Coles has announced ambitious targets to reduce its Scope 1 and 2 greenhouse gas emissions, aiming for a 75% reduction by the end of FY30 and net zero emissions by 2050. The company’s primary interim milestone is to achieve a 75% reduction in combined Scope 1 and 2 GHG emissions by the end of FY30, compared to the FY20 baseline year. This target is aligned with a 1.5°C pathway as per the Paris Agreement objectives. Additionally, Coles plans to source and maintain 100% renewable electricity for its operations from FY25, supporting the reduction of Scope 2 emissions and underpinning the FY30 emissions reduction target.
Material actions and disclosures
During FY26, Coles achieved an 82.6% reduction in combined Scope 1 and 2 GHG market-based emissions relative to the FY20 baseline, representing a 7.3% decrease compared with FY25 emissions. The company also achieved a 16.9% reduction in combined Scope 1 and 2 location-based GHG emissions relative to the FY20 baseline, a 4.1% decrease compared with FY25 emissions. These reductions were influenced by continued sourcing of 100% renewable electricity, reductions in refrigerant emissions, and energy efficiency initiatives.
Forward commitments
Coles aims to deliver a 30.3% reduction in Scope 3 Forest, Land and Agriculture (FLAG) sector emissions by the end of FY30 (FY24 baseline year). The company also plans to use carbon credits to neutralise residual Scope 1 and Scope 2 emissions remaining after delivery of the associated gross emissions reduction target by 2050.
Coles’ progress against its targets is monitored through regular emissions reporting, with quarterly updates provided to the Executive Leadership Team (ELT) and the Board. The company’s FY30 Scope 1 and Scope 2 emissions reduction target has been validated by the Science Based Targets initiative (SBTi).