ELO
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Scope 1 Emissions:397,031.33
Scope 2 Emissions:653,238.53
Scope 3 Emissions:452,205.81
Renewable Energy Share:16.9%
ESG Focus Areas
- Healthy eating and fight against food waste
- Fight against plastic pollution
- Reduce carbon footprint
Environmental Achievements
- Energy consumption in stores vs 2014: -24.5%
- Renewable electricity consumption as a percentage of overall electricity consumption: 16.9%
- 25% reduction in energy consumption in stores (vs 2014)
- 50% of decarbonised energy supply
- 20% reduction in carbon emissions from the transport of goods
- Plastic waste collected in our stores: 17,287 t (of which 11,361.5 t outside Russia vs 14,307 t in 2020 for the same scope, i.e. -20.5%)
- Percentage of reusable, recyclable or compostable own-brand product packaging: 42.5% (extrapolation, 51.1% in the EU)
Social Achievements
- Percentage of female managers: 50.4%
- Percentage of employees with disabilities: 4.4%
- Percentage of permanent contracts in total workforce: 92%
- Percentage of employees having completed training: 87%
- Percentage of internal promotion from non-managers to managers: 37%
- Internal promotion rate: 35.3%
- Internal promotion rate of women: 38.8%
- Total training hours: 2,383,626
Governance Achievements
- Moody’s ESG Solutions: Rating 62/100 (+25 points vs. 2019)
- CDP score: B (C in 2019)
- Standard & Poor rating «BBB-, stable outlook»
Climate Goals & Targets
Long-term Goals:
- Net zero emissions
Medium-term Goals:
- 100% renewable electricity by 2030
- -46% CO₂ emissions by 2030 (1.5° trajectory)
- -40% reduction in energy consumption in stores by 2030
- Reduce GHG emissions by 46% in Scopes 1 & 2 by 2030
- Reduce Scope 3 GHG emissions by 25% by 2030
- Reduce refrigerant leaks by 90% by 2030
Short-term Goals:
- Double the number of local products on sale in stores
- 1,200 responsible agricultural production chains around the world
- 100% of Auchan brand products carry a nutritional label
- 100% reusable, recyclable or compostable packaging for private label products
- Elimination of plastic as rapidly as possible from fruit and vegetable departments and food services departments
- 25% reduction in energy consumption in stores (vs 2014)
- 50% low-carbon electricity supply
- 20% reduction in greenhouse gas emissions from goods transport
Environmental Challenges
- Covid-19 pandemic impacting both retail and property management activities
- Supply chain disruptions
- Climate change risks (physical and transition)
- Corruption risks
Mitigation Strategies
- Rent reductions for tenants impacted by Covid-19 (€39 million)
- Actions to ensure safety of customers and employees during Covid-19
- Development of responsible agricultural production chains
- Energy efficiency and renewable energy initiatives
- Implementation of a compliance programme to fight corruption
- Sustainability-linked loan (€800 million)
Supply Chain Management
Supplier Audits: 980 social audits; 173 quality audits (Worldwide Products Department)
Responsible Procurement
- Responsible agricultural production chains
- Ecovadis CSR assessment for non-commercial suppliers
- ICS and AMFORI BSCI systems
Climate-Related Risks & Opportunities
Physical Risks
- Heat waves
- Increase in average temperature
- Storms
- Flooding
- Extreme rainfall
- Drought
Transition Risks
- Increase and volatility of commodity prices
- Sourcing in countries at risk of global warming
- Risk of disputes related to global warming
- Risk of impact on revenue from a change in consumer behaviour
UN Sustainable Development Goals
- Goal 12.3 (Sustainable Development Goals)
Auchan Retail's commitments to reduce food waste and plastic pollution align with SDG 12.3.
Sustainable Products & Innovation
- Just Chips (crisps without pesticide residues)
- Veggie Private Label product line
- Cosmia hygiene and beauty products (100% risk-free by Yuka)
- Sports shoe with recycled materials
Awards & Recognition
- Moody’s ESG Solutions A1 sustainability rating (62/100)
- CDP B score
- Various local awards
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:44.9 million tCO2e (2020)
Scope 1 Emissions:341,470 tCO2e (2023)
Scope 2 Emissions:673,195 tCO2e (2023) location-based, 364,370 tCO2e (2023) market-based
Scope 3 Emissions:407,902 tCO2e (2023) goods transport
Renewable Energy Share:34%
ESG Focus Areas
- Climate Change
- Biodiversity
- Plastic Pollution
- Waste Reduction
- Food Waste
- Responsible Products
- Ethical Business Relationships
- Human Rights
- Employee Well-being
- Diversity & Inclusion
- Governance
- Anti-corruption
Environmental Achievements
- GHG emissions from stores (Scopes 1 and 2): -44% vs 2019
- Renewable electricity consumption: 34% of overall electricity consumption
- Reduced energy consumption by 9% between 2022 and 2023
- Avoided waste of 73.64 million products (35,716 tonnes) in several subsidiaries using AI
- Collected 30.6 million bottles in Romania through deposit return scheme
Social Achievements
- Integrated 3,329 employees from acquired Dia stores in Spain
- Launched internal influencer network in Hungary to enhance employer brand
- Created a customized diploma course for Senegalese managers
- Improved annual interview process for employees
- Organised food drives raising over 1,283 metric tonnes of donations (€5.3 million value)
Governance Achievements
- Successfully placed a €750 million Sustainability-Linked Bond
- Appointed Antoine Grolin as CEO of ELO
- Implemented a new internal control framework with 94 key controls
- Updated ethics charter and anti-corruption code of conduct
- Rolled out a new e-learning module on anti-corruption
Climate Goals & Targets
Long-term Goals:
- Zero in-store food waste by 2032
- Reduce plastic use by 6,000 tonnes by 2032
Medium-term Goals:
- Achieve 100% renewable electricity consumption by 2030
- Reduce Scope 3 emissions by 25% by 2030
- Increase number of “Auchan Cultivons le Bon” supply chains to 1,500 by 2025
Short-term Goals:
- Reduce water consumption
- Reduce plastic use by 2,000 tonnes by 2024
Environmental Challenges
- Deteriorated economic context impacting operating income
- High impairment losses on Russian and Ukrainian assets
- Geopolitical uncertainty in Russia and Ukraine impacting store traffic and operations
- High inflation affecting employee purchasing power
- Supply chain disruptions due to geopolitical events
Mitigation Strategies
- Implemented energy efficiency plans
- Developed alternative sourcing strategies
- Provided support to employees in Ukraine and Russia
- Implemented measures to support employee purchasing power (bonuses, rebates)
- Developed a supplier commitment program for decarbonization
Supply Chain Management
Supplier Audits: 1,236 social audits (2023) for Worldwide Products Department, 803 EcoVadis assessments (2023) for non-commercial purchases
Responsible Procurement
- Code of ethics
- Responsible purchasing policy
- Supplier audits (social and environmental)
- EcoVadis assessments
Climate-Related Risks & Opportunities
Physical Risks
- Energy price shocks
- Supply disruptions due to climate events
Transition Risks
- Regulatory changes
- Changes in consumer demand
Opportunities
- Development of energy-efficient products
- Renewable energy investments
Reporting Standards
Frameworks Used: SBTi, TCFD, European Taxonomy
Certifications: ISO 50001, BREEAM In-Use
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 8 (Decent Work and Economic Growth)
- Goal 15 (Life on Land)
Initiatives contribute to these goals through various environmental and social programs
Sustainable Products & Innovation
- Eco-designed products
- Recycled materials in packaging and products
- Second-hand product offerings
Awards & Recognition
- Sustainable Retailer of the Year (Portugal)
- Romanian CSR Awards (Romania)
- Victories of Collaboration Awards (France)
- SuperDrecksKëscht® fir Betriber label (Luxembourg)