In an effort to reduce greenhouse gas emissions from its global supply chain by 2030, Walmart has introduced a program that uses science-based targets to aim for a 1.5-degree Celsius pathway, according to a Wednesday (Dec. 8) press release.
Through collaboration with HSBC and nonprofit CDP, the program will assist the retail giant’s private brand suppliers – especially small and medium-sized businesses (SMBs) – by providing improved standards, tools and capacity building to help them align their operations with sustainability goals, the announcement stated.
Since 2019, HSBC has been supporting Walmart’s Sustainable Supply Chain Finance (SSCF) program by offering enhanced financing to suppliers who reduce emissions in at least one of the six pillars that comprise Project Gigaton™, according to Walmart. The company’s six pillars to reduce emissions are energy, nature, waste, packaging, transportation and product use and design.
Project Gigaton has signed on more than 3,100 suppliers since 2017, with suppliers reportedly avoiding more than 186 million metric tons of carbon dioxide — equivalent to 416 million metric tons — last year, according to the announcement.
Walmart and HSBC first offered enhanced financing rates for vendors based on sustainability performance in 2019, as PYMNTS reported. As a driver for the effort, the companies noted that supply chains account for more than 80% of greenhouse gas emissions and more than 90% of air, land, water, geological resource and biodiversity ramifications.
Related news: Walmart Offers Cheaper Supplier Finance for Sustainability
Underlining its sustainability efforts, in April, Walmart invested in San Francisco-based Cruise, which is developing an all-electric fleet of self-driving cars. The retailer said the Cruise investment will help the company reach its delivery goal to devise a system that is “fast, low-cost and scalable,” PYMNTS reported.
See also: Walmart Backs Electric Vehicle Company Cruise
Walmart cited Cruise’s fleet being powered by 100% renewable energy as a means to reach its goal of achieving zero emissions by 2040 and to be completely powered by renewable energy by 2035.