Value chain emissions

Delivering net zero across our value chain is much more challenging because we have less direct control, and it requires managing much more data. We have a range of programmes underway:

• Taking action to drive reductions in scope 3 emissions

• Improving the quality of accounting

• Collaborating with industry partners to resolve systemic challenges/barriers to delivering reductions

As these work programmes develop, our transition plans will continue to be refined and the data underpinning our reporting will improve and change.

Science based targets

As we prepare to re-set our carbon targets, covering all emission scopes and including a new FLAG (Forest, Land, and Agriculture) target, with the Carbon Trust, we have rebased our emissions to reflect our current business structure

Incentives play an important role in encouraging and enabling action within our supply base. These can range from open conversations and shared learning to policy alignment and contractual commitments, and even long term partnerships and collaborative innovation.

By offering a range of tailored incentives, we aim to create the right conditions for suppliers to engage, commit, and take meaningful steps toward shared sustainability goals.

Agriculture is one of the largest areas of impact within our Scope 3 footprint. We routinely meet with farmers as part of our farmer working groups to listen and support farmers with the challenges facing their sector as we understand the critical importance of their role. Within many agricultural supply chains, we have longer term partnerships which help support a range of programmes such as researching, trialling, and implementing activity to reduce impact and improve economic stability.

An example of our supplier sustainability efforts in action is our work within the dairy supply chain, where we fund the Arla customer sustainability initiative. This collaboration supports new research, testing, and innovation across key areas such as:

• Feed additives

• Herd genetics

• Biodiversity

• Fertiliser use

These efforts aim to identify scalable solutions that can reduce environmental impact and support long-term sustainability across the sector.

We encourage suppliers to engage with EcoVadis and to deliver ambitious carbon reduction targets aligned with our sustainability goals. To support this, we’ve introduced incentives such as our Sustainable Supply Chain Finance initiative, developed in collaboration with HSBC. This initiative offers a range of tiered benefits on standard payment terms for suppliers who engage, commit, and take action.

We are proud signatories to The UK Food and Drink Pact (formerly called the Courtauld Commitment 2030) which has a target to reduce the impact of the food sector by 50% by 2030 from a 2015 baseline. This industry wide collaboration brings together organisations across the food industry to tackle shared challenges, and drive meaningful change.

We are also proud to be supporting the IGD Food System Change Leaders programme which is focussed on understanding and overcoming barriers to achieving a net zero transition. This collaborative effort explores where public policy support may be needed to unlock progress and accelerate transformation.

Translating the impact of our supplier sustainability into product level insights is a critical step in shaping our transition strategy. That’s why Asda is working alongside other supermarkets and food businesses to support the BRC Mondra Coalition.

This programme is focussed on developing a unified approach to scaling and automating product level emissions data for thousands of our products. By doing so, we aim to :  

• Deepen our understanding of the environmental impact of our products. 

• Support a customer-led product strategy that balances health and sustainability. 

• Improve the quality of our Scope 3 emissions accounting and track reductions more effectively.