Good Governance

Our ESG programme is a foundational part of our business transformation plan and is overseen by our Board of Directors and led by our Executive Committee. To ensure our business is resilient to the risks and responsive to the opportunities of the changing landscape, our leadership teams are aware of the need to build and maintain their knowledge of environmental, social and governance issues.

Re-setting the ESG strategy

In 2022 our Executive Committee and Chairman took part in a detailed training session, led by an external expert, to better understand the macro environmental, social and governance trends affecting the economy, retail and Asda. This session covered a range of topics but focused extensively on climate change, natural resource use and waste, given their materiality to Asda. Following this, through a process of in-depth immersion on macro ESG trends, competitor benchmarking, stakeholder engagement and reviewing upcoming legislation, the Asda Executive, led a reset of the ESG strategy to ensure alignment with the business strategy and to deliver a programme that can withstand cultural shifts and other demands.

Management and oversight of our ESG programme

Asda have a range of committees with board-delegated authority which meet, typically each month, to manage day-to-day operations and decision-making on behalf of the Board. Committees are chaired and attended by members of the Board and Executive Committee as appropriate, and other relevant members of senior management. These committees operate under clearly documented terms of reference and the remit of each is regularly reviewed and updated as and when required. For more information on our corporate governance, please see our FY23 Annual Report and Accounts.

Asda’s ESG programme is managed by the ESG Steering Committee, on behalf of the Executive Committee and with oversight by the Board.

The ESG Steering Committee is responsible for:

Oversight of the definition, direction and progress against Asda’s ESG strategic priorities and targets.
Review and approval of disclosures including the annual ESG Report.
Oversight of the management of the Climate Change enterprise risk.

In 2023, ESG Steering Committee agenda items included:

Climate risk management and approach to Climate-related Financial Disclosures.
ESG rating assessment and benchmarking.
Governance and Programme Management.
Development of programme strategies in Healthy and Sustainable Choices, Net Zero Carbon and Nature.
Supplier Sustainability Standards