**London**: The Carbon Trust’s report reveals that while the largest ten supermarkets are making emissions reductions, only four have set specific Net Zero targets. Recommendations for improved collaboration and sustainable practices are essential for significant progress in tackling supply chain emissions and achieving sustainability goals.
The Carbon Trust has released a report detailing the progress made by the world’s ten largest supermarkets in their efforts to reduce climate impact and move towards Net Zero emissions. Titled “Big changes in store: How can the global supermarket sector accelerate to Net Zero?”, the report highlights that while these supermarkets have made strides in their own operations, a more transformational approach and greater collaboration within the sector are necessary to effectively address the significant emissions originating from their supply chains.
The report’s findings indicate that only four of these supermarkets have established specific Net Zero targets. Though all ten are implementing short-term strategies focused on reducing emissions from their stores, depots, and transportation systems, only four are addressing the long-term challenge of product-related emissions, which constitute nearly 85% of their total carbon footprint.
A significant contributor to the industry’s emissions is food production, which the report identifies as being in the early stages of decarbonisation efforts. Only four of the ten supermarkets have detailed plans to scale sustainable agricultural practices. Furthermore, while eight supermarkets have aimed for ambitious targets to eradicate deforestation—often driven by regulatory pressures and prominent campaigns—challenges related to transparency and traceability within supply chains are hindering effective progress.
The report underlines a major obstacle for these supermarkets: a lack of visibility into their supply chains, which limits their ability to set goals, develop actionable plans, report outcomes, and implement strategies aimed at eradicating deforestation. Only half of the identified supermarkets disclose information regarding their product sourcing, a crucial factor contributing to supply chain emissions, which account for 60% of the overall emissions.
Moreover, only two of the ten supermarkets have outlined initiatives to advocate for policies that would expedite their climate action, while four have made public their efforts to encourage consumption habits that align with Net Zero objectives.
Three primary issues have been identified as hindrances to the Net Zero efforts of supermarkets: the challenges associated with agriculture and deforestation, the need for reliable supply chain data, and the necessity for policy changes alongside shifts in consumer dietary behaviours.
The report does not solely identify barriers but also provides recommendations for enhancing supermarkets’ contributions towards Net Zero, both individually and collaboratively. Among these suggestions is the recommendation for supermarkets to assist food producers in adopting climate-smart agricultural practices, such as optimising animal feed to diminish methane emissions from livestock. The report advocates for supermarkets to support farmers by offering premium pricing, low-interest loans, and early payment incentives for sustainably sourced products.
Additionally, it argues for the potential benefits of collaborative efforts among supermarkets. By sharing supply chain emissions data, committing to pay premiums for sustainably produced goods, and collaborating on managing carbon-intensive commodities such as meat and dairy, supermarkets can make more substantial progress towards achieving Net Zero targets.
The transition to a Net Zero economy is presented not only as a necessity but also as an opportunity. The report identifies potential commercial advantages for supermarkets in future-proofing their business models and entering low carbon markets, notably highlighting an emerging $15 billion alternative proteins market.
Simon Retallack, Director at the Carbon Trust, emphasised the importance of these collaborative efforts and the need for robust action, stating that “the sector must engage comprehensively to accelerate toward Net Zero and effectively tackle the climate challenges it faces.” This underscores the recognition among industry leaders that achieving sustainability requires significant commitment and partnership within the supermarket sector.
Source: Noah Wire Services
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