Walmart expects to fall short of its sustainability goals for 2025, attributing the outcome – including a 6% increase in virgin plastic use worldwide – to legislative shortcomings, insufficient infrastructure, shortage of high-quality PCR, and consumer behaviour.
Originally, Walmart declared that 100% of its global private-brand packaging would be recyclable, reusable, or industrially compostable by 2025. It currently estimates that, as of 2023, only 68% of its packaging met this target.
Furthermore, 20% of its North American private-brand plastic packaging, and 17% of its global equivalent, was set to be made from post-consumer recycled (PCR) content this year. In both cases, the figure only reached 8% in 2023 – marking small increases from the 7% percentage recorded in the two years prior.
Specific examples include 16% PCR in its multipack water bottles and 25% PCR in its Member’s Mark fresh squeezed orange juice bottles; but Walmart blames the limited availability of high-quality PCR, the volatility of PCR holding back widespread adoption, and the legislative restrictions on the use of PCR in certain product packaging (e.g. pharmaceuticals) for its slower uptake.
The retailer also sought a 15% reduction of virgin plastic in global private-brand packaging by 2025 against a 2020 baseline. Now it attributes a 6% increase, which it attributes to growth in product categories such as food.
Walmart continues to cite ‘many factors outside our control’ as roadblocks in its waste reduction efforts. These include the emergence and scalability of more recyclable and innovative materials; the evolution of public policy for materials management systems; the continued development of infrastructure, especially where recyclable and compostable materials are concerned; and behavioural changes among consumers.
Nevertheless, it reports that 81% of its private-brand plastic packaging is designed for recycling; that 92% of its US food and consumable private-brand supplier-reported sales feature a How2Recycle label; and that it has reduced its overall plastic packaging intensity, or weight of plastic per net sales dollar.
“While we have made significant progress towards our ambitious 2025 goals for recycled content, virgin plastic reduction, and packaging recyclability, we expect to fall short of achieving these goals by 2025,” the retailer comments.
“We will continue to report progress on our ongoing efforts, as these initiatives help Walmart reduce materials cost and waste, conserve resources, enhance efficiencies, and reduce emissions.”
Walmart is the latest in a line of brands to strip back their 2025 targets. Unilever now plans to reduced its virgin plastic consumption by one-third by 2026; The Coca-Cola Company has lowered the ambition of its sustainability targets and extended its timeframe to 2035; and Colgate-Palmolive blames ‘industry-wide challenges’ related to flexible packaging for failing to achieve recyclability, reusability, and compostability across its packaging line this year.
Back in 2023, we took a deeper dive into Walmart’s packaging waste reduction strategy for e-commerce; this involved transitioning into recyclable paper mailers, right-sizing cardboard boxes, offering consumers the chance to opt out of single-use plastic bags for online pickup orders, and more.
However, this announcement comes after Walmart’s previous warning that it expected to miss greenhouse gas emission reduction targets for 2025 and 2030.
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