Walmart completes its $2 billion green bond issuance

Walmart  has completed its previously announced $2 billion inaugural green bond issuance. The green bond is Walmart’s first issuance under the company’s Green Financing Framework, which was announced in August 2021. It explains the company’s alignment with the International Capital Markets Association’s 2021 Green Bond Principles (ICMA). The company aims to achieve 100 per cent renewable energy by 2035 and zero emissions in our operations by 2040. The net proceeds will be used to fund current and future programmes which would help Walmart achieve its sustainability goals.

Walmart aims to devote the net proceeds of the $2 billion sale to a portfolio of eligible green I=investments in various eligible green categories. These include renewable energy projects, as well as supporting infrastructure such as microgrids and energy storage, which are being developed to cut emissions and move away from the usage of fossil fuels. Further, electric, hydrogen, and hybrid vehicles are examples of sustainable transportation projects associated to Walmart’s business, supply chain, or customers. Projects involving high-performance buildings aimed at making Walmart’s facilities more energy efficient are also being developed. For Walmart’s facilities, supply chain, and communities where the companies works, zero waste and circular economy projects concentrate on waste prevention, waste reduction, and waste recycling, including closed-loop material flows and resource-efficient packaging and distribution.

Walmart shall produce an annual public report detailing the allocation of bond proceeds to eligible green investments until an amount equivalent to the green bond’s net proceeds has been distributed. In addition, Walmart will offer impact reporting to support its allocation reporting on a best-efforts basis.

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