Informal guidance on WWF’s proposal: ‘WWF Basket – Climate Action’
The CMA has issued informal guidance to WWF-UK on its proposed initiative relating to the decarbonisation of retailers’ supply chains.
Documents
Details
The Competition and Markets Authority (CMA) has provided informal guidance to WWF-UK in relation to a proposed environmental sustainability agreement. The informal guidance has been issued as part of the CMA’s ‘Open-Door’ policy, which is set out in the Green Agreements Guidance (CMA185) 2023: Green agreements guidance.
The request relates to a proposal developed by WWF-UK in the context of WWF-UK’s ‘WWF Basket – Climate Action’ initiative. The stated objective of the proposal is to help reduce scope 3 emissions in the grocery sector by participating retailers requiring suppliers that account for at least 80% (compared to a current target of 50%) of each retailer’s supply chain emissions to set net-zero science-based targets. This would strengthen the grocery sector’s efforts to address supply chain emissions. WWF approached the CMA in the early stages of developing this proposal in order to help it assess any potential competition law risks .
Based on the information provided by WWF-UK, the CMA has advised that we would not expect to take enforcement action in respect of the proposal.
We would expect any participating retailers to take feedback from suppliers into account and to reengage with the CMA if retailers receive credible evidence that gives rise to significant concerns about the potential impact of the proposal.
WWF-UK has informed the CMA that, for reasons unrelated to our informal guidance, aspects of the current proposal may change or be superseded by other initiatives.
The CMA has published this informal guidance to support similar agreements by other businesses and industries, who may proceed with greater confidence of how to remain on the right side of competition law.
To learn more about what the CMA is doing to support environmental sustainability, read: Environmental sustainability
Contact
Please send any requests for informal guidance to:
sustainabilityguidance@cma.gov.uk
The CMA wrote to the WWF-UK and has published the annex to that letter. The CMA hopes that publishing its informal guidance (where appropriate) may support similar agreements to proceed with confidence in terms of complying with competition law (7.17 GAG).