Retailers’ progress in reducing environmental risks is stagnating, and a “broken food system” is causing eco collapse, according to not-for-profit organisation WWF.
Supermarkets are “playing with fire” and threatening future commercial viability without delivering necessary systems-level change, the WWF 2025 What’s in Store for the Planet publication warns.
In short, the report – which was published today drawing on data from Aldi, Asda, Co-op, Lidl, Marks & Spencer (M&S), Morrisons, Ocado, Sainsbury’s, Tesco, and Waitrose – argues climate change combined with a broken food system is increasing pressure on global supply chains and consumer prices.
With 90% of UK grocery market providing data for the report, it carries weight. WWF has now called on board chairs to recognise environmental risks and urged the UK government to bring due diligence legislation on deforestation into force after a four-year delay.
Essentially, five years from the 2030 target deadlines agreed in 2021, the report finds there has yet to be an effort on a scale that will deliver systemic change.
Tanya Steele, chief executive at WWF, remarked: “The way we currently produce food is contributing to climate change and devastating our natural world.
“It is only by protecting our environment that we can maintain our ability to grow healthy and affordable food for everyone. By not meeting their commitments supermarkets are playing with fire.”
She added: “The impacts of climate change are being felt in every area assessed in this WWF report. And this raises questions about whether supermarkets will, in the years and decades to come, be able to provide the wide range of produce we currently take for granted and at an affordable price.”
Steele noted that drought, floods and other severe weather events are already creating food price inflation, and consumers are feeling it in the form of squeezed disposable income. She said by embedding sustainability at every stage of their decision-making, supermarkets can get back on track with some key targets.
Key areas of concern include:
Deforestation and land conversion: Retailers look set to miss 2025 targets on removing deforestation and conversion, with last year’s data showing 1.8% of soy and 3.1% of cocoa is being sourced as deforestation and conversion free (DCF) from high-risk areas.
Climate: Retailers are a long way off on reducing Scope 3 (indirect) emissions, which account for 90% of their emissions. WWF said it will not be possible to hit targets without tackling emissions associated with agriculture, diets, food waste and deforestation, and urged for collective action on these areas is the only way to expedite progress.
M&S did take a step in the right direction here, last week, launching a programme that will support its suppliers switch to renewable energy resources.
Diet: According to the report, retailers are not tackling protein diversification, and are still selling twice the target proportion of meat compatible with a healthy and sustainable diet. Beef and pork look like experiencing the greatest price hikes in future based on the evidence assessed to date.
Agriculture: There has been limited progress and engagement for improving livestock production standards. Retailers must scale up their sustainable sourcing policies beyond a select few farming groups.
The WWF report highlights common shopping basket products that are most at risk of price volatility and shortages due to climate change and nature loss, stating that over one year’s supply of bread has been lost in the last decade due to the effects of drought and heavy rainfall on wheat harvests. Additionally, it states excessive heat and shifting rainfall patterns caused cocoa prices to surge 136% between 2022-2024 with historically key areas for cocoa becoming unsuitable for production.
Elsewhere, the report says climate-induced heat stress and extreme weather is reducing the availability of forage which can cause milk production losses in dairy cows. Amd it notes UK poultry, pork, and salmon production relies heavily on soy which is heavily linked to deforestation and destruction of natural habitats in key producing regions.
The positives
WWF said retailers are making good progress on Scope 1 and 2 emissions, with retailers 49% of the way towards achieving their near-term targets on average, compared to 37% last year.
The data shows there has been a 10% increase of DCF sourcing of palm oil since last year, and food businesses are also already taking targeted action to reduce their negative impact on the natural world – via moves such as investing in regenerative agriculture, water efficiency and circular technologies.
The report warns retailers that what was once a long-term threat is now a short-term one – and it argued that the time to act is now.
Dr Mike Barrett, chief scientific advisor at WWF, said the UK government has a vital role in helping shift the food system “by enabling and incentivising retailers and supply chain actors to collectively reach this goal”.
“Deforestation is a prime example – retailers have made a coordinated effort to remove it from supply chains, but without regulation it’s very difficult,” he stated.
“The Environment Act 2021 provides for a duty of due diligence on importers to ensure produce was not grown on deforested land – when will the government bring it into force?”
[image credit: Green Retail World]
