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Sustainability advisors
CASE STUDY OCADO RETAIL LTD

Supporting Ocado Retail’s Climate Ambitions

3Keel worked with Ocado Retail to develop its base year emissions, science-based targets and model emission reduction scenarios, to inform the development of the climate action pillar of Ocado Retail’s sustainability strategy.

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AREA CLIMATE CHANGE

LEAD STEPH BARKER

CLIENT OCADO RETAIL

Ocado Retail is a British online retailer and a joint venture between Ocado Group and Marks & Spencer (M&S). It is the world’s largest dedicated online supermarket.

Over the past year, 3Keel has been supporting Ocado Retail’s greenhouse gas accounting and the development of its climate ambitions. We began this process by calculating Ocado’s Scope 3 carbon footprint. We collected data from across the business to develop a comprehensive Scope 3 footprint in line with the GHG Protocol and the Science-based Targets initiative’s Forest Land and Agriculture guidance (FLAG). This analysis allowed Ocado to understand its base year emission profile and its most significant emission hotspots.

With the results of this analysis, we then provided Ocado Retail with advice on setting science-based targets. We advised Ocado on the near-term, Net-Zero and FLAG targets they would be required to set to align with SBTi’s requirements. There are a number of different options when it comes to target setting – it is possible to set near-term targets in line with a 1.5-degree scenario, a well-below 2-degree Celsius scenario (for Scope 3 emissions); companies also have the option to decide on their target dates (within a specified range). We discussed these options with the Ocado team – who ultimately decided to set a 2030 near-term, and 2040- net zero target, with aligned FLAG targets for 2030 and 2040.

We then undertook a modelling exercise to determine what Ocado Retail will need to do to achieve these targets. We modelled the reductions that could be achieved by substituting animal products with plant-based alternatives, investing in agricultural decarbonisation, moving to low-carbon freight, eliminating deforestation from its supply chain, and decarbonising product manufacturing.

Ocado Retail has used the reduction modelling we produced to identify priority actions for decarbonisation and in the development of its sustainability strategy. Ocado Retail plans to focus its decarbonising efforts on three areas: Low carbon supply & operations; low-carbon logistics and Sustainable agriculture and diets, as these are Ocado’s ‘hotspot’ areas and the parts of its value chain which provide the greatest opportunity for decarbonisation.

“3Keel has been instrumental in guiding us on our sustainability journey. Their expertise in developing our Scope 3 footprint, setting science-based targets, and modelling reduction strategies has helped us to continue making meaningful change,” said Laura Fernandez, Senior Sustainability Manager at Ocado Retail. “Their insights and support have not only improved our understanding of what is required to reach net zero but have also informed the development of our broader sustainability vision and strategy.”

3Keel is continuing to work with Ocado Retail to get its Science-based Targets validated with the Science-based Targets initiative and develop a 2022 footprint. We look forward to seeing how Ocado puts its climate ambitions into action.

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