Trends driving our ESG approach
The climate emergency
We’re operating in a rapidly changing market influenced by major global challenges and consumer preferences. In particular, we and our partners are innovating to transform the way food is produced and consumed.
The UN Climate Change Conference (COP28) held in Dubai in 2023 closed with an agreement from nearly 200 countries which signalled the beginning of the end of the fossil fuel era with overarching aim of keeping global temperature increase to 1.5 degrees above pre-industrial levels. At Asda we are already on our journey having established a path to becoming a net zero carbon business by 2040. We’ve also mapped our value chain so that we can extend climate action into our supply chains.
Biodiversity collapse
Biodiversity is vital to producing food crops. Yet nearly 70% of all wildlife has been lost since 1970 due to human activity, according to the World Wide Fund for Nature*. This includes industrial farming, with large areas deforested in recent decades to grow crops. Deforestation and biodiversity loss also lead to climate change, so it’s critical that we protect and restore nature.
*Available from: www.worldwildlife.org/press-releases/68-average-decline-in-species-population-sizes-since-1970-says-new-wwf-report
Circular economy
With deepening resource scarcity and concerns that food production is exceeding the planet’s natural limits, our industry must champion a more regenerative approach to producing food. This means eliminating waste and ultimately, giving back more than we extract from nature. It includes ensuring packaging is designed for recycling or reuse, as well as non-food products being built to last.
Transparency and human rights
With growing stakeholder interest in radical transparency, it’s vital that our industry does more to address human right issues, including modern slavery, within our global supply networks.
UK Customer trends
Healthy eating and living
Eating more fruit and vegetables and maintaining a balanced, healthy lifestyle is vital to well-being, and should be in reach for everyone. It makes good business sense for us to offer holistic health solutions for customers and employees, covering food, pharmaceuticals and optical health.
Shifting diets
With a greater diversity of dietary preferences and a rise in allergies/food intolerance, we’re doing our best to cater for everyone. Many people now prefer a plant-based or flexitarian diet, for example, or need product ranges that exclude certain ingredients. We have invested in lowering prices to expand access to these lifestyle choices.
Community support
We have been supporting our local Asda communities for over 30 years with our Asda Foundation and for 10 years with our in-store Community Champions. We believe it is vital that we, and all retailers, act to support our local communities to make a positive impact.
Customer Value
We are here to serve customers and they trust us to deliver for them. We know that price is one of the biggest barriers to customers shopping and that’s why Asda’s focus is on providing great value for customers and why we are proud to have been crowned by The Grocer Gold Awards: ‘Lowest Price Traditional Supermarket’ for 26 years in a row in 2023. Our Just Essentials label is an award winning value range offering products specifically designed to keep households running on the tightest of budgets.
Sustainable Choices
We know that price is one of the biggest barriers to customers shopping in more sustainable ways*. That’s why in 2024 we introduced a broader focus and new commitments towards sustainable packaging targets to support customers to make more sustainable choices when shopping at Asda.
*A survey of 3000 UK consumers in October 2021 found that 76% suggested lower prices would help them shop more sustainably.