Kingfisher sets net-zero target for 2040
Kingfisher, which owns brands such as Screwfix and B&Q, has announced new targets reach net-zero emissions by 2040 alongside an ambition to ensure that 60% of home product sales are classed as sustainable by 2025.
The company announced the new goals as part of its annual reporting against existing sustainability and sales targets.
The new net-zero ambition is set for 2040 and is supported by a pre-existing science-based target of reducing operational emissions by 37.8% by 2025.
Kingfisher has already reduced emissions by 24.5% through measures such as switching to 100% renewable electricity, rolling out alternative fuels for delivery fleets and investing in energy efficiency measures.
Kingfisher’s chief executive Thierry Garnier said: “We are committed to helping tackle climate change by setting targets both in the short and in the long term. Helping our customers to live in more sustainable homes is another of our key priorities. We think everyone deserves a greener, healthier home – that’s comfortable to live in but uses fewer resources and costs less to run. With rising energy prices, home energy efficiency has never been more important.
“There is more to do, but we have made good progress since last year, not only with our progress on carbon reduction but also with our work to become a more inclusive company, and our commitment to help people living in unfit housing.”
Also announced is a new target for 60% of its total sales to come from Sustainable Home Products, which include water-efficient taps and chemical-free gardening products. This target includes 70% for its Own Exclusive Brands.
To date, Kingfisher has delivered 44% of total group sales – equivalent to around £5.8bn) from sustainable products, more than double of what was achieved when the programme was set up in 2011.
The net-zero commitment builds on Kingfisher’s existing science-based targets, verified in line with the Paris Agreement’s 1.5C trajectory. It is aiming to cut Scope 1 (direct) and 2 (power-related) emissions by 38%% by 2025 and to reduce Scope 3 (indirect) emissions by 40% per £million turnover within the same timeframe.
Last year, the company confirmed that it had signed for a £550m revolving credit facility agreement (RCF) with interest rates linked to environmental and community targets.
Under the loan agreement, Kingfisher will benefit from lower interest rates if it achieves KPIs aligned with its Responsible Business Plan, covering climate change, forestry and housing. The firm has been targeting a ‘net positive’ impact for people and the planet since 2015 and the updated Responsible Business Plan translates this long-term target into short and mid-term milestones.
On forestry, Kingfisher made headlines in 2020 with a commitment to create more forests than it uses by 2025. It is working with Rainforest Alliance to deliver this goal. The loan will be linked to this ambition, plus a commitment to achieve 100% sustainably sourced wood and paper in products within the same timeframe.