• Walmart will cut absolute Scope 1 and 2 emissions by 28% by FY2031 from a FY2025 baseline.
• The SBTi-approved target replaces an interim goal the retailer did not meet, despite a 24.6% reduction since FY2016.
• Scope 3 emissions reached 635 million metric tons of CO2 equivalent as business growth and product mix changes offset efficiency gains.

Walmart Resets Its Near-Term Climate Target

Walmart has adopted a new target to reduce absolute Scope 1 and 2 greenhouse gas emissions by 28% by FY2031, using FY2025 as its baseline.

The target, disclosed in Walmart’s FY2026 ESG Report, has been validated by the Science Based Targets initiative. It is aligned with limiting global warming to 1.5°C.

The commitment follows a review of Walmart’s previous climate targets under the SBTi’s five-year reassessment process. Walmart had aimed to cut operational emissions by 35% by FY2026 from a FY2016 baseline.

The retailer did not reach that target. However, it reduced absolute Scope 1 and 2 emissions by 24.6% over the period. Operational emissions intensity declined by 53.7%.

That performance exceeded Walmart’s earlier SBTi-approved target of an 18% reduction, which was aligned with a 2°C pathway.

Walmart continues to pursue its broader ambition of achieving zero Scope 1 and 2 emissions across global operations by 2040.

Refrigeration and Renewable Power Drive Reductions

In FY2026, Walmart reduced absolute Scope 1 and 2 emissions by 7.5% from the prior year. Emissions intensity fell by 11.6%.

A 20.7% decline in refrigerant emissions was the largest contributor. Walmart attributed the reduction to better leak management, preventive maintenance and the adoption of refrigerants with lower global warming potential.

The company also expanded its in-house technician network and deployed data and artificial intelligence tools to improve system monitoring.

Renewable energy supplied 53.3% of Walmart’s global electricity needs during the year. The result exceeded the company’s renewable electricity target for 2025.

Continued expansion of renewable electricity in the United States also helped reduce emissions. However, several operating pressures limited progress.

Business growth and the expansion of Walmart’s store network increased energy demand. Transportation emissions rose as the company’s long-haul fleet covered more miles.

Colder conditions in the United States and Canada also increased heating requirements and onsite fuel use.

Walmart said that while it can manage many internal factors, “progress also depends on external conditions,” including energy policy, infrastructure and the availability of affordable technologies.

The company also cited “the availability and cost of technologies such as low-GWP refrigeration and solar solutions, and the pace of development of low-carbon transportation technologies, particularly for long-haul freight, which are not expected to scale materially until the 2030s.”

These constraints are likely to make operational emissions progress “uneven year over year.”

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Governance Extends Across the Business

Walmart’s climate and energy strategy is led by its Chief Sustainability Officer and Head of Energy. The work spans sourcing, operations, merchandising, real estate, finance and public policy.

The Walmart Executive Council receives climate and energy updates at least annually. The board’s Nominating and Governance Committee oversees sustainability initiatives, including climate-related matters.

Climate risks are also integrated into the company’s enterprise risk management process. Oversight sits with Walmart’s Governance Risk Committee and the board’s Audit Committee.

A 2024 assessment examined approximately 40 physical and transition risks across one-year, five-year and 15-year horizons.

Walmart identified disruption from extreme weather and commodity sourcing challenges as its most strategically relevant medium-term climate risks.

For executives and investors, the governance structure shows how climate exposure is being embedded into financial materiality assessments, supply chain planning and business continuity.

Supply Chain Emissions Continue to Rise

Walmart’s largest climate challenge remains its value chain.

Estimated Scope 3 emissions increased to 635 million metric tons of CO2 equivalent in FY2026. Walmart attributed the rise to business growth and changes in its product mix.

Scope 3 emissions intensity improved by 8.29% compared with FY2022.

More than 4,300 suppliers reported progress through Walmart’s Project Gigaton platform. During FY2026, participating suppliers reported 187 million metric tons of expected emissions avoided, reduced or sequestered.

Cumulative reported reductions have exceeded 1.37 billion metric tons since the program began in 2017.

Walmart is focusing supplier engagement on energy, product design, waste, packaging and nature. These areas account for a large share of emissions across its supply chain.

The company is also expanding customer access to lower-emissions technologies. By FY2026, more than 1,300 fast-charging stations were available at over 280 Walmart and Sam’s Club locations in the United States.

Walmart’s revised target reflects a more measured near-term pathway, but it also exposes the limits of corporate action without supporting infrastructure and policy. For global retailers, the next phase of decarbonization will depend on whether clean power, refrigeration and freight technologies can scale alongside continued business growth.