Ninety percent of businesses are small and midsize enterprises (SMEs). In an October report (PDF) from HSBC, the bank estimated that $25 to $50 trillion of investment will need to be directed to small and medium enterprise companies to transition supply chains to net zero. By teaming up, Walmart and HSBC both stand to make headway on their net-zero goals through client and supplier engagement. The supplier financing program is part of Walmart’s Project Gigaton, the company's initiative to avoid 1 billion tons of greenhouse gas emissions from being released into the atmosphere by 2030.ĭecarbonizing this level of industry is vital for larger businesses to reach net zero and to significantly draw down carbon emissions - like many retailers, most of Walmart’s emissions come from Scope 3 relationships, many of which are with smaller suppliers. The catch? The suppliers must set validated science-based targets for emissions reductions and meet certain performance thresholds in ongoing ESG disclosures to reporting organization CDP. HSBC, Walmart and CDP are teaming up to unlock more financing for Walmart suppliers.
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