Carbon and climate - Grocery

Our Grocery businesses are addressing the risks associated with climate change by focusing on reducing energy use and emissions while also preparing for regulatory changes.

GHG emissions, energy and renewables

Our Grocery businesses are focused on improving energy efficiency and increasing their use of renewable energy to reduce greenhouse gas emissions and cost.

This year, total energy consumption across our Grocery businesses totalled 1,235 GWh, a decrease of 2% compared with last year. This reduction is primarily due to ACH implementing fuel and transport efficiencies between its own operations and its local distribution centre, as well as some George Weston Foods sites reducing their use of natural gas.  In addition, many of the businesses have implemented a range of initiatives resulting in more efficient use of fuels on site and increasing their use of renewable energy sources.  These initiatives have contributed to a decrease of Grocery’s Scope 1 and 2 location-based GHG emissions of 3%, from 380 ktCO2e in 2023 to 370 ktCO2e this year. 

Grocery Group

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.

The Grocery Group’s total energy consumption for 2024 was 448 GWh, a decrease of 2% compared with 457 GWh in 2023. Of the total energy consumed, 12% came from renewable sources. This was a 23% increase in renewable energy compared with 2023.

Grocery Group’s total Scope 1 and 2 location-based GHG emissions increased by 2%, from 110 ktCO2e in 2023, to 112 ktCO2e in 2024. This was primarily driven by one UK site reporting higher quantities of diesel consumption.

Grocery Group’s UK businesses, who are signatories of the Courtauld Commitment 2030, achieved a decrease of 49% in their total Scope 1 and 2 location-based GHG emissions compared to the 2015 baseline. These reductions against the 2015 baseline year are driven by operational structure changes, investment in renewable energy and ongoing capital investment in more efficient equipment.

Grocery Group is working towards reporting verified Scope 3 emissions data by the end of 2025. Reducing Scope 3 emissions is challenging due to the fragmented nature of the businesses’ supply chains and difficulties in obtaining accurate data. A dedicated project team is mapping supply chains, establishing baseline data for Scope 3 emissions, and working towards a methodology for annual calculations. This data will support the implementation of effective strategies to reduce the division’s overall carbon footprint. Some businesses have already initiated discussions with key suppliers to find supply chain-wide interventions that can be delivered at scale and pace.

This year, AB World Foods joined the list of ABF businesses engaging with the Science Based Targets Initative. It has submitted a target and is currently waiting for this target to be validated.

 

Total energy consumed and proportion from a renewable source
(GWh)

Scope 1 and 2 (location-based) GHG emissions
(000 tonnes of CO2e)

Twinings Ovaltine

Twinings Ovaltine has committed to setting near and long-term GHG emission reductions targets in consultation with the SBTi. The business has established a Net Zero Steering Group that is working with external experts to measure and analyse its Scope 1, 2 and 3 emissions and develop specific targets and a reduction roadmap.

In 2024, Twinings Ovaltine's total energy consumption reached 147 GWh, reflecting a 1% reduction from 149 GWh in 2023. Of this total, 6% was sourced from renewables, representing a 70% increase compared with 2023.

Twinings Ovaltine achieved a 12% decrease in its Scope 1 and 2 emissions compared with 2023. This decrease is largely attributed to the installation of photovoltaic panels in Thailand, Poland, the UK, and Switzerland, as well as the implementation of an energy management system in China. Additionally, the introduction of a trigeneration system in Poland and a shift to more hydropower energy in Switzerland contributed to this positive outcome.

In particular, Twinings has implemented many energy efficiency projects across its two main manufacturing sites, Andover in the UK and Swarzedz in Poland, including installing LED lighting and solar panels.  In the UK, Twinings has upgraded its chiller and dust extraction systems, added two voltage power optimisation units to drive energy savings and installed a new robotic palletiser system, which requires 75% less energy than the previous system.

In Swarzedz, Twinings has implemented a trigeneration system that converts natural gas to electricity, which is less carbon-intensive and provides a significant portion of the site's power needs. When fully operational it is estimated that the panels and trigeneration system can supply up to 30% of the energy required to power its Polish sites. For the remaining energy needed across its operations, the business is looking to transition to renewable energy providers, including wind and hydropower. Ovaltine has also installed solar panels at its sites in Thailand and Switzerland.

Twinings Ovaltine understands the importance of collaborating with its suppliers to reduce its Scope 3 emissions. Farming communities, particularly smallholders, are increasingly affected by climate change and related environmental challenges such as water scarcity and poor soil health.

Twinings is engaging with key suppliers to support their efforts in reducing carbon emissions and it plans to conduct bespoke Life Cycle Assessments, starting with its largest tea suppliers, which represent the majority of its total tea spend. These assessments will focus on site-level factors such as existing reduction plans, renewable energy usage, farm inputs, regenerative farming practices, and soil management. By understanding suppliers' carbon footprints, Twinings aims to provide targeted support and drive emissions reductions across the supply chain. Logistics account for a minimal portion of Twinings’ Scope 3 emissions, as raw ingredients are shipped from sourcing countries to production sites rather than being air-freighted. However, Twinings is working on optimising product transportation to customers by minimising the use of empty trucks, using jumbo trailers to reduce the number of journeys, shifting from road freight to rail freight, and exploring alternative fuels.

George Weston Foods

George Weston Foods is dedicated to contributing to the transition to a low-carbon economy and managing its climate risks and impacts. It incorporates climate change as a focus area in its strategic planning and is developing goals and targets for energy efficiency and carbon emissions reduction, which will be finalised in 2025.

George Weston Foods is developing a climate adaptation and resilience strategy based on thorough measurement of its carbon emissions, including Scope 3 emissions, and is considering the adoption of a science-based target. The business is collaborating with external experts to understand its climate-related risks and the potential impacts on its sites.

In 2024, GWF's total energy consumption was 523 GWh, a 1% decrease compared with 527 GWh in 2023. Of total energy consumed in 2024, 2 GWh was sourced from renewable energy. Total Scope 1 and 2 location-based GHG emissions totalled 181 ktCO2e in 2024, a reduction of 1%  compared with 2023. Reductions can be attributed to site-level energy efficiency projects and equipment upgrades. Tip Top is currently in the process of installing solar arrays at 10 of its bakeries across Australia. Upon completion, these arrays will generate approximately 17% of the business's total electricity requirements. The business has already installed solar panels at its Townsville, Bendigo, Dry Creek, Carrara, and Chullora bakeries. Tip Top’s procurement team is also exploring the possibility of procuring its remaining energy from renewable sources, where feasible.

ACH

ACH’s total energy consumption for 2024 was 117 GWh, which was a 13% decrease compared with 2023. Its Scope 1 and 2 location-based GHG emissions totalled 29,257 tCO2e in 2024, a 13% decrease compared with 33,800 tCO2e in 2023. The reduction in both energy consumption and GHG emissions is related primarily to ACH implementing fuel and transport efficiencies between its own operations and its local distribution centre. 


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