Our approach

Through ambitious climate action, Ocado Retail is actively contributing to global efforts to mitigate the impacts of climate change and create a low-carbon future.

Climate change is already affecting the food system, with rising temperatures, disrupted weather patterns, water scarcity and crop vulnerability. We acknowledge the challenges and are implementing measures to ensure a successful net-zero transition.

“We recognise the importance of achieving our ambitious carbon reduction targets by 2040 and are prioritising action in our highest-emitting areas. To make net-zero a reality, we have a clear plan that includes industry partners, suppliers, customers and colleagues which are integral to our transition journey. Only then, we will be able to transform our business and drive meaningful change.” Laura Fernandez, Senior Sustainability Manager, Ocado Retail.

Our 2021 base year carbon footprint

We calculated our 2021 emissions footprint throughout our entire value chain, considering both upstream and downstream activities. This comprehensive approach aligns with the GHG Protocol. Our 2021 emissions will be used as our base year footprint against which we will track our progress towards our science-based targets.

Scope 1 and 2 emissions constitute less than 1% of our total emissions. These emissions primarily come from our direct fuel usage and electricity consumption at our head office and Customer Hub. The emissions from our operational logistics and transport to customer homes fall under Scope 3 and are managed by Ocado Group.

Scope 3 accounts for over 99% of our emissions, with 56% of our Scope 3 emissions coming from agriculture. Scope 3 is therefore our biggest area of focus when it comes to reducing our emissions, as it’s where improvements will have the biggest impact.

Our performance

In FY2024, our total scope 3 emissions were 1.48 million tonnes. We recalculated our FY21 base year emissions to align with the updated methodology used in our FY23 and FY24 reporting. This includes revised emissions factors from industry carbon databases to ensure improved data quality and consistency across reporting years.

Our total carbon emissions increased by 9% compared to the recalculated base year. This rise was proportionally lower than our revenue growth of 17.3%, indicating improved operational efficiency. Notably, our carbon intensity per 100,000 orders fulfilled decreased by 12.17% compared with the base year, demonstrating progress toward decoupling emissions from business growth.

Reduction focus areas

We recognise the urgency of achieving our carbon reduction goals and are prioritising action in our highest-emitting areas. While we face challenges in our level of influence over Scope 3 emissions and managing potential emissions related to our ambitious growth plans, we are committed to addressing them. Industry collaboration, stakeholder partnerships and bold advocacy are integral to our transition journey, enabling us to transform our business and drive meaningful change.

Industry commitments

• We're a founding member of the British Retail Consortium (BRC)’s Climate Action Roadmap.
• We're signatories of the UK Food and Drink Pact and funders of the Retail Leadership Commitment that enables collaboration across the UK food chain to deliver reductions in food waste, greenhouse gas emissions and water stress.
• We’re signatories to the UK Plastic Pact's Mark II Ambition which aims to eliminate problematic plastics, stimulate innovation and new business models that help build a stronger recycling system in the UK.

Key partnerships

• We invest in the The BRC Mondra Coalition for ingredient-level emissions data management and future robust labelling.
• We’re engaging with our suppliers to decarbonise operations through Manufacture 2030.
• We have a corporate partnership with the Soil Association to help transform the way we eat, farm and care for our natural world. It includes five UK demonstration farms showcasing nature and climate-friendly food production. Each will focus on a different area of farming – from dairy cows, beef and sheep to orchard fruit and potatoes. They will host training sessions for other farmers, sharing technical expertise and support on a range of nature-friendly agricultural practices. Alongside the work on the ground, we will build a ‘Farm to Fork Ambassadors programme’ - encouraging people providing healthy and sustainable food to share their stories and experiences with others in the industry.