Walmart

No leading practices were identified for the company in the governance and strategy measurement area.

Scope 1 and 2 greenhouse gas emissions
Walmart demonstrates leading practice in reducing its scope 1 and 2 GHG emissions, disclosing a target to reduce GHG emissions by 18% by 2025, compared with 2015 levels. It also reports progress against the target, which is aligned with a 1.5-degree trajectory and approved by the Science Based Targets initiative.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
Walmart provides disclosure of its process for identifying and prioritising its most relevant sustainability topics, which cover issues addressed in the environment and social inclusion measurement areas. The company also demonstrates that it has time-bound targets and reports progress against them for its most relevant sustainability topics that it has identified. However, the company could improve by adding nutrition to its sustainability priority topics, and sharing more nutrition-related targets, thereby aligning with all three measurement areas of the benchmark.

Governance and accountability for sustainable development
Walmart discloses that it has a Chief Sustainability Officer and that Board committees have oversight and overall responsibility for matters relevant to ESG issues. Moreover, the company provides an overview of its decision making process concerning sustainability issues, including where responsibility lies within is governance framework. Furthermore, the company confirms that performance on priority Walmart ESG issues is integrated into the annual performance objectives of relevant officers’ roles. However, it is not clear if remuneration is linked to all three benchmark measurement areas, presenting an opportunity for the company going forward.

Stakeholder engagement
Walmart discloses its stakeholder engagement activities and reviews stakeholder feedback to understand opportunities for improvement and to prioritise issues. The company also discloses how it integrates the outcomes of these activities into its sustainability strategy. Walmart’s stakeholder engagement covers sustainability topics across the three measurement areas of environment, nutrition and social inclusion. However, the company does not disclose sufficient information on its process for identifying stakeholders across its value chain, presenting an opportunity for future reporting.

Protection of terrestrial natural ecosystems
Walmart‘s high-risk commodities are beef, soya, palm oil, cocoa and coffee. Walmart discloses targets for achieving deforestation and conversion-free supply chains for most of its high-risk commodities and reports progress against them. For example, by 2025, Walmart’s aims that its private brand products containing which contain palm oil will be sourced with no deforestation or conversion, in accordance with the criteria of the Roundtable on Sustainable Palm Oil (RSPO). However, there remains an opportunity for the company to also set a target for cocoa and report as well as to disclose the sourcing regions of all of its commodities.

Water use
Walmart does not disclose that it is reducing water withdrawals across its operations and supply chain, nor does its disclose a time bound target for reductions in the future.

Food loss and waste
The company reports that in 2020, it joined the Champions 12.3 10x20x30 initiative, with the aim of engaging 20 of its priority suppliers to halve food loss and waste by 2030. However, the company is yet to start reporting progress against this target, presenting an opportunity for the company going forward.

Availability of healthy foods
Walmart lacks disclosure on improving the availability of healthy foods. While it states that it helps customers identify nutritious food options with some brands, it does not demonstrate that it is improving the nutritional quality of products. No evidence was found regarding reformulation of products, such as reducing sugar, salt and fat content. The company could improve by disclosing evidence that it offers healthy alternatives.

Responsible marketing
The company does not disclose alignment with national or international responsible marketing guidelines related to marketing to children or young people, nor was a responsible marketing policy found in the public domain.

Food safety
Walmart discloses that it is working on food safety monitoring and is a member of the Global Food Safety Initiative (GFSI) board and advisory group. The company requires its own operations to be certified to a GFSI-recognised scheme. While it also requires its suppliers to be certified to the same scheme, or a GFSI Global Markets programme or equivalent, it does not disclose the percentage of food suppliers who are currently certified, presenting an opportunity for future reporting.

Child labour
Walmart commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard. However, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place and to detail a comprehensive monitoring system for the issue.

Forced labour
Walmart commits to eliminating all forms of forced or compulsory labour in its own operations and supply chain. It also respects basic rights for workers, including freedom of association and the effective recognition of the right to collective bargaining. Moreover, it requires its suppliers to ensure workers’ freedom of movement, not to retain workers’ personal identity documents or other valuable possessions and to allow workers to terminate employment on reasonable notice. However, the company could improve by ensuring suppliers prohibit any form of intimidation of workers seeking to exercise these rights.

Living wage
Walmart has set a minimum starting wage of USD 11 per hour for its associates; its average hourly wage for full- and part-time associates at the end of 2020 was more than USD 14 per hour. However, the company does not disclose a time-bound target for paying a living wage across all its operations. Furthermore, the company could improve by committing to pay a living wage within its supply chain also.

Walmart discloses policies and commitments across most key topics under respect for human rights, including integrating and acting on human rights risks and impact assessments. Moreover, Walmart discloses that it has grievance mechanisms which are accessible to both workers and external parties, as well as outlining its approach to engaging with potentially affected parties. However, there remains an opportunity for the company to report on its approach to identifying and assessing human rights risks through a due diligence process.

Walmart has in place policies and commitments to ensure health and safety and has started the journey towards disclosing information on workforce diversity. However, it can improve both its commitments and disclosure on these topics. In addition, the company does not disclose sufficient commitments to other key metrics related to providing and promoting decent work. These include paying a living wage, respecting working hours, supporting collective bargaining, and promoting gender equality and women’s empowerment.

Walmart commits to protecting personal data and tackling bribery and corruption. However, there is a lack of sufficient evidence regarding responsible tax, including a lack of a global tax policy which has been approved by the board of directors, as well as a lack of public disclosure on the company’s approach to lobbying and political engagement.