Coles Group

In FY2024, Coles refreshed its TCFD-aligned scenario analysis using 1.5°C, 2.7°C, 3.6°C, and 4.4°C degree scenarios to include an undisclosed amount of its animal agricultural supply chains and protein diversification. The analysis of these scenarios builds on the company's FY2022 assessment, which covered 55 commodities equalling 60% of the company's revenue. Coles explicitly reported inclusion of red meat and dairy in this analysis, assessing these commodities as highly vulnerable to physical and transition climate risks. Changing consumer preferences driven by climate-related factors were identified as a transition risk, including increased demand for plant-based food and drink offerings. The company does not disclose whether other animal proteins were included in the analysis.

Coles has not yet reported a full breakdown of its Scope 3 emissions derived from animal agriculture, nor a breakdown by protein type. However, the company has reported that over 90% of its total emissions are Scope 3. A breakdown of these emissions is disclosed in line with the 15 categories specified in the Greenhouse Gas Protocol Scope 3 Reporting Standard. Coles states that the company is continuing to consider how best to account for Scope 3 emissions when developing its Climate Transition Plan, particularly those related to Forestry, Land, and Agriculture (FLAG).

Coles has has submitted its 1.5°C aligned Scope 3 emissions reduction target that includes FLAG emissions to the SBTi for approval. This target includes a 30.3% reduction in Scope 3 FLAG emissions by FY30 from FY24.

Coles has not yet quantified the emissions mitigation potential and/or financial opportunity of protein diversification. The company disclosed that in FY2025 it plans to develop its Climate Transition Plan, however, it is unclear if protein diversification will be included in this plan.

Coles has not yet set a public protein diversification target. The company disclosed that in FY2025 it plans to develop its Climate Transition Plan, however, it is unclear if a protein diversification target will be included in this plan.

Coles has not yet set a public protein diversification target.

Coles has not yet set a public protein diversification target.

Coles has not yet set a public protein diversification target.

Coles has not yet set a public protein diversification target.

Coles has not yet set a public protein diversification target.

Coles offers short-term and long-term incentives to its executive team, however, neither of these reward mechanisms take into consideration company progress in reducing Scope 3 emissions or protein diversification efforts. Noting that Coles has not yet set a 1.5°C aligned SBTi-approved Scope 3 emissions reduction target that includes FLAG emissions, the company only considers sustainability within its short-term incentives at present. This sustainability consideration is with regards to consumer perception towards the company, measured in the form of a consumer survey conducted by an external independent data collection provider.

30% of Coles board members have sustainability expertise.

There is no evidence that the company's board members have expertise on nutrition/health.

Coles has not disclosed a full list of its direct lobbying activities, but has disclosed a list of its positions on policy topics as related to its food business. The company has disclosed its position on 10 material issues, of which the following directly link to its foods business: healthy and affordable food; ethical and responsible sourcing; reducing food waste; and reducing emissions across its value chain. Moreover, Coles has disclosed a specific document outlining its position on climate change, stating that it supports the goals of the Paris agreement. Instead of providing a full list of direct lobbying activities, the company has given five examples of its direct government engagement efforts. Coles has engaged on the ACCC’s supermarket inquiry, the Senate Select Committee on Supermarket Prices, the Senate Select Committee on Cost of Living, and the Australian Government’s Food and Grocery Code of Conduct Review.

Coles has provided limited disclosure of its direct engagement with policymakers. It is therefore unclear to what extent the company's lobbying actions related to its food business are aligned with positive climate and nutrition outcomes.

Coles has provided a dedicated list of industry associations that it holds membership to. These organisations address topics such as energy and emissions, waste, packaging, sourcing and farming, and team and community.

Coles has disclosed membership to trade associations aligned with the focus areas of the company's sustainability strategy, including positive climate outcomes. Coles has not yet explicitly disclosed if the company's trade association memberships are aligned with positive nutrition outcomes, although it is a member of the Australian Healthy Food Partnership which supports positive nutrition outcomes.

Coles does not yet have a public commitment to just transition principles.

Coles has not made a public commitment to retain, reskill, redeploy and/or compensate animal agricultural workers affected by its emissions reduction efforts. However, the company did disclose in its 2023 Annual Report that it is working to upskill its workers by providing them with the understanding and skills required to adequately operate and maintain low-emission technology, although it is unclear if this covers its animal agriculture workers.

Coles has disclosed numerous examples of how it is investing in and supporting its animal protein suppliers to transition to more sustainable practices. Examples of how the company is supporting its suppliers to decarbonise are as follows: the company has expanded trials of the methane reducing feed additive Bovaer® from two to six suppliers; Coles has partnered with the consultants Integrity Ag to deliver seven carbon footprint and sustainability workshops for its beef and lamb producers; the company has partnered with pork supplier Milne AgriGroup to assess baseline emissions for pork production and implemented efforts to reduce on-farm emissions; through the Coles Sustainable Dairy Development Group the company is supporting its dairy supply chains to reduce emissions; the Coles Dairy Farm Sustainability Accelerator Fund has allocated AUS $1.5m in FY2024 to support 100 dairy farms to implement solar energy and infrastructure improvements; and Coles' Nurture Fund awarded AUS $3.7m in grants to reduce emissions in Western Australian beef production.

Coles has not yet disclosed a public just transition strategy.

Coles has not developed a just transition strategy, however, the company has engaged with its suppliers when developing ways to support them in transitioning to more sustainable practices. For example, Coles has worked with its beef and lamb suppliers to understand production efficiencies and the emissions reduction opportunities on farms.

Coles has not yet disclosed that it has a just transition strategy and therefore has no associated KPIs.

Coles has not disclosed that it has a just transition strategy and therefore has no associated KPIs.

Coles launched both own and external brand plant-based products in its largest Australian market in the past year. These include external brand Made With Plants, which offer numerous vegan-friendly products, such as meat-free bacon, ham, chicken, and cheese, and own brand Nature's Kitchen Mini Roasts, Mushroom and Caramelised Onion Burgers and Cookies & Cream Frozen Desserts.

There is no evidence that Coles has allocated resources to improve the performance of alternative protein products in the past year.

Coles does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although the company discloses that it aims to meet the Australian Government's Healthy Food Partnership (HFP) reformulation targets of salt, sugar and saturated fat for nominated own brand categories, it is unclear if plant-based categories are included. The company discloses that 71% of its own brand sales qualify as ''healthier'' under the Australian Government's Health Star Rating (HSR) system (≥3.5), however, it is unclear if the company has set a target for healthy sales. Additionally, although the company has a policy to fortify plant-based products to create nutritional parity with non-plant based counterparts, it is unclear if this is a minimum health and nutrition threshold for products.

Coles provides a high-level statement that it is reformulating products to improve nutrition, which includes alternative protein products. The company states that to achieve nutritional parity for its plant-based products with non-plant based counterparts, it is fortifying products with key nutrients such as iron and vitamin B12. Additionally, the company is reformulating its own brand products to reduce salt and sugar, and increase the proportion of fruit, vegetables and whole grains, however, specific examples of alternative protein products reformulated with improved nutritional attributes are not disclosed.

There is no evidence that Coles is reformulating alternative protein products to improve sustainability attributes.

There is no evidence that Coles has committed to marketing and merchandising strategies related to alternative proteins in its largest markets.

Coles is marketing and merchandising alternative protein products in its largest Australian market. The company provides vegan food recipes with ingredients available at Coles' stores on its YouTube channel, and promotes its Nature's Kitchen range on its website and YouTube channel with the slogan "Try plant-based and be amazed with Coles Nature's Kitchen". This range also underwent a product design refresh this year. Additionally, the company offers promotional discounts on plant-based products, such as the external Birds Eye brand.

There is no evidence that Coles is working to ensure its alternative protein source products are accessible and affordable in its largest market. Although, the company has general initiatives to improve food access for vulnerable Australians, increase access to healthier foods, and create affordable healthy choices.

Coles has conducted consumer research relating to demand for alternative protein sources, however, there is no evidence of research relating to consumer trends in the sector. The company leverages third party consumer research to identify demand for alternative proteins, finding that 10% of Australians consider themselves vegan or vegetarian and 20% are flexitarian or actively reducing consumption of animal proteins. The company states that it responded to this demand by refreshing the look and feel of its plant-based brand Nature's Kitchen. Although, it is unclear if consumer trends research informed this rebranding.

Coles has used consumer research relating to healthy diets to inform its marketing and merchandising strategy, however, it is unclear if this includes alternative protein sources. The company identified that only 8.5% of children from the age of 2-17 years of age are meeting the daily recommended dose of fruit and vegetables. It is responding by promoting greater fruit and vegetable consumption through its new campaign 'DC Superheroes', whereby superheroes are linked with nutrition benefits such as ‘energy rich bananas for adventurers like Batman’ or ‘fibre-rich apples worthy of Amazonian warriors like Wonder Woman’. Additionally, the company ran a Pokémon collectible campaign alongside a lunchbox challenge to promote consumption of fruit and vegetables during the back-to-school period.