1. Suppliers as a key partner in achieving SBTi objectives
The most important element of the Schwarz Group's new strategy is the decarbonisation of Scope 3 emissions, which is responsible for 98% of the Group's total carbon footprint.
Thus, the role of suppliers is changing from “passive emission sources” to “active transformation partners”, without which Schwarz is unable to achieve his goal. What does this mean in practice?
- Supplier engagement in decarbonisation: As part of the reduction of emissions in Scope 3, the Schwarz Group requires key suppliers to develop own reduction targets and their submission to the SBTi (More on this in point 4).
- Term: More than 1000 major partners (mostly suppliers of food products to retail chains) should set their own goals in line with SBTi standards by the end of 2026.
2. FLAG — New rigour for the food and timber sector
If your company supplies products based on soy, milk, wheat, beef or wood, among others, the requirements are even more restrictive. According to the SBTi methodology, the decarbonisation target for the FLAG (Forest, Land, and Agriculture) sector includes another requirement: to use only raw materials not from deforested areas (“no deforestation”) with a cut-off date of 31 December 2025. In practice, this means that the suppliers of Lidl and Kaufland stores already have to guarantee the Group that their products do not lead to deforestation.
Our services in the field of joining SBTi (Science Based Targets initiative)
We will help your company to go through the process of validating commitments under the SBTi. We provide professional support at every stage of the procedure.
3. Timetable for implementation
It is worth paying attention to the dynamics of change. Newspaper articles often cite the general date of 2050 as the year of “great change”. This is only half the truth, because the Group's demands on business have already gained momentum. In Scope 3 — crucial for suppliers — the network has already declared a 35% reduction in 2034. The Group's assurances clearly indicate that the targets will be maintained.
4. What does this mean for your business?
If your company supplies products to the Schwarz Group, you must guarantee your business partner:
- Reliability and transparency of data: Precise measurement of the carbon footprint in all ranges and reporting of emissions becomes a prerequisite for cooperation with the Lidl and Kaufland networks.
- SBTi's own path: If you belong to the group of the largest suppliers, you must have your own approved reduction targets for all ranges to be communicated and approved by the SBTi by the end of 2026. We are therefore talking here about the full path, and not just about reporting a commitment to the SBTi.
- Low Emission Transformation: The decarbonisation of agriculture, transport, packaging and production processes thus combines savings in operating costs (e.g. in energy consumption) with a long-term investment in maintaining contracts with the Schwarz Group.
As the representatives of the Group emphasize, climate action today is not an addition to the giant's business strategy, but a key element of it. They become an indicator of the competitiveness and resilience of the business.
The year 2026 will be a moment of verification for many suppliers. Those who see climate change as an opportunity to build lasting competitive advantage and strong trade alliances will win. At VIVERNO, we see these dependencies every day, guiding Lidl and Kaufland suppliers through calculating their carbon footprint and building decarbonization strategies.
Is your business ready for the new requirements of the Schwarz Group? We invite you to contact us about carbon footprint analysis or preparation for SBTi validation.
