Net zero by 2040

In 2019, we announced our commitment to achieve net zero across our Scope 1, 2 and 3 greenhouse gas emissions by 2040.

Targets

Our Science-Based targets aligned to 1.5°C (SBTi approval currently pending)

2040 targets:

  • 90% reduction in Scope 1, 2 & 3 emissions (energy and industry, non-agricultural).
  • 72% reduction in Forest, Land and Agriculture (FLAG) Scope 3 emissions.

Interim targets to 2030:

  • 42% reduction absolute scope 1 and 2 GHG emissions.
  • 42% reduction absolute scope 3 GHG emissions (energy and industry, non-agricultural).
  • 30% reduction absolute scope 3 FLAG GHG emissions.
  • No deforestation across primary deforestation-linked commodities (by 2025).

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.

Our 2021 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.

carbon footprint

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.

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 to The Courtauld Commitment 2030 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 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’re helping farmers to apply agroecological practices that reduce farming emissions by supporting The Soil Association’s Fabulous Farmer programme.
  • We prioritise food waste reduction and redistribution by joining forces with WRAP and non-profits such as the Community Shop and The Felix Project.

Task Force on Climate-Related Financial Disclosures (TCFD)

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.

Explore further

Deforestation

Sustainable Agriculture

Healthy Sustainable Diets

Responsible Packaging

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