BrewDog and Asda revisit climate pledges

UK supermarket chain Asda is reviewing its 2040 net zero target – which was just recently approved by the SBTi – in light of business growth, while BrewDog is stepping away from carbon offsetting and relinquishing its ‘carbon-negative- status.

The number of companies pledging to dramatically reduce their own and their supply chains’ emissions is rising at a record pace as regulations and the urgency of climate change force the corporate world to take action. But another trend has emerged in recent months: firms either dropping their commitments to seek SBTi approval for their targets, extending the timeframe to meet them, or reshuffling their strategy entirely.

BrewDog drops ‘unsustainable’ carbon credits

Scottish beer company BrewDog released an interim sustainability report this week, where it included a discreet but significant announcement: “We have decided to step away from buying carbon credits and double down on our emissions reduction strategy and investment in the Lost Forest [a tree planting initiative in the Scottish Highlands].”

After being ‘carbon-negative’, ie. buying enough offsets to cover more than its own carbon footprint, since 2020, the brewer argues that the voluntary carbon market has become “unsustainable”, with a flood of cheap but low-quality credits and a shortage of high-integrity schemes that has taken the cost of quality carbon credits “through the roof”.

Read also: Carbon market value down 61% as firms become wary of offsets

“In fact, the cost is now so astronomical that the only way for BrewDog to sustain a carbon negative claim is at the expense of our own sustainability initiatives. That would be crazy,” the firm adds.

As a result, BrewDog is following the example set by others – such as Interface and Telstra – and redirecting the investment set aside for carbon credits towards decarbonisation initiatives.

Asda to submit new net zero target to SBTi

Earlier this month, Asda, the UK’s third supermarket brand by market share, announced (equally discreetly) in its 2023 sustainability report that its 2040 net zero target “no longer accurately reflect[s] the size and shape of [its] carbon footprint”, since its accelerating venture into the convenience store segment has changed its business profile.

The group has nearly 500 convenience stores today, compared to just three at the start of 2023. As such, Asda is working to resubmit a net zero target to the Science-Based Targets Initiative (SBTi) for the entire group at a later date.

“We intend to resubmit new targets for validation once we have completed the integration of data from the acquisition of new sites that now form part of our Asda Express convenience format,” the report says, noting that the company will continue to work towards its interim 2030 targets, which do not include Asda Express emissions.

On the SBTi website, the Asda Group appears to have had its ‘commitment removed’ after failing to submit targets as part of the Business Ambition for 1.5ºC campaign, which ran from 2022 to 2024.