Asda has revealed its ‘positive’ first external environmental, social and governance factors (ESG) rating, which it said showed that the supermarket giant is “already in line with the largest retailers in [its] sector.”
In the first evaluation of its type, Asda received a rating of 3 (where 1 is ‘excellent’ and 5 is ‘poor’), and an entity score of 54.
Asda chief financial officer Michael Gleeson said: “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.
The grocer’s sustainability assessment “positively viewed” Asda’s efforts to decarbonise its operations by 40% since 2015 and its ongoing efforts to make packaging recyclable sustainable.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
Alongside its sustainable practices, the grocer’s score was also boosted by its introduction of comprehensive human and labour rights policies as well as a balanced workforce, with 49% female representation.
In addition, Asda’s implementation of more non-high fat, salt and sugar own-brand products and an improvement in food nutrition labelling have also been noted as positive steps taken by the retailer.
The grocer acknowledged that the assessment had “uncovered opportunities to improve the score”, but pointed to strategies it had already launched to improve its ESG rating.
Gleeson added: “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.
“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.”
Asda’s ESG rating follows in the wake of the grocer collaborating with other UK supermarkets to reduce carbon emissions throughout their supply chains, late last year.
