Value Chain
Key actions
- Sourcing – We assess factories that supply own-brand products against our risk-based audit plan, complemented by ongoing engagement to raise standards
- Operations – We are transitioning our operations to run on renewable energy and partnering with Normative to measure, report and act on carbon emissions across our value chain, ensuring data-driven decision-making and transparent reporting. We are also reducing waste in our stores, distribution centers and offices.
- Governance and transparency – Vertical integration through PGS, together with our internal sourcing compliance team, provides high visibility and control across the supply chain. We conduct regular reviews under the oversight of the Audit Committee to ensure accountability and drive continuous improvement. At the same time, we are adopting tools to advance full supply chain mapping.
Our ambition
We aim for 100% audit of factories that supply own-brand products against our audit plan. This year we have continued to achieve our goal. See page 148 of the Sustainability Statement for further details of our sourcing KPIs.
We have also formalized targets to reduce Scope 1 and 2 emissions by 50% by 2030 and Scope 3 emissions by 25% by 2035. In FY25 we delivered a 39% reduction in Scope 1+2 emissions, driven by our investment in renewable electricity in Poland and a 24% decrease in Scope 3 emissions driven by enhancements in our carbon accounting data quality and reporting methodology. Our ambition is to achieve a climate-neutral value chain that enhances resilience, protects people and safeguards the planet, with measurable progress and transparent reporting along the way by 2050.
To support our carbon targets, we have also set a goal to reduce operational waste, covering store, distribution, and office activities, by 20% by 2030, using 2024 as the baseline.
Pepco Powers Poland with 100% Renewable Electricity
Pepco Poland, the Group’s largest European market, now operates entirely on renewable electricity across all stores and distribution centers.
This milestone represents a significant step toward achieving Pepco’s climate targets and broader ESG commitments. As the first market in the Group to sign a long-term Power Purchase Agreement (PPA), Pepco Poland now sources around 8% of its electricity directly from a dedicated solar farm, with the remainder supplied through certified renewable Guarantees of Origin.