Loblaw Companies Limited

FAIRR Commentary

• Loblaw is one of the largest buyers and sellers of meat in Canada, making it highly exposed to the risks and disruptions linked to animal protein supply chains.
• The company has some sustainable sourcing initiatives (for example on beef) and is making plans to address climate impacts linked to agriculture.
• On the product development side, the company has a growing offering of own-brand as well as external brand plant-based and alternative protein/food product options. In terms of consumer engagement, the company’s dieticians came out in favour of more plant-based diets following publication of Canada’s new dietary guidelines.
• However, the company doesn’t yet demonstrate a strategic, company-wide programme to transition its portfolio. It does not have any group-wide metrics that give an indication of its exposure to animal-based foods and/or alternative proteins at a category level.
• The company has made a strong start by growing their product portfolio of alternative options. We would encourage the company to continue to broaden its sustainability focus on animal proteins as well as build a more strategic plan to transition its product portfolio (through, for example, category-based targets) to ensure any exposure to animal proteins is in line with a low-carbon strategy.

Company Comment

We have reviewed the report and have nothing further to add.