How Lidl is targeting Scope 3 in Push for Net Zero by 2050

Lidl, one of Europe’s largest food retailers, has committed to achieving net-zero emissions by 2050.

The retailer has set ambitious climate goals covering its global operations and supply chain. As part of this, the company is targeting Scope 3 emissions, which account for the vast majority of its overall climate footprint, to help meet broader sustainability goals.

Lidl also aims to cut its Scope 1 and 2 emissions by 70% by 2030, based on a 2019 baseline. So far, the company has already reduced these emissions by 52%.

In Great Britain, Lidl sources 100% of its electricity from renewable energy and is implementing various sustainability projects, but the discount supermarket's long-term strategy doesn’t stop at direct emissions.

Tackling Scope 3 emissions: Agriculture, forestry and supply chain

Scope 3 emissions cover everything from the value chain to products sold in stores.

These emissions are indirect, generated from the production and processing of goods sold by Lidl, including meat and dairy products, which contribute heavily to the company’s carbon footprint.

Lidl’s target is to reduce emissions from agriculture, forestry and land use by 42.4% in the next 10 years, while emissions from energy and industry sectors are set to be reduced by 35% within the same timeframe.

The company is working closely with suppliers to achieve these targets. Partnerships with platforms like Manufacture 2030 and Mondra are helping Lidl gather accurate Scope 3 data and focus on reducing emissions across its supply chain.

Ryan McDonnell, CEO of Lidl GB, emphasises the company’s commitment, stating: "Tackling climate change is a huge priority for us at Lidl; our commitment to achieving net zero through our new quantified targets demonstrates the scale of our ambition."

By joining the Science Based Targets initiative, Lidl has ensured its climate strategy is aligned with the Paris Climate Agreement’s goals.

It’s a clear signal that Lidl is serious about making its business operations more sustainable and ethical.

Expanding plant-based offerings and reducing palm oil usage

In addition to its climate targets, Lidl is also focusing on offering more sustainable food options to customers.

The company has expanded its plant-based range, tripling the number of vegan products available in its stores. This move responds to rising consumer demand for alternatives to meat and dairy, with Lidl reporting a 300% increase in sales of plant-based products over the last three years.

Lidl’s plant-based range now includes more than 100 products, with prices starting from 99p. Key items include:

• Vemondo Plant-Based Beef Style Burgers (£1.99)
• Vemondo Plant-Based Mince (£1.99)
• Vemondo Plant-Based Chicken Style Pieces (£1.99)
• Vemondo Plant-Based Mature Cheddar Style Block (£2.29)

Richard Tyler, Senior Buying Director at Lidl GB, highlights that affordability is a core element of the company’s strategy: "At Lidl, we believe everyone should have access to healthy and sustainable food options, regardless of their budget."

Alongside its focus on plant-based foods, Lidl has pledged that all its own-brand products will either be free from palm oil or contain only sustainably-sourced palm oil by the end of 2024.

This initiative ties into Lidl’s wider sustainability agenda, which aims to offer more environmentally-friendly products without compromising on quality.

The importance of Scope 3 emissions and protein transition

Lidl’s push to reduce Scope 3 emissions is significant because these emissions make up the vast majority of the company’s carbon footprint.

Experts such as Florian Wall from the think tank, Madre Brava, have praised Lidl for its efforts but stress the need for faster action.

"Independent of a 70 or 80% reduction target, we should not lose sight of the bigger picture here: a whopping 99.65% of Lidl’s emissions are Scope 3, of which at least half come from the production of meat and dairy," Florian points out.

He also highlights the need for Lidl to accelerate its transition to plant-based proteins. The retailer is aiming to double the share of plant-based meat and dairy sales by 2030, but critics argue that more needs to be done.

In some European countries, Lidl has already begun positioning plant-based products alongside meat and dairy items and, in certain markets, it has even lowered prices on plant-based alternatives.

For example, in Germany, Denmark and the Netherlands, Lidl has reduced the price of its plant-based items by 23%, leading to a 30% increase in demand.

Florian suggests Lidl could play a more proactive role in mainstreaming plant-based eating: "Lidl must focus on the mainstream: the flexitarians, generally open to reducing their meat consumption but needing support."

Despite the challenges, Lidl remains a leader in sustainability across the retail sector. While some experts call for faster action, Lidl has managed to stay ahead of competitors like Rewe Group, which has struggled to implement clear protein diversification plans.

But Florian warns: "A target without a plan is not really a target. We would urge them to publish protein diversification plans and targets."

With fellow retailers including Edeka and Aldi preparing to release their Scope 3 targets, the race towards more sustainable business practices is heating up.

The focus on Scope 3 emissions and reducing reliance on meat and dairy will be key to success for the entire sector.

As Florian puts it: "Scope 3 represents a huge part of supermarkets’ overall emissions and meat and dairy products represent a big part of Scope 3, so frankly, no supermarket will reach their overall emissions reduction targets without protein diversification targets."

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