Woolworths gives ambitious sustainability pledge

Woolworths supermarkets group commits to net positive carbon emissions by 2050.

By 2023, 100 per cent of packaging on Woolworths’ own brand products will be widely recyclable, reusable or compostable. Picture: Brook Mitchell/Getty Images

Woolworths supermarkets group, which accounts for 1 per cent of all the energy used in Australia, has committed itself to net positive carbon emissions by 2050 and to power its entire operations with renewable energy by 2025 as part of a new and ambitious sustainability pledge.

The supermarket and retail giant said on Wednesday that its new Woolworths Group Sustainability Plan also included commitment to zero food waste to landfill by 2025, and 100 per cent of Woolworths’ own brand packaging to be recyclable, reusable or compostable by 2023.

However, at this stage there are no demands on its grocery suppliers to commit to any sustainability or carbon emissions targets to remain suppliers to the supermarket.

Recently Aldi, the nation’s 64th largest user of energy, made a commitment to procure 100 per cent renewable electricity to power our Australian operations, by the end of 2021.

The nation’s supermarkets have increasingly raised the bar on carbon emissions and sustainability, partly pushed by their own shareholders and to placate customers who demand action on climate change. Increasingly at ASX-listed company annual general meetings boards are being peppered with questions and demands over sustainability, often from organised environmental activist groups pressuring for these businesses to commit to climate change targets.

Woolworths will hold its annual general meeting on Thursday and on the eve of the shareholder meeting has unveiled its latest sustainability targets.

It is promising net positive carbon emissions by 2050, meaning it will not only be carbon neutral but also remove carbon from the atmosphere.

The retailer said the ambitious power pledge is part of the retail group’s newly announced Sustainability Plan, which charts its path to 2025. The plan includes a range of initiatives across three key pillars — planet, product and people.

“As Australia’s largest retailer, the group’s transition to renewable energy represents significant investment in the sector over the next five years,’’ the company said.

Woolworths will also partner on new build renewable energy projects to amplify its contribution to growing the industry and is calling on green energy operators to help it make the large-scale transition across all its stores and support operations.

Recognising the urgency of change, Woolworths will work at pace towards achieving this milestone ahead of time, the company added.

“Moving to 100 per cent renewable electricity is the right thing to do, and something a growing number of our customers, team members and shareholders expect us to lead on,’’ said Woolworths chief executive Brad Banducci.

“It represents a significant acceleration in our ambition to reduce carbon emissions for the health of our planet and the communities we serve across Australia and New Zealand.

“We use around 1 per cent of Australia’s national electricity, so we have a unique opportunity to use our scale for good and make a real impact.

“Over the coming years, we’ll invest tens of millions of dollars into renewable energy partnerships and prioritise new green energy projects to spur growth in the industry and new jobs in the sector.

“We believe this will not only be a positive for our business, but also contribute to a better tomorrow by making green energy accessible to more Australians.”

Woolworths said it has already reduced its carbon emissions by 24 per cent from 2015 levels through initiatives to improve energy efficiency. The group’s 2030 emissions reduction targets of 63 per cent for its own operations and 19 per cent across its supply chain align with the Paris Agreement’s goal of limiting climate change to a gain of 1.5 degrees.

Other pillars of its new sustainability plan include by 2025 zero food waste will go to landfill from Woolworths’ operations, with the retailer aiming to redistribute 100 per cent of edible unsold food to those who need it most through food relief partnerships with organisations like OzHarvest, Foodbank and FareShare and relationships with local community groups.

By 2023, 100 per cent of packaging on Woolworths’ own brand products will be widely recyclable, reusable or compostable.