Woolworths Group has chosen to create a Sustainability Linked Bond Framework in order to align its sustainability plan with its long term financing strategy.
Woolworths Group cares deeply about its impact on people and the planet, and we want to go further than just minimising harm – we want to create good. This will be done through ongoing improvement of how Woolworths Group conducts its own business, including how it engages its people and the communities in which it operates.
The documents relevant to our Sustainability Linked Bond Framework are set out as below:
A$350m Nov-27, EUR550m Nov-28, A$350m Nov-31 Sustainability Linked Bond Report
Introduction
Woolworths Group’s previous scope 1 and 2 emissions reduction target, validated by the Science Based Target initiative (SBTi) in 2020, is aligned with a 1.5°C pathway. SBTi is an independent global body formed by the United Nations Global Compact, CDP, the World Resources Institute and the World Wildlife Fund for Nature. SBTi assesses and approves company targets through a scientific lens, to align with the Paris Agreement goal of pursuing efforts to limit warming to 1.5°C.
In F24, Woolworths Group updated its applicable near-term emissions reduction target to reduce scope 1 and 2 emissions by 80% by F30, from a F23 baseline. This updated target is aligned with a 1.5°C pathway, and has been validated by the SBTi.
Basis of Preparation
The updated emissions reduction target uses:
An operational control approach to define the emissions boundary.
A market-based approach for calculating our scope 2 emissions.
Woolworths Group reports in compliance with the NGER Measurement Determination, NZ Ministry for the Environment Emissions Measurement Guide, National Greenhouse Accounts Factors and the Greenhouse Gas (GHG) Protocol Corporate Standard.
Material scope 1 emissions sources include fugitive synthetic refrigerants, transport fuel for company-owned or company-controlled fleet cars and home delivery trucks, and natural gas.
Scope 2 (market-based) emissions are those associated with purchased electricity used across all stores, distribution centres and offices, and they comprise the largest part of our operational footprint. Scope 2 (market-based) emissions include unbundled procurement of energy attribute certificates (i.e. LGC procurement from the market) acquired for F25 grid electricity consumption. All relevant certificates were surrendered prior to the release date of the Group’s F25 Sustainability Report, in line with GHG protocols and internal policies that are applied consistently each year.
Baseline and restatements
In F24, we were required to reset our previous F15 base year to a F23 base year due to organisational changes, such as the demerger of Endeavour Group and the acquisitions of PFD Foods and Quantium. This also considered updates to our calculation methodologies and emissions factors in line with the GHG Protocol to support more accurate tracking of our emissions over time.
Our aim to reduce absolute scope 1 and 2 GHG emissions by 80% by F30 from a F23 base year is the applicable SBTi target for the Sustainability Linked Bonds test at the end of F25.
Performance against SBTi
As per the terms of the Sustainability Linked Bonds and the Sustainability Linked Bond Framework, F25 is the first financial year that the Group is required to test its scope 1 and 2 emissions reduction against the SBTi verified target trajectory. Accordingly, our scope 1 and 2 emissions reduction performance (expressed as a percentage) is shown below:
Year | Scope 1 and 2 emissions – market-based | |
tCO2e | % reduction | |
F23 - baseline¹ | 1,941,581 | N/A |
F24 | 1,767,284 | (9.0%) |
F25 | 1,497,791 | (22.9%) |
SLB Test Date
As of 29 June 2025, the Test Date, Woolworths Group’s Reduction Percentage was 22.9%. This was in line with or greater than the Reduction Percentage Threshold, being the straight line interpolated target derived from our target to reduce scope 1 and 2 emissions by 80% by F30.
As such, the Group has fulfilled its obligations under the A$350m Nov-27 bonds and no Coupon Step Up Event has occurred with respect to these bonds.
More information on our new SBTi targets can be found in the Woolworths Group 2025 Annual Report and Sustainability Report here.
Assurance reports
- Sustainability Linked Bond Report independent assurance report (2025)
- Sustainability Linked Bond Report independent assurance report (2024)
- Sustainability Linked Bond Report independent assurance report (2023)
- Sustainability Linked Bond Report independent assurance report (2022)