Ocado Retail has released its first sustainability report, outlining its future ambitions and progress to date with regards to its sustainability strategy and its goal to become a net-zero business by 2040. Under its #PlanetTogether sustainability brand, the online retailer has committed to five key pillars – aligned with the United Nations Sustainable Development Goals (SDGs) – in order to achieve net-zero by 2040, a target which was recently validated by the Science-Based Targets initiative including those originating from forests, land and agriculture (FLAG).
Hannah Gibson, CEO of Ocado Retail, said: “I’m really proud to be sharing our first sustainability report. We are at the start of our sustainability journey and recognise that, in an ever changing world, striving to achieve these commitments will be a constant focus.
Whether at an individual or organisational level, we all have a responsibility to ensure that together, we are stepping up and taking action in the fight for the future of our planet. For Ocado, that includes working to become a net-zero business, reducing food waste and helping our customers make healthy and sustainable choices, plus so much more.
Alongside our customers, suppliers and stakeholders, we’re working together for a better planet and in this report, you will read about our progress so far, what #PlanetTogether means to us and our plans for the future as we strive to reach net zero by 2040.”
Key pillars include:
- Climate action: 99% of Ocado’s emissions fall under Scope 3, with 56% of Scope 3 emissions coming from agriculture. In FY23, Ocado reduced its Scope 3 emissions by 6% compared to its baseline year, despite increasing overall sales volumes, and has an SBTi-validated ambition to reach net-zero across its Scope 1, 2 and 3 emissions by 2040. Going forward, Ocado will be investing in industry collaborations like the Waste & Resources Action Programme (WRAP), the BRC Mondra Coalition and Manufacture 2030, in order to engage with suppliers and build a more resilient supply chain.
- Sourcing with integrity: Ocado is committed to promoting responsible sourcing practices across the industry and has committed to have at least 50% of its whole produce and grains certified by a robust environmental scheme and 100% of its Own Range meat, dairy and eggs sourced to ‘Better’ standard according to its ‘Sourcing Better’ Framework by 2030.
- Healthy sustainable diets: Alongside government guidelines, Ocado is striving to make healthy and sustainable eating accessible to all customers, regardless of their dietary requirements, by offering the largest range of vegan, free-from and organic products compared to any other supermarket. This will both improve health whilst minimising environmental impact.
- Food waste reduction and communities: Ocado has a long history of working alongside partners to tackle food redistribution. In 2023, £10.7 million in surplus stock was redistributed to Ocado’s network of charity partners. The Group will continue to maximise food surplus redistribution to charity partners, reducing food waste throughout its value chain and supporting local communities. It has an ambition to reduce food waste in its own operations by 20% by 2025 and halve it by 2030 (versus a 2022 baseline), with 100% edible food surplus to be redistributed by 2025.
- Responsible packaging: As an online retailer, Ocado has a unique opportunity to eliminate the unnecessary packaging that is necessary for in-store products. After already being recognised for its innovative digital return scheme in 2021, Ocado is pushing forward to increase the average recycled content of its Own Range plastic packaging to 30%, and to ensure 100% of its packaging is recyclable by 2025.
