ALDI’s transition to renewable energy
As a significant consumer of electricity we understand that it is our responsibility to reduce our impact on the environment. ALDI is committed to finding sustainable alternatives across all of our operations, power included.
ALDI is powered by 100% renewable electricity
In August 2020, ALDI became the first Australian supermarket to commit to 100% renewable electricity by the end of 2021. The implementation of ALDI’s 100% renewable electricity goal enables us to meet our science based emissions reduction target. In June 2021, we achieved this goal – six months ahead of schedule. All of our stores, offices and warehouses are now powered by renewable electricity. The transition to clean power results in an 85% reduction in ALDI’s carbon emissions.
Since 2023, our commitment to 100% renewable electricity has been reviewed and verified under the Federal Government’s Corporate Emissions Reduction Transparency (CERT) framework. This ensures that our commitment can be reported to the public in a clear and consistent way.
So, how did we achieve this milestone?
We used a three-pronged approach:
1. On-site generation – via our extensive network of solar panels across ALDI stores and distribution centres. Across our network, we have solar panels on more than 291 stores and six distribution centres with solar – that’s over 119,000 panels! This provides 45.5 GWh of renewable electricity each year through on site generation.
2. Off-site generation – ALDI has entered into Power Purchase Agreements (PPAs) with 2 wind farm operators located in Western Victoria and the Southern Tablelands of New South Wales to purchase electricity directly from renewable energy generators.
3. Acquisition of large-scale generation certificates (LGCs) through a LGC supply only PPA with Waubra Wind Farm, a wind farm located north-west of Ballarat in Victoria.
ALDI remains connected to the grid with onsite solar directly reducing electricity consumption of stores and distribution centres where panels are installed. For the remaining electricity used at ALDI, LGCs procured through our PPAs with Australian windfarms are surrendered to the Clean Energy Regulator and retired. Surrendering LGCs guarantees that the renewable electricity attributes are correctly allocated to ALDI's renewable electricity consumption and are not available for resale.
Small changes make a big difference
By achieving our 100% renewable electricity commitment, each year ALDI will prevent over 244,000 tonnes of carbon dioxide emissions from entering the atmosphere*. To get a better picture of this achievement, 244,000 tonnes of carbon emissions is the equivalent of:
Within our transition to green energy, we have implemented efficiency measures such as LED lights, reducing our lighting energy consumption by more than 50%. We are also committed to using natural refrigerants and installing solar panels, where possible, across new and remodelled stores.
Six ways you can join ALDI in reducing carbon emissions
There are choices we can make in our everyday lives to reduce our carbon footprint. Here are a few examples:
1. Avoid driving
Where possible, opt for walking or taking public transport to get yourself from A to B. With over 570 ALDI locations across Australia, you should be able to stroll into your nearest store and leave the car at home.
2. Include plant-based alternatives in your diet
Cattle and dairy farming generates high levels of greenhouse gasses at every stage of the production process. Incorporating plant-based meals into your diet is not only good for you, but the environment! Why not swap out the beef mince for veggie mince once a week?
3. Bring reusable bags when shopping
Avoid single-use plastic by bringing your own reusable bags to the shops. Opting for products with less packaging will also prevent unnecessary waste.
4. Only buy what you need
Food waste accounts for approximately 3% of Australia’s annual greenhouse gas emissions. Meal prepping and writing a shopping list are two sure-fire ways to ensure you do not buy more than you need.
5. Put second-hand first
The fashion industry is responsible for 5% of the world’s greenhouse emissions. Instead of browsing fast fashion websites, look through the racks of second-hand stores for your next killer outfit. Toys, furniture, appliances and more can all be sourced with a little bit of digging at your nearest op-shop.
6. Purchasing renewable electricity
Anyone can purchase renewable electricity from their electricity provider by selecting that option from their retailer. Greenpower is the option that consumers can choose.
You can also select carbon neutral options from many providers (though renewable is better).
Frequently Asked Questions
What is renewable energy?
Renewable energy is produced using resources that are naturally replenishing and never run out. They are constantly replaced and can never be depleted.
What are renewable energy sources?
There are seven types of renewable energy. Some widely-used examples include solar, wind, hydroelectric and geothermal energy.
How does solar power work?
When the sun is shining, solar panels convert sunlight into direct current (DC) electricity. The electrical energy is then converted into alternating current (AC) electricity by a solar inverter. The converted electricity then powers your home.
How do wind farms work?
Wind farms use wind turbines that convert the kinetic energy of the wind into electrical energy. The blades of the turbine catch the wind’s currents.
Is ALDI off the grid?
ALDI stores remain connected to grid electricity, but benefit from on-site solar and renewable energy certificates sourced from our partner wind farms.
What are ALDI’s carbon emission targets?
ALDI Australia as part of the ALDI South group, has a target of 26% reduction of carbon emissions by 2025 from a 2016 baseline. ALDI’s emissions reduction target is endorsed by the Science Based Target Initiative.
What is a Large-scale generation certificate (LGC)?
Large-scale generation certificates or LGCs are created from electricity generated from large-scale renewable energy power stations like wind and solar farms. An LGC is equal to 1MWh of renewable electricity generated by a renewable power station. When purchased by an entity and surrendered, that amount of renewable energy can be attributed to the renewable energy consumption of that entity. Therefore, LGCs can be used to meet their renewable energy and emissions reduction targets.
*Source: National Transport Commission (based on average emissions from a car: 169.8g/km, annual km: 20,000 = annual emissions from a car: 169.8*20000/1000000 = 3.4t).