Walmart Faces Uphill Battle To Hit 2025 And 2030 Emissions Targets

Walmart, the world’s largest retailer, has acknowledged it won’t meet its ambitious 2025 and 2030 greenhouse gas emissions reduction targets. The company, which had pledged to cut operational emissions by 35% by 2025 and 65% by 2030, now cites technological, economic, and policy hurdles as the main obstacles to achieving these goals.

The latest update reveals Walmart’s operational emissions, which include energy use and refrigeration systems, actually rose by 3.91% in 2023 compared to the previous year. Why? A perfect storm of increased transportation emissions, aging refrigeration systems, and slower-than-expected growth in renewable energy adoption.

In 2020, Walmart set out to lead by example, announcing bold plans to slash emissions and transition to a cleaner operational model. Fast forward to 2023, and the road has been bumpier than expected. Despite its best efforts, Walmart says many of the solutions required—like affordable low-carbon heavy transportation and advanced refrigeration systems—are either not available, economically viable, or scalable just yet.

“We’re committed to the journey, but progress depends on factors outside our control, including public policy, the cost-effectiveness of emerging technologies, and sector-wide energy transitions,” Walmart said in its Dec. 18 update.

The company is also facing infrastructure challenges in its global markets, including aging energy grids and high project costs for low-carbon systems. With these constraints, Walmart plans to revisit its goals in 2025 to reflect a more realistic path forward.

However, it’s not all bad news. Walmart has made significant strides in other areas of sustainability. By 2023, 48% of its global electricity needs were powered by renewable energy, bringing it within striking distance of its 2025 target of 50%. The company is also aiming for 100% renewable energy across all its operations by 2035.

In a major milestone, Walmart achieved its goal of reducing, avoiding, or sequestering 1 billion metric tons of carbon emissions in its supply chain—six years ahead of schedule. This achievement underscores the power of collaboration with suppliers, many of whom are driving innovative projects to shrink their carbon footprints.

Walmart’s struggle mirrors broader industry challenges. Other corporate giants like PepsiCo and Coca-Cola have recently scaled back or revised their sustainability goals, while Morgan Stanley abandoned a key plastics pollution target earlier this year. These shifts highlight how difficult it is to balance environmental ambition with economic and technological realities.

For Walmart, the mission to reach net-zero emissions by 2040 remains intact. But the journey won’t be smooth or straightforward. As the retail giant navigates policy gaps, technology bottlenecks, and infrastructure hurdles, its story serves as a wake-up call for the entire industry: sustainability is a marathon, not a sprint.

While Walmart acknowledges its short-term setbacks, it’s clear the company isn’t giving up on its climate goals. Instead, it’s doubling down on innovation, partnerships, and renewable energy expansion to stay the course. The world will be watching to see how Walmart—and the industry at large—tackles these challenges and redefines what’s possible in corporate sustainability.