Scope 3 Emissions

Scope 3 emissions are the greenhouse gas emissions outside of our direct control that occur across our value chain – for example diesel used in farming equipment, methane produced by livestock, and electricity, fuel and refrigerant use across our suppliers’ logistics and manufacturing processes.

Scope 3 emissions also include the emissions associated with our customers’ waste going to landfill.

While we have no direct control over these emissions, we have a role to play in helping our supply chain and customers to decarbonise.

Supplier engagement

Our Supplier Engagement Target requires 80% 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 emissions reduction targets by the end of FY29.

Progress this year has been slower than anticipated and we are currently not on track to achieve our FY29 target. We understand some of our suppliers face challenges in setting science-based targets (SBTs), including limited internal capability and resources, emissions data limitations, cost pressures and uncertainty about how requirements apply to their operations. Some suppliers have been cautious about setting public targets before they have sufficient data. We continue to strengthen our supplier engagement approach, completing direct supplier engagements, supported by our commercial category teams, to better understand challenges and identify ways to support suppliers in setting SBTs.

Climate education for suppliers is available through the Coles Supplier Central portal, providing guidance on greenhouse gas emissions and practical steps to set SBTs. Click hereOpens in new window to see Coles Supplier Central portal.

Forestry, Land and Agriculture (FLAG)

In FY25, Coles established a target to reduce FLAG sector emissions in our supply chain by 30.3% by end of FY30, relative to an FY24 baseline year. Delivery of this target is highly dependent on emissions reductions achieved by our suppliers, reflecting the concentration of emissions within agricultural supply chains. The target covers key FLAG emissions sources (primarily meat and dairy) in line with SBTi FLAG sector boundary requirements.

At the end of FY26, in-boundary FLAG emissions were 1.8% higher than FY25. This increase was primarily driven by higher customer demand for beef, with other categories remaining broadly stable.

FLAG emissions reductions are not yet evident, reflecting the early stage of development and implementation of supporting activities, and the time required to implement and measure agricultural abatement. This is compounded by the immaturity of emissions reduction technologies, with many interventions still in development and not yet commercially viable at scale.

Further, consistent farm-level emissions data remains limited across the sector. Coles is working with agri‑environmental consultants Integrity Ag to measure and manage greenhouse gas emissions in our beef and dairy supply chain. This partnership supports improved understanding of emissions sources, particularly enteric methane and on-farm inputs, and informs the identification of abatement opportunities across Scope 3 emissions.