ALDI SOUTH Group has officially announced a goal to reach net-zero greenhouse gas (GHG) emissions across its entire value chain by 2050, becoming one of the first international grocery retailers with net-zero emissions targets, validated by Science Based Targets initiative (SBTi). In case you weren’t aware, SBTi happens to be a corporate climate action organization that enables companies to individually contribute towards the fight against climate crisis. Furthermore, it sets GHG emissions reduction targets in line what is required to address the given environmental circumstances. Talk about ALDI’s targets that were validated by SBTi, they included reducing absolute 90 % of Scope 1 and 2 emissions by 2035 from a 2021 base year, as well as reducing 90% of absolute Scope 3 emissions by 2050 from a 2022 base year. Not just that, one of the targets is also to cut down on absolute Scope 1 FLAG emissions by 72% before the end of 2050 from a 2021 base year, and absolute Scope 3 FLAG emissions by 72%, before the same deadline, from a 2022 base year.
Beyond that, ALDI has pledged to reduce 52% of the Scope 1 and 2 emissions by 2030 from a 2021 base year, and 25% of the Scope 3 emissions by 2030 from a 2022 base year. Furthermore, it will also try and achieve equal reduction of 30.3% in absolute Scope 1 FLAG emissions by 2030 from a 2021 base year, and Scope 3 FLAG emissions from a 2022 base year. On top of that, the company has also committed to no deforestation across its primary deforestation-linked commodities, including palm oil, cocoa, coffee, beef, and wood fibre-based products, by the end of 2025.
“There is a reason why ALDI is one of the only grocery retailers with SBTi-validated net-zero targets. We do things differently and sustainability is no exception,” said Jason Hart, CEO of ALDI SOUTH US. “For instance, because our stores are stocked with 90% ALDI-exclusive brands, we can work more directly with our suppliers on emissions reductions. These industry-leading science-based targets are another way we are underscoring our commitment to operating sustainably and responsibly so we can keep offering quality, affordable groceries.”
Taking an even deeper of ALDI’s plan for the future, it covers forming new partnerships, as well strengthening its existing initiatives that target the largest sources of emissions. This particular aspect is likely to include purchased products. You see, as majority of its emissions are understood to stem from its supply chain, ALDI will make further investments to decarbonize the same by working alongside NGOs, joining multi-stakeholder initiatives, and funding on-farm pilot programs, with a heightened focus on dairy and beef supply chains. Another detail worth a mention here is how the company will leverage its membership of Innovation Center for U.S. Dairy’s Dairy Sustainability Alliance to explore the interconnectedness between emissions reductions, nature, biodiversity, and animal welfare.
The next focal point in line would be upstream transportation and distribution, where ALDI will partner with third-party logistics providers to identify opportunities for using alternative fuel sources and electric trucks, thus reducing transport emissions. Then, there is refrigeration, which will have the company advancing on its goal to transition all stores to natural refrigerants by 2035. Not just that, it will also stake a claim for recognition from the Environmental Protection Agency for its industry-leading progress. As of today, ALDI uses natural refrigerants in more than 700 stores, saving 60% of potential carbon emissions each year. Rounding up highlights is the electricity part. In simple terms, ALDI will reduce energy consumption, and at the same time, invest in energy efficiency across its stores, regional distribution centers, and offices. Apart from that, it will also invest in purchasing renewable energy.
Founded in 1976, ALDI’s rise up the ranks stems from being a one of America’s fastest-growing retailers and serving millions of customers across the country each month. The company’s excellence can also be understood once you consider, for seven years, it has been recognized by the dunnhumby Retailer Preference Index as #1 in Everyday Low Price