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As a Group, we have an ambition to achieve net zero by 2050 or sooner. Beyond that broad ambition, we do not set groupwide climate-related plans or commitments. In line with our devolved business model, our businesses set plans and commitments appropriate to their operations and supply chains regarding Scope 1 and Scope 2 greenhouse gas (GHG) emissions, and several of our businesses have set their own GHG emissions reduction commitments.
ABF Sugar and Primark each have specific public targets for reducing their GHG emissions. Their reduction targets have been validated by the Science Based Targets initiative (SBTi), ensuring they align with the latest climate science. This year Primark and ABF Sugar have also published transition plans detailing their strategies for achieving these goals.
AB World Foods has also submitted a target to the SBTi for validation, and Twinings has committed to setting near and long-term emissions reduction targets in consultation with the SBTi in the coming financial year.
Grocery Group UK businesses are signatories to the Courtauld Commitment 2030, which outlines an ambitious set of industry-wide targets aligned to a 1.5°C pathway and a commitment to achieve net zero emissions by 2050. Grocery Group UK businesses have committed to reduce emissions by 50% across Scope 1, 2 and 3 by 2030 against a 2015 baseline, in line with the Courtauld Commitment 2030.
Achieving net zero across the Group will depend on a number of factors that are beyond our control, however, we will do our upmost to deliver on this objective in our operations.
Our businesses are addressing the challenge of climate change in four ways:
We regularly review our methodologies for monitoring our carbon footprint, including calculations and estimations where relevant. To ensure we align with latest protocols, we use the best data available and continually work to improve the accuracy of our reporting.
We remain focused on energy efficiency and transitioning to renewable energy where viable. In 2023/24, our businesses consumed 20,697 gigawatt hours (GWh) of energy in our operations, which is a 2% decrease compared with the previous year. Of this total energy, 57% was derived from renewable sources, predominantly biomass fuels from by-products generated as part of the production process within our agricultural businesses. During the same period 31% of the electricity we bought came from renewable sources, with the majority coming from the UK and European energy markets.
Several of our businesses also export surplus renewable energy back into national grids. During 2023/24 887 GWh of renewable energy generated by our sites was exported, with ABF Sugar contributing 96%. Of the renewable energy we generate, 87% comes from bagasse, the plant-based fibre that remains after the extraction of juice from the crushed stalks of sugar cane. Some renewable energy is also derived from the anaerobic digestion of a range of waste materials.
Total energy consumed and percentage from a renewable source
(GWh)
Energy use by source
(%)
Our Scope 1 and 2 (location-based) GHG emissions increased by 1% this year from 2,834 kt of CO2e to 2,868 kt of CO2e. Unless otherwise stated, all Scope 2 GHG emissions are location-based figures.
Our Sugar segment is the most significant contributor of Scope 1 and 2 emissions within the Group at 72%. As a result this has been a priority for the Group over many years. ABF Sugar’s Scope 1 and 2 emissions had an increase of 5% this year. The drivers for the increase are as a result of Vivergo (our bio-ethanol plant) returning to near full operating capacity, British Sugar contending with the operational challenges due to difficult wet weather conditions and Azucarera processing more sugar beet. Despite the short-term increase, ABF Sugar has reduced its Scope 1 and 2 emissions by 18% against its 2018 baseline by continuously improving how efficiently it produces sugar, investing in new technology, innovating to use less energy and reducing its use of fossil fuels. British Sugar, the largest contributor to Group's Scope 1 GHG emissions at 36%, has made significant investment across its sites to reduce GHG emissions. From the 2017/18 baseline through to 2023/24, British Sugar invested approximately £96 million in various initiatives, resulting in a cumulative reduction of around 162 kt of CO2e. Key initiatives include the energy reduction scheme at the Wissington site, which targets a 25% reduction in steam usage, and ongoing improvements in pulp pressing processes across multiple sites. Additionally, British Sugar is improving factory performance and efficiency by upgrading heaters, evaporators, and dryers to save energy and reduce coal and gas consumption. These efforts have contributed substantially to lowering Scope 1 emissions.
Our Retail, Grocery, Ingredients and Agriculture segments have reduced their Scope 1 and 2 emissions compared with last year which has been driven by decreases in imported electricity, changes to the fuels used as well as investment in on-site renewable generation and purchased power and in more efficient equipment which reduces overall energy use.
Scope 1 and 2 (location-based) GHG emissions
(000 tonnes of CO2e)
Scope 1 and 2 (location-based) GHG emissions by segment
(000 tonnes of CO2e and % of Group total)
Understanding our total Group GHG emissions will be an important step towards achieving our ambition to meet net zero by 2050. At a Group level, we are supporting the divisions in the process of calculating their material Scope 3 GHG emissions, which will help us identify where to focus our priorities. Most of our divisions have either published or are in the process of calculating their Scope 3 GHG emissions from across their value chains.
Primark first completed this process in 2021 and this year reported 6,211 kt of CO2e for their Scope 3 emissions, which is a 12% decrease compared with 2023. This represents a 0.6% decrease against its 2018/19 baseline, despite the significant increase in volumes. This reduction was achieved through investments in its Environmental Sustainability team and in supplier factory efficiency programmes aimed at supporting GHG emission reductions through targeted training, upskilling, and energy-saving projects.
See our data page for more details on our Scope 3 emissions.
We provide products and services that have the potential to assist others in reducing their carbon emissions, often referred to as carbon enablement. This has always been integral to our businesses, and a key focus for investment and innovation. ABF businesses, including ABF Sugar, AB Enzymes and AB Agri help to facilitate the potential reduction of other businesses’ emissions.
Δ EY has provided limited independent assurance over the 2024 metrics. See our data page for the assurance statement.