Why Walmart's Net Zero Timeline Is Not Linear

In September 2025, Walmart announced it would fall short of its net zero targets but reaffirmed its determination to cut emissions — even if its net zero timeline must be extended.

Across industries, companies demonstrating their decarbonisation efforts and implementing more sustainable practices are gaining clear benefits in brand reputation, cost efficiency and supply chain resilience. Walmart is a leading example of transparency and ongoing sustainability progress.

Walmart’s journey

Central to Walmart’s sustainability strategy is strengthening resilience, encouraging innovation, earning consumer trust, and maintaining affordability. The company is committed to reducing packaging and product waste, regenerating natural resources, cutting greenhouse gas emissions, and supporting workers through responsible sourcing.

Operating as an omnichannel business across 19 countries, Walmart uses a comprehensive energy and climate strategy to mitigate risk and drive positive impact. The approach includes building a cleaner, more reliable grid while managing landscapes sustainably.

In its FY25 ESG report, Walmart highlighted key milestones:

• 48.5% of global electricity needs met with renewable sources

• Scope 1 and 2 emissions reduced by 18.1% from its 2015 baseline

• 82.6% of global private-brand plastic packaging recyclable

• 83.5% of operational waste diverted from landfills and incineration

• 1.19bn TCO₂e avoided, reduced, or sequestered across product value chains since 2017

Despite this steady progress, Walmart has had to delay its 2025 and 2030 emissions goals due to ongoing operational challenges.

“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 sustainability, net zero and sustainable supply chain leaders should attend:

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

Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders 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

In 2024, Walmart reported a 3.7% year-over-year decline in emissions intensity, but overall operational emissions still rose by 1.1%, slowing progress toward net zero. The company attributes this to increased emissions from transportation in the US and rapid growth in Mexico and Central America, coupled with a decline in renewable energy output.

“We expect that operational emissions progress will continue to be uneven year over year,” Walmart stated. “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.”

Looking ahead, Walmart aims to achieve zero emissions in Scope 1 (operational emissions from onsite refrigeration, stationary fuels, and transport fuels) and Scope 2 (purchased electricity) by 2040, including powering 100% of operations with renewable energy by 2035.

Looking to the future

Future-proofing logistics is another key pillar. By investing in electric vehicle fleets, Walmart can shield itself from volatile fuel prices and potential carbon taxes. Though the upfront costs of modernising fleets are significant, electric heavy-goods vehicles offer lower running costs and greater stability in the long term.

Similarly, expanding renewable energy investments across its supply chain helps Walmart buffer itself against global energy market instability — a factor that increasingly influences retail profitability.

Through its annual ESG reporting, Walmart continues to build transparency, shaping expectations for suppliers and reinforcing its commitment to progress. Although the company has not yet met its initial zero-emissions timeline, its sustained investment in decarbonising logistics demonstrates a long-term dedication to climate leadership.