Behind Walmart's High-Velocity Logistics Decarbonisation

The push to reaching net zero by 2025 and 2030 has been a major topic of conversation in recent years, with businesses around the world recognising the importance of building sustainable supply chains.

In September 2025, Walmart announced it would not be reaching these goals, but was still determined to reduce its emissions – even if its net zero goals were pushed back.

Businesses that are demonstrating their decarbonisation efforts and attempts at implementing more sustainable operations, are seeing the benefits across brand image, cost savings and supply chain resilience.

Walmart is just one of those companies enacting sustainability and transparency across its supply chain.

Walmart's journey

A significant part of Walmart's sustainability efforts focus on building resilience, sparking innovation, building trust and maintaining low costs. It also works to reduce product and packaging waste, regenerate natural resources, reduce GHG emissions and support the supply chain workers through responsible sourcing. 

The company acts as an omnichannel in 19 countries with a global supply chain. It works drive a positive impact and reduce risk across its supply chain by utilising a thorough energy and climate strategy. In doing this, it has a cleaner and more reliable electrical grid, as well as sustainably manages the landscape.

In its FY25 ESG report, Walmart reported: 

• 48.5% of its global electricity needs use renewable energy sources
• Scope 1 and 2 emissions are 18.1% lower than its 2015 baseline
• 82.6% of global Walmart private brand plastic packaging is recyclable
• 83.5% of its global operational waste was diverted from landfills and incineration
• 1.19bn TCO₂e has been avoided, reduced, or sequestered in product value chains since 2017

Despite this, however, the company has had to push back its 2025 and 2030 emissions goals, having faced delays with the anticipation of more to come.

"Progress is not always straightforward or linear," explains Kathleen McLaughlin, Executive Vice President and Chief Sustainability Officer at Walmart.

"It requires partnership across sectors, industries and communities among groups with different perspectives and priorities. We often encounter gaps or barriers that require innovation in technology, infrastructure, or policy. But with collaboration, creativity and tenacity, we can facilitate positive, lasting improvements for our business and for society over time."

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Barriers to decarbonisation

Though its operations in 2024 saw a 3.7% YoY emissions intensity decline, it had 1 1.1% YoY increase in operational emissions, slowing down its progress to net zero. Walmart states this is a result of increased US transportation-related emissions due to business growth, increased emissions growth in Mexico and Central America due to rapid business growth and a decline in renewable energy output.

The company states: "We expect that operational emissions progress will continue to be uneven year over year. While we manage factors within our control, additional factors include global energy policy and infrastructure, the availability of cost-effective energy solutions and the timely emergence of cost-effective technologies for low-carbon heavy tractor transportation.

"As a result, we continue to anticipate delays in achieving our interim emissions reduction targets of a 35% reduction by 2025 and a 65% reduction by 2030."

Now, the company aims to achieve zero emissions in Scope 1 (operational emissions from onsite refrigeration, transport fuels, stationary fuels) and Scope 2 (purchased electricity) by 2040. Part of this includes powering 100% of its global operations with renewable sources by 2035. 

Future thinking

Companies like Walmart can future-proof their logistics networks by investing in electric vehicles in order to avoid carbon taxes and changing fuel prices. These investments, while having initial large payments - particularly when applied to a whole fleet modernisation effort - have long term payoffs. Electric HGVs are more cost effective to run, without the cost or concern of an unstable fuel market.

Moreover, by investing in renewable energy across its supply chain, Walmart is insulating itself from a energy volatility that is currently shaking global supply chains and can have a significant impact on retail margins. 

Through the annual releasing of its ESG report, Walmart is undertaking a level of transparency that affects its entire supply chain and demonstrates another step towards growth. It is setting a standard for its vendor ecosystem, exploring how sustainability matters to the company and how it should matter to its suppliers.

Even though Walmart was unsuccessful with meeting its initial zero-emissions roadmap, its continuous investments into decarbonising its logistics shows dedication to its cause.