How Co-op's Procurement Powers Sustainable Supply Chains

The Co-op Group sits among the world’s largest consumer co-operatives, operating across food retail, funeral care, insurance and legal services.

With more than six million active member-owners, its model prioritises serving the needs of its members while backing causes they care about.

Across the UK, Co-op runs more than 2,300 food stores, 800 funeral homes and manages a wholesale operation supplying around 6,000 additional retail sites. With 54,000 employees and revenues exceeding £11bn (US$14.7bn), its supply chain and procurement activity plays a vital role in turning business operations into a lever for sustainability.

The procurement function is deeply embedded in the group’s wider mission and, under the leadership of Chief Procurement Officer Imran Rasul, that role is only growing.

Imran explains: "As the biggest Co-op in the UK, we buy power for our own business and we decided to use our buying power to help other like-minded businesses save money and source energy in an ethical and sustainable way."

Procurement powers Co-op’s energy strategy

Co-op’s sustainability strategy makes clear use of its procurement expertise, particularly through the relaunch of Co-op Power – the UK’s largest co-operative energy buying group.

The project uses the organisation’s own demand to support not just its internal energy needs but also those of other businesses keen to adopt greener strategies.

This revamped initiative allows Co-op to share expertise in buying, managing and using energy sustainably. A key example of this is the energy management at its Biggleswade distribution depot, where procurement aligns closely with sustainability goals to increase operational efficiency.

"We're building on Co-op's experience as a major energy user to help businesses take control of their energy strategies," says Imran.

"Our team brings deep expertise in sourcing, buying and managing energy and we're committed to using that knowledge to deliver real value – helping businesses cut costs while sourcing energy in a way that's sustainable and ethical."

This new direction builds on internal procurement decisions made back in 2022, when Co-op overhauled its energy hedging strategy to stay ahead in a rapidly changing energy market.

By aligning its sustainability and property teams, Co-op was able to create a green strategy focused on corporate Power Purchase Agreements (known as cPPAs) and embedded generation. These procurement tools allow the group to lock in energy sourced from renewable sources while managing financial risk.

In June 2025, the updated Co-op Power model was shared with supplier partners at the Group’s GNFR (Goods Not For Resale) Conference before being brought to a wider audience at the IGD (Institute of Grocery Distribution) Conference in September.

Through the relaunch, Co-op Power now offers four core services:

• Green Strategy Consultancy – helping businesses build their own energy plans

• Energy Procurement – leveraging internal buying expertise for flexible purchasing strategies

• Portfolio and Bill Management – overseeing customer energy portfolios through dedicated bureau services

• Account Management – offering direct support for ongoing needs

"We've redesigned our approach to make Co-op Power stronger and more resilient than ever," Imran adds.

"This isn't just about buying energy; it's about co-operating to create value for businesses, communities and the planet."

Responsible sourcing takes centre stage

The procurement team’s impact extends beyond energy into the heart of Co-op’s food business: its sourcing decisions.

In particular, seafood sits at the centre of a push to improve transparency and traceability across the group’s supply chain. The organisation has pledged to move 100% of its own-brand fresh and frozen farmed seafood range to Aquaculture Stewardship Council (ASC) certification by 2027.

ASC is an internationally recognised standard for responsibly farmed seafood, covering animal welfare, environmental impact and supply chain traceability. This decision reflects a broader strategy to ensure that what Co-op sells meets rigorous standards.

The first product to carry the ASC certification is Co-op’s seabass, now available in stores. Over the next 15 months, the range will expand to include other products such as fresh smoked salmon, whole prawns and 18 additional seafood lines.

Alongside ASC, the Group maintains its long-standing relationships with the Marine Stewardship Council (MSC) for wild-caught fish and the RSPCA-Assured scheme for its premium Scottish salmon.

Sam Darley, Co-op’s Fisheries and Agriculture Compliance Manager, explains: "Offering high-quality, sustainably-sourced seafood on our shelves is at the heart of our commitment as a responsible retailer and moving 100% of our farmed fish to ASC by 2027 reflects the rigorous standards we have upheld since 2008, ensuring all seafood is sourced from well-managed farms and fisheries whilst minimising our impact on the marine environment."

Procurement at the heart of sustainability

From managing risk through smart energy procurement to setting higher sourcing standards in seafood, Co-op’s procurement strategy is built on supporting both people and planet.

Its supply chain teams are no longer just back-office functions but active contributors to what the organisation sells, how it operates and how it supports its wider community.

Whether working with partners through Co-op Power or elevating supply standards through certification, the Co-op model shows how strategic procurement helps shape a business where ethical and sustainable choices are embedded at every level.