Sainsbury's invests £1bn towards lowering carbon emissions

British grocery giant Sainsbury's committed £1bn over the next twenty years as part of an effort to become net-zero by 2040, in line with the goal to limit global warming to 1.5°C - the highest ambition of the Paris Agreement.

Sainsbury's said it would be focusing on reducing carbon emissions, food waste, plastic packaging, water usage and increasing recycling, biodiversity and healthy and sustainable eating.

The FTSE 100-listed firm's investment will enable it to fulfil scope one and scope two emissions - putting the business on course for net-zero a decade ahead of the UK government's deadlines.

The retailer's current carbon footprint was one million tonnes, which already marked a 35% absolute reduction over the last 15 years despite its space increasing by 46% over the same time frame.

Chief executive Mike Coupe said: "Our commitment has always been to help customers live well for less, but we must recognise that living well now also means living sustainably.

"We recognise that we have a once in a lifetime opportunity to make the changes needed to help the planet exist sustainably. We have over 27 million customers each week and almost 180,000 colleagues and we hope that we can collaborate across industries and sectors to help create momentum and drive meaningful change."

Sainsbury's added that the investment will not impact net debt reduction targets.

As of 0855 GMT, Sainsbury's shares were up 0.25% at 204.50p.