It takes an eye-watering amount of electricity to power Woolworths Group’s 1,400 supermarkets, retail stores and distribution centres, which service more than 22 million customers across Australia and New Zealand each week.
At its peak, Woolworths Group in Australia accounts for 1% of Australia’s total electricity usage, and is also a large electricity user in New Zealand.
One of the most ambitious goals in Woolworths Group’s Sustainability Plan 2025 is to transition to 100% renewable electricity by 2025. Currently, 21.5% of the group’s electricity use in Australia and New Zealand is renewable.
“It’s a very big challenge given the scale of the group,” says Michael Shelley, general manager of green energy transition at Woolworths Group.
“The journey to this point has included a lot of strategic planning and work undertaken in prior years before we made those commitments – things like reducing our electricity consumption by around 20% through energy efficiency, establishing our energy management centre and focusing on broader sustainability. Investment to reduce our emissions predated our commitment and gave us the good foundation to then be confident to make those commitments as goals that we are committed to working towards.”
Transitioning to 100% renewable energy is one part of a wider plan to combat operational greenhouse gas emissions, of which electricity remains the biggest contributor.
Photo courtesy of Woolworths Group.
“Our motto through the transition has been ‘using our scale for good’,” Shelley says. “That’s not just about what we can do to make our transition, but to help industry, our suppliers and our customers to make their own transitions too. To do this we need our partners, both our internal stakeholders and external partners to help us through that journey.”
The group set its target of 100% renewable energy back in 2020, giving itself five years to make the change. It achieved 21.5% of the 100% target in April 2023; there’s more work to be done to convert the group’s electricity use to 100% by 2025.
Shelley says the transition strategy includes different staggered plans for each state. In New South Wales a power purchase agreement was signed this year and will take the group to to 100% renewable electricity in the state by 2025. A similar plan is in place for Western Australia, while Queensland and Victoria will use hybrid models, with a mix of energy retailer contracts and power from renewable energy projects, such as wind and solar farms.
Championing solar
By installing solar onto distribution centre rooftops, the group generates excess renewable electricity that can power nearby group stores, such as those in shopping centres, which cannot get access to their own rooftops. Peer-to-peer sharing allows the trading of this excess energy, reducing the amount required from solar and wind farms.
To date, 215 group sites have become solar powered, with the group’s total rooftop capacity exceeding 35MW. This is more than 100,000 panels – equivalent to the amount of energy needed to power 3,600 households.
Wind-powered energy
Wind power will play a part in the group’s renewable electricity transition. A 10-year agreement with Bango Wind Farm in Yass, secured in 2021, will harness enough renewable electricity to power 108 Woolworths supermarkets, providing about 30% of the group’s total electricity needs in New South Wales.
This initiative also generated more than 100 jobs, gives rent back to local landholders hosting wind turbines, and provides investment in renewable electricity infrastructure.
Other initiatives include power purchase agreements with renewable suppliers such as Iberdrola Australia, which in May 2022 signed a deal to supply 100% renewable electricity to service all the group’s energy needs in South Australia, which includes 70 Woolworths supermarkets, 17 Big W stores and the Adelaide regional distribution centre.
South Australia accounts for roughly 5% of Woolworths Group’s energy usage. Thanks to a combination of solar, wind and batteries, South Australia has become the group’s first state where every site is powered by renewable electricity. Iderbola’s Port Augusta Renewable Energy Park hosts 50 wind turbines and 250,000 solar panels working in tandem to supply 24/7 clean electricity to every Woolworths Group site across the state.
Greener building design
Better building design will also play a part in the overall plan to transition to renewables and reduction emissions. This is measured by Green Star design standards – an internationally recognised sustainability rating and certification system for design and construction.
Photo courtesy of Woolworths Group.
For all new property developments, Woolworths Group is committed to a four-star Green Star rating. By 2025, the aim is a five-star Green Star minimum standard for all new builds. Current five-star sites include the new Heathwood distribution centre in Queensland, and the Waiata Shores Countdown supermarket in New Zealand.
A four-star building is either net zero carbon in operations or a higher performer in energy, water, and health-related issues. A five-star building is a high environmental performer and addresses social issues relevant to the building owner.
Emissions reduction beyond electricity
Like many businesses, Woolworths Group categorises greenhouse gas emissions as set out by the global Greenhouse Gas Protocol. In addition to the 100% renewable electricity target, the group has also set goals around reducing total greenhouse gas emissions.
Scope 1 and 2 emissions are sources directly within the group’s control. For example, scope 1 includes fuel for home delivery trucks, and scope 2 includes electricity used across the group’s operations.
Among the goals set out in Woolworths Group’s Sustainability Plan 2025, the group is aiming to reduce scope 1 and 2 emission reductions by 63% (compared to a 2015 baseline) by 2030. In July 2022 it was tracking at a 31% reduction.
Scope 3 emissions relate to the group’s value chain (third parties that the group does not control, such as suppliers and agriculture). These are about 14 times greater than scope 1 and 2 emissions combined, and represent a vast challenge that the group is approaching through stakeholder engagement, education and measurement. The group aims to reduce scope 3 emissions by 19% by 2030 compared to a 2015 baseline.
“This involves being in partnership with our suppliers, industry and government,” Shelley says. “Trying to identify short-term opportunities for reduction across that value chain and … looking at innovative solutions over the longer term.”
The group also recently announced plans to transition the Woolworths home delivery fleet to 100% electricity-powered by 2030. Sydney has been the first city to convert to EVs, with 27 new vehicles set to begin delivery this month (June) - with a target to have the entire 1,200 fleet converted by 2030.
The path forward
Shelley attributes the group’s sustainability progress and success to not just one thing but an alignment of goals across the business, having passionate people within the business and working better together through the group’s partners.
“We’re using our scale for good in our own transition, and trying to use the lessons we’ve learned to help our suppliers and customers as well in that journey,” he says.
“There’s a lot of work to be done. We’re not there yet but confident that we will reach our targets.”
Find out more about Woolworths Group’s sustainability journey here.
