In 2020, we announced our commitment to achieve net zero across our Scope 1, 2 and 3 greenhouse gas emissions by 2040.
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 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.
In FY2023, our total scope 3 emissions were 1.37 million tonnes. Despite our increase in overall sales volume, our emissions have decreased compared with the baseline year (1.46 million tonnes) alongside the total purchase volume. The most significant reduction, achieved through supplier engagement and industry collaboration, comes from the agricultural emissions, in particular the fresh beef category.
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.
We will disclose our climate-related risks and opportunities in line with the Task Force on Climate-Related Financial Disclosure (TCFD) in 2024. Material climate-related risks are being identified across our business and supply chains, which will be further assessed through climate scenario analysis (1.5°C and 4°C scenarios).
We buy renewable energy for our headquarters and customer hub.
From 2024, we will remove unavoidable emissions through our partnership with Climeworks using direct air capture technology.
Ocado Group’s Dordon CFC is more than 50% powered by biogas and all CFCs have LED lighting.