How Asda is Strengthening Sustainability in its Supply Chain

Supermarkets play a critical role in reducing environmental impact by embedding sustainability into their supply chains. 

A well-integrated approach helps improve resilience, strengthen consumer trust and manage long-term costs.

British supermarket Asda continues to demonstrate its commitment to sustainability by focusing on ethical sourcing, supply chain transparency and environmental responsibility. 

Responsible sourcing and labour standards

Asda maps and tracks its supply chain using Sedex, a responsible sourcing management platform. 

This approach allows it to identify and mitigate potential labour risks. 

Through a risk-based framework, Asda:

• Educates colleagues on human rights and their role in upholding ethical labour practices
• Monitors and investigates supply chain concerns
• Identifies root causes of issues and implements solutions
• Works with Open Supply Hub to provide public access to an interactive map of its supply chain

As part of its ethical commitment, Asda collaborates with the Ethical Trading Initiative, Stronger Together and the Food Network for Ethical Trade. 

These partnerships help the retailer share best practices and address potential risks across global supply chains.

Asda requires all suppliers to comply with its ‘Standards for Suppliers’ guide, ensuring they follow local employment laws and work towards improving labour standards. 

It assesses supplier compliance through third-party audits that evaluate social, safety and environmental performance.

If non-compliance is identified, Asda takes action by:

• Collaborating with suppliers and third parties to offer guidance and resources
• Investigating and addressing concerns for affected workers
• Requiring suppliers to rectify non-compliances highlighted in audits
• Encouraging suppliers to adopt responsible practices throughout their supply chains

A new lead in Asda’s sustainable supply chain

Asda has appointed Gavin Chappell as Vice President of Food and General Merchandise (GM) Supply, effective from April 2025. 

With extensive experience in supply chain operations, including previous roles at Dunelm, Holland & Barrett and Boots, Gavin will oversee Asda’s food and GM supply teams.

Having previously worked at Asda for more than five years as Vice President of eCommerce and Supply Chain, he brings an understanding of the company’s operations. 

He will report to David Lepley, Asda’s Chief Supply Chain Officer.

“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,” David says.

“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.”

Sustainability-linked supply chain finance

Asda has expanded its Supply Chain Finance Programme, introducing a sustainability-linked feature with support from HSBC. 

This initiative builds on the company’s decade-long partnership with HSBC UK and offers more than 250 suppliers financial incentives to integrate sustainability into their operations.

The scheme provides suppliers with access to three tiers of funding rates based on their commitment to sustainable targets. 

These include disclosing environmental, social and governance (ESG) data and taking measurable sustainability actions.

Supplier performance is assessed through EcoVadis, a sustainability data platform that evaluates companies on ESG key performance indicators, carbon reduction efforts and broader sustainability initiatives.

Michael Gleeson, Asda’s Chief Financial Officer, 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’s largest suppliers, responsible for approximately 80% of its product carbon emissions, are required to share sustainability data via the EcoVadis platform. 

This initiative supports Asda’s commitment to reaching net zero operations by 2040.

Through its sustainability-focused finance programme, Asda continues to integrate responsible practices into its supply chain, reinforcing its environmental commitments and ensuring long-term supply chain resilience.

Asda’s four ESG priorities

As part of its ESG strategy, Asda has identified four key areas:

• Healthy and sustainable choices – ensuring products are responsibly sourced and contribute to consumer well-being
• Net zero carbon by 2040 – reducing emissions across its operations and supply chain
• Nature and supply chain resilience – fostering sustainability in sourcing practices
• Zero waste – minimising waste throughout its operations and supply chains

By prioritising ethical sourcing and sustainability, Asda enhances supplier relationships, builds consumer trust and strengthens its brand reputation.

Its efforts help mitigate supply chain risks, ensure long-term operational resilience and align with evolving investor and regulatory expectations.

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