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Highlights
- Sainsbury accelerated its climate goals by 5 years to become net-zero by 2035 instead of 2040.
- Tesco has laid out 4-point criteria for its suppliers to help achieve its target of having net-zero supply chain by 2050.
The global food industry is among one of the most critical sectors and the one which is in urgent need of decarbonisation, as it plays a major role in the climate crisis.
The sector accounts for 30 per cent of global greenhouse gas emissions and is responsible for a whopping 60 per cent of biodiversity loss, according to leading UK supermarket Tesco’s chief product officer, Ashwin Prasad.
The UK has made climate action and sustainability a key focus within its government.
Moreover, several stocks in the food and retail sector in the UK have accelerated their climate goals ahead of the COP 26 summit to be held in the United Kingdom. The summit starts on 31 October and will end on 12 November.
In view of this, let us look at 2 FTSE 100 index listed stocks in the supermarket and retail sector and their climate goals:
- Sainsbury (J) PLC (LON: SBRY)
Sainsbury is a UK based supermarket and is the second-largest grocery store chain in the country.
The group reported today that it had accelerated its net-zero goals by 5 years to 2035, from its previous target of 2040.
Sainsbury’s said its absolute greenhouse gas (GHG) emissions dropped by 25,580 tonnes of CO2 equivalent in the past one year. The group also added its carbon footprint dropped by 42 per cent in the last 17 years, despite its store space increasing by 40 per cent.
(Image source: Refinitiv)
Sainsbury’s shares were trading at GBX 296.80, up by 0.30 per cent on 26 October 21 at 12: 18 hrs BST. Meanwhile, the FTSE 100 index was trading at 7,265.02, up by 0.58 per cent.
The group’s market cap stood at £6,901.58 million, and its one-year return was at 42.31 per cent as of 26 October 21.
- Tesco PLC (LON: TSCO)
Tesco is another British supermarket chain and is the third-largest retailer in the world based on gross revenues.
The group recently laid out a 4 key point action plan for its suppliers as part of its goal to become net-zero across its entire supply chain by 2050.
The group recommended its suppliers to first send across their latest GHG emissions details to Tesco by the end of 2021.
It also called on its suppliers to establish their own net-zero targets by 2022, set science-based targets by the end of 2023 to help achieve its net-zero target and finally, encouraged its suppliers to switch to clean sources of energy as early as possible.
(Image source: Refinitiv)
Tesco’s shares were trading at GBX 273.40, down by 0.11 per cent on 26 October 21 at 13: 07 hrs BST. Meanwhile, the personal care, drug and grocery store index was trading at 4,247.97, up by 1.32 per cent.
The group’s market cap stood at £21,141.98 million, and its one-year return was at 29.98 per cent as of 26 October 21.
