Climate Change Data

Axfood AB (publ)

Climate Impact & Sustainability Data (2018)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:22,195 tCO2e/year
Scope 1 Emissions:26,593 tCO2e/year
Scope 2 Emissions:61,647 tCO2e/year
Scope 3 Emissions:770 tCO2e/year
Renewable Energy Share:39% (of total fuel consumption)
Total Energy Consumption:1,338,448 MWh/year
Water Consumption:Not disclosed
Waste Generated:8,799 tons/year (incineration from stores/warehouses)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Sustainable products
  • Transports
  • Climate and energy
  • Responsible suppliers
  • Employees

Environmental Achievements

  • Reduced carbon footprint by 78% since 2009
  • Opted out of using biodiesel containing palm oil to avoid rainforest deforestation
  • Increased share of trucks with refrigeration systems powered by the truck’s own diesel engine
  • Investments in biogas trucks and RME-adapted trucks

Social Achievements

  • Introduced a whistleblower service for vendors
  • Increased number of employees who signed ethical guidelines (1378 in 2018 vs 829 in 2017)
  • Improved leadership index and employee engagement in 2018
  • Reduced number of reported incidents at work from 4041 to 3493

Governance Achievements

  • Training in corruption risks for buyers and quality assurance staff (90 participants)
  • No corruption incidents resulting in employee dismissal or discipline
  • 95 social audits performed in 2018 (77 in 2017), 81% without remarks concerning corruption/ethical business

Climate Goals & Targets

Long-term Goals:
  • By 2030, plastic packaging for Axfood’s private label products will be made of renewable or recycled content
  • By 2030, eradicate poverty in Axfood’s supply chain for private label products
Medium-term Goals:
  • By 2022, all plastic packaging for private label products will be recyclable
  • By 2025, no vehicle type will make up more than half of Dagab’s fleet
  • By 2025, food waste from Hemköp, Willys, Axfood Snabbgross and Dagab will be halved
  • By 2025, all suppliers of private label meat and meat products will meet the requirement for animal welfare certification
Short-term Goals:
  • Reduce electricity consumption by 15% per square metre by year-end 2020
  • Reduce Dagab’s electricity consumption in relation to sales by 15% by 2020
  • Reduce CO2 emissions from Dagab’s delivery fleet by 20% by 2020
  • All new company cars and service vehicles to be bonus cars by 2020
  • All suppliers of private label products to report on climate measures yearly by 2020

Environmental Challenges

  • Increased carbon footprint due to the decision to stop using HVO fuel containing palm oil
  • Difficulty in gaining insight into the sub-supplier level in the supply chain
  • Difficulty in getting employees to choose train travel over air travel
  • Insufficient supply of ASC certified salmon
  • High cost of fossil-free plastic
Mitigation Strategies
  • Working to influence truck manufacturers and fuel companies to develop environmentally adapted alternatives
  • Social audits and dialogue with suppliers
  • Travel policy promoting rail and coach travel over air travel, climate compensation for air travel
  • Working to increase the supply of ASC certified salmon
  • Working to increase the availability of fossil-free plastic based on Swedish ingredients

Supply Chain Management

Supplier Audits: 95/year (social audits)

Responsible Procurement
  • Code of Conduct
  • Supplier sustainability requirements
  • Sustainability assessment in new procurement processes

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2016, Core level

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Axfood’s sustainability programme is coupled to several of the UN’s Sustainable Development Goals

Sustainable Products & Innovation

  • Såklart range with recycled or renewable plastic packaging
  • Garant meat products with reduced plastic packaging
  • Fixa environment-friendly household items

Awards & Recognition

  • Not disclosed