Coles: Embedding Sustainability in its Supply Chain
Coles Group’s 2025 Sustainability Report confirms the supermarket chain reached all its major targets.
The company operates more than 1,800 outlets across Australia, giving it an extensive supply chain footprint with both environmental and social impacts.
The report centres on energy, waste and supplier collaboration as key themes.
Supplier alignment
In 2021, Coles committed to sourcing 100% renewable electricity by the end of FY25 and set a target to reduce combined Scope 1 and Scope 2 emissions by more than 75%.
“This year we met our target to source 100% renewable electricity for our operations," say Peter Allen, Chairman of Coles Group Limited, and Leah Weckert, Managing Director and CEO, in the report. "We also achieved a 71.4% reduction in combined Scope 1 and 2 GHG emissions (from FY24)."
The report states that 43% of suppliers now set Scope 1 and 2 science-based targets of their own, demonstrating an effort to extend emissions reductions beyond Coles’ direct operations and through its supply network.
Coles’ supermarket and Liquorland store in Victoria has sustainability deeply embedded, with rainwater tanks, two EV charging stations, 100% electrified heating and cooling and refrigeration with natural refrigerants. It also includes a 305 kW solar system designed to meet around 31% of the store’s electricity needs.
“The objective of our climate pillar is to progress towards decarbonisation of our operations and work with our suppliers and partners to reduce emissions to drive a more resilient food system for Australia,” say Peter and Leah.
Sourcing, deforestation and waste streams
Coles set a no-deforestation commitment in FY25 through the SBTi-validated FLAG (Forest, Land and Agriculture) target.
The company confirms that all timber, pulp and paper for Coles Own Brand products now come from independently-certified plantations or recycled fibre.
On palm oil, Coles works with the Rainforest Alliance to map supply chains within Own Brand. At present 95% of non-food products achieve certification through the Roundtable on Sustainable Palm Oil (RSPO). For the remaining portion Coles purchases RSPO credits, which support smallholder farmers in producing sustainable palm oil.
Coles also invests US$1.6m through its Sustainable Dairy Development Group to support practices in dairy farming.
“Nature continues to be an area of focus for Coles, as we seek to better understand our nature-related impacts and dependencies and collaborate with farmers and suppliers to drive more climate and nature resilient supply chains,” add Peter and Leah.
Waste management shows a link between environmental performance and food security. Since 2021, Coles has removed more than 600 million pieces of plastic from Own Brand packaging.
Surplus but edible food leads to 19,655 tonnes being donated to SecondBite and Foodbank, supplying 39.1 million meals. A further 18,960 tonnes goes to farms and animal sanctuaries while 29,205 tonnes converts to compost.
“Within our circularity pillar, we are focused on reducing waste across our value chain, in collaboration with our industry partners, suppliers, producers and customers,” comment Peter and Leah.
Logistics innovation and ethical standards
Coles has introduced its first electric prime mover truck in partnership with logistics company Linfox.
The truck is projected to save more than 65 tonnes of CO2 equivalent annually, cover up to 300 km per charge and reduce diesel use by 25,000 litres each year.
The report details audits, due diligence checks and risk assessments across commodities considered high risk. It highlights ethical sourcing and human rights as central to maintaining responsible supplier relationships. Partnerships with certification bodies aim to support this oversight.
Coles states in its report that “deforestation contributes to climate change and biodiversity loss and is a driver of embedded emissions within our supply chain”. The company positions supply chain transparency as essential to its wider climate objectives.
Coles' 2025 Sustainability Report presents its supply chain as both the source of challenges and the focus of solutions.
By combining renewable energy commitments, waste recovery, supplier partnerships and logistics innovation, Coles outlines a system designed to be less carbon intensive and more resilient.
