Climate change is one of the biggest challenges facing the world today, affecting not only the environment but also businesses and individuals. At the ALDI SOUTH Group, we recognise this urgency, and we are committed to bringing our suppliers along with us on our emissions reduction journey.
Our commitment to net-zero is clear. In 2024, we became one of the first global grocery retailers to set science-based net-zero greenhouse gas emissions targets covering our operations and our entire value chain, and the work towards 2050 has already begun in earnest.
Well over 90% of the ALDI SOUTH Group’s carbon footprint is generated within our upstream and downstream supply chains, known as our indirect Scope 3 emissions. That’s why working and collaborating with our suppliers to help them cut emissions will be essential for us to meet our ambitious goals, mitigate the impacts of climate change, and limit global warming to 1.5°C in line with the Paris Agreement.
How we define our Scope 1, 2, and 3 emissions
- Scope 1 Direct emissions caused through the operation of our stores, regional distribution centres, and offices, including energy and fuel consumption, and refrigerant refills.
- Scope 2 Indirect emissions from the purchasing of energy for our stores, regional distribution centres, and offices.
- Scope 3 Indirect emissions from external logistics partners, suppliers, customers and third parties throughout the ALDI value chain.
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Why is tackling climate change so important?
At the ALDI SOUTH Group, we understand that our business activities have an impact on the world’s the climate and environment.
Climate change has far-reaching consequences for producers, suppliers, and customers, as increasingly frequent extreme weather events lead to reduced crop yields and higher prices for essential food commodities. It is crucial that we take action now to mitigate these impacts and secure a sustainable future for both our business and the communities we serve.
For us it is clear that the costs of doing nothing are far greater than the costs of taking action, today.
Together towards a sustainable future
Emissions generated along supply chains are far more complex to reduce and mitigate than those generated, directly or indirectly, within our own operations. Recognising that the majority of our emissions lie within our supply chain, suppliers are the key to unlocking progress. Therefore, ALDI is looking for innovative ways to partner with suppliers to drive collective action to reduce the impact of climate change.
We are currently in the process of creating a brand-new Supplier Engagement Strategy on Climate. This new strategy will establish the necessary framework to enable the decarbonisation of our supply chains. Beyond the strategy, we’re also playing a major role in several multistakeholder initiatives.
ALDI US recently joined the Supplier Leadership on Climate Transition (Supplier LOCT) program to facilitate stronger collaboration with suppliers across the ALDI SOUTH Group to establish science-based emissions targets.
By participating in this forward-looking consortium, organisations can access scalable and cost-effective solutions to address supply chain and Scope 3 emissions. We sponsor supplier participation to access tools and training materials that outline best practices in climate target setting.
This program is designed to be inclusive for suppliers of all sizes and stages on their climate journey, offering a diverse array of courses that progressively build in maturity and complexity. The goal is to drive broader global action towards net zero.
What is Supplier LOCT?
The Supplier Leadership on Climate Transition is a consortium launched in 2021 to accelerate progress towards science-based greenhouse gas reduction targets.
Supplier LOCT invites companies dedicated to climate action to join the collaborative partnership and provides an online learning environment to educate supply chain companies on their climate goals. Over recent years, Supplier LOCT has guided over 850 suppliers worldwide in learning to measure, monitor, and reduce emissions through expert-led workshops and mentoring.
Driving dairy emissions down
Combatting climate change is a business imperative, but a one-size fits all approach falls short of addressing the complexities within individual supply chains. As a result, we have already launched or co-invested in multiple decarbonisation initiatives targeting specific product lines, including dairy. The number of projects, and products impacted, is set to grow over the coming years.
In October 2024, the ALDI SOUTH Group hosted its first Dairy Supplier Sustainability Roundtable, involving its partners at ALDI Nord and key suppliers, in Paris, France. Demonstrating the vital importance of strong collaboration, all parties shared best practices from their sustainability efforts and identified next steps for implementation on the journey to a greener dairy supply chain.
ALDI UK launched the ALDI Dairy Farm Partnership in conjunction with the farmer-owned cooperative Arla Foods UK in 2018, working with progressive dairy farmers across Great Britain to maintain high welfare standards and reduce emissions from farms.
In October 2024, ALDI UK announced that they were investing over £30M to support Arla dairy farmers over the next three and a half years, and the company is also invested in a new initiative, the FarmAhead™ Customer Partnership, aimed at supporting farmers’ ongoing efforts to drive reductions in on-farm emissions.
ALDI US is taking similar steps to reduce the environmental impact of its dairy supply chain. As a member of the Innovation Center for U.S. Dairy’s Dairy Sustainability Alliance, ALDI US stands committed to identifying potential solutions to reduce emissions from dairy in partnership with the broader industry.
Net-zero logistics
The ALDI SOUTH Group operates in 11 countries on four continents across the globe, and our supply chains span more than 100 countries. We are committed to ensuring that our customers have access every day to fresh, high-quality products at an affordable price, and efficient logistics operations are key to ensuring this.
Upstream and downstream transportation generate large amounts of greenhouse gas emissions that must be addressed if we are to meet our net-zero commitment.
As a result, the ALDI SOUTH Group became the first grocery retailer to join the Global Logistics Emissions Council.
Our participation in this initiative is driven by our commitment to work with committed partners to help the global logistics sector remove one billion tonnes of carbon by 2030 and reach net-zero emissions by 2050.
Find out more about our standards, initiatives, and projects aimed at tackling the effects of climate change.
