Climate change is an important environmental, social and economic challenge facing the global community.
Coles seeks to contribute to the goals of the Paris Agreement1 by setting targets to reduce our greenhouse gas emissions, taking actions to address operational emissions2 and working with suppliers to reduce emissions in our value chain.
As part of our sustainability strategy, we have set a long-term net zero by 2050 target3, for Scope 1 and 2 emissions, and a near-term FY30 Scope 1 and 2 emissions reduction target4.
We are addressing Scope 3 emissions with a Forest, Land and Agriculture (FLAG) sector emissions reduction target of 30.3% by end of FY305.
In addition, we have a supplier engagement target of 80% of suppliers by spend to have science-based6 emissions reduction targets by the end of FY297
- deliver net zero Scope 1 and 2 greenhouse gas emissions by 2050.
- reduce combined Scope 1 and 2 greenhouse gas emissions by more than 75% by the end of FY30 (from a FY20 baseline)8
- maintain sourcing of 100% renewable electricity9
- Achieve Scope 3 supplier engagement target (SET) of: 80% 10 of suppliers by spend (covering purchased goods and services, upstream transportation and distribution, capital goods, waste generated in operations, and upstream leased assets) to have science-based 11 emissions reduction targets by the end of FY29.
- Deliver 30.3% reduction in Scope 3 Forest, Land and Agriculture (FLAG) sector emissions by the end of FY30 (FY24 baseline year).
As we continue to work towards our climate targets, we commit to engaging with stakeholders on our progress, including identifying challenges and limitations as we develop our climate transition plan.
Coles continues to identify, assess and manage climate-related risks and opportunities using the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). For more information refer to the Climate change section of
Coles Group Annual ReportView PDF, file size 20.2MB, Opens in new windowOpens in new window.
Additional information on our approach to energy and emissions is available in the
Coles Group Sustainability ReportView PDF, file size 8MB, Opens in new windowOpens in new window.
1 An international treaty on climate change with an overarching goal to hold ‘the increase in the global average temperature to well below 2°C above pre-industrial levels’ and pursue efforts ‘to limit the temperature increase to 1.5°C above pre-industrial levels.
2 This refers to Scope 1 and 2 emissions.
3 Target is to ‘Deliver net zero Scope 1 and 2 greenhouse gas emissions by 2050’.
4 FY20 baseline year.
5 FY24 baseline year.
6 Coles uses SBTi’s Supplier Engagement Guidance to assess whether a supplier’s emissions reduction target is science-based. This guidance defines the key criteria that includes, but is not limited to: a) target boundary (coverage of scopes, emission types and subsidiaries), b) target coverage (≥95% of scope 1 and 2 emissions, ≥67% near-term Scope 3 and ≥90% long-term Scope 3), c) target type (absolute, intensity, or engagement), d) base year (≥2015), e) target year (near-term maximum 10 years and long-term maximum 2050), f) target reduction/ambition (Scope 1 and 2 1.5°C, Scope 3 near-term well below 2°C and long-term 1.5°C).
7 The Supplier Engagement Target originally set in FY24 was ‘75% of suppliers, by spend, covering purchased goods and services, and upstream transportation and distribution, will have science-based emissions reduction targets by the end of FY27’. During SBTi’s recent validation of our FY30 FLAG target, Coles was required to separate FLAG sector emissions from the SET boundary and include additional emissions categories in target spend coverage to meet the SBTi target boundary requirements. As a result, our target has been modified from 75% to 80% and the target date extended from the end of FY27 to the end of FY29. Reporting against the updated target boundary will commence in FY26.
8 Coles does not plan to rely on the use of carbon offsets for the achievement of our FY30 Scope 1 and 2 emissions reduction target.
9 Renewable electricity percentage includes voluntary large-scale generation certificate (LGC) surrendered by us, renewable power percentage (RPP), jurisdictional renewable power percentage (JRPP) and onsite solar within Coles’ operational control. The JRPP is only applicable in the Australian Capital Territory, where the electricity supply is legislated to be 100% renewable. For all other Australian jurisdictions, the RPP is used to represent the renewable content of grid electricity unless specific renewable procurement (e.g. LGC surrender) is demonstrated.
10 The Supplier Engagement Target originally set in FY24 was ‘75% of suppliers, by spend, covering purchased goods and services, and upstream transportation and distribution, will have science‑based emissions reduction targets by the end of FY27’. During SBTi’s recent validation of our FY30 FLAG target, Coles was required to separate FLAG sector emissions from the SET boundary and include additional emissions categories in target spend coverage to meet the SBTi target boundary requirements. As a result, our target has been modified from 75% to 80% and the target date extended from the end of FY27 to the end of FY29. Reporting against the updated target boundary will commence in FY26.
11 Coles uses SBTi’s Supplier Engagement Guidance to assess whether a supplier’s emissions reduction target is science-based. This guidance defines the key criteria that includes, but is not limited to: a) target boundary (coverage of scopes, emission types and subsidiaries), b) target coverage (≥95% of scope 1 and 2 emissions, ≥67% near-term Scope 3 and ≥90% long-term Scope 3), c) target type (absolute, intensity, or engagement), d) base year (≥2015), e) target year (near-term maximum 10 years and long‑term maximum 2050), f) target reduction/ambition (Scope 1 and 2 1.5°C, Scope 3 near-term well below 2°C and long-term 1.5°C).
