Walmart raised the bar on climate action by creating a supply chain finance program that not only enables greenhouse gas (GHG) emissions reductions, but for the first time, uses science-based targets to do so in a way that aims for a 1.5-degree Celsius pathway.
Working alongside HSBC and CDP, the program will help Walmart’s private brand suppliers – particularly small and medium-sized businesses – by introducing enhanced standards, tools and capacity building to help them upskill and in turn align their operations with transparent sustainability objectives.
"Our work with Project Gigaton™ is purposefully meant to encourage all Walmart suppliers to pursue emission reduction goals across six pillars: Energy, Nature, Waste, Packaging, Transportation and Product Use & Design. That includes creating programs such as the Sustainable Supply Chain Finance program with HSBC so that smaller and medium-sized businesses can also take advantage of special financing to make the necessary investments in their sustainability journeys. Now with CDP scoring added to the mix, the program provides suppliers with one more way to take advantage of improved financing through progress and disclosure – and exemplifies how we approach sustainability through a shared value lens,” said Jane Ewing, the Senior Vice President for Sustainability at Walmart.
"On average, 80% of a company’s carbon footprint resides in its supply chain, which means delivering on Scope 3 emissions won’t happen unless more is done to help small- and medium-sized suppliers. This program does just that and accelerates net zero transition,” said Surath Sengupta, Global Head of Financial institutions, Portfolio Management and Sustainability, Global Trade and Receivables Finance at HSBC.