Asda: Committed to Supply Chain Transparency

Supermarkets must effectively integrate sustainability into their supply chain to help improve resilience and consumer trust, reduce environmental impact and costs and enhance long-term business resilience. 

British supermarket Asda is actively demonstrating its commitment to sustainability and awareness of evolving stakeholder and consumer expectations by focusing on ethical sourcing, transparency and sustainability across its supply chain.

Here, Supply Chain Digital explores how Asda has effectively implemented these changes to meet growing demands for environmental impact reduction and responsible business practices. 

Responsible sourcing and human rights

Asda maps and collects supply chain data to uncover labour risks through Sedex, a responsible sourcing management platform.

It continues to embrace its risk-based approach by:

• Allowing colleagues to understand their role in human rights and the impact
• Monitor and investigate supply chain issues
• Find root cause solutions to improve entire supply chains
• Partnering with Open Supply Hub to provide access to an interactive map of its supply chain

Elsewhere, Asda helps address risks and shares best practices through its membership of and collaboration with the Ethical Trading Initiative, Stronger Together and the Food Network for Ethical Trade.

All suppliers must help to improve labour standards by obeying Asda’s ‘Standards for Suppliers’ guide, operating responsibly and following local labour and employment laws.

Asda manages risk in the supply chain and evaluates suppliers' compliance with standards by using third-party social, safety and environmental compliance audits. 

If an issue is found in the supply chain, Asda will:

• Work with suppliers and third parties to provide resources and guidance 
• Investigate and remediate for impacted workers
• Ask suppliers to close non-compliances found in a social audit
• Continue encouraging suppliers to apply responsible principles across their supply chains 

Asda appoints Gavin Chappell as VP of Food and GM Supply at Asda

Among those charged with ensuring transparency throughout Asda's supply chain is Gavin Chappell, who is set to join the company as Vice President of Food and GM Supply in April. 

Gavin, who previously served as COO at Bensons For Beds, has gained a range of supply chain experience at organisations such as Dunelm, Holland & Barrett and Boots.

He also previously worked at Asda for more than five years as Vice President of eCommerce and Supply Chain. 

Gavin will utilise his expertise in supply chain and operations roles to manage Asda’s food and general merchandising supply teams, reporting to David Lepley – Asda’s new Chief Supply Chain Officer.

David states: “We know the key to delivering legendary service and great value is ensuring customers can get the products they want each and every time they shop at Asda. 

“Gavin’s knowledge of the business and considerable experience in logistics and supply chain functions will ensure we can continue meeting the needs of hardworking families.”

Supply chain finance scheme

Asda widened its Supply Chain Finance programme at the start of this year with the launch of its new sustainability-linked feature with the support of HSBC.

Asda’s existing Supply Chain Finance Programme with HSBC UK has been in place for 10 years.

The British supermarket will offer more than 250 of its suppliers financial incentives to encourage greater sustainability in its supply chain with this enhancement.

The suppliers will have the opportunity to access three tiers of enhanced rates of funding. This funding will be dependent on setting sustainable targets, disclosing ESG performance data and taking action. 

The scheme will judge performance by EcoVadis, the sustainability data platform. Suppliers will share their sustainability data and be judged against their ESG KPIs, decarbonisation efforts and ESG initiatives.

Michael Gleeson, Chief Financial Officer at Asda, explains: “As we continue to drive progress towards our own decarbonisation and ESG targets, supporting and engaging with suppliers forms a crucial step in this journey.

Working with HSBC, we’re not only encouraging greater transparency over sustainability data in our supply chain, but we are able to use competitive financing to incentivise a significant number of suppliers to become more sustainable.”

Asda continues to ensure its largest suppliers share sustainability data through the EcoVadis assessment platform to help improve accountability. These suppliers are responsible for around 80% of product carbon emissions. This ensures suppliers help reduce emissions and aligns with Asda’s goal of reaching net-zero operations by 2040.

This scheme continues to demonstrate Asda’s passion to effectively integrate sustainability across its supply chain. 

Asda’s commitment to supporting its supply chain will allow the British supermarket to build consumer trust, strengthen its brand reputation and enhance supplier relationships.

By focusing on ethical sourcing and sustainability, it improves operational resilience, mitigates supply chain risks and aligns with changing investor and regulatory expectations. 

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