J Sainsbury PLC (LON:SBRY) has committed £1bn to pursue its net-zero carbon emissions goal by 2040.
The FTSE 100-listed grocer said the expense will not hit plans to reduce net debt, which is expected to shrink by “at least” £300mln this year and £750mln by 2024.
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The £50mln annual cost will be part of its effort to limit global warming to 1.5°C this century, the highest ambition set by the United Nations in the Paris Agreement.
In a detailed update, the company vowed to cut carbon emissions, food waste, plastic packaging and water usage and increasing recycling, biodiversity and healthy and sustainable eating.
Sainsbury added it “will ask suppliers for their own carbon reduction commitments”.
“We see this move by Sainsbury as part of the ongoing evolution of the British food system with the context of ongoing global developments… one that we sense will embrace all participants in time as regulation and market practices come through,” analysts at Shore Capital said in a note.
Shares were flat at 204p on Tuesday morning.