Woolworths Group Limited

Woolworth's TCFD-aligned scenario analysis models four scenarios, including 1.5C, and examines physical and transition risks. The company highlights that food security presents the most material risks for the sector, with both high and low warming scenarios presenting costs across the value chain. The company identifies that producing livestock more sustainably is key to addressing these risks. Whether the company's analysis covers its entire animal protein supply chain is unclear. The company also notes that consumers are demanding lower-carbon products and want more diverse protein options.

In its 2023 report, the company does not disclose emissions derived from animal agriculture, nor does it include a breakdown by protein type. However, in the 2023 Sustainability report the company stated that animal proteins are forming ~13% of the company's annual sales mix. Furthermore, in the 2022 Sustainability Report the company disclosed meat accounts for 32%, and poultry accounts for 6% of purchased goods and services emissions.

Woolworths' current SBTi-approved target is to reduce scope 3 emissions by 19% by 2030. This target was set in 2020 and the company acknowledged that this is not aligned with a 1.5˚C pathway. Woolworths intends to update its scope 3 SBTi target to align with 1.5°C, and include FLAG emissions, in FY24.

There is no evidence for this KPI.

Woolworths climate and nature strategy underlined the aim to 'Lead the Future of Protein' by providing affordable and sustainable proteins across traditional, plant and alternative sources whilst aiming for the highest animal welfare standards. The company also stated that animal proteins comprise ~13% of the annual sales mix and that it can improve environmental sustainability of animal proteins whilst exploring and expanding the diversity of protein options available on our shelves, including plant-based, food-technology solutions and fermentation. However, there is no evidence of a protein diversification target integrated within the company's climate transition plan.

There is no evidence of a protein diversification target.

There is no evidence of a protein diversification target.

There is no evidence of a protein diversification target.

There is no evidence of a protein diversification target. In the 2023 Sustainability Report, the company states it has seen a 31% increase in plant-based volumes since F19. Supporting this, from FAIRR analysis of the company's retail website an increase of 156% (over 3x) between 2019 and 2024 (75 to 192) is observed for products categorised as "plant-based". This demonstrates an increase in the range and volume of alternatives marketed by the company - but, this is not formally linked to a target.

The company disclosed the volume of plant-based sales relative to F19 in both 2022 and 2023.

The Woolworths Group Board approves the climate and nature strategy to reduce the impact on nature through the responsible stewardship of natural resources and the sustainable sourcing of commodities, including protein in its supply chain. There is no evidence progress on protein diversification is reported to the board.

Woolworth's board member's have varying degrees of 'ESG' experience. One board member has clear sustainability experience.

There is no evidence of a board member with specific nutrition or health expertise.

There is no evidence detailing lobbying actions associated with protein diversification.

There is no evidence detailing lobbying actions associated with positive climate and nutrition outcomes.

There is no evidence detailing indirect lobbying actions associated with protein diversification.

There is no evidence detailing lobbying actions associated with positive climate and nutrition outcomes.

Woolworths has made a commitment to 'Activate ethical and mutually beneficial partnerships through the whole value chain', however, the company has not made a commitment to the Just Transition principles.

In 2021 Woolworths invested $50 million over the course of 3 years to help upskill, reskill and redeploy team members impacted by industry disruption and technological change. Within this, there is no reference to supporting the team with new skills and capabilities due to the impact of decarbonisation efforts, instead industry disruption and technological change are noted as drivers.

Woolworths provided evidence of collaborations that aim to support a value chain shift towards sustainable production practices; this included joining Australian Climate Leaders Coalition to examine the companies beef value chain emissions (scope 3), joining the Australian Sustainable Agriculture Initiative Platform (SAI Platform), progressing the Regenerative Management Systems for New Zealand Vegetable Production project, and a Department of Climate Change, Energy, the Environment and Water’s pilot assessing nature-based risk in beef and salmon production.

There is no clear evidence of a Just Transition strategy.

There is no clear evidence of a Just Transition strategy.

There is no clear evidence of a Just Transition strategy.

There is no clear evidence of a Just Transition strategy.

Woolworths presented limited evidence on its alternative protein product portfolio in both the 2023 Annual and Sustainability Reports, though a growth in plant protein sales volume was noted. Furthermore, new external products and own-brand launches in 2023 were provided as evidence of an expanded offering of alternative protein markets in Australia and New Zealand (largest market is Australia).

There is no annual evidence of resource allocation.

There is no evidence the company is working to improve nutritional or sustainability attributes of plant-based products.

Woolworths disclosed on work towards voluntary reformulation targets set by the Australia Government's Healthy Food Partnership, and New Zealand's Heart Foundation’s HeartSAFE program. Woolworths provided data on its own-brand reformulation for 2023 against an F20 baseline. The company quantified "positive ingredients" such as vegetables and wholegrains across its own brands, alongside usage across other nutrition factors such as salt, saturated fats, and sugar. Woolworths own-brands include Plantitude and PlantLove (plant-based) but this is not specifically mentioned in reporting, nor are any individual products.

There is no specific reference to sustainability attributes in relation to reformulation in Woolworths disclosure.

There is no evidence of a commitment to developing and delivering marketing and merchandising strategies related to alternative proteins.

There is no evidence of a commitment.

Woolworths promoted plant-based foods on its Australian retail website. This covered information on a plant-based diet, alternative meats, snack and meal ideas, and nutritional information. Furthermore, through HealthyLife, Woolworths promoted strategies related to alternative proteins - the company has integrated this into Woolworths Everyday Rewards app making it more accessible to consumers. Alternative proteins link to HealthyLife through the 'Ways to eat for gut health' guide on how to eat 30 different plant foods per week, and the labelling of healthier products.

There is no evidence to promote the sustainability attributes of alternative proteins.

Woolworths provided some evidence of conducting consumer research that relates to alternative proteins and healthy diets (Woolworths Group Food and Health Survey 2022, building on the 2021 Survey). In its 2023 Annual Report, the company stated that a customer survey suggests a growing momentum towards less carbon intensive products and more diverse protein options. There is limited disclosure on the details of the customer survey and number of alternative protein related questions.

There is evidence that the company uses consumer insights to inform how it labels lower-carbon products, tailoring this labelling to consumer preferences. Additionally, Woolworths conducted the Group Food and Health Survey in 2022, building on its 2021 survey covering insights on healthy eating. From this, the company committed to increasing the balance of core foods in shopping baskets through promoting a range of protein sources in diets, including more plant-based sources.