British supermarket giant Asda has outlined a new approach to achieving its sustainability goals, emphasising collaboration with its supplier network.
More than 700 supplier partners and growers attended Asda’s annual environmental, social, and governance (ESG) Supplier Conference held on 20 March 2024.
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The event reaffirmed Asda’s commitment to working alongside its suppliers to deliver on its sustainability targets.
Sustainability as a growth driver
Asda views its ESG programme as a core element of its growth strategy.
This strategy focuses on providing customers with affordable and accessible options for healthy and sustainable shopping while creating a more efficient and resilient supply chain.
The conference highlighted key steps towards this vision. Asda announced a new health target: to consistently increase the sales-weighted health score (based on the UK’s nutrient profiling model) of its products year-on-year.
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By GlobalDataAdditionally, it revealed revised packaging reduction goals, aiming to cut branded and own-brand packaging by 20% by 2030.
Renewed commitments
Asda representatives, including Kris Comerford, CCO – Food, and Sam Dickson, VP for Commercial Strategy, Own Brand & Operations, reiterated the company’s existing sustainability commitments.
These include achieving net-zero operational carbon emissions by 2040, setting a science-based interim target, and reducing operational food waste by 20% by 2025.
A new natural resources strategy was also unveiled, focusing on improving Asda’s impact on water, biodiversity, and soil health across its operations and supply chain.
“We know that customers are becoming increasingly conscious about their shopping habits and that they particularly care about shopping in a more healthy and sustainable way,” said Dickson.
“We want to work with our suppliers to provide more choice to our customers for all budgets and collectively build more resilient and profitable businesses together.”
Collaboration for success
The conference was not just about Asda’s plans. Suppliers were also updated on the retailer’s engagement initiatives with charities such as Tickled Pink and Children in Need.
Additionally, Asda emphasised its responsible sourcing practices and human rights requirements for its suppliers.
A significant step towards supply chain transparency was also introduced. Asda’s highest-impact suppliers, responsible for roughly 80% of the company’s carbon footprint, will now be required to participate in the EcoVadis platform.
EcoVadis is a globally recognised assessment tool that evaluates businesses’ sustainability performance across environmental impact, labour practices, ethics, and procurement practices.
By utilising EcoVadis, Asda can gain a clearer picture of its suppliers’ ESG performance and integrate it into its overall sustainability strategy.
As a commitment to transparency, Asda itself will also undergo an EcoVadis assessment.
