UK retailer Asda has revealed details of an inaugural external evaluation of its ESG strategy, conducted by Sustainable Fitch.
The supermarket operator obtained a entity rating of 3 (on a scale where 1 is excellent and 5 is poor) from the ratings agency. Sustainable Fitch acknowledged Asda’s proactive initiative in incorporating ESG considerations into its business strategy and commented that the company has a solid foundation upon which to build further progress.
‘Important to investors’
“We know that the ESG credentials of businesses are increasingly important to investors and customers alike, and improving the transparency around how we are progressing our ESG targets is a key aim for the business,” commented Micheal Gleeson, chief financial officer at Asda.
“Two years into our new ownership, we are pleased to receive our first independent ESG rating from Sustainable Fitch, and to have achieved a score which shows that we are already in line with the largest retailers in our sector.”
Commitment to decarbonisation
Sustainable Fitch rated the UK retailer favourably for its performance against existing ESG targets, specifically highlighting a 40% reduction in decarbonisation of operations since 2015 and ongoing initiatives to ensure recyclable packaging.
It also commended Asda’s positive ESG reporting practices, emphasising alignment with market standards and sustained reduction in emissions across all scopes.
Regarding Asda’s social initiatives, Sustainable Fitch acknowledged the retailer’s human and labour rights policies, along with a balanced workforce representation of 49%. Asda’s efforts to enhance product nutritional value by reducing fat, salt, and sugar, as well as improving food nutrition labelling, were also recognised as positive measures.
Looking ahead, Asda has outlined plans to provide further disclosures, particularly related to climate-related scenario analysis, in its upcoming accounts for 2023.
“We look forward to the opportunity that our continued growth offers us to improve on this score and reassure all of Asda’s stakeholders about our commitment to responsible retailing,” Gleeson added.
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