How Kingfisher is Cutting Carbon in its Supply Chains
Kingfisher, owner of B&Q, Screwfix and TradePoint, is pushing ahead with its climate plan—hitting emission targets and tightening the links between investment, operations and sustainability.
Where many companies are still deciding how to measure carbon, Kingfisher is already showing what happens when you build climate into your business model.
It has cut Scope 1 and 2 emissions, which cover direct emissions from owned operations and purchased electricity, by 66% since 2016. That’s nearly double its 2026 target of 37.8% and it’s now shifting focus to the harder challenge: supply chain emissions.
The supply chain challenge
Scope 3 emissions are all the indirect emissions in a company’s value chain. That includes everything from the extraction of raw materials to the energy used by customers when they plug in a product at home. For a retailer like Kingfisher, these emissions dwarf the others.
The company reports a 38.7% drop in Scope 3 emissions intensity, measured per unit of economic activity, since the 2017/18 financial year. It says it's on course to hit its 40% intensity reduction goal by 2025/26.
To get there, Kingfisher is reshaping how it works with suppliers. That means placing clearer expectations on emissions reporting, sourcing and design.
In practice, this includes pushing for certified or recycled wood and paper across product lines and promoting energy-saving items in stores.
Thierry Garnier, Chief Executive Officer of Kingfisher, makes clear this isn’t a side project: “Customers are at the heart of what we do.
“We’re committed to making it easier for them to make more environmentally conscious choices through our Sustainable Homes Products (SHP) programme.”
The SHP initiative has been one of the most visible areas of progress.
In the last financial year, 53% of group sales came from these environmentally-focussed products. For the company’s own exclusive brands, which include ranges in B&Q and Castorama, that figure was 63%.
Around 10% of all sales came from products designed to reduce energy or water use—something that’s becoming more appealing to customers facing high utility bills. Castorama stores in France and Poland now feature dedicated in-store zones to help customers find these items more easily.
Investment linked to sustainability performance
Kingfisher is also tying capital expenditure and finance to its climate plans. Out of a total US$400m gross capital spend last year, 44% went into renewable energy projects. This includes everything from solar panels on store roofs to energy-efficient systems in warehouses.
It also links its US$825m revolving credit facility directly to sustainability performance. These kinds of arrangements, often called sustainability-linked loans, give companies better financial terms if they meet specific environmental targets.
This approach reflects a broader shift inside the business. Kingfisher has set out its path to 2030: a 68% reduction in Scope 1 and 2 emissions and a 46% cut to Scope 3.
It plans to reach net zero for its operations by 2040, with supply chain emissions (Scope 3) following by 2050. These goals align with the Science Based Targets initiative’s (SBTi) net zero standard.
Importantly, this isn’t just about compliance. It’s about integrating climate into the business itself—from what gets stocked in a Screwfix outlet to how a TradePoint delivery is powered.
The winners of 2030 won’t be the ones with the best press release. They’ll be the ones already doing the work in 2025.
Volatility in the short term, resilience in the long run
Kingfisher’s climate record doesn’t make it immune to market fluctuations. Its share price dropped 14% on 25 March 2025 after profits fell 35%.
Year-on-year, the stock is down around 2%. But analysts still expect an upturn, with a 12-month average price target of 287.80p—about 18% higher than where it is now.
Sustainability, in this case, isn’t a quick fix for short-term numbers. Instead, it’s part of the foundation for long-term strength—particularly when it comes to regulation, resource costs and supply chain volatility.
As scrutiny of Scope 3 emissions intensifies, companies with credible supply chain decarbonisation plans will have a clearer path forward. That includes data collection, supplier engagement, material choices and product design.
Explore the latest edition of Supply Chain Digital Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Supply Chain Digital is a BizClik brand.
