ASDA Leads on Scope 3 with Bio-LNG Fleet

ASDA is taking bold steps to cut its carbon emissions, focusing heavily on sustainability in its supply chain and transport operations.

By investing in Bio-LNG (liquified biomethane) and collaborating with Gasrec, ASDA is solidifying its position as a leader in sustainable logistics.

With the aim of achieving net-zero operations by 2040, this initiative forms a key part of the supermarket giant’s strategy to reduce its environmental footprint and tackle supply chain emissions.

Leading the transition to bio-LNG

Bio-LNG, a renewable biofuel made by processing organic waste, is at the centre of ASDA’s sustainability strategy.

While Bio-LNG has been around for more than a decade, its use is still growing as the technology behind it develops. This fuel is created through anaerobic digestion, where organic waste is broken down, generating biogas.

The methane in this gas is separated, purified and liquefied to create Bio-LNG, which has 600 times the energy density of its gaseous form, making it ideal for heavy-duty transport.

By partnering with Gasrec, ASDA has opened two new Bio-LNG refuelling stations, bringing the total number of such stations in the UK to 13.

This infrastructure supports the UK’s largest fleet of Bio-LNG-fuelled trucks, with more than 780 vehicles moving away from diesel and onto a cleaner fuel alternative.

John Rogerson, Central Fleet Operations Manager at ASDA, says: “LNG trucks are currently the leading alternative fuel option for operators like ourselves and with more than 780 LNG vehicles, we operate the largest fleet of LNG-fuelled trucks in the UK.

"Our continued investment in a UK-wide LNG distribution network forms an essential part of our objective to reduce overall carbon emissions across our operations and towards building a sustainable business for the future.”

Impact on Scope 3 emissions and the supply chain

While the focus is often on companies reducing emissions from their direct operations, known as Scope 1 and 2 emissions, ASDA’s Bio-LNG investment is also crucial for lowering Scope 3 emissions.

This includes Category 4 emissions, which are generated during upstream transportation - essentially the movement of goods to ASDA in vehicles not owned or directly operated by the company.

By using Bio-LNG-powered trucks, ASDA is reducing the carbon footprint associated with transporting goods.

Bio-LNG emits far less carbon dioxide compared to traditional diesel, while also lowering nitrogen oxide and particulate matter emissions, making it not only a greener option but one that improves air quality along transportation routes.

Another bonus is that Bio-LNG vehicles create less engine noise, potentially reducing noise pollution, particularly in urban areas.

These moves are in line with ASDA’s broader sustainability targets, which include a 50% reduction in operational carbon emissions by 2025.

Since 2015, the company has already achieved a 41% reduction in these emissions. 

Supply chain finance and broader sustainability goals

ASDA’s sustainability efforts don’t stop at its fleet. In a bid to enhance the eco-friendliness of its entire supply chain, ASDA is launching a new sustainability-linked Supply Chain Finance scheme, in partnership with HSBC UK.

Set to begin in January 2025, the programme will incentivise suppliers to adopt greener practices, rewarding those who reduce their environmental impact.

This is a major step forward in improving sustainability across the board and shows that ASDA’s commitment goes beyond just its own operations, extending into every link of the supply chain.

James Westcott, Chief Commercial Officer at Gasrec, commends ASDA’s leadership: “As one of the UK’s largest retailers, ASDA understands the urgency in the need to cut emissions from its fleet as we all work towards a more sustainable transport sector.

"Bio-LNG remains a leading alternative to diesel for long-haul operations and will continue to be so for the foreseeable future.”

In addition to reducing its emissions, ASDA’s investment in Bio-LNG serves as an example for other retailers and transport operators.

As one of the UK's largest fleets of trucks moves towards greener fuel, the ripple effect of such a major player embracing sustainability is expected to encourage others to follow suit, potentially transforming the transport sector.

The shift towards sustainable practices in logistics also reflects a broader trend in the energy sector. Global energy giants like Shell, TotalEnergies and Titan LNG are expanding their bio-LNG projects, further solidifying the fuel’s place in the future of transport.

In the UK, companies like Flogas Britain are also stepping up, having introduced Bio-LNG-powered vehicles to their operations.

ASDA’s Bio-LNG initiative demonstrates that sustainability in the supply chain is not just about meeting corporate targets.

It's about creating long-term solutions that positively impact the environment, drive innovation and influence industries beyond the supermarket’s own walls. 

As James puts it, “Bio-LNG is a real alternative to diesel and is crucial in helping us create a cleaner, greener future for transport in the UK.”

Receive the next edition of Scope 3 Magazine by signing up for its newsletter. 

As part of this portfolio, make sure you check out Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE.

Also check out our sister brand, Sustainability Magazine and sign up to its global conference series - Sustainability LIVE.

Scope 3 Magazine is a BizClik brand.