Retailer Guide | Walmart
GUIDE TO WALMART'S PACKAGING AND SUSTAINABILITY REQUIREMENTS
Walmart has rigorous sustainable packaging goals for its Private Brands and encourages all brands and suppliers to work toward more sustainable packaging and operations. Brands looking to work with Walmart can increase its alignment with the company’s initiatives by understanding and implementing its packaging best practices.
In this guide, you’ll find an overview of Walmart’s sustainable packaging requirements, a summary of its overall sustainability program, and resources and recommendations for getting started.
No matter where you are in the process, EcoEnclose is your trusted partner that will help set your brand up for success when working with Walmart.
Table of Contents
- At a Glance: Walmart’s Packaging Guidelines
- Summary of Walmart’s Sustainability Initiatives
- Walmart’s Current Sustainability Progress
- Packaging Best Practices for Walmart Brand Suppliers
- Packaging, Labeling, and Testing Requirements
- Resources and Tools for Walmart Brands
- How EcoEnclose Helps Brands Working With Walmart
- Additional Resources
Walmart’s Packaging Guidelines
Walmart’s Sustainable Packaging Playbook gives both Private Brands and supplier brands an overview of the company’s philosophy on creating more sustainable packaging. It aims to improve sustainability index scores while reducing the cost of goods.
Its strategy focuses on the following:
- Optimize Design
- Protect the Product
- Reduce Materials
- Source Sustainably
- Maximize Recycled & Sustainably Sourced Renewable Content
- Enhance Material Health (Remove Priority Chemicals)
- Support Recycling
- Design for Recycling
- Communicate Recyclability
This guide outlines the requirements, best practices, and action steps for brands looking to ensure their packaging aligns with Walmart’s sustainability goals. Contact us if you want additional help tailoring your packaging to meet retailer requirements.
How EcoEnclose Helps Brands Working With Walmart
EcoEnclose is well-positioned to help brands design their packaging in ways that align with Walmart’s sustainable packaging playbook and hierarchy. Reach out to us if you’d like support:
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Eliminating undesirable materials, like PVC and PP film
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Moving multi-layered films to mono-material, recyclable pouches
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Creating easy-to-separate blister packs, clam shells, and boxes with windows
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Match label material to the primary substrate to maximize recyclability
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Maximize post-consumer waste across all materials
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Helping brands secure How2Recycle® labeling
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Eliminating coatings on paper packaging
Summary of Walmart’s Sustainability Initiatives
Over the past several years, Walmart has set increasingly ambitious goals for sustainability. One of it’s first initiatives was Project Gigaton, which aimed to remove 1 billion metric tons of greenhouse gas emissions from its value chains by 2030. Not only did the company achieve this goal, but it reached the target six years ahead of the deadline. It now uses Project Gigaton as a starting point to help other companies reduce emissions.
Since 2023, Walmart has refined its focus to include regenerative business practices, aiming to restore and rebuild rather than simply avoiding negatives. While the company does not yet have many specific goals for regenerative practices, we look forward to more details about this vision in its 2024 updates.
- Sustainable Products
- Sustainable Sourcing & Supply Chain
- Sustainable Operations
- Sustainable Packaging
Within each of these categories, Walmart has specific goals and priorities. In this guide, you will find a summary of the company’s goals relating to products, operations, and supply chain issues to provide context for its packaging guidelines.
Sustainable Products
- Supporting pollinator health
- Promoting consumer wellness
- Aligning with its low-cost, high-value mission
- Including relevant third-party certifications or verifications
Sustainable Sourcing and Supply Chain
Walmart has set goals to audit and improve its supply chain, focusing on people and the planet. As it continues developing a responsible supply chain, Walmart will likely prioritize supplier brands that align with these values.
Walmart’s Supply Chain Initiatives
- Expand forest policy by aiming to source palm oil, beef, soy, pulp, paper, and timber 100% deforestation-free by 2025.
- Invest in and work with suppliers to source place-based efforts that help preserve natural ecosystems and improve livelihoods.
- Source responsibly and promote human dignity.
- Continue support of efforts to preserve at least one acre of natural habitat for every acre of land it develops in the U.S.
- Source at least 20 key commodities more sustainably by 2025: Fresh & Frozen Seafood, Canned Tuna,
North American Beef, South American Beef, Coffee, Tea, Cocoa, Bananas and Pineapples, Produce, Floral, Apparel and Home Textiles, Cotton, Cellulosic Fibers, Polyester, Palm Oil, Pulp and Paper, Row Crops
- Hire ethically and support diversity.
Sustainable Operations
One of Walmart’s major focuses in operational sustainability is reducing and eventually eliminating emissions.
Its key goal in this area is to achieve 0 emissions across global operations by 2024 - without using offsets.
To do this, Walmart is working to harvest enough wind, solar, and other energy sources to power its facilities with 100% renewable energy by 2035. Currently, it powers around 36% of operations with renewable energy.
It is also working to zero out emissions from all vehicles, including long-haul trucks, by 2040, as well as transitioning to low-impact refrigerants in all operational locations by 2040.
Two other goals within Walmart’s operational strategy include increasing land conservation and diverting and donating waste. Since 2020, Walmart has diverted 81% of waste globally and donated 627 million pounds of food in the U.S. The company has also conserved nearly 1.6 million acres of land since 2005.
Sustainable Packaging
Creating more sustainable packaging is a central part of Walmart’s goals, and it has set rigorous targets to get there.
Walmart’s sustainable packaging goals are specifically focused on its Private Brands, which includes brands such as Great Value, Wonder Nation, Equate and Marketside. However, the company is working on expanding its sustainability efforts to all brands, including suppliers and national brands.
Private Brands suppliers must adhere to Walmart’s guidelines when reporting their annual packaging data.
To help supplier brands and potential partners improve their packaging, Walmart has created an expanded library of resources and tools.
Within Walmart’s sustainable packaging strategy for Private Brands and others, the company focuses on three main areas:
Use Less Plastic
he first pillar of Walmart’s sustainable packaging strategy is to reduce plastic use overall, particularly virgin plastics and materials that are difficult to recycle.
Specific targets within this goal include:
- Eliminate all PVC and polystyrene packaging in Walmart’s own Private Brands by 2025.
- Eliminate unnecessary plastic packaging in Walmart’s own Private Brand products.
- Provide customers with more alternatives to single-use plastic household products, including utensils, plates and cups.
- Promote the use of reusable shopping bags for customers at Walmart U.S. stores, including adding them as a prominent feature at the check-out counter.
Recycle More
The second pillar of Walmart’s sustainable packaging strategy is to promote effective recycling and increased recycling rates, both within its organization and by end consumers.
Some of its specific recycling targets include:
- Commit to 100% recyclable, reusable, or industrially-compostable packaging in all Walmart’s own Private Brands by 2025.
- Develop Supplemental Guidance Documents to Support Walmart’s Recyclability and Recycled Content Goals for suppliers to help them reduce unnecessary plastic packaging.
- Target at least 20% post-consumer recycled content in Private Brand packaging by 2025.
- Label 100% of Walmart U.S. food and consumable Private Brand packaging with the How2Recycle® label by 2022. Encouraging national brand suppliers to make similar commitments.
- Maximize operational plastics recycling towards zero waste by 2025 goal and close the loop on it where viable.
- Continue offering customers the opportunity to drop off plastic bags and plastic film materials for recycling at our Walmart stores.
Support System-wide Improvements
The final pillar of Walmart’s sustainable packaging strategy is to contribute to systemic improvements in packaging circularity.
Specific targets within this goal include:
- Work with governments, manufacturers and other stakeholders, to increase plastic recycling.
- Become a signatory to the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment, which commits to eliminating all problematic and unnecessary plastic items.
- Support the major NGO/industry consortia studying the issue (Ellen MacArthur Foundation and Ocean Conservancy’s Trash Free Seas Alliance).
Walmart’s Current Progress in Sustainable Packaging
Since establishing these goals, Walmart has published yearly updates about its progress. In its 2023 Fiscal Year Report, it shared these metrics connected to its packaging goals.
| Goal: By 2025, achieve a 15% absolute reduction in our total virgin plastic use as compared to the 2020 baseline. 2023 Progress: 6% |
| Goal: Achieve 100% recyclable, reusable, or industrially compostable packaging in private brands by 2025. 2023 Progress: 55% |
| Goal: Make 17% of Private Brand plastic packaging from post-consumer recycled content by 2025. 2023 Progress: 9% |
| Goal: Implement How2Recycle® labeling on 100% of Walmart U.S. food and consumable private brand primary packaging by 2022. 2023 Progress: 50% (Walmart); 38% (Sam’s Club) |
| Goal: Remove 100% of PVC from general merchandise Private Brand primary plastic packaging by 2020. 2023 Progress: 97% |
While Walmart is making progress toward many of its targets, it still has a long way to go in meeting its ambitious goals for Private Brands.
Because of this, suppliers of its Private Brand's products are likely experiencing a lot of pressure to design for recyclability, minimize plastic, and maximize post-consumer waste when plastic is being used.
Packaging Best Practices for Walmart Brand Suppliers and Non-Private Brands
Walmart’s sustainable packaging requirements are not specifically targeted at its Suppliers, but any brands can use Walmart’s Private Brand goals as a guideline. All Walmart Brand Suppliers must also comply with its Supplier Quality Excellence Program, which is summarized later in this guide.
Here are steps all brands can take to align with Walmart’s sustainable packaging program.
Ensure Product Protection:
Packaging must be designed to meet product protection International Safe Transit Authority (ISTA) standards.
Reduce Materials:
Eliminate packaging components or layers, “right size” packaging, and shift to reusable containers.
Eliminate Priority Chemicals:
Ensure packaging is free of chemicals that meet the criteria for classification as a carcinogen, mutagen, reproductive toxicant, persistent, bioaccumulative toxicant or is associated with “scientific evidence of probable serious effects to human health or the environment which give rise to an equivalent level of concern.”
Design for Maximum Recyclability:
- Prioritize mono-materials wherever possible versus packaging made with different materials.
- Prioritize widely recyclable materials, including aluminum, paperboard, glass, PET, and HDPE versus PP.
- Reject materials things in Walmart’s “avoid” list (see below).
- Minimize non-material aligned components such as zippers, buttons, labels, closures that are a different material than the packaging. Make these attachments easy to separate such as a blister pack for a toothbrush. Plastic should easily come away from paper.
Source Sustainable Inputs:
Maximize recycled content, and PCR in particular. Look for FSC® certified paper. PEFC and SFI are less preferred by Walmart than FSC® certified.
Clear Guidance and Labeling for Recyclability:
All brands are encouraged to utilize How2Recycle® labeling.
Labeling to Support Environmental Claims:
Third-party verification and certification are encouraged to support claims.
Improve Recyclability of Hard-to-Recycle Materials:
While Walmart’s messaging and guidance around this point are vague, its material encourages brands to work to improve infrastructure for hard-to-recycle packaging and products.
Packaging Materials To Avoid
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Metallized films
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Multilayer materials
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PVC or PVDC
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EPS or PS
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PETG in rigid plastic packaging
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Oxo-degradable
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Undetectable carbon black
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Colored PET
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Biodegradable additives in petroleum-based plastics
Minimize the following to optimize recyclability:
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Label-to-packaging ratio
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Mixed material labeling such as paper on plastic or one type of plastic on a different plastic. For example, a PP label on HDPE bottle, plastic on paper, or foil on paper or plastic.
Preferred Packaging Materials
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Uncoated Paperboard and Corrugate: Recycled or FSC® certified virgin
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PET: Maximum PCR possible, recycle-friendly labels preferred
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PE (HDPE, LDPE, LLDPE): Maximize PCR possible, recycled friendly labels preferred
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Aluminum
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Glass: Where appropriate; glass is heavy, breakable, and requires a more complicated and material intensive packaging system
Packaging, Labeling, and Testing Requirements for All Walmart Suppliers
While Walmart does not currently fine or ban suppliers who don’t comply with its sustainable packaging guidelines, the retailer does have several efficiency-focused requirements in place as part of its Supplier Quality Excellence Program (SQEP). Many of these requirements are found in Walmart's Supply Chain Standards guide.
SQEP requires suppliers to implement specific processes, and this may mean that some brands must undergo ISTA testing to ensure its packaging complies. Read on for a very brief summary of SQEP requirements.
Overview of the Supplier Quality Excellence Program (SQEP)
Phase 1: PO Accuracy and ASN Accountability
To comply with PO and ASN expectations, Walmart specifically seeks:
- Item Setup Information – verifying item information is accurate and complete.
- Parent-Child UPC accuracy – ensuring a child UPC is linked to the parent UPC.
- Canceled Line adherence – suppliers can not ship against a line item after it has been canceled.
- Canceled PO adherence – suppliers can not ship against a purchase order after it has been canceled.
- Overage errors – POs shipped may not exceed the quantity ordered by Walmart.
- Allocation issues – issues involving a sort versus a non-sort or assigned to the wrong store.
- Wrong Pack quantity – the quantity specified on the purchase order does not match the quantity shipped to the Walmart store or distribution center.
- Item Not on PO – item(s) shipped to a Walmart store or distribution center do not match item(s) on the purchase order.
- Recall or Withdrawal shipments – items in the shipment have been recalled or withdrawn.
- Not Walmart Freight – the shipment received by Walmart was not freight intended to be delivered to Walmart.
- No ASN – an ASN label is not located on the case.
- ASN not Downloaded – an ASN was not sent, or the ASN could not be downloaded.
- ASN Mismatch – purchase order line where an ASN is present, but the ASN quantity and quantity received do not match.
- Imagery issues – for Walmart.com items, incomplete or inaccurate item descriptions.
Phase 2: Labeling and Barcode Accuracy
This phase covered the accuracy of shipping labels. Suppliers also need to verify case labels are scannable and that the information is correct. Under the labeling and bar code umbrella, Walmart is looking for accuracy on:
- Barcode compliance – ensuring all barcodes are correct, in the required format, in the correct quantity, and contain no defects.
- Label compliance – all labels are accounted for with accurate descriptions, correct vendor stock numbers, correct item numbers, and contain no defects.
- Hazmat compliance – required hazmat labels are in place and free from obstruction.
Phase 3: Pallet, Load, and Packaging
This rollout portion emphasized the basics like box quality, pallet integrity, and load shifts. Walmart is holding suppliers responsible for:
- Load Stability – ensuring loads are palletized, stable, have not shifted, and have no other stability issues.
- Load Segregation – segregation by purchase order type, item, or other defects.
- Pallet Quality – verifying pallets comply with Grade A standards, required size, and are defect-free.
- Pallet Securement – ensuring pallets are secured properly, not missing trays, and defects-free.
- Pallet Build – pallets may not overhang, exceed the required height, or contain other build defects.
- Pallet Labeling – pallets must be properly labeled and free of label defects.
- Packaging Compliance – packaging will be checked for weak tape, glue, perforations, poor or loose wrap, unsecured selling units, missing trays, and other packaging defects
Phase 4: Scheduling and Transportation
Walmart has not yet rolled out Phase 4 of SQEP.
The most current information on fines suggests that brands are fined $200 per impacted PO and $1 per case on that PO - for any orders that don’t comply with SQEP.
It is also worth noting that Walmart has OTIF fines in place - On-Time In-Full. This is a compliance measure of how a supplier’s freight arrives at a Walmart store or distribution center. As its name states, Walmart asks two questions about each supplier delivery:
1. Did the shipment arrive on time? Walmart assigns a specific drop-off window for each delivery. The delivery is considered on time if it arrives within the window. Early and late deliveries may be subject to monetary penalties charged to the supplier.
2. Did the shipment arrive in full? The expectation is that what the supplier delivers to Walmart matches what is listed on the purchase order (PO). Any discrepancies in quantity or product may result in monetary penalties charged back to the supplier.
Monetary penalties are also calculated on a percentage of the order. If a supplier fails to meet the OTIF guidelines on delivery, they are fined 3% of the cost of goods in the order. What’s important to note is how the 3% is drastically different whether you’re falling short on the on-time versus in-full metric.
Resources and Tools for Walmart Brand Suppliers
Walmart is increasingly focused on helping create change on systemic and community levels. One way it is working towards this goal is by providing more tools and resources for brands looking to improve their own sustainability initiatives.
Walmart Sustainability Hub
Walmart organizes all of its resources, goals, and other sustainability information into one central hub. This hub is updated semi-regularly with current progress and new initiatives.
Project Gigaton
Walmart’s primary sustainability initiative related to its non-Private Brands suppliers is Project Gigaton.
Participating suppliers sign up, set targets, and take science-based measurable action to reduce or avoid emissions across six areas: energy use, nature, waste, packaging, transportation, and product use and design.
Walmart aims to reduce or avoid one billion metric tons (a gigaton) of greenhouse gasses from its global supply chain by 2030. Many brands supplying Walmart that have signed up for Project Gigaton set specific goals related to sustainable packaging.
THESIS
Another of Walmart’s sustainability performance tools is THESIS (The Sustainability Insights System).
Formerly known as the Sustainability Index, THESIS - created by The Sustainability Consortium (TSC) and powered by SupplyShift - is a sustainability performance tool that allows brands and manufacturers to understand the sustainability story of its products.
Brands use this tool to complete assessments. The tool then generates assessments used by Walmart to identify key social and environmental hot spots and set supplier improvement priorities. Suppliers can see its scores and how they rank relative to the field and gain insight into improvement opportunities for each of the categories they supply.
The Circular Connector
Walmart recently launched the Circular Connector, a tool for evaluating sustainable packaging solutions. Brands can submit packaging items, which are then stored in a searchable database. The company periodically offers prizes for the most innovative packaging.
The Sustainable Packaging Playbook
The Sustainable Packaging Playbook encompasses all of the basic steps for brands looking to improve packaging sustainability, and includes:
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Priorities to consider in packaging
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Best practices and tips
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Lists of preferred materials and materials to avoid
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Resources for learning more
The Playbook is a helpful starting point for brands looking to see how their current packaging strategies align with Walmart’s goals.
The Recycling Playbook
The Recycling Playbook is another foundational tool that aims to help brands increase recyclability and recycling rates of their packaging. It includes:
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Definitions for common terms
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Overviews of the recycling process
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Examples of common recycling problems and solutions
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Hierarchies for making decisions about packaging
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Specific guidelines for different packaging types
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Notes on compostable packaging
This guide can help brands considering recyclability for the first time as well as those looking to optimize their packaging for maximum recycling rates.
EcoEnclose Is Ready To Help Your Brand
EcoEnclose is well-positioned to help brands design their packaging in ways that align with Walmart’s sustainable packaging playbook and hierarchy.
Our unique Sustainable Packaging Framework helps streamline decision-making, and our rigorous standards for all products ensure your packaging will stand up to Walmart’s requirements. We leverage our experience working with hundreds of brands, from the smallest startups to the most robust enterprise brands, to help you create a packaging strategy that works.
We’re here to support you in working to meet Walmart’s sustainable packaging goals by:
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Replacing undesirable materials, like PVC and PP film, with preferred materials
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Moving multi-layered films to mono-material, recyclable pouches
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Creating easy-to-separate blister packs, clam shells, and boxes with windows
-
Matching label material to the primary substrate to maximize recyclability
-
Maximizing post-consumer waste across all materials
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Helping you secure How2Recycle® labeling
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Eliminating coatings on paper packaging
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Providing guidance for verifying sustainability claims or achieving relevant certifications
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Creating custom branded packaging that shares your eco-commitments and stands out on Walmart shelves
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And more!
To get started, you can request free samples, explore our extensive resource library, or get in touch for a free consultation.
Additional Resources
- Walmart Sustainability Hub
- Walmart Sustainable Packaging Playbook
- Walmart Recycling Playbook
- Walmart Private Brand Data Reporting Guidelines
- Walmart Supplier Quality Excellence Program Overview
- Walmart Project Gigaton
- Walmart Sustainable Packaging Goals
- Walmart Sustainable Product Goals
- Walmart Supply Chain Sustainability Goals
- Walmart Sustainability Progress Report
Walmart Pollinator Health Position - Walmart Circular Connector
- Walmart Emissions Calculator
About EcoEnclose
EcoEnclose is the leading sustainable packaging company that provides eco-packaging solutions to the world’s most forward-thinking brands.
We develop diverse, sustainable packaging solutions that meet our rigorous research-based standards and customers’ goals. We drive innovative packaging materials to market and consistently improve the circularity of existing solutions.