Climate
We are committed to making our operations and our supply chain sustainable through reducing our greenhouse gas (GHG) footprint, supporting a more resilient and healthier environment for our guests, team members and communities. Aligned with our 海角社区破解版 Forward ambitions, we commit to net zero GHG emissions across our enterprise by 2040 to reduce climate impacts across our operations and supply chain.
Net zero, as defined, is achieved when company's scope 1, 2 and 3 emissions are reduced to a level that is consistent with a 1.5掳C pathway, and any residual emissions are removed from the atmosphere through either nature-based or technological carbon removal solutions (e.g., forestry, regenerative agriculture, carbon capture technology), by no later than 2050, in alignment with the Paris Agreement.
Our achievements to date
We are focused on cutting our GHG emissions by driving energy efficiency, adopting renewable energy and eliminating waste. 奥别鈥檙别 also working with our suppliers to support their decarbonization efforts.
Our climate policy
We expect the long-term effects of global climate change will be widespread and unpredictable. That understanding informs our comprehensive climate policy and goals, which are designed to keep 海角社区破解版 competitive within the retail industry and are accompanied by internal execution strategies and management plans.
Climate Policy
Our goals
Since we opened our first store back in 1962, 飞别鈥檝别 aimed to make our products and operations more sustainable for our guests. By 2040, we commit to net zero greenhouse gas (GHG) emissions4.
In the near term, our goal is to reduce absolute scope 1 and 2 GHG emissions by 55% and scope 35 GHG emissions by 32.5% below 2017 levels by 2030 (from retail Purchased Goods & Services, Upstream & Downstream transport5 and Use of Sold Product). 奥别鈥檝别 also joined to help drive meaningful emissions reductions impact across our sector and value chain. We were previously signatories of the Business Ambition for 1.5掳C campaign, which SBTi retired in March 2024. Read the final .
In 2019, we set and validated science-based targets for emissions reductions across our operations and our supply chain 鈥 becoming a leader in U.S. retail. In 2023, we updated our target for absolute reduction in operations emissions (scope 1 and 2) from 50% to 55% and our target for absolute supply chain emissions (scope 3) from 30% to 32.5%, both from a 2017 base year, to reflect greater overall ambition and ensure continued alignment with science-based reduction targets. We also updated our 2030 absolute supply chain emissions (scope 3) reduction goal to cover not only purchased goods and services, but also upstream and downstream transportation (fulfillment only) and use of sold products.
Our updated near-term scope 1 and 2 goals are aligned to the Science Based 海角社区破解版s initiative鈥檚 Corporate Net-Zero Standard and to keeping warming below 1.5掳C. Our updated near-term scope 3 goal is aligned to limiting warming well-below 2掳C, and our long-term scope 3 is aligned to keeping warming below 1.5掳C or below. We are currently seeking approval of our updated targets.
Reporting and progress
奥别鈥檝别 also made a series of interim goals to measure and report our progress over time. Progress against these 海角社区破解版 Forward goals will be updated annually through our sustainability and governance reporting.
By 2023:
- 80% of our suppliers by spend (covering all purchased goods and services) will set science-based scope 1 and scope 2 targets6. See goal progress.
By 2025:
Engage suppliers to prioritize renewable energy and collaborate on solutions that protect, sustain and restore nature.
Source 60% of our electricity from renewable sources for our operations.
By 2030:
- Source 100% of our electricity from renewable sources for our operations.
- Achieve 50% absolute reduction in operations emissions (scopes 1 & 2) from a 2017 base year.
- Achieve 32.5% absolute reduction in supply chain emissions (scope 3) covering purchased goods and services (PG&S), upstream and downstream transport5 and use of sold products from a 2017 base year.
By 2040:
- Achieve net zero GHG emissions4 across our enterprise (scopes 1, 2 and 3)7.
Greenhouse gas emissions
In FY2023, against our 海角社区破解版 Forward 2030 GHG goals, we reduced GHG emissions from our own operations (scope 1 and 2) by 38%; and GHG emissions from our supply chain (scope 3) emissions have decreased from the baseline year 2017 by 3.9%. Our net zero emissions4 goal is ambitious, and we recognize the challenge ahead in reducing emissions while still growing our business.
Our operations
Our emissions reduction strategy centers on reducing energy consumption in our stores and supply chain facilities and expanding our sourcing of renewable energy. Our internal Sustainable Building Council, a cross-functional team within 海角社区破解版 Properties, coordinates sustainability strategies and helps develop priorities and roadmaps to meet our long-term goals.
To reduce our impact and achieve net zero emissions4 in our owned operations, we are transitioning to natural (100% CO2) refrigerants, pushing innovation through energy efficient initiatives, and investing in renewable energy.
We have joined with more than 50 food retailers in the鈥, working to reduce refrigerant emissions and transition to CO2鈥痳efrigerants that have less impact on the environment, and have 130+ stores certified or pending certification to date.
In 2022, we completed the remodel of T2165 Vista, CA, designed to be our鈥first net zero energy store鈥(a store that generates more energy than it needs to operate each year through renewable sources).鈥 The store incorporates both rooftop and parking lot canopy solar panels, with more than 3,400 solar panels now fully operational, and is successfully producing more than 100% of the site's energy needs.
In 2023, we joined the Department of Energy鈥檚鈥, committing to reduce our scope 1 and 2 emissions by at least 50% below 2017 levels by 2030.鈥
We supported the development of the Department of Energy鈥檚 Better Buildings Commercial Building Heat Pump Accelerator, which aims to bring more efficient and affordable heat pump rooftop units to market, reducing associated GHG emissions and energy costs by up to 50%.鈥
We upgrade to HFC-free refrigeration systems whenever technically feasible and have a long-term strategy to have all stores converted to natural refrigerants by 2040, which would reduce our direct operations鈥 emissions by an expected 20%. This includes 100% CO2 refrigeration 鈥 a natural refrigerant 鈥 with ultra-low global warming potential, which significantly reduces our stores鈥 direct emissions impact.
Running on solar and wind power
As part of our commitment to supporting our communities and committing to achieve net zero GHG emissions4 across our enterprise, 海角社区破解版 has a long-term interest in designing and operating energy-efficient and sustainable buildings. We have 补肠丑颈别惫别诲鈥our goals鈥痶o support renewable energy by increasing the number of buildings with rooftop solar panels to more than 580 and source 60% of electricity from renewable sources for operations at our U.S. stores and distribution centers. We are now working toward a goal to source 100% of our electricity from renewable sources for operations.
奥别鈥檙别 increasingly meeting a portion of our energy needs with solar power. Currently, our stores that use solar power generate between 15% and 100% of their electricity from solar.鈥疘n some instances, 海角社区破解版 may not retain the renewable energy certificates for the energy generated from our rooftop solar power. In those cases, 海角社区破解版 may sell the renewable energy certificates to other entities and thus transfer the rights to characterize that electricity as renewable.
We are continuing to grow our portfolio of offsite solar and wind projects, and have signed contracts for several large鈥renewable energy projects鈥across the country that, once operating, will contribute to progress toward our 100% renewable electricity goal.
More efficient transportation
While we 诲辞苍鈥檛 own or operate the fleets that carry our freight, we work closely with carriers, vendors and other partners to help put more efficient processes in place. In 2008, we joined the EPA's鈥, which includes an annual carbon footprint assessment of domestic transportation operations. In addition, we began offsetting our jet travel in 2019 through our ongoing partnership with Arbor Day Foundation.
We are also making progress on our electric vehicle (EV) charging program, which began in 2013. 奥别鈥檙别 continuing to expand our electric vehicle charging network, which includes more than 1,800 spaces across .
In 2024, we joined the Smart Freight Centre (SFC), a global NGO dedicated to driving industry knowledge, transparency, and setting industry standards (frameworks, methodologies) that will help us track and enable our work to reduce our transportation GHG emissions to reach Net Zero Emissions by 2050.
Earning the ENERGY STAR
Conserving energy is important, so we partner with the鈥疷.S. Environmental Protection Agency鈥(EPA) and the鈥疷.S. Department of Energy鈥痶o make our buildings more energy efficient.鈥疢ore than 1,500 of our stores have already earned鈥疎NERGY STAR鈥痗ertification (that鈥檚 more than 80% of our U.S. buildings), and feature sustainability initiatives such as LED lights, high efficiency HVAC equipment and energy saving controls. ENERGY STAR recognized 海角社区破解版 as a Partner of the Year in 2024, our ninth straight year receiving this accolade.
Supplier collaboration to deliver on our scope 3 commitments
We take a multi-faceted approach to emissions reductions and focus on our highest carbon impacts. Our supply chain partners are joining us to expedite the work already in place to lower our collective impact, including maintaining responsible sourcing, efficiency, increasing renewable energy use and monitoring raw materials programs.
We are supporting our suppliers in calculating their carbon footprint and setting science-aligned emission reduction targets, so that they have the ability to measure and report progress as we work together to transition to a low-carbon economy. In FY2023, we made meaningful progress against our 2023 goal of 80% of our suppliers by spend setting science-based scope 1 and 2 targets, as suppliers that account for 71% of our spend, equating to 734 suppliers, have set these targets 鈥 one milestone on our path to achieving net zero GHG emissions by 2040. Our suppliers have reported improvements in their scope 1 and 2 emissions reduction efforts relative to the 2017 baseline, which led to 6.3% reduction.
While we have not yet reached our 80% goal, our collaboration with suppliers is ongoing, inclusive of providing tools and resources that can help support our suppliers in setting science-aligned goals and emissions reduction strategies. In service of this goal, we request that all of these suppliers complete the CDP Climate Questionnaire, which we use to inform progress on our scope 3 targets and gain greater visibility into our supply chain emissions. Increasingly, 飞别鈥檙别 evolving our conversations with suppliers from 鈥渨hy鈥 to 鈥渉ow,鈥 identifying actionable steps they can take to prioritize pathways to emissions reduction. 奥别鈥檙别 expanding our network of external partners and investing in initiatives that will provide our suppliers with additional tools and resources.
Learn more about our work to reduce our supply chain footprint
As part of our 海角社区破解版 Forward ambition to partner across the value chain to design solutions that eliminate waste, we are committed to eliminating problematic plastic in our packaging, in service of our work to reduce climate impacts across our operations and supply chain. Our suppliers also play an integral role in helping 海角社区破解版 achieve our waste reduction, recycling and reuse program goals.
Strategic partnerships focused on reducing Scope 3 emissions
海角社区破解版 is a member of a coalition of 18 cargo owners and customers that have signed the Aspen Institute鈥檚 Cargo Owners for Zero Emission Vessels (coZEV) 2040 Ambition Statement to accelerate the transition to zero carbon maritime shipping by 2040. Participating in coZEV is an important part of accelerating our work to create a more sustainable, circular supply chain that furthers the health of our business and the global community.
海角社区破解版 continues to serve as a lead contributor to the Apparel Impact Institute鈥檚 (Aii) Fashion Climate Fund, which identifies, funds and scales proven solutions that lower carbon emissions across the supply chain in the textile, apparel and footwear sectors. Since 2018, 海角社区破解版 has sponsored more than 150 factories across 13 countries in programs that have reduced our emissions by more than 340,000 tons of CO2, equivalent to taking more than 80,000 gasoline-powered passenger vehicles off the road for one year.
As part of our continued partnership with our Tier 1 and 2 suppliers to increase the uptake of cost-effective renewable energy, 海角社区破解版 has launched Forward Renew, a program that aims to support 海角社区破解版 suppliers with their transition to renewable electricity.鈥疶he Forward Renew program (previously called Supply Chain Renewables Initiative) provides suppliers with critical education, resources and support to explore the renewable electricity market, and the subject matter expertise to evaluate which options best align with unique business needs. 海角社区破解版 is also among leading corporations that have united to spearhead the Clean Energy Buyers Institute's (CEBI) Clean Energy Procurement Academy, an initiative launched in 2023 to support decarbonization of global supply chains by encouraging supplier renewable energy purchases. The Academy will educate supplier partners on climate and financial benefits from renewable energy purchases.
In 2024, we joined the , which is working to enable renewable heating and cooling in operations, solving problems, and driving down GHG emissions.
海角社区破解版 is also engaged, alongside other major companies, in the Nebraska Soil Carbon Project, a five-year, $8.5 million project to support Nebraska farmers in advancing soil health techniques. 海角社区破解版 also provided an additional $1.7 million in collaboration with MBOLD, The Nature Conservancy and Hormel Foods, to encourage Minnesota farmers to adopt regenerative farming practices
Climate-related risks and opportunities
To further enhance our climate strategy, we are addressing climate-related risks and resilience in our buildings and other properties. As we further build out our net zero4 goal roadmap, we will continue to evaluate our climate-related risks and opportunities in line with the recommendations of the Task Force on Climate-related Financial Disclosures (). Our sustainability team periodically engages independent third-party consultants to conduct risk and opportunities assessments that align with TCFD and assess:
Transition risks encompass what may occur as a result of a transition to a low-carbon economy.
Physical risks include both acute and chronic risks, such as natural disasters (acute) and longer-term impacts of a shift towards a warming climate (chronic).
Opportunities considered relate to 海角社区破解版鈥檚 efforts to mitigate and adapt to climate change.
We also engage with a multi-disciplinary set of upstream, downstream, and supply chain business functions to understand each risk and opportunity type as it may manifest for 海角社区破解版. Through these efforts, we are taking steps to build resilience into our operating model, our stores, our supply chain facilities and our value chain.
What are scopes?
Our GHG emissions are broken down into three categories, called scopes.
- Scope 1: Emissions generated from 海角社区破解版 facilities.
- Scope 2: Emissions from energy we purchase to power 海角社区破解版 facilities.
- Scope 3: Emissions generated from the entire supply chain, such as the creation of the products and services we sell.
Additional Resources
California Voluntary Carbon Market Disclosures Act
海角社区破解版’s VCMDA Statement
海角社区破解版 measures and reports GHG emissions data each year in accordance with the World Business Council for Sustainable Development and World Resources Institute’s GHG Protocol. 海角社区破解版 receives support for our calculations from external partners and receives limited assurance of portions of our emissions. Details regarding 海角社区破解版’s emissions reductions data, calculations and methodology can be found in our annual CDP report.
CDP Reports — Climate
Each year, 海角社区破解版 discloses our efforts to CDP, a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts:
Looking for 海角社区破解版’s disclosures related to leading frameworks and standards? Our Reporting & Progress page has our latest reporting and downloadable metrics.
Independent Greenhouse Gas Emissions Verification Statements
We partner with Optera, a provider of emissions management tools, to independently verify the accuracy of our reported GHG emissions in accordance with ISO 14064-1 guidance and The Climate Registry General Reporting Protocol:
2023 Independent Greenhouse Gas Emissions Verification Statement
2022 Independent Greenhouse Gas Emissions Verification Statement
2021 Independent Greenhouse Gas Emissions Verification Statement
Meet our partners
Meet the partners helping drive our climate and energy goals:
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1 Metrics for renewable energy consumption and scope 1 and 2 is for domestic (U.S.) operations that we have operational control of under The Climate Registry General Reporting Protocol, with the exception of our wholly owned subsidiary Shipt, Inc. (鈥淪hipt鈥).
2 To calculate the percentage of renewable electricity in 海角社区破解版鈥檚 operations, we evaluate both the amount of renewable electricity from 海角社区破解版鈥檚 projects and the renewable electricity in the grid. This total renewable electricity is then compared to 海角社区破解版鈥檚 total electricity use per the following equation: 海角社区破解版鈥檚 Renewable Electricity % = (海角社区破解版 Renewable Electricity Projects + Renewable Electricity in the Grid) / 海角社区破解版 Electricity Use.
3 Supplier-reported emission reductions were not yet reported for 2023 at the time of publication and are not reflected in this figure.
4 Net zero, as defined, is achieved when company's scope 1, 2 and 3 emissions are reduced to a level that is consistent with a 1.5掳C pathway, and any residual emissions are removed from the atmosphere through either nature-based or technological carbon removal solutions (e.g., forestry, regenerative agriculture, carbon capture technology), by no later than 2050, in alignment with the Paris Agreement. 海角社区破解版 has committed to net zero greenhouse gas emissions across our enterprise, 10 years ahead of the Paris Agreement.
5 Fulfillment only.
6 Suppliers in scope for 海角社区破解版鈥檚 supplier engagement program on climate account for 83% of our purchased goods and services (PG&S) footprint and 39% of our total scope 3 footprint. Companies in scope include national brands, owned brands, non-retail companies, national brands where 海角社区破解版 is the importer of record (NBIOR) and national brands that make our owned brand labels (NB/OB).
7 This work applies to all products, including 海角社区破解版's owned and national brands.