Walmart Inc: Address Illegal Deforestation in Avocado Supply Chains

WHEREAS: Public investigations suggest that Walmart lacks effective measures to prevent the sourcing of avocados from illegally deforested land,[1] a practice that harms local communities and biodiversity and poses reputational and regulatory risks to the company.

Mexico accounts for nearly 90 percent of avocado shipments into the United States.[2] For the past decade, over ten football fields of Mexican forests have been cleared daily for avocado orchards, most lacking required permits.[3] By 2050, land used for avocado production is predicted to increase by over 70 percent,[4] underscoring the importance of addressing illegal deforestation.

Over the past two decades, virtually all avocado-related deforestation in Michoacán, where roughly 90 percent of Mexican avocados to the United States originate, has violated Mexican federal law that prohibits conversion of forests to agricultural production without government authorization. The crime of intentionally setting forest fires frequently facilitates this deforestation.[5]

Mexico’s main avocado-growing regions are currently in severe drought.[6] Water for avocado plantations is often obtained by illegally diverting streams or digging wells for irrigation, depleting community water supplies and making forests and farms more vulnerable to fires and disease.[7]

Burning and deforestation associated with conversion also releases greenhouse gases, reduces carbon storage, increases floods and landslides, undercuts biodiversity and the replenishment of aquifers,[8] and is destroying the Monarch Butterfly Biosphere Reserve, further imperiling this endangered species.[9]

Walmart expects its suppliers to comply with “relevant environmental laws and regulations.”[10] Yet, Mexican government records indicate orchards containing illegally deforested land are supplying avocados to Walmart, calling into question the sufficiency of Walmart’s due diligence protocols for its avocado suppliers.[11]

Michoacán has established a certification program to assist retailers and suppliers strengthen the sustainability of their avocado supply chains. Under this program, packing houses are certified under a satellite-based monitoring system, excludinge avocados from orchards on lands illegally deforested since 2018 and from orchard owners facing penalties for environmental crimes, including unauthorized water use. Since adoption by major U.S. avocado packers of this certification,[12] regional deforestation rates are slowing and certification is becoming industry standard.[13] Costco engages with its suppliers on the ProForest certification, annually monitoring progress through supply chain mapping and risk assessment.[14]

Walmart, however, has not made a commitment to source from suppliers using the Michoacán certification program, or any equivalent, creating material reputational, brand, and supply chain risk. Conducting an assessment of its due diligence policies, including use of certification systems, will help Walmart reduce the likelihood of lawsuits and prevent greenwashing accusations, while protecting human rights and critical habitat.

BE IT RESOLVED: Shareholders request that Walmart assess and report on the effectiveness of its due diligence policies to ensure supplier compliance with local laws, and Walmart’s own standards, in its avocado supply chain.

[1] https://cri.org/reports/unholy-guacamole/

[2] https://pubmed.ncbi.nlm.nih.gov/33126191/

[3] https://news.mongabay.com/2024/04/mexicos-avocado-industry-harms-monarch-butterflies-but-will-u-s-officials-act-commentary/

[4] https://www.researchgate.net/publication/358551509

[5] https://cri.org/reports/unholy-guacamole/

[6] https://smn.conagua.gob.mx/es/climatologia/monitor-de-sequia/monitor-de-sequia-en-mexico

[7] https://www.nps.gov/articles/planning-for-resilience-understanding-the-connections-between-forests-fire-water-and-drought.htm

[8] https://cri.org/reports/unholy-guacamole/

[9] https://www.mdpi.com/2673-7159/1/4/23

[10] https://corporate.walmart.com/suppliers/requirements/standards-for-suppliers

[11] https://cri.org/reports/unholy-guacamole/

[12] www.forestavo.com; https://www.nytimes.com/2025/10/09/world/americas/mexico-avocados-deforestation.html