2024
ADEO
Year
Sector
Distribution
ACT assessment methodology
Retail
Performance Score
ADEO has set itself ambitious emission reduction targets: -50% on scopes 1 and 2 by 2035, and -50% on scope 3 by the same date compared to 2021. However, the base year and the calculation methods (market- or location-based) are not clarified in the DPEF. The scope of the reported data is also a problem: the 2021 emissions include Leroy Merlin Russia, unlike those of 2024, without adjustment on a like-for-like basis. On transport, an intermediate target of -26% over 2023–2026 is set, but without clear reference data. While scope 1+2 is down sharply (-26%), scope 3 remains up, which weakens the overall trajectory.
The product strategy is based on the Home Index, a robust environmental and social assessment tool covering around 40,000 products. It integrates criteria such as the carbon impact of the input materials, energy efficiency or recyclability and makes it possible to generate an aggregated score for the products sold. 39% of products are rated A to C, with a target of 50% by 2025.
The supplier strategy is also based on the Home Index as well as a responsible purchasing charter, signed by 97% of suppliers. This policy aims to encourage more virtuous practices, particularly in transport and energy consumption. In addition, 96% of factories deemed to be high emitters are audited using the ICS methodology. However, no quantified environmental performance requirements are contractually imposed on suppliers.
Regarding customer engagement, ADEO deploys various awareness-raising and consulting tools, such as the display of Home Index scores in stores or on websites, and the energy performance simulator offered by Leroy Merlin France. These measures aim to support consumers in making more responsible choices. However, no quantified objective is communicated regarding the share of customers exposed to these tools or the real impact on purchasing behavior.
At the same time, ADEO is rolling out several initiatives to transform its business model: repair (WeCare platform, 42% repair rate), second life (1 million products repurposed in 2024), rental (240,000 uses), and refurbishment (still in its infancy). However, these actions lack quantified objectives, structured management and integration into a global commercial strategy.
Finally, the governance of the climate transition lacks clarity, without a disclosed steering body or a clear articulation between objectives, means and monitoring.
The product strategy is based on the Home Index, a robust environmental and social assessment tool covering around 40,000 products. It integrates criteria such as the carbon impact of the input materials, energy efficiency or recyclability and makes it possible to generate an aggregated score for the products sold. 39% of products are rated A to C, with a target of 50% by 2025.
The supplier strategy is also based on the Home Index as well as a responsible purchasing charter, signed by 97% of suppliers. This policy aims to encourage more virtuous practices, particularly in transport and energy consumption. In addition, 96% of factories deemed to be high emitters are audited using the ICS methodology. However, no quantified environmental performance requirements are contractually imposed on suppliers.
Regarding customer engagement, ADEO deploys various awareness-raising and consulting tools, such as the display of Home Index scores in stores or on websites, and the energy performance simulator offered by Leroy Merlin France. These measures aim to support consumers in making more responsible choices. However, no quantified objective is communicated regarding the share of customers exposed to these tools or the real impact on purchasing behavior.
At the same time, ADEO is rolling out several initiatives to transform its business model: repair (WeCare platform, 42% repair rate), second life (1 million products repurposed in 2024), rental (240,000 uses), and refurbishment (still in its infancy). However, these actions lack quantified objectives, structured management and integration into a global commercial strategy.
Finally, the governance of the climate transition lacks clarity, without a disclosed steering body or a clear articulation between objectives, means and monitoring.
Narrative Score
Business Models & Strategy: ADEO operates in a largely linear economic model but implements actions to steer product selection towards a reduction in emissions, and deploys new business models focused on the circular economy.
Consistency and Credibility: No incompatibility between the segments developed by ADEO and its strategy. Several aspects call into question the coherence and credibility of ADEO. ADEO announces that Leroy Merlin Russia has left its perimeter, but serious sources indicate that there is a financial package that allows the company to keep control of this part. Moreover, it is difficult to attribute credibility to ADEO's climate objectives when, in several publications, it does not set a reference year. The SBTi commitment of Leroy Merlin Brazil has been removed.
Data quality: Several important aspects call into question the quality of the data reported by Adeo. First, the company does not report its different emission categories separately. In addition, the removal of LM Russia from the scope of emissions but not from the scope of unofficial control reduces the credibility of the commitment. This is a significant part of the emissions in 2023. Following the exclusion of LM Russia, no recalculation has been made on 2021 emissions, which seems to be the reference year.
Reputation: The Russian controversy highlights a strong lack of transparency on the part of ADEO. The official exit from the scope of LM Russia corresponds to the abandonment of the company's management of the climate issue, while retaining a form of economic control over it.
Risks: ADEO's transition plan is largely based on the decarbonization of its suppliers, which would be stimulated by its Home Index. There is a risk that this indicator will be insufficiently managed and that supplier emissions will stagnate due to insufficient demand for low-carbon products that often cost more. In addition, the business model actions that ADEO is putting in place are not objectively defined, so there is no structured transition plan independent of suppliers.
Consistency and Credibility: No incompatibility between the segments developed by ADEO and its strategy. Several aspects call into question the coherence and credibility of ADEO. ADEO announces that Leroy Merlin Russia has left its perimeter, but serious sources indicate that there is a financial package that allows the company to keep control of this part. Moreover, it is difficult to attribute credibility to ADEO's climate objectives when, in several publications, it does not set a reference year. The SBTi commitment of Leroy Merlin Brazil has been removed.
Data quality: Several important aspects call into question the quality of the data reported by Adeo. First, the company does not report its different emission categories separately. In addition, the removal of LM Russia from the scope of emissions but not from the scope of unofficial control reduces the credibility of the commitment. This is a significant part of the emissions in 2023. Following the exclusion of LM Russia, no recalculation has been made on 2021 emissions, which seems to be the reference year.
Reputation: The Russian controversy highlights a strong lack of transparency on the part of ADEO. The official exit from the scope of LM Russia corresponds to the abandonment of the company's management of the climate issue, while retaining a form of economic control over it.
Risks: ADEO's transition plan is largely based on the decarbonization of its suppliers, which would be stimulated by its Home Index. There is a risk that this indicator will be insufficiently managed and that supplier emissions will stagnate due to insufficient demand for low-carbon products that often cost more. In addition, the business model actions that ADEO is putting in place are not objectively defined, so there is no structured transition plan independent of suppliers.
Trend score
ADEO has set itself ambitious goals and has launched well-constructed management tools. The Home Index, recently launched, should make it possible to manage the group's emissions. In addition, ADEO is rolling out serious initiatives to transform its business model. A positive trend rating has therefore been chosen.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
57
Disclosure score (/100)
100
ℹ️
Narrative Score (A > E)
D
Trend Score (- = +)
+
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 87%
Material Investment Score : 43%
Intangible Investment Score : N/A%
Sold Product Performance Score : 60%
Management Score : 53%
Supplier Engagement Score : 64%
Client Engagement Score : 56%
Policy Engagement Score : 22%
Business Model Score : 25%
Indicator weight by module