ALDI Leadership Is Deeply Invested in Sustainability Journey
As ALDI pursues an ambitious plan to expand its physical store footprint, the retailer is working to tread lightly on that footprint through an equally ambitious plan to become the most sustainable grocer in America. The company is making progress on both fronts, announcing its intent to build 800 stores within the next five years and aiming to transition to natural refrigerants across all of its locations within a decade and hit net-zero GHG emissions in ins value chain by 2050.
Much of the progress in the ESG arena – including ways to marry sustainability and affordability – was outlined in ALDI’s 2023 Sustainability Progress Report released earlier in late October. That report recapped recent results, such as garnering the most Environmental Protection Agency (EPA) GreenChill store certifications, removing all plastic shopping bags at checkout and operating more than 700 stores that already use eco-friendlier refrigerants.
Progressive Grocer recently talked with Josiah McClellan, director of sustainability at ALDI U.S., about the report and its implications. He reiterated the retailer’s responsibility to reduce its environmental impact and support commitments through the five key areas of reducing emissions, improving packaging, minimizing waste, sourcing products responsibly and supporting communities.
“Equally focusing on all of these areas is essential to fueling our ambition to become the most sustainable grocer in the country and to make sustainability affordable and accessible for all. Not to mention, oftentimes, these areas are not mutually exclusive, and focusing on multiple is needed to make strides on our most aggressive sustainability goals,” he said.
McClellan shared examples of concurrent program and progress, including its effort to eliminate deforestation in our high-priority supply chains, powering operations with 100% renewable energy, reducing unnecessary packaging and partnering with organizations to address food insecurity while slashing food waste.
Customers can see some of the value grocer’s commitments to sustainability when they walk into an ALDI location. “ALDI stores have always been built with sustainability top-of-mind, from how they are designed to how they operate. ALDI stores are generally half the size of the average supermarket, which makes them inherently more efficient. We only fill our shelves with the most popular products in the most popular sizes that consumers need, which reduces waste; and we don’t offer plastic shopping bags at check out which reduces the amount of plastic going into circulation,” MClellan explained.
Store infrastructures are also improving from a green POV. “Now, as one of America’s fastest-growing retailers, we have an even greater responsibility to reduce our environmental impact and implement more sustainable practices as we continue to expand. We are doing this by purchasing environmentally friendly refrigeration systems for all new and remodeled stores in support of our goal to transition to natural refrigerants across all U.S. stores before the end of 2035. We are also trialing heating systems that eliminate the use of fossil fuels, and installing solar panel on rooftops wherever financially viable,” McClellan shared, adding that ALDI also recently tested new technology to recover waste heat from other systems, like refrigeration units, to reuse the heat for HVAC equipment.
The sustainability leader echoed ALDI President Dave Rinaldo’s emphasis during a recent sit-down interview with Progressive Grocer that the company fosters a culture of caring for people and planet. “ALDI leadership is deeply invested in our sustainability journey, ensuring that sustainability is engrained into who we are as a business and remains a core part of our business strategy. The strides we’ve made on our sustainability journey couldn’t have been possible without our employees,” McClellan declared. “From those on the frontlines engaging with shoppers firsthand on the importance of using a reusable bag to our warehouse employees finding opportunities to reduce operational waste to our buying team who ensures our shelves are stocked with products our customers can feel good about purchasing, sustainability is everyone’s job at ALDI.”
McClellen delved into other aspects of sustainability during the discussion.
On Curbing Waste
“As a retailer of groceries, household essentials and more, we always strive to minimize waste and manage it responsibly," explained McClellen. "To hold ourselves accountable, we have two waste reduction goals: first, to achieve zero waste in our operations by the end of 2025 by diverting 90% of our waste from landfills through recycling, donation and organics recycling programs and second, to reduce our food waste by 50% by the end of 2030.
“To make progress on these goals, we’ve optimized our ordering protocols and technology to minimize over-ordering from the start, and we maintain strong community partnerships with organizations like Feeding America to help ensure food and goods find a second home when they need one," he continued. "When it comes to the end of a product’s lifecycle, we work hard to find ways to reuse and recycle materials like wood pallets, cardboard and plastic film. And, because many of the nearly 2,000 products in our stores are packaged in some way, packaging presents a strong opportunity to reduce unnecessary waste and identify alternative materials that that can support our sustainability ambitions.”
On Benchmark Milestones
McClellen said ALDI is taking action to make progress against the following 2025 sustainability goals:
- Reduce Scope 1 & 2 emissions by 4% by 2025 compared to 2021 baseline.
- Install only natural refrigeration systems in new and remodeled stores from 2025 onward.
- Reduce ALDI-exclusive primary packaging materials by 15% by the end of 2025.
- Certify 100% of private label coffee as responsibly sourced by the end of 2025.
On Supplier Partnerships That Move Sustainability Needle
“As our stores are stocked 90% with ALDI-exclusive brands, we are able to work closely with our suppliers to ensure they are upholding our high standards and taking care of people and the planet while bringing our customers’ favorite products to shelves," said McClellen. "Our sustainability efforts cannot be done without our network of suppliers. They are an integral part of our strategy, and this collaboration sets us apart. Recognizing that suppliers play a big role in our ambitious net-zero target, we recently joined the Supplier Leadership on Climate Transition (Supplier LOCT), a consortium launched in 2021 to accelerate progress toward science-based GHG reduction targets, to help support our suppliers to reduce their own emissions.”
