Coles: Driving Sustainability, Energy & Supply Chain Action
As one of Australia’s leading retailer, Coles Group has more than 1,800 retail outlets nationally - which each have a considerable environmental and social impact.
The company has released its 2025 Sustainability Report, which outlines a clear commitment to embedding sustainability into every aspect of operations, from reducing environmental impact to fostering social value.
Energy responsibility
In early 2025, Coles opened its supermarket and Liquorland in Victoria, Australia, designed with sustainability at the heart.
The store features onsite rainwater harvesting tanks, two EV charging stations, energy efficient lighting, 100% electrified heating and cooling and refrigeration using natural refrigerants, alongside the 104 supermarkets that now use natural refrigerants.
The store also has the largest solar panel system delivered to a Coles store before
The 305 kW solar system is expected to generate 407 MWh of electricity each year for the store, which would meet approximately 31% of the store’s electricity annual needs.
The company’s collaboration with the Origin Zero Alliance aims to generate 9,821MWh of renewable energy annually along with 43% of suppliers setting Scope 1 and 2 science-based emissions reduction targets.
In FY21, Coles set the target of reducing combined Scope 1 and 2 emissions by more than 75%, to date that has been achieved.
Also in 2021, Coles set the target of sourcing 100% renewable electricity by the end of FY25, this has been achieved and the company is “committed to maintaining 100%” as part of its FY26-FY30 sustainability strategy.
“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,” says Peter Allen, Chairman, Coles Group Limited and Leah Weckert Managing Director and Chief Executive Officer, Coles Group Limited, in the report.
“This year we met our target to source 100% renewable electricity for our operations.
“We also achieved a 71.4% reduction in combined Scope 1 and 2 GHG emissions (from FY24).”
Environmental stewardship
When it comes to nature, Coles is supporting the development of the world’s largest seagrass restoration nursery through its partnership with the Great Barrier Reef Foundation (GBRF).
To date, Coles is currently three years into its 10 year AU$10m (US$6.5m) partnership with GBRF, aiming to protect and restore seagrass meadows, restore coastal wetlands and encourage engagement.
The company continues to offer the broadest range of RSPCA approved products of any national retailers to date with 316 products.
“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,” say Peter and Leah in the report.
More than AU$2.5m (US$1.6m) has been invested via the Coles Sustainable Dairy Development Group towards supporting sustainable dairy farming projects.
The company states that “deforestation contributes to climate change and biodiversity loss and is a driver of embedded emissions within our supply chain.
“In FY25, Coles set a SBTi-validated FLAG (Forest, Land and Agriculture) sector emissions reductions target which also includes a no-deforestation commitment.”
The company aimed and accomplished the goal of all Coles Own Brand timber, pulp and paper products source material from forest plantations independently certified to the Programme for the Endorsement of Forest Certification (PEFC) or Forest Stewardship Council (FSC) certification schemes, or from post-consumer recycled fibre.
When it comes to palm oil, Coles has commenced a collaborative project with the Rainforest Alliance to map its palm oil supply chain within Coles Own Brand.
This initiative will support a deforestation risk assessment at plantation, mill and supply chain levels.
The company is also progressing the conversion of Coles Own Brand non-food products to support the production of sustainable palm oil through certification by the Roundtable on Sustainable Palm Oil (RSPO).
Currently, 95% of these products have achieved RSPO certification and to address the remaining percentage, Coles continues to purchase RSPO ‘book and claim’ credits, which provide support to smallholder palm oil farmers.
Coles sustainability and circularity
Since 2021, Coles has removed more than 600 million pieces of conventional plastic from its Own Brand packaging as part of its commitment to reduce environmental impact.
In 2024, 88% of the company’s total solid waste was diverted from landfill, reflecting ongoing progress in waste reduction.
A priority focus is ensuring unsold but edible food is donated, with 19,655 tonnes provided to SecondBite and Foodbank, supporting more than 39.1 million meals for people in need.
“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 in the report.
“Reducing food waste continues to be a priority, not only because of its impact on the environment, but also because food insecurity continues to be something many Australians experience.”
Beyond food relief, 18,960 tonnes of surplus food was donated to farmers, animal sanctuaries and zoos to support feed stock for animals.
Coles also partnered with Goodman Fielder to repurpose 5,796 tonnes of surplus bread into stock feed and pet food.
In addition, 29,205 tonnes of inedible food was processed into nutrient-rich compost.
Together, these initiatives reduce waste, contribute to decarbonisation efforts and strengthen community support across Australia.
Cole’s supply chain strategies
Coles outlines its approach to supply chain sustainability, emphasising responsible sourcing and transparency.
The company highlights the importance of working closely with suppliers to uphold ethical, environmental and social standards across all tiers of the value chain.
The report details efforts to map high-risk commodities, strengthen due diligence processes and ensure suppliers meet expectations on issues such as human rights, labour practices and environmental management.
Coles is currently introducing its first electric prime mover truck in partnership with Linfox, it is predicted to save more than 65 tonnes of CO₂e annually, it will also be able to travel up to 300km on a single charge and save more than 25,000 litres of fuel every year.
Partnerships with certification bodies and industry initiatives are used to drive improvements, while ongoing audits and assessments help monitor compliance.
This commitment reflects Coles’ broader goal of building a resilient, ethical and sustainable supply chain that supports both long-term business value and positive social impact.
