Updated: Sept. 20, 2020
Sustainable Products at Walmart
Our customers count on Walmart to deliver affordable products in a way that is sustainable for people and for the planet, through actions that build transparency and trust. We work with others, including suppliers, NGOs, and governments, all along the supply chain to help improve the sustainability of products we sell. We do this while aiming to offer quality products at affordable prices with a time-saving shopping experience.
Sustainable Forests
Walmart recognizes the important role of healthy forests for society, as well as for our business. Forests provide numerous benefits to people and the planet: a home for people that live in forests, habitat for a vast number of species, carbon storage, and water flow regulation and purification. Forests are directly responsible for 1 in 4 people’s livelihoods, they are important sources for products like paper and furniture, and they provide fundamental environmental services that people and agriculture depend upon.1 As the global population increases, Walmart believes that changes to sourcing and production of products are necessary in order to continue to meet the expectations of our customers and to help preserve forests as a resource.
Walmart also acknowledges the importance of indigenous peoples and local communities in preserving and protecting forests.
Walmart’s Position
Walmart understands that our aspiration to deliver more sustainable products means leveraging our position as a trusted retailer and brand to secure important habitats and biodiversity, while working to reduce our carbon footprint. We believe we can deliver the greatest impact by creating a higher demand for products produced with no deforestation, supporting and enabling transparency, and investing in sustainable sourcing regions.
As a member of the Consumer Goods Forum, we supported the resolution to achieve zero net deforestation in our supply chain by 2020. In furtherance our goals, Walmart is focused on key commodities that, according to the World Economic Forum, are responsible for global deforestation in tropical forests: palm oil, pulp and paper, timber, beef, and soy.2 For example, beef and soy production is driving more than two-thirds of the recorded habitat loss in Brazil’s Amazon and Cerrado regions, and Argentina and Paraguay’s Gran Chaco.3 Although we are focused on these commodities, we recognize that additional production types also contribute to deforestation such as cocoa, coffee, rubber, and forest-based fabrics. We encourage our suppliers of these types of products to work to source products that do not contribute to deforestation and conversion. We ask suppliers to avoid deforestation and conversion of natural habitats, to encourage conservation solutions, and to increase the use of recycled content. We also recognize the importance of embedding the following principles in sourcing policies, procedures, and practices across their supply chains:
- Protect high conservation value (HCV) areas and high carbon stock (HCS) forests.
- Involve no burning in the preparation of new plantings, re-plantings, or any other developments, including the management of existing plantations.
- Avoid new developments on peatlands regardless of depth.
- No illegal harvesting of any commodity, or in violation of basic human rights as defined by the country of operation.
- Encourage agroforestry and forest management best practices.
There are two common ways to measure deforestation: measuring change in tree cover or change in the use of land. For purposes of this policy, Walmart looks to the definition of deforestation used in the country of origin. Walmart will continue to work with multi-stakeholder initiatives to address deforestation and conversion in high risk origins.
Walmart recognizes that no company can solve deforestation on its own and that we must leverage our ability to promote sustainable agricultural and forestry production and sourcing beyond our private brands. We have made progress against our original 2020 goals, but we know that more work is needed in the short and long term to stop the continued loss of critical landscapes across the globe. We recognize the importance of collaboration with our suppliers, our peers, governments and NGOs to address deforestation and promote sustainable production at an industry level. This will require new approaches and solutions at the jurisdictional, landscape, and producer level that drive results on the ground by engaging governments, non-profits, producers, and other companies to improve policy and promote clear demand signals for more sustainable products.
We will publicly share our progress annually and will continue to engage in the development and use of public disclosure tools and reports.
Key Commodities
Palm Oil
Palm oil is an ingredient in a variety of food and consumer products and is also widely used as cooking oil in many parts of the world. According to the World Wildlife Fund, high demand for palm oil has contributed to deforestation, which in turn increases the amount of greenhouse gas released into the atmosphere through burning of forested lands and elimination of carbon sinks. This also leads to the destruction of habitat for endangered species and conflict over land and natural resources.4
Walmart’s Goal
By 2025, Walmart’s aim is that private brand products containing any form of palm oil (crude, refined, palm kernel oil, fractions, expellers, and derivatives) will be sourced with no deforestation or conversion in accordance with the principles and criteria of the Roundtable on Sustainable Palm Oil (RSPO) segregated supply chain systems, or equivalent standards.
Our Approach
For all Walmart private brand products, we ask our global suppliers to:
- Use only palm oil sourced in accordance with the principles and criteria of the RSPO (segregated supply chain systems), or equivalent standards, by the end of 2025.
- Maintain (and make available upon request to Walmart) comprehensive records about the volume of palm oil and verification of sustainable palm oil used in Walmart private brand products on an annual basis, as well as disclose the origin (geographic region, country, state/province, plantation, and trader) through public monitoring and geospatial transparency platforms.
- Maintain comprehensive records and reports about the volume of palm oil and verification of deforestation and conversion-free palm oil sold to Walmart, as well as the origin. Annually demonstrate deforestation and conversion-free palm sourcing to the plantation of origin through traceability reports or verifiable monitoring tools.
We ask that all national brand suppliers to Walmart using palm oil use only palm sourced in accordance with the principles and criteria of the RSPO (mass balance and segregated supply chain systems), or equivalent standards, by the end of 2025 and report progress annually.
Pulp, Paper, and Timber Products
Sustainable sourcing of pulp, paper, paperboard, and timber is an important means to foster forest health. Sustainable sourcing of these products is important to foster forest health and to secure availability of forest resources into the future. Sustainable forest management protects biodiversity, High Conservation Value (HV) and High Carbon Stock (HCS) areas, enhances ecosystem functions and water quality and quantity, helps prevent conversion of natural forests to plantations or other land uses, helps promote indigenous peoples’ and worker rights, and mitigates greenhouse gas emissions.
Walmart’s Goal
By 2025, Walmart’s goal is that private brand products made of pulp, paper, and timber will be sourced deforestation and conversion-free. Walmart aims to implement sustainable pulp, paper, and timber procurement practices that promote sustainable management, conservation, protection and restoration of the world’s forests.
Our Approach
For all Walmart private brand products, we ask our global suppliers to:
- Proactively conduct risk assessments to understand forest fiber and timber sources, species used, and transition supply away from higher risk sources to certified and/or recycled sources.
- Source virgin fiber and timber only from sources certified to internationally recognized forest, fiber, and chain-of-custody certification standards. We expect suppliers to be able to track and report the origin of their fiber raw materials. We recognize Forest Stewardship Council (FSC), Sustainable Forest Initiative (SFI), and Program for Forest Endorsem*nt (PEFC) certification programs. We ask our global private brand suppliers to source virgin fiber and timber originating from high-priority countries5 in accordance with full FSC certification of forest management by the end of 2025, when it is available in quantities, performance characteristics and prices that meet our suppliers’ needs.
- Work to increase the use of recycled content where feasible. The use of recycled fiber has reached high levels in some paper grades, but there are still opportunities to increase recycled fiber usage where technical and quality specifications allow.
- Maintain (and make available upon request to Walmart) comprehensive records about the volume of pulp, paper, and timber products and certification status of fiber and recycled content used in Walmart private brand products, as well as the country of origin and wood species used to make the fiber, through public monitoring and geospatial transparency platforms.
Beef
Beef production is the leading driver of deforestation in the Brazilian Amazon Rainforest and the Cerrado, a wooded savannah south and east of the Amazon.6 Growing demand for beef, leather, and other products is expected to continue to exert significant pressure on other ecologically important regions such as Argentina, Paraguay and Colombia.7 These are some of the most bio-diverse areas in the world and play critical roles in the global climate.8
Walmart’s Goal
By the end of 2022, Walmart aims to only source fresh beef from the Brazilian Amazon and Cerrado, and the Gran Chaco in Argentina and Paraguay that has been produced with no deforestation or conversion. Walmart also aims to increase transparency and monitoring in the beef industry while helping to promote productivity increases on existing cattle lands that meet sustainable grassland management, conservation, protection, and restoration expectations. Walmart will continue to advocate, alongside multi-stakeholder initiatives, NGOs, suppliers and others, to make deforestation and conversion-free production the norm in the industry.
Our Approach
We ask all Walmart fresh beef suppliers sourcing from Brazil, Argentina, and Paraguay to:
- Source and use only beef that has been produced deforestation and conversion-free across the Brazilian Amazon and Cerrado, and the Gran Chaco in Argentina and Paraguay by the end of 2022; report traceability of the beef chain with geospatial mapping for risk assessment through full chain of custody traceability. This should include direct and indirect supply chain controls.
- Maintain (and make available upon request to Walmart) comprehensive records about the volume of beef and verification of zero deforestation and conversion beef sold to Walmart, as well as the origin (slaughterhouse name and location, full farm traceability with names and locations, and date of slaughter from both direct and indirect farms). Maintain comprehensive time-bound plans and clear milestones regarding sourcing deforestation and conversion-free beef sold to Walmart.
Soy
Soy is a crop that has been associated with the conversion of some of the most species-rich lands in the world, leading to increased deforestation.9 Soy is prevalent in food products, used for protein, to make vegetable oils, and as a key ingredient in many processed foods.10 Between 70% and 75% of all soy becomes livestock feed—for chickens, pigs, and farmed fish, as well as for cows.11 Soy production is one of the commodities driving more than two-thirds of the recorded habitat loss in Brazil’s Amazon and Cerrado regions and Argentina and Paraguay’s Gran Chaco region.12
Walmart’s Goal
By 2023, Walmart aims to only source soy that has been produced with no deforestation or conversion. In addition, Walmart supports the indefinite extension of the Soy Moratorium in Brazil’s Amazon region and encourages suppliers to publicly endorse the agreement. Walmart also actively supports regional agreements regarding deforestation and conversion-free production in additional high-risk biomes. This includes multi-stakeholder and government engagement in critical higher-risk regions, such as the Amazon and the Cerrado to achieve deforestation and conversion-free production at the regional level with geospatial monitoring.
Our Approach
We ask all Walmart private brand suppliers selling products containing soy (both as an ingredient and in feed for animal products) from Brazil, Argentina, and Paraguay to:
- Maintain a footprint analysis to identify sourcing from higher-risk countries and demonstrate that sources can be traced at country, state, and regional level.
- Source and use only soy (including directly purchased soy and its derivatives and soy used in raw meat, eggs, and dairy feed) that has been produced deforestation and conversion-free across the Brazilian Amazon and Cerrado, and the Gran Chaco in Argentina and Paraguay by the end of 2023.
- For any soy sourced from the Brazilian Amazon and Cerrado, and the Gran Chaco in Argentina and Paraguay, suppliers are asked to demonstrate that the soy is deforestation and conversion-free by:
- Sourcing soy certified by any of the following certification schemes (this list will be kept under review as other schemes are introduced), or equivalent standards:
- Roundtable on Responsible Soy (RTRS). RTRS provides two schemes: RTRS Soy Credits and RTRS Physical Soy. Soy credits are acceptable until 2022. After this time only physically certified soy (either segregated sources or mass balance) will be accepted.
- Cefetra Certified Responsible Soy
- Proterra Standard
OR
- Maintaining and reporting comprehensive records about the volume of soy and verification of deforestation and conversion-free soy sold to Walmart, as well as the origin (production farm and crushing plant). Annually demonstrate deforestation and conversion-free sourcing to the plantation of origin through traceability reports or verifiable geospatial monitoring tools.
- Sourcing soy certified by any of the following certification schemes (this list will be kept under review as other schemes are introduced), or equivalent standards:
National Brands
We encourage our national brand suppliers to set similar goals and communicate annually on their progress.
Restoring Critical Forests
Walmart recognizes the value of restoring the world’s most critical forests. Forest restoration can have many benefits, including increased resilience to climate change in global communities, improved carbon capture and storage in critical landscapes, and enhanced biodiversity, ecosystem, and societal benefits.13
Walmart encourages all suppliers to support restoration and reforestation initiatives. We ask our suppliers to join Project Gigaton, set goals to restore forests in their supply chains, and report progress annually. More information on these type of efforts can be found on Walmart’s Sustainability Hub.
Supporting Landscape and Place-Based Approaches
In addition to the supply chain actions listed above, Walmart encourages suppliers to engage in place-based approaches (both at the jurisdictional and landscape-level) to leverage positive change beyond individual supply chains and to help accelerate deforestation-free commodity production systems at scale.
These actions will vary by jurisdiction and region, but could include:
- Becoming involved in a jurisdictional initiative by participating in steering committees or engaging in multi-stakeholder dialogue.
- Committing to source from jurisdictions and landscapes that are pursuing, or have achieved, deforestation-free status.
- Providing funds and/or technical support to producers, extension centers, projects, and the establishment of local initiatives working to promote deforestation and conversion-free practices.
For more information, please visit the Walmart Sustainability Hub.
1 https://www.conservation.org/what/Pages/forests.aspx
2 https://www.weforum.org/agenda/2020/01/deforestation-voluntary-action-regulation/
3 https://www.worldwildlife.org/magazine/issues/summer-2018/articles/what-are-the-biggest-drivers-of-tropical-deforestation
4 https://www.worldwildlife.org/industries/palm-oil
5 Angola, Argentina, Bolivia, Brazil, Cameroon, Central, African Republic, Colombia, Congo, Côte d'Ivoire, Democratic Republic of the Congo, Ecuador, Gabon, Indonesia, Lao People's Democratic Republic, Liberia, Madagascar, Malaysia, Mexico, Myanmar, Nigeria, Papua New Guinea, Paraguay, Peru, Venezuela (Bolivarian Republic of), and Zambia (Source: CDP High-Deforestation Risk Jurisdictions List, GCP, 2016)
6 https://www.theconsumergoodsforum.com/environmental-sustainability/forest-positive-deforestation/beef/
7 https://international.nwf.org/deforestation/cattle/
8 https://www.conservation.org/priorities/biodiversity-hotspots
9 https://www.theconsumergoodsforum.com/environmental-sustainability/forest-positive-deforestation/soy/
10 https://ncsoy.org/media-resources/uses-of-soybeans/
11 https://www.worldwildlife.org/magazine/issues/summer-2018/articles/what-are-the-biggest-drivers-of-tropical-deforestation
12 https://www.worldwildlife.org/magazine/issues/summer-2018/articles/what-are-the-biggest-drivers-of-tropical-deforestation
13 https://www.conservation.org/priorities/restoration
