How Coles is shifting the dial on sustainability from farm to fork
Supermarket retailer Coles is shifting the dial on sustainability, not just within its own business but by working with farmers to develop more profitable and environmentally friendly food production.
Water is also the focus of a Coles Nurture Fund grant to family-owned farm Emu Hill Pastoral in Western Australia. It's just one part of the new Coles sustainability strategy.
With more than 1,800 stores, millions of customers and engagement with more than 8,000 suppliers, Coles is seizing opportunities to improve environmental outcomes from farm to fork.
As General Manager Sustainability at Coles Group, Brooke Donnelly leads teams to drive circular economy activities, climate, energy and nature initiatives, and sustainability reporting.
“It’s not just about what Coles needs to do, it’s about how we can be part of something that helps other people also step forward at the same time,” she said.
“The thing with sustainability, is that if you leave anyone behind, nobody wins.” General Manager Sustainability at Coles Group, Brooke Donnelly.
The retailer’s sustainability strategy is focused on four key pillars: Energy and Emissions; Waste; Packaging; and Sourcing and Farming.
“Part of having a resilient business is about driving towards the best environmental outcomes that we can achieve,” Brooke said.
“The thing with sustainability, is that if you leave anyone behind, nobody wins.”
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“So that our potential negative impact across a range of areas is minimal, whether that be climate, nature, or in circularity. We want to ensure that we have a positive impact in the communities where we operate.”
Some of the initiatives are more visible in the supermarket. For example, customers might have noticed more recyclable packaging, as now more than 87 per cent of Coles own-brand packaging is recyclable, such as the paper bag packaging for grapes.
Other initiatives happen behind the scenes, such as diverting 86.7 per cent of solid waste from landfill, donating unsold edible food, and supporting innovation to reduce food waste.
Decarbonisation of its value chain and building climate resilience is a key part of the retailer’s sustainability strategy.
“It’s about how we support the transition for climate, in terms of renewable energies, while also understanding the physical risks and opportunities associated with climate impacts,” Brooke said.
Coles aims to source 100 per cent renewable electricity by the middle of this year and deliver net-zero operational Scope 1 and 2 greenhouse gas emissions by 2050.
There’s already been significant progress on those targets. Its 2024 Sustainability Report shows nearly half of Coles’ electricity is renewable, and there’s been a 34 per cent reduction in Scope 1 and 2 emissions since 2020, through energy efficiency, refrigeration upgrades, on-site solar and renewable energy contracts.
Working to improve profitability, productivity and sustainability
Coles is also working with suppliers, such as farmers, to build its capacity, set targets and reduce emissions.
Brooke believes this collaborative approach is essential for transitioning to low-carbon agrifood systems.
“We appreciate that Coles, individually, has a large impact, but it’s by working with our supply chain that we can have the greatest, most positive impact,” she said. “That’s why we are so actively engaged with our farmers and suppliers in the agriculture sector.”
An example is the Coles Beef Carbon Neutral program.
Coles Livestock Innovation and Sustainability manager Maria Crawford says it involves working with highly efficient cattle producers to tweak systems, to be more profitable, productive and reduce ghg emissions further.
“One of our producers is looking closely at the females within his herd and using new genomics technology to fast track the genetic potential,” she said.
The Gilletts with Maria Crawford from Coles.
“There are producers working on soil carbon projects and using different pastures species to maximise feed efficiency and cattle growth. We also use the methane reduction supplement Bovaer in some of our supplier feedlots.”
There’s also a focus on improving natural assets on farms by fencing off waterways, planting shelter belts and installing reticulated water systems to improve water quality.
Renee Lynch (pictured here with husband Byron and Campbell Nettleton and Steve Rennie from Coles) said the creation of a solar powered treatment plant to desalinate underground water will help their farm business to grow more quickly.
Long-term, multi-generational relationships with producers are at the heart of the Coles sustainability strategy for sourcing and farming.
Maria stresses that this also involves improving sustainability of the farm business itself.
“It’s important to maintain growth and productivity so they can deliver a product that meets requirements for eating quality, while also ensuring that their business is sustainable for the next generation,” she said.
Collaboration needed to leverage innovation for sustainability
The Coles Nurture Fund is also supporting sustainability and innovation. More than $36 million in financial assistance has been provided to more than 100 small businesses, including farmers.
Coles national livestock manager for red meat, Stephen Rennie said grants to allow the Gillett family in Anakie in Victoria to install a specialised roof over part of their feedlot is a good example of the dual benefits for production and the environment.
“It’s quite efficient in a wet, cold area from an animal production point of view,” he said. “Putting solar panels on that roof means the feedlot is about 80 per cent self-sufficient for power and capturing rainwater means the feedlot’s been able to reduce the amount of potable water it uses from other sources.”
Water is also the focus of a Coles Nurture Fund grant to family-owned farm Emu Hill Pastoral in Western Australia. Renee Lynch said the creation of a solar powered treatment plant to desalinate underground water will help their farm business to grow more quickly.
“One of the flow-on effects of the Coles Nurture Fund grant is that it creates new jobs in our community, while reducing our farms reliance on a communal water source”
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Agriculture is often described as being at the coal face of the climate crisis, facing the impact of extremes such as drought and flood, but also being an industry that can contribute to mitigation.
Brooke said collaboration and innovation are crucial in meeting the challenge.
The Coles grants allowed the Gillett family from Victoria (David Gillet) pictured here with Maria Crawford from Coles) to install a specialised roof over part of their feedlot, which is a good example of the dual benefits for production and the environment.
“If you’re trying to change the whole world, then everybody needs to have a role in that,” she said. “You have to support the creation of things that are going to make a systemic shift in order to move the dial for lots of people,” she said.
Brooke believes Coles is uniquely positioned to drive change. “There are so many leading farmers out there who are doing incredible work,” she said. “It’s about helping to share knowledge and build capability for everyone to understand what works and doesn’t work to minimise our environmental impact.
“It’s Coles’ ability to facilitate and enable these programs of activity and knowledge sharing that builds capability and leverages the innovation.”
Catch up on the other conversations about sustainability, climate resilience and the role of agritech in meeting those challenges from here.