The program requires Walmart’s largest suppliers to set a GHG reduction goal and annually report their progress toward their goal. Walmart provides resources, such as emissions calculators, to assist suppliers in setting realistic goals that are in line with limiting global warming to 2°C. 26 Suppliers that make significant reductions are recognized by Walmart through public events and press releases, as well as being featured on the Walmart Sustainability Hub Supplier Recognition page. 27 More than 2,500 companies reported their targets and progress through Project Gigaton in 2021. 28 Value Change Initiative (VCI): VCI works “across sectors with a specific focus on how to account for Scope 3 emissions.” 29 VCI is motivated by the idea that “with more clarity on how to account and report on impacts achieved up and down value chains, companies can set and meet more ambitious targets and gain recognition for this leadership, providing more incentives for action and investment.” One of the current challenges with Scope 3 emissions is that they can be claimed by multiple organizations. For example, the reduction in GHG emissions from the production of a gallon of milk could be legitimately claimed by the food processing plant, the transportation company, and a national food brand. VCI plans to address this challenge by creating a centralized location for all supply chain data to be collected and reported. This approach would allow for each stage of the supply chain to pay for the reduction in emissions. Each step in the chain would be able to pay less per ton for the reductions, while the producer would receive more income through the aggregation of supply chain payments.
Science Based Targets Initiative (SBTi): The aim of the SBTi is to show businesses the steps they need to take to limit the increase in global temperatures to 1.5°C of warming. SBTi requires that all companies using its framework set goals to reach net-zero emissions no later than 2050. To officially partner with SBTi, companies must either set goals to reach a net-zero emissions or set goals that align with the requirements to limit global warming to 2°C or 1.5°C. 23 In September 2022, SBTi launched guidance to enable the food, agriculture, and forest sectors to set science-based targets. 24 The guidance provides food companies information on how to set a target and how to account for different types of emissions from the food sector, including land use changes and use of crops for bioenergy. It also provides guidance on how to validate and communicate targets. Almost 200 food and agriculture companies from around the world participate in SBTi, including ADM, Bunge, Cargill, Dairy Farmers of America, Danone, Mars, Nestle, Starbucks, and Walmart. Because of its broad adoption and aggressive goals, SBTi is expected to have a significant impact on U.S. dairies. As these companies implement their SBTi goals, increasing pressure will be placed on dairies to measure, report, verify, and reduce their emissions. Walmart Insetting Program: One of the most prominent insetting programs is Project Gigaton launched by Walmart in 2017. The objective of the program is to prevent one billion metric tons (a gigaton) of GHG emissions from being emitted throughout Walmart’s global value chain by 2030. As of 2021, more than 574 MtCO2e of emissions have been reduced or avoided. 25
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