Carbon Reduction
Our planet is facing an unprecedented, global environmental crisis.
At Iceland, we believe that every business has a responsibility to take action against climate change and reduce its carbon footprint.
We are working hard to cut down the carbon emissions in our own operations, reduce our energy demand, and maximise the use of environmentally-friendly gases.
Carbon Reduction Highlights
reduction in operational carbon since 2011
of our annual electricity comes from a large off site solar farm
Committed to net zero for all products sold in the UK by
2040Reducing our carbon footprint
Iceland is a signatory to the UK Food and Drink Pact, formerly Courtauld Commitment 2030. This ambitious voluntary agreement brings together organisations across the food industry to make food and drink production and consumption more sustainable.
In 2020 we updated our targets to reduce our carbon footprint across our own operations and supply chain by:
- 50% reduction in absolute GHG emissions by 2030
- Net Zero for electricity use by 2030
- Net zero for UK fuel, gas and refrigerant gas by 2035
- Net zero for all products sold in the UK by 2040
In February 2021 we were the first food retailer globally to sign up to the Amazon Climate Pledge, a commitment to be net-zero by 2040 – a decade ahead of the Paris Agreement’s goal of 2050.
Iceland worked with the Carbon Trust to measure our scope 3 carbon footprint in 2021. The Carbon Trust will also be reviewing our scope 1 & 2 emissions to validate our methodology and to ensure no areas are overlooked within both scopes’ calculations.
Scope 1
Our scope 1 emissions come directly from sources we own or control like heating and transport.
Scope 2
Our scope 2 emissions are based on the electricity we buy. 100% of the electricity we purchase is from renewable sources, using the market-based method for scope 2 reporting.
Scope 3
Our scope 3 emissions cover our value chain; the majority of our emissions come from the production and processing of products we sell.
Nomad Foods Life Cycle Analysis
Iceland is proud to have collaborated with Nomad Foods and Birds Eye teams to conduct life cycle analysis for 22 products, frozen, chilled and ambient versions, to assess and seek to understand the environmental impact of products from individual ingredients, through the supply chain to manufacturing, retail and consumption at home.
Our progress
During our baseline year of 2011/12, the business generated 263,461 tCO2e through its direct operations (scope 1 and 2 emissions).
For 2025/26 we generated 144,976 tCO2e, which is a 44.97% reduction from our baseline year. 144,976 tCO2e is an 8.13% year on year reduction.
The majority of our remaining scope 1 and 2 emissions are directly attributed to transporting products across our business and to our customers. We will continue working towards reducing our overall energy consumption and associated emissions.
How we’re taking action to reduce our carbon footprint…
Renewable energy
100% of electricity purchased for Iceland sites in the UK comes from renewable sources, supported by green energy certificates. In 2019, we stopped using our on-site generators, now they are only used if the main electricity supply is lost. During 2025/26, we have increased the amount of self-generated solar energy produced, with additional arrays installed at 25 sites.
Environmentally-friendly depots
Iceland has signed a Climate Change Agreement (CCA) administered by DEFRA for temperature controlled storage buildings. We have surpassed our energy reduction targets for our depots every year since 2015.
Food Waste
In 2025/26 we redistributed 1,564 tonnes of food surplus. This redistribution equates to a carbon reduction of 6,745 tCO2e, assuming all redistributed food is eaten and replaces the need for equivalent food purchases and food production.
In February 2026, we launched new Frozen Lucky Dip Bags, which are designed to help customers save money, retailing at £4 per bag, whilst reducing food waste. We have also began trialling Chilled Lucky Dip Bags online. These are currently only in one online store, but we are planning to roll these out later in 2026.
More efficient equipment
We have an ongoing asset replacement programme, replacing our older freezers with new, more efficient versions. Not only do the new freezers use natural refrigerants wherever possible, they also provide energy saving benefits. On average, stores refitted with new freezers consume 30% less energy than stores using older equipment.
We have continued installing LEDs throughout FY2026. Over 13,000 new LED fittings were installed in 164 stores. This has ensured improved energy efficiency and lower emissions associated with the electricity consumption. Circuit Level Monitoring is also in place for all air conditioning units across the estate. This extra level of granularity is monitoring consumption and improving overall efficiencies
Our fleet
Safe, energy-efficient driving
All Iceland Home Delivery Drivers are part of an innovative telematics programme. Our drivers undertake specific training to enhance their driving skills, focusing on techniques to improve safe driving and increase fuel efficiency, whilst receive real-time visual and verbal feedback to encourage smoother driving. In addition, our route planning system is designed to calculate the most fuel-efficient routes, meaning our drivers do not waste time or fuel on unnecessary journey points. This has resulted in an approximate 1,400 tonne reduction in CO2 emissions in 2025/26
Transport refrigeration
We are working towards eliminating fuel use for transport refrigeration across our yard operations. We have trialled the latest generation of trailer & transport refrigeration, based on the performance of the unit, 72 new trailers fitted with the new fridge & telematics to track the improvement in efficiency and reduction in emissions will join the fleet from August 2026.
Electric and hybrid vehicles
In the last year, almost a quarter of our company cars have been switched to hybrid vehicles, which has reduced the average carbon output for the overall fleet by 10%. We continue to offer hybrid vehicles to colleagues eligible for company cars. In the first half of 2022 we installed electric vehicle charging points at our Deeside head office and depot, providing staff and visitors with access to EV charging. In 2025, we deployed six Renault e-Tech trucks, delivering daily to Iceland stores across South East of England.
Maximising route efficiency
Our Heavy Goods Vehicle (HGV) fleet is regularly renewed with the aim of maximising fuel economy and minimising emissions. We are working closely with our suppliers and third-party logistics companies to make sure our deliveries to and from our depots are as efficient as possible. As much as we can, we route our HGVs to collect stock directly from the supplier, third party distribution centre, or pick up recyclable waste from our stores, on their return journeys to our depots. This helps to reduce the overall number of vehicles on the roads and avoids unnecessary journeys.
