Trends driving our ESG approach
The climate emergency
We operate in a fast-changing market shaped by global climate challenges and evolving customer expectations. Together with our partners, we’re driving innovation to transform how food is produced and consumed.
The UN Climate Change Conference (COP28) in Dubai in 2023, marked a global shift, with nearly 200 countries agreeing to transition away from fossil fuels and keep the 1.5 degree target in reach. More recently, COP30 in Brazil reinforced the urgency of climate action. Asda is already on this journey. We have a clear path to becoming a net-zero business by 2040 and have mapped our full value chain so that we can extend climate action into our supply chains. These global developments strengthen our commitment to decarbonisation, sustainable sourcing and building a resilient, future ready food system.
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 over 13 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 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.