The world’s largest retailer, Walmart, has disclosed that it is unlikely to achieve its interim climate goals. These include reducing operational GHG emissions by 35% by 2025 and by 65% by 2030. Recently, the company updated the website, citing setbacks as factors beyond its control. These include the unavailability of low-carbon refrigeration and mobility technologies and insufficient clean energy policies and infrastructure.
While facing various hurdles, Walmart reiterated commitment towards its aspirational target of zero emissions by 2040, with further clarity on the fact that its efforts in this direction cannot be linear or straightforward. The company had initially set its net zero goal in 2020, outlining a comprehensive strategy that included transitioning to 100% renewable energy for its facilities by 2035, electrifying its vehicle fleet—including long-haul trucks—by 2040, and adopting low-impact refrigerants and electrified equipment for heating and cooling in its stores, clubs, and distribution centers.
Walmart highlighted notable progress in some areas of its climate strategy. The company had reached 48% renewable energy use in its operations globally by 2023. It remains on course with the goal of meeting 2035 targets. On another level, Walmart recorded 45% carbon intensity – a measure of emissions per unit of revenue- reduced compared to the baseline 2015. The total Scope 1 and 2 emissions, however, had reduced by only 19.3% in view of the company’s growth.
Although these are proof of Walmart’s steps in alignment with its long-term climate ambitions, the company admits that there are massive obstacles to its achievement of near-term goals. Among these challenges is the lack of support for energy policies and infrastructure in the markets in which Walmart operates; they do not support wide adoption of renewable energy and advanced clean technologies.
The availability and scalability of low-carbon solutions, especially for refrigeration and heavy transportation, are also significant barriers. Walmart pointed out the economic and technological limitations of existing options, noting that cost-effective solutions for low-global-warming-potential (GWP) refrigeration and HVAC systems, as well as low-carbon heavy tractor transportation, are unlikely to emerge at scale before the 2030s. These delays have led Walmart to reconsider its interim targets, with the company indicating that it may revise its goals in 2025 to reflect current realities.
In its update, Walmart acknowledged that achieving its emissions reduction targets will require innovations and technologies that are either not yet available, economically viable, or scalable. This includes advancements in renewable energy, low-GWP refrigeration systems, vehicles powered by renewable energy, and regenerative agricultural practices. The company also pointed out that a critical mass of consumers is important to push the development and adoption of these technologies. Without sufficient demand, innovations that would significantly reduce emissions are likely to be delayed.
Walmart’s climate strategy is a reflection of the complexity that goes into addressing emissions at scale, especially for a global retailer with such broad operations. The company’s drive to grow while being sustainable puts double pressure on it, but Walmart is willing to make adjustments to the interim milestones if necessary and continue to work toward the overall goal of net zero emissions by 2040.
The update reminds everybody of the bigger systemic hurdles corporations have to overcome as they strive to address climate change. Some of the significant enablers of corporate climate action are policy support, infrastructure development, and technological innovation. As such, Walmart’s experience with these challenges is likely going to be used as an example by other companies confronting similar barriers to decarbonization.
Though Walmart’s improvement has been slower than anticipated, the company’s openness to admit failure and ongoing pursuit of ambitious long-term targets underscore the complexity of aligning sustainability ambitions with operational realities. The company’s recognition of the need for collective action—innovation, policy, and consumer demand—underscores the collaborative effort required to drive meaningful progress in combating climate change.