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Asda publishes latest ESG report

Asda publishes latest ESG report

In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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Asda has today (8 July) published its 2023 Brighter Living Report – its fourth report updating on the progress made towards its Environmental, Social and Governance (ESG) targets in the last calendar year.  

In the “carbon” section, key updates from the report include continued reduction in carbon emissions (scope 1-3), down 7% on 2022 and 15% since Asda first began reporting its full carbon footprint in 2020. 

To drive further reductions, Asda’s highest carbon impact suppliers are now required to share sustainability progress through the EcoVadis data-sharing and assessment platform. 

Regarding packaging, Asda increased the proportion of own-brand packaging that can be recycled by 3% year-on-year to 96%, on the way towards the target of 100% recyclability by 2025. 

Innovation to packaging include: 

  • Changes to beef mince and steak trays saw reduced packaging of 120 tonnes annually, and improvements to shelf life from nine days to 14 days on beef mince 
  • Over 1.8 million lids of Just Essentials soft cheese now include 30% recycled content in packaging 
  • Removed the colour milk caps on Asda branded fresh milk to improve the recyclability of 200 million pieces of plastic annually by removing 

The grocer has also launched the “Health Menu”, a new healthy eating range with more than 40 nutritionist-approved products to make eating healthily easier for shoppers. 

Regarding charitable causes Asda continued support for communities impacted by the cost-of-living crisis via initiatives such as “Kids Eat for £1” in cafes, with over 3m meals served since launch, as well as raising over £7m for Tickled Pink breast cancer campaign.

The retailer also recently celebrated its 10-year anniversary of working with FareShare, having donated the equivalent of over 38 million meals from surplus food from Asda stores and depots in that time. 

Key achievements for its employees include a record £150m investment in its retail pay for 2024, making Asda the highest paid traditional supermarket. A total of £415m has been invested in increasing pay since the change of ownership in 2020. 

Mohsin Issa, co-owner of Asda, said: “2023 was a big year for Asda, with major strategic investments delivered and the foundations being laid to build a bigger and better Asda. Our fourth ESG report outlines the progress we’ve made in the last year, with our new strategies and targets not only matching the ambitions of the business, but also tackling the areas that matter most to our customers and stakeholders. 

“Through this programme, we will continue to demonstrate our commitment to building a sustainable business for the long term.” 

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