Climate Change Data

Ocado Retail Limited

Climate Impact & Sustainability Data (2022-12 to 2023-11, 2023)

Reporting Period: 2022-12 to 2023-11

Environmental Metrics

Total Carbon Emissions:1,373,226 tCO2e/year (2023)
Scope 1 Emissions:119.55 tCO2e/year (2023)
Scope 2 Emissions:0 tCO2e/year (2023)
Scope 3 Emissions:1,253,667 tCO2e/year (2023)
Renewable Energy Share:100% (HQ and Customer Hub)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:0.43% of food handled (2023)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate action
  • Sourcing with integrity
  • Healthy sustainable diets
  • Food waste reduction and communities
  • Responsible packaging

Environmental Achievements

  • Reduced total scope 3 emissions to 1.37 million tonnes in FY2023 from 1.46 million tonnes in 2021 despite increased sales volume. Significant reduction in agricultural emissions, particularly fresh beef.
  • Removed bubble pads from UK strawberry lines, reducing plastic by 3.6 tonnes annually.
  • Introduced a new double-stacked steak format, using 50% less plastic (8 tonnes reduction annually).
  • Removed tray from whole chicken range, eliminating 4 tonnes of plastic annually.
  • Redesigned spice label lids, removing 508,000 units of unnecessary packaging components annually.
  • 93% of Ocado Own Range packaging is recyclable (5% increase from 2021).

Social Achievements

  • Launched Community Shop Family Cook clubs, encouraging 10,877 families to cook.
  • Created the first-ever Beano cookbook to help families make food go further.
  • Provided 1,500 Christmas meals to Community Shop, benefiting 4,500+ people.
  • Redistributed £10.7 million in surplus stock to charity partners in 2023.
  • 1,016 staff volunteering hours in 2023.

Governance Achievements

  • Refreshed sustainability governance approach in 2022, formalizing ESG structure.
  • Created a joint Climate Action Group with Ocado Group and Ocado Logistics.
  • Published TCFD-aligned climate-related financial disclosures.

Climate Goals & Targets

Long-term Goals:
  • Net-zero GHG emissions by 2040.
Medium-term Goals:
  • 42% reduction in absolute Scope 1 and 2 GHG emissions by 2030.
  • 42% reduction in absolute Scope 3 GHG emissions (energy and industry) by 2030.
  • 30% reduction in absolute Scope 3 FLAG GHG emissions by 2030.
  • At least 50% of Ocado Own Range whole produce and grains certified by 2030.
  • Source at least 50% of Ocado’s Own Range fresh food from areas with sustainable water management by 2030.
  • Source 100% of Ocado’s Own Range meat, dairy and eggs to ‘Better’ standard by 2030.
  • Increase average recycled content of Ocado Own Range plastic to 30% by 2025.
  • 100% Ocado Own Range packaging recyclable by 2025.
Short-term Goals:
  • Reduce food waste in own operations by 20% by 2025.
  • 100% of edible food surplus to be redistributed by 2025.
  • Launch an online reuse system by 2024.

Environmental Challenges

  • Decarbonising the agriculture supply chain (56% of 2021 emissions).
  • Reducing food waste in households (60% of total food waste).
  • Ensuring sustainable water management in supply chains.
  • Addressing human rights and modern slavery risks in high-risk supply chains.
Mitigation Strategies
  • Strategic investment in partnerships (Manufacture 2030, Mondra, The Soil Association).
  • Industry collaboration (BRC Mondra Coalition, WRAP).
  • Sustainable farming practices (LEAF Marque certification, FABulous Farmers programme).
  • Water stewardship projects (WWF/WRAP programme in southern Spain, Rivers Trust).
  • Supplier audits and engagement (SEDEX, SMETA audits).

Supply Chain Management

Supplier Audits: 75% of high-risk Tier 1 suppliers completed two-pillar SMETA Audit in 2023.

Responsible Procurement
  • Grocery/General Merchandise Supplier Manual
  • Ethical Sourcing Code of Practice
  • SEDEX membership and self-assessment questionnaires.
  • Requirements for sustainable sourcing of key commodities (soy, palm oil, beef, seafood).

Climate-Related Risks & Opportunities

Physical Risks
  • Disrupted weather patterns, water scarcity, crop vulnerability
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: SBTi, TCFD, GHG Protocol, FWLP

Certifications: MSC, ACS, LEAF Marque, FSC, RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Double-stacked steak packaging, redesigned spice packaging, digital deposit return scheme.

Awards & Recognition

  • The Grocer Gold 2023: Recycling Initiative of the Year
  • MRW National Recycling Awards: Digital Innovation
  • UK Packaging Awards: Innovation of the Year
  • BRC Showcase 2023: Changing Consumer Behaviour
  • MSC UK Online Brand of the Year (two years running)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:385.0 tCO2e/year
Scope 1 Emissions:119.6 tCO2e/year
Scope 2 Emissions:246.4 tCO2e/year
Scope 3 Emissions:19.0 tCO2e/year
Renewable Energy Share:100%
Total Energy Consumption:1,697,458 kWh/year
Waste Generated:366 tonnes of CO2e (Scope 1 and 2)
Carbon Intensity:1.8 tonnes CO2e per 100,000 Orders Fulfilled (2023)

ESG Focus Areas

  • Climate change and environmental responsibility
  • Sourcing with integrity
  • Healthy sustainable diets
  • Food waste reduction and community
  • Responsible packaging

Environmental Achievements

  • Reduced food waste to 0.43% (FY22: 0.59%), a 27% reduction
  • Reduced Scope 1 and 2 emissions to 366 tonnes of CO2e (FY22: 430.8 tonnes of CO2e)
  • Achieved 100% purchased electricity from renewable sources

Social Achievements

  • Increased colleague engagement scores relating to strategy from 6.9 to 8.0/10
  • Launched Family Cook Clubs to teach cooking skills and promote food education
  • Partnered with M&S at Christmas to provide 1,500 meal bundles to Community Shop

Governance Achievements

  • Implemented a new flexible benefits platform for employees
  • Introduced a new, structured Ocado Bonus Plan
  • Implemented mandatory Compliance training and a Code of Conduct for all employees

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero across Scope 1, 2 and 3 greenhouse gas emissions by 2040
  • 72% reduction in absolute Scope 3 Forest, Land, Agriculture (FLAG) emissions by 2040
Medium-term Goals:
  • Reduce food waste by 50% by 2030 (against a 2022 baseline)
  • 30% reduction in absolute Scope 3 Forest, Land, Agriculture (FLAG) emissions by 2030
  • 42% reduction in absolute Scope 1 and 2 emissions by 2030
  • 42% reduction in absolute Scope 3 emissions from energy and industry by 2030
  • Remove 20% of all packaging from all systems by 2030
Short-term Goals:
  • Reduce food waste by 20% by 2025
  • 100% of edible food surplus to be redistributed by 2025
  • Increase the average recycled content of plastic in OB packaging to 30% by 2025

Environmental Challenges

  • Post-COVID-19 pandemic normalization in online grocery
  • Cost-of-living crisis
  • Rapid food price inflation
  • High global energy prices
  • Climate change impacts on supply chain (extreme temperatures in the UK and water stress and drought in Southern Europe)
Mitigation Strategies
  • Launched a “Perfect Execution” programme focusing on unbeatable choice, unrivalled service, reassuringly good value, and cost reduction
  • Improved CFC site productivity
  • Optimized marketing channel mix and improved marketing spend efficiency
  • Invested in the Ocado Price Promise
  • Made multiple rounds of price cuts
  • Working with suppliers to assess vulnerabilities to key physical risk hazards and build resilience
  • Defined a roadmap to deliver on ‘no deforestation’ targets and decarbonisation targets

Supply Chain Management

Responsible Procurement
  • Responsible Sourcing Code of Practice
  • Modern slavery policies
  • Engagement with suppliers to prevent modern slavery and human trafficking
  • Collaboration with suppliers to reduce emissions

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme temperatures in the UK
  • Water stress and drought in Southern Europe
  • Crop and livestock vulnerability
  • Biodiversity risks
Transition Risks
  • Carbon pricing mechanisms
  • Climate-related reporting requirements
  • Meeting ESG commitments
  • Regulatory risks related to deforestation
  • Changing consumer demands for low-carbon products
Opportunities
  • Resource efficiency
  • Energy sources
  • Products/services
  • Markets
  • Resilience
  • Changing customer preferences for low-carbon product ranges

Reporting Standards

Frameworks Used: Streamlined Energy and Carbon Reporting (SECR), Greenhouse Gas Protocol, UK Government’s environmental reporting guidelines

Awards & Recognition

  • The Grocer Gold Award
  • UK Packaging Award