets and actions: Cardboard/paper: stores 60%, DCs 85%, manufacturing 70%; Plastic film: stores 50%, DCs 60%, manufacturing 50%; Organics: stores 25%, DCs 40%, manufacturing 20%; Metal: stores 30%, DCs 75%, manufacturing 60%; Refrigerants: capture 90%; Fertilizer: pilot conversion of organics to fertilizer at select sites with 10% of organics diverted by 2026; Solar: install on 20% of DC rooftops to offset 10–15% of energy use.

Implementation approach: establish a centralized waste-tracking dashboard to monitor progress within each facility type, with monthly audits and staff training. Use a single data view to benchmark within regions and across the chain. Actively share best practices from the Texas pilot to advance ambitious goals together, validating assumptions and refining processes. Also, optimize short-range routes to cut transport emissions and improve overall efficiency.

Packaging Optimization: Reducing Material Use and Improving Recyclability

Adopt a right-sized, lightweight packaging standard across all SKUs to cut material use by at least 20% within the next year while preserving product protection. That shift reduces packaging weight per truck and lowers fuel consumed in transit.

Establish a clear supply-chain collaboration to redesign primary and secondary packaging, with defined targets and a shared savings model. Clarify material specs, testing protocols, and milestones to keep teams aligned and focused on outcomes.

Leverage data and digital tools to measure impact and improve recyclability. Apply design-for-recyclability criteria, favor mono-material options where possible, and deploy sensors to monitor temperature and moisture in transit for cold products.

Run pilots in the top product categories across multiple year cycles to validate reductions and end-of-life outcomes. Cross-functional teams coordinate packaging, logistics, and store operations, and early results show material reductions in the 15-25% range with improved recoverability.

Scale the program by updating guidelines, training staff, and coordinating with cold-chain operations for refrigerated products. A structured transition plan helps multiple distribution paths align and sustain efficiency gains.

Communicate gains to retailers and suppliers through dashboards and quarterly reviews, highlighting waste reductions, recyclability improvements, and the business value of standardized packaging throughout the network.

Energy Use Baselines for Stores and Distribution Centers and How to Lower Them

Establish a first-ever baseline for energy use at all Walmart stores and distribution centers using weather-normalized, hourly data over the past 12–24 months, disaggregated by refrigeration, lighting, HVAC, and motor loads. Then set a target to reduce this footprint by 15–25% within two years and actively track progress with monthly dashboards. This approach supports climate goals and creates a clear path for reducing energy use tied to grocery operations.

• Deploy sub-metering across zones and equipment and connect data to a central case report. Normalize for weather and business activity to compute energy use per square foot and per unit moved, enabling apples-to-apples comparisons across several stores and DCs in different climates.
• Define baseline categories clearly: refrigeration, lighting, HVAC, pumps and fans, and equipment used in transportation to, from, and within DCs. rng-linked controls can align refrigeration and fan speeds with demand signals, reducing peak loads and waste.
• Assign owner responsibilities and establish a quarterly review cadence with store operations, DC managers, and the sustainability team. Only by keeping the baseline front-and-center can teams actively pursue targeted gains in the kind of work that compounds across the network.

Store-focused actions to lower baselines

• Upgrade to LED lighting across grocery aisles, backrooms, and exterior signage; pair with occupancy sensors and daylight harvesting to achieve 20–40% lighting energy reductions in certain areas. Several stores in different climate zones will pilot this approach to refine setpoints and schedules.
• Enhance refrigeration efficiency by installing high-efficiency compressors, variable-speed drives, and energy-management controls; retrofit doors on open cases where feasible; optimize glycol loops and condensers to reduce compressor run time. This helps because refrigeration typically dominates store energy use in grocery environments.
• Tune HVAC with economizers, demand-controlled ventilation, and VFDs on fans and pumps; tighten envelope performance with door sweeps and insulation upgrades; implement night-time pre-cooling in warm markets to cut peak cooling demand.
• Implement heat-recovery where possible to reuse waste heat for space or water heating, reducing the refrigeration and HVAC footprint without compromising comfort or case reliability.
• strengthen energy management: deploy EMS dashboards, set anomaly alerts, and train staff to respond to unusual energy spikes. Being proactive prevents small waste from becoming a larger energy bill.
• Launch a targeted solar or storage pilot on rooftops or carports where space and code allow; use the captured energy to offset peak refrigeration and lighting loads in grocery zones.
• Coordinate with suppliers to optimize inbound goods and packaging; reduce energy-intensive handling steps and build a kind of efficiency culture around product flow to lower energy intensity per case.

Distribution centers and transportation-focused measures

• DC lighting and controls: install high-efficiency LEDs, motion sensors, and skylight-assisted daylighting in non-operational areas; program lighting to align with dock activity and shift schedules.
• Conveyor and motor optimization: implement VFDs on conveyors and fans, reduce idle times, and synchronize equipment start/stop with dock cycles to lower energy waste across several shifts.
• Refrigeration in climate-controlled zones: apply targeted improvements in temperature-controlled rooms, including better door seals, tighter temperature setpoints, and optimized defrost cycles to minimize energy use without compromising product safety.
• Dock area efficiency: insulate and seal dock doors, install efficiency fans, and optimize loading patterns to minimize cold-air intrusion during peak receiving and shipping windows.
• Fleet and freight strategy: work with major trucking partners to optimize route planning, load consolidation, and idle reduction. Transition to more efficient trucks and explore RNG-linked fueling pilots for on-site or regional fueling; coordinate with partners to align with energy-saving goals for goods movement.
• Transportation and goods handling: implement tighter scheduling to reduce congestion in yards, improve dock door sequencing, and minimize peak electrical loads from conveyors and loading equipment during busy periods.

Measurement, reporting, and alignment

• Track energy intensity metrics such as energy use per square foot and per unit moved, plus refrigeration usage per cubic foot. Publish a quarterly report on progress and adjust tactics based on results from case studies and field observations.
• Establish a cross-functional partnership with suppliers and service providers to share best practices and scale successful pilots. A collaborative market approach accelerates adoption and strengthens the evidence base through multiple case reports.
• Monitor and communicate footprint reductions to internal teams and external stakeholders; link progress to climate objectives and demonstrate how focused investments in stores and DCs translate to tangible gains across the distribution network.

Renewable Energy Adoption in Logistics Hubs and Retail Locations

Begin with installing rooftop solar and modular battery storage at the largest distribution centers and flagship stores, aiming for 20-30% of annual energy from on-site renewables by year 2026 and scaling to 60% by year 2030 as the grid decarbonizes. This hands-on step creates momentum across worlds of operations and shows what is achievable in practice, helping their teams align around a shared goal.

• On-site solar and storage
  • Install PV on DC roofs and carport canopies to capture daylight, with modular battery storage sized to cover 4-6 hours of critical load and to support cold-chain refrigeration.
  • Adopt microgrids at strategic hubs to maintain operations during grid outages and to maximize solar self-consumption, capturing daytime energy for night-time needs.
  • Use an energy management system to optimize dispatch, shifting pre-cooling and lighting to align with solar generation and demand response signals.
  • Position this initiative as a standard approach to scale renewables across facilities, ensuring consistent procurement and installation practices.
• Battery-electric and electric fleets
  • Prioritize battery-electric trucks for urban and regional routes; pair with smart charging that prioritizes on-site solar when available to lower grid draw.
  • Provide a charging mix with DC fast chargers at depots and slower AC charging for overnight cycles; design ports to scale with fleet growth and maintenance windows.
  • Track total cost of ownership, maintenance, and emissions reductions per mile to demonstrate progress toward achieving the goal.
• Grid engagement and green power procurement
  • Enter into credible green power PPAs or market tariffs, mapping sources to reduce greenhouse gas intensity and stabilize energy costs.
  • Coordinate with utilities to leverage off-peak pricing and times when solar output is high, lowering the overall energy price and environmental impact.
• Lighting and facility efficiency
  • Replace legacy lighting with LED systems and add occupancy and daylighting controls; expect reductions of 30-50% in lighting energy use depending on floor area and occupancy patterns.
  • Improve HVAC efficiency and insulation, and optimize cold-storage equipment to shrink peak demand and energy waste.
  • Lighting upgrades significantly contribute to lowering energy intensity across markets and facilities.
• Transparency, measurement, and governance
  • Publish progress against sbti targets and sdgs, capturing scope 1-3 emissions and energy intensity with a centralized data platform for benchmarking by facility and market.
  • Maintain a quarterly dashboard showing installed capacity, solar capacity factor, charging port utilization, and progress toward year-by-year goals to build trust with customers and investors.

To sustain momentum, continue with a 12-month plan that baselines energy use, then iterate on pilots to refine investments; continue applying findings to accelerate later deployments, and set a clear year for achieving the largest share of renewable energy adoption across the earth.

Supplier Collaboration and Data Sharing for Waste Reduction

Establish a unified data protocol with key suppliers by Q1 2026 and run a 90-day pilot to test data sharing via API and a common data dictionary. Create a cross-functional team chaired by the sustainability lead, with weekly touchpoints and a quarterly board review.

Define a clear KPI set: packaging waste per unit, percentage of recycled packaging, diversion rate, pallet density, and the share of returns that are recycled or repurposed. Use these metrics to pinpoint waste hotspots and measure progress across categories such as consumables, consumer packaged goods, and bulk shipments.

Develop a shared dashboard that provides real-time signals, monthly summaries, and supplier-specific pages. Enable access for supplier teams and Walmart buyers while maintaining data privacy through defined access roles and anonymized aggregates where needed.

Offer incentives tied to data transparency and joint design work. This includes prioritized sourcing, co-funded packaging redesign, and accelerated payment cycles for partners that meet or exceed targets.

Put a governance framework in place, with data standards, security controls, and escalation paths. Require monthly exception reviews to address anomalies, such as unusual waste spikes or load inefficiencies, and to approve corrective action plans within 30 days.