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Details
- Global
- The United States of America (USA)
All direct suppliers to Walmart worldwide.
Deep dive
Background
Launched in April 2017, Project Gigaton™ is Walmart’s flagship program encouraging suppliers to reduce upstream and downstream greenhouse gas (GHG) emissions across its global supply chain. Building on earlier sustainability collaborations—with the Environmental Defense Fund (EDF) and World Wildlife Fund (WWF) to address agricultural emissions and deforestation—this initiative marks the concrete Scope 3 component of Walmart’s science-based emissions target announced in November 2016. Through Project Gigaton, the company aims to avoid or reduce one billion metric tons of CO₂ emissions by 2030, an amount comparable to the annual emissions of 215 million gasoline-powered vehicles. This effort complements Walmart’s broader climate agenda—such as its goals to cut Scope 1 and 2 emissions by 35% by 2025 and 65% by 2040 from 2015 levels—and aligns with U.S. federal climate and greenhouse gas disclosure frameworks under the EPA, and domestic implementation of the Paris Agreement.
Reporting Requirements
Under Project Gigaton, suppliers must report annual reductions in greenhouse gas emissions—Scope 1, 2, and where possible, 3—using methodologies detailed in Walmart’s Accounting Methodology guide. Reporting occurs each fall via either the CDP Climate Change Questionnaire (which directly uploads into Walmart’s Project Gigaton Account) or by submitting data through Walmart’s proprietary Project Gigaton Account (PGA) using specific calculators. Data elements include CO₂e reductions, activity type, project lifetime, and scope. Suppliers reporting emission aggregates via PGA incur a 20% discount on their reported value, incentivizing transparency and external validation. Walmart also requires additional disclosures in areas such as renewable energy use, absolute reduction targets, and Scope 3 category relevance—especially for suppliers aiming for higher recognition status (e.g., “Giga Guru”). Walmart supports compliance by offering guidance through its sustainability hub, calculators, webinars/training, and CDP integration.
Consequences for Noncompliance
Failure to comply with Project Gigaton’s reporting requirements can have immediate impacts: suppliers risk losing eligibility for Walmart’s sustainability recognition programs, which can influence purchasing preferences. More critically, Walmart increasingly factors sustainability metrics into procurement decisions such that non-reporting or inadequate reporting can jeopardize contract renewal or new business opportunities. Suppliers may also be required to address data anomalies or omissions during Walmart’s internal review, and persistent non-compliance could prompt escalated follow-up or exclusion. While Walmart generally works with suppliers to improve data quality, the absence of credible reporting puts suppliers at a disadvantage in a market where climate compliance is becoming mandatory.
Current Status
As of early 2025, Walmart suppliers have surpassed the 1 gigaton CO₂e reduction goal six years ahead of the 2030 deadline, driven by over 6,000 participating suppliers across Project Gigaton’s six focus areas. The program remains integral to Walmart’s climate strategy: while the company signals it may miss near-term operational emissions targets, it continues making progress toward its 2040 net-zero goal. In spite the prevailing anti‑ESG sentiment in some quarters in the U.S. and ongoing federal policy uncertainty, there is no indication that Walmart plans to discontinue Project Gigaton. On the contrary, Walmart continues expanding supplier engagement, enhancing reporting standards, and integrating incentives to support supplier emissions reductions.
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