The ALDI SOUTH Group has announced an ambitious goal to achieve net-zero greenhouse-gas (GHG) emissions across its entire value chain by 2050. This move positions ALDI as one of the first international grocery retailers to have its net-zero targets validated by the Science Based Targets initiative (SBTi). The SBTi sets robust and science-based targets to help companies mitigate climate change effectively.
For ALDI U.S., this commitment is an important step in supporting the company’s growth while addressing the climate crisis. The retailer plays a key role in implementing strategies to meet these goals, as outlined by the SBTi. The company aims to significantly reduce its emissions in various categories, including scope 1 and 2 emissions, which pertain to direct and indirect emissions produced by the company’s own operations.
The validated targets include:
– A 90% reduction in absolute scope 1 and 2 emissions by 2035, using 2021 as a base year.
– A 90% reduction in absolute scope 3 emissions by 2050, using 2022 as a base year.
– A 72% reduction in absolute scope 1 Forest, Land and Agriculture (FLAG) emissions by 2050, relative to 2021.
– A 72% reduction in absolute scope 3 FLAG emissions by 2050, relative to 2022.
To ensure swift progress, ALDI commits to phase 1 reductions, including a 52% reduction in scope 1 and 2 emissions by 2030 and a 25% reduction in scope 3 emissions by the same year. Additionally, the company has pledged to eliminate deforestation in primary deforestation-linked commodities, including palm oil, cocoa, and coffee, by the end of 2025.
As Jason Hart, CEO of ALDI U.S., noted, “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.” The company’s unique model—predominantly featuring ALDI-exclusive brands—allows for more direct collaboration with suppliers to reduce emissions effectively.
A core aspect of ALDI’s sustainability strategy revolves around partnerships and targeted initiatives designed to address the largest emission sources. These initiatives include:
1. Purchased Products: ALDI recognizes that a considerable portion of its emissions arises from its supply chain. The company intends to strengthen collaboration with suppliers through investments aimed at decarbonizing the supply chain. For example, ALDI has joined the Innovation Center for U.S. Dairy’s Dairy Sustainability Alliance, focusing on reducing emissions while supporting biodiversity and animal welfare.
2. Upstream Transportation and Distribution: ALDI is seeking cooperation with third-party logistics providers to explore alternative fuel sources and transition to electric trucks. This shift could significantly lower transport emissions, representing an important step towards sustainability.
3. Refrigeration: To achieve its goal of transitioning all stores to natural refrigerants by 2035, ALDI has already implemented natural refrigerants in over 700 stores. This change has the potential to save 60% in carbon emissions annually.
4. Electricity Use: ALDI is dedicated to investing in energy efficiency across its stores and distribution centers. Currently, the company sources 100% of its electricity from renewable sources, reflecting a strong commitment to sustainable operations.
With these initiatives, ALDI is laying the groundwork to become the most sustainable grocery retailer in America. Operating more than 2,300 stores across 38 states, the company serves millions of customers monthly. ALDI has also been recognized for its efforts; it ranks No. 28 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America and has been named the Retailer of the Year for 2023 while landing a spot among the 10 Most Sustainable Grocers for 2024.
The grocery landscape is competitive, and retailers increasingly recognize the importance of sustainability—not merely as a marketing tool but as a business imperative. ALDI’s commitment to environmental responsibility will likely strengthen customer loyalty and enhance its competitiveness in the market.
As the retail sector grapples with increasing scrutiny over environmental practices, ALDI is making significant strides toward sustainability goals and establishing a benchmark for its peers. The company’s ability to establish concrete targets and collaborate effectively within its supply chain stands as a powerful example of what can be accomplished when sustainability is woven into the core of a retail operation.
ALDI’s focus on transparency, accountability, and tangible results showcases an important shift in how grocery retailers operate, illustrating that a commitment to sustainable practice can coexist with affordability and quality. With the backing of SBTi and its existing initiatives, ALDI is well-prepared to not only achieve its ambitious goals but also to pave the way for greater sustainability within the grocery industry.
