The pursuit of sustainability in the corporate world has dramatically gained importance and has become an integral part of many companies' identities and missions. One of these major companies is Walmart, who has embarked on a journey to reduce its carbon footprint and pave the way for a more sustainable future. Walmart's size might make it an unexpected choice as a blueprint for small and medium-sized enterprises (SMEs). Its scalability, strategies, and practices could offer valuable insights and adaptable models for SMEs.
In 2017, Walmart launched Project Gigaton™ to incentivize suppliers to reduce their greenhouse gas (GHG) emissions. This program includes a sustainable supply chain finance initiative, developed in partnership with HSBC and CDP (the global environmental impact non-profit). It introduces science-based targets (SBTs) to help suppliers align with transparent sustainability goals. The program is a part of Walmart’s commitment to eliminate one billion metric tons of GHG emissions from its global supply chain by 2030.
Walmart's suppliers who meet their SBTs and report their impact on areas like energy use, waste, packaging, and transportation, are rewarded with access to financing, press releases to boost suppliers’ publicity, and competitive pricing to minority-owned businesses. This symbiotic relationship between sustainability performance and financing is the key to replicating this initiative for SMEs, which could enhance their access to financing just as larger corporations do in the Walmart model. This approach can not only benefit the companies themselves, but also the communities and ecosystems they impact.
Walmart's initiative is also focused on transparency and collaboration with suppliers.