2024
Auchan
Year
Sector
Distribution
ACT assessment methodology
Retail
Performance Score
Auchan has set ambitious decarbonization targets for its significant emissions over the medium term (by 2030, validated by SBTi). Actions are listed on all scopes, but the company has not established a formal transition plan to achieve these objectives. The actions cited are sometimes accompanied by a deadline, but the majority of the actions are neither qualified nor quantified. Faced with the scale of the reduction to be achieved for scope 3, the planned actions still seem to be not robust. Some actions aim to reposition the company (incentives to buy low-carbon products and decarbonization of suppliers), but as the ambition of these actions is not defined, the company seems to take into account only marginally the transition to a low-carbon model.
Despite ambitious targets for 2030, Auchan has not established a formal action plan to reduce its emissions. While some of its emission items are falling in line with the objectives to be achieved (2030 target on scope 1&2 completed at 60% in 2024, and 65% on the use of products sold), others are exploding and are taking the company far from the announced objectives (2030 target on purchased goods and services not completed by -230% with a 60% increase in emissions from this item between 2019 and 2024). As the company's transition plan is non-existent, and emissions from one of the most significant items have increased by 60% between 2019 and 2024 (Goods and services purchased, 80% of GHG emissions in 2024), the ambitious emission reduction targets in 2030 seem hardly credible.
Despite ambitious targets for 2030, Auchan has not established a formal action plan to reduce its emissions. While some of its emission items are falling in line with the objectives to be achieved (2030 target on scope 1&2 completed at 60% in 2024, and 65% on the use of products sold), others are exploding and are taking the company far from the announced objectives (2030 target on purchased goods and services not completed by -230% with a 60% increase in emissions from this item between 2019 and 2024). As the company's transition plan is non-existent, and emissions from one of the most significant items have increased by 60% between 2019 and 2024 (Goods and services purchased, 80% of GHG emissions in 2024), the ambitious emission reduction targets in 2030 seem hardly credible.
Narrative Score
Business model and strategy: Despite ambitious emission reduction targets, Auchan does not provide enough details on the levers and actions to be put in place, which calls into question its ability to achieve them.
Consistency and credibility: Auchan has established its GHG balance sheet for the reference years 2019 (for scopes 1 and 2) and 2020 (for scope 3). The company repeated the exercise every year on scopes 1 and 2, and in 2021 and 2024 only for scope 3. It plans to recalculate its 2020 base year in 2025, which has not been done previously. Thus, the figures put forward for emissions in the 2024 report are not entirely comparable, as they require recalculation.
Data quality: Reported emissions data is consistent throughout the report. The scope of accounting is explicit, the calculation methods are transparent although not very detailed. Also, the emissions of the Purchased goods and services item, whose 60% increase between 2019 and 2024 - while most other emission items are decreasing - is not accompanied by an explanation, which suggests either a profound change in the business model (but which is not explained), or an error. It is not explained whether the GHG assessment has been validated by an independent third party, increasing the risk of methodological errors. In addition, the company is in the process of recalculating its 2020 reference year on a coherent scope: thus, the data currently explained in the reports are not really comparable.
Reputation: In 2022, the company was put on notice, alongside eight other agri-food and retail companies, by a group of NGOs, on the ubiquitous use of plastic and their failure to comply with the duty of vigilance. The company responded with a statement, where it reaffirms its commitment against plastic pollution, and redirects in particular to its Policy to Fight Plastic Pollution, where targets for reducing plastic packaging and means of action are reaffirmed, but where it is also written that "Plastics are strong, durable and versatile and can contribute to reducing carbon emissions", which discredits the company's publication.
Risks: The company is dependent on fossil fuels in a significant and indirect way, through all the emissions necessary for the production of agri-food products, their transport, and the sale of fuel to customers. Although the company lists actions to detach itself from it, the lack of a formal action plan does not suggest a complete transition of these energies. The company analysed the impact of physical and transition risks on its business, and therefore did not analyse other types of risks. While some risks seem to be managed, others are not very credible.
Consistency and credibility: Auchan has established its GHG balance sheet for the reference years 2019 (for scopes 1 and 2) and 2020 (for scope 3). The company repeated the exercise every year on scopes 1 and 2, and in 2021 and 2024 only for scope 3. It plans to recalculate its 2020 base year in 2025, which has not been done previously. Thus, the figures put forward for emissions in the 2024 report are not entirely comparable, as they require recalculation.
Data quality: Reported emissions data is consistent throughout the report. The scope of accounting is explicit, the calculation methods are transparent although not very detailed. Also, the emissions of the Purchased goods and services item, whose 60% increase between 2019 and 2024 - while most other emission items are decreasing - is not accompanied by an explanation, which suggests either a profound change in the business model (but which is not explained), or an error. It is not explained whether the GHG assessment has been validated by an independent third party, increasing the risk of methodological errors. In addition, the company is in the process of recalculating its 2020 reference year on a coherent scope: thus, the data currently explained in the reports are not really comparable.
Reputation: In 2022, the company was put on notice, alongside eight other agri-food and retail companies, by a group of NGOs, on the ubiquitous use of plastic and their failure to comply with the duty of vigilance. The company responded with a statement, where it reaffirms its commitment against plastic pollution, and redirects in particular to its Policy to Fight Plastic Pollution, where targets for reducing plastic packaging and means of action are reaffirmed, but where it is also written that "Plastics are strong, durable and versatile and can contribute to reducing carbon emissions", which discredits the company's publication.
Risks: The company is dependent on fossil fuels in a significant and indirect way, through all the emissions necessary for the production of agri-food products, their transport, and the sale of fuel to customers. Although the company lists actions to detach itself from it, the lack of a formal action plan does not suggest a complete transition of these energies. The company analysed the impact of physical and transition risks on its business, and therefore did not analyse other types of risks. While some risks seem to be managed, others are not very credible.
Trend score
The scope 3 target for 2030 is ambitious, but Auchan is moving away from the target because of a 30% increase in scope 3 between the reference year 2020 and 2024. The actions on the products sold are based on the dialogue action with suppliers, which takes the form of information questionnaires until 2026. This is a first step in decarbonisation, but it will not be enough to make a real transition. The company also claims to collaborate with its indirect suppliers to decarbonize their products, without qualifying or quantifying the action.
Auchan has not established a formal action plan to date. However, it does put in place actions, but they are not or very poorly qualified and quantified. While Auchan carries out actions related to the circular economy, such as the sale of second-hand products, or the financial incentive to use returnable packaging, these actions are not quantified either, nor are they associated with an objective.
However, Auchan plans to recalculate its emissions in 2025, in order to be able to compare them at isoperimeter to its reference years 2019 and 2020, which should make it possible to complete the scores of modules 1 and 2. Similarly, the company plans to have a comprehensive transition plan in place by 2026, which will complement and increase the scores of several modules. A positive trend rating is therefore chosen, as a significant improvement is expected in the short term.
Auchan has not established a formal action plan to date. However, it does put in place actions, but they are not or very poorly qualified and quantified. While Auchan carries out actions related to the circular economy, such as the sale of second-hand products, or the financial incentive to use returnable packaging, these actions are not quantified either, nor are they associated with an objective.
However, Auchan plans to recalculate its emissions in 2025, in order to be able to compare them at isoperimeter to its reference years 2019 and 2020, which should make it possible to complete the scores of modules 1 and 2. Similarly, the company plans to have a comprehensive transition plan in place by 2026, which will complement and increase the scores of several modules. A positive trend rating is therefore chosen, as a significant improvement is expected in the short term.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
34
Disclosure score (/100)
99
ℹ️
Narrative Score (A > E)
C
Trend Score (- = +)
+
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 74%
Material Investment Score : 91%
Intangible Investment Score : N/A%
Sold Product Performance Score : 25%
Management Score : 18%
Supplier Engagement Score : 38%
Client Engagement Score : 36%
Policy Engagement Score : 42%
Business Model Score : 13%
Indicator weight by module