Sainsbury's
SBRY:LN US4662492085
Key Information
HQ:
United Kingdom
Market Cap:
$8.11bn
Primary Market:
Europe & Russia
Company Information
Company Summary
J Sainsbury Plc is the second largest chain of supermarkets in the United Kingdom; it employs more than 178,000 people. The company also provides financial services through Sainsbury's Bank and is a catalogue retailer through Sainsbury's Argos.Revenue
Revenue by Geography
Revenue by Segment
Protein Diversification Engagement
Analysis Overview
Climate Strategy - Integration of Protein Diversification Climate Strategy - Governance and Influence Climate Strategy - Adoption of Just Transition Product Portfolio - Resource Allocation Consumer Education - Consistency of Marketing Strategies
Analysis Breakdown
Climate Strategy - Integration of Protein Diversification
Partial
Quantify Potential/Opportunity
Partial
TCFD-aligned scenario analysis
Sainsbury's has conducted a scenario analysis aligned with TCFD, which includes a 1.5°C scenario. This analysis has identified meat, fish, poultry, and dairy as sectors susceptible to carbon pricing. Additionally, the company has estimated that a shift in consumer preferences towards meat, fish, and poultry under a 1.5°C scenario could lead to a revenue decrease of £300-350 million. Sainsbury's acknowledges the shift in consumer preferences towards plant-based products as a potential financial opportunity.
Full
Reporting of Scope 3 emissions from animal agriculture
Sainsbury's most recent Scope 3 data report was for FY18/19. The company has not provided a detailed breakdown of emissions stemming from animal agriculture.
No Evidence
1.5C aligned SBTi Scope 3 FLAG target
Sainsbury Plc discloses its target to reduce absolute Scope 3 FLAG emissions by 36.4% by FY2030 from FY2018 levels.
Full
Quantifying the opportunity of protein diversification
Within its climate reporting, the company recognises the financial opportunity posed by protein diversification, however, it has not quantified this. Sainsbury's also references the UK's Eatwell guide, stating eating in line with these guidelines could reduce national emissions by 30%. FAIRR encourages Sainsbury's to quantify the climate and financial opportunity posed by protein diversification.
Limited
Protein Diversification Strategy
DNF
Integrating protein diversification into climate transition plans
Sainsbury's strategically promotes 'healthy and sustainable' dietary choices, aligning its approach with the UK's Eatwell Guide, acknowledging the dual benefits of reduced emissions and enhancing health. The company encourages individuals to align their eating habits with the principles of the Guide which focuses on increasing the consumption of plant-based foods. However, there is no evidence that the company has set a protein diversification target or incorporated it into its climate transition strategies.
Limited
Protein diversification target is timebound
There is no evidence for this KPI.
No Evidence
Business coverage of protein diversification target
There is no evidence for this KPI.
No Evidence
Alignment of target with climate and health guidelines
There is no evidence for this KPI.
No Evidence
Measuring Progress
Good
Disclosing progress against protein diversification target
Sainsbury's disclosed in 2022, that plant-based and meat-free products accounted for 72.7% of Sainsbury's protein sales, with 11% of that total being purely plant-based.
Limited
Annual reporting of progress of protein diversification target
The company reports annually on progress towards sales of its plant-based and meat-free products. In 2021, Sainsbury's reported 72% of protein sales tonnage being plant-based and meat-free products, of which 11.2% are entirely plant-based.
Full
Climate Strategy - Governance and Influence
Good
Board Oversight
Partial
Board support for protein diversification
Sainsbury's board oversees the governance of its Plan for Better initiative, which includes climate-related objectives like achieving Net Zero. The Plan for Better outlines the company's endeavours to encourage the adoption of the Eatwell diet. However, it remains uncertain if the board receives reports on the progress of protein diversification.
Limited
Climate expertise of board
Sainsbury's board members have sustainability expertise.
Full
Nutrition/health expertise of board
It is unclear whether there are board members with nutrition expertise.
No Evidence
Advocacy
Good
Disclosing a list of direct lobbying actions
Sainsbury's discloses some information related to its advocacy efforts, indicating it has engaged in nutrition, health, and social impact. However, it remains uncertain whether the company provides a comprehensive list of its lobbying activities.
Limited
Direct lobbying in line with climate and nutrition
The company states its lobbying efforts are aligned with the goals of the Paris Agreement. However, there is no assessment of their alignment with health and nutrition guidelines.
Limited
Disclosing a list of indirect lobbying actions
Sainsbury's discloses a full list of memberships and collaborations.
Full
Indirect lobbying in line with climate and nutrition
Sainsbury's through its memberships and collaborations is advocating for positive climate and nutrition outcomes. Sainsbury's through these collaborations is advocating for: increasing awareness on the evidence behind food and nutrition; nutritional labelling; healthy eating; tackling obesity; promoting equitable access to sustainable and healthy diets; developing a science based approach to policy interventions that will improve purchasing patterns in line with the Eatwell guide; eating in line with the planetary boundaries; and promoting vegetable consumption to children.
Full
Climate Strategy - Adoption of Just Transition
Low
Just Transition Commitments
Partial
Public commitment to Just Transition principles
The company states it is committed to ensuring the business' transition to Net Zero is just and equitable for the communities it sources from.
Full
Commitment to support workers
There is no evidence for this KPI.
No Evidence
Commitment to support stakeholders
Sainsbury's has committed £3.5 million to farmers who promise to cultivate soy in Brazil without deforestation or conversion. In September 2023, Sainsbury’s launched its reduced carbon beef, reporting that it has over 25% less carbon emissions than the industry average. To launch this project, the company had to redesign its Aberdeen Angus beef supply chains, including implementing a unique payment model for its farmers. However, it is unclear the extent to which these initiatives support animal agricultural supply chain stakeholders' transition toward more sustainable practices.
Limited
Just Transition Strategy
DNF
Public Just Transition strategy
There is no evidence for this KPI.
No Evidence
Consulting social actors in Just Transition strategy development
There is no evidence for this KPI.
No Evidence
Just Transition KPI
DNF
Disclosing Just Transition KPIs
There is no evidence for this KPI.
No Evidence
Reporting against Just Transition KPIs annually
There is no evidence for this KPI.
No Evidence
Product Portfolio - Resource Allocation
Partial
Portfolio Diversification
Partial
Dedicating resources to expanding alternative protein offering
Sainsbury's is dedicating resources to developing alternative protein sources, evidenced by expanding its own-brand product line. Additionally, the company is launching external brand products such as Beyond Meat. These product launches are occurring across the company's largest market.
Full
Annual evidence of resource allocation
There is no evidence for this KPI.
No Evidence
Improving Nutrition and Sustainability Attributes
Low
Dedicating resources to improve the nutrition and sustainability of products
Sainsbury's is dedicating resources to improve the nutrition of its plant-based products through its encouraging healthy choices strategy. Through this strategy the company has embedded nutritional benchmarking into its product development process, reducing sugar, calories and salt content in products including its plant-based products.
Limited
Reformulating products to improve nutrition
Sainsbury's has introduced its Flourish brand, featuring plant-based options, all formulated to adhere to stringent nutritional criteria, although the specific criteria remain unspecified. Additionally, Sainsbury's is revamping products throughout its selection to enhance nutritional value, incorporating nutrition benchmarking into its product development methodology. However, no clear examples of the reformulation of plant-based products to improve nutrition were found.
Limited
Reformulating products to improve sustainability
There is no evidence for this KPI.
No Evidence
Consumer Education - Consistency of Marketing Strategies
Low
Commitment Across Geographies/Brands
DNF
Commitment to marketing alternative protein sources
In 2023, Sainsbury’s launched its new brand purpose, “Good food for all of us”. The campaign focuses on the fundamentals of prices and quality and encompasses dietary requirements. It is unclear the extent to which alternative protein sources will feature in these campaigns.
No Evidence
Business coverage of marketing commitment
There is no evidence for this KPI.
No Evidence
Nutrition and Sustainabilty
Low
Promoting the nutritional attributes of alternative protein sources
The company is promoting the nutrition of some of its its plant-based products on its website. However, it is unclear whether the company is promoting these attributes across its largest markets and brands.
Limited
Promoting the sustainability attributes of alternative protein sources
The company does not promote the sustainability attributes of alternative protein sources, despite Sainsbury's recognising the sustainability benefits of reducing animal protein consumption.
No Evidence
Consumer Research
Partial
Conducting consumer research on alternative protein sources
Sainsbury's highlights that 7 out of 10 shoppers are contemplating or have already implemented dietary changes towards better eating habits while reducing environmental impact.
Limited
Conducting consumer research on healthy diets
The company employs 'test and learn' initiatives to determine the most effective methods for encouraging customers to make healthier choices. Sainsbury's disseminates the results of its consumer research to the Consumer Goods Forum and the Institute of Grocery Distribution. It is unclear how the company uses this information for marketing and merchandising of alternative protein sources.
Limited
Members-only Content
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Workstream Information
Business Type:
Retailer
Company Feedback Given:
Yes
Last Updated:
8 July 2024
2024 Resources
Phase 2 | Investor Briefing Protein Diversification Phase 1 Progress Report Protein Diversification Engagement