Taking “Action” for sustainability

Private Equity Manager (GP)

Case study

In 2020, and subsequently in 2023, PIP invested in Action, a leading European general merchandise discount retailer operating across 12 countries, which is backed by 3i Group plc, an international investment company focusing on private equity and infrastructure.

Action believes that sustainability should be accessible for all, by providing customers with good quality, sustainable products at the lowest price.

To achieve this, the company has set itself ambitious and measurable targets through the implementation of the Action Sustainability Programme. Initiatives delivered to date as part of this programme include:

• A commitment to reduce Scope 1 and 2 carbon emissions by at least 60% by the end of 2030, from a 2021 baseline. In the last two years, and while significantly growing the store and distribution network, the company has already achieved a 46% reduction as part of this target. This was delivered by procuring c.90% of electricity from renewable sources, disconnecting most stores from the gas supply, improving energy efficiency of stores, installing solar panels at seven out of 13 distribution centres, switching to biodiesel for 150 Action trucks, and piloting four new zero-emission e-trucks;
• Ambitions to reduce its emissions from the supply chain. The company has now established a full baseline for Scope 3, which represents 99% of its total carbon footprint (of which product raw materials, manufacturing and transportation represent 75% of the total);
• A focus on product circularity, working in partnership with Circle Economy, the Ellen MacArthur Foundation and Delft University of Technology. The company is working end-to-end from initial product design to disposal to improve material inflow, product lifespan and ease of recyclability.
• In 2023, Action delivered circularity improvements of +4.85% across all product categories and launched its first ever circular product in the form of plastic storage baskets. These baskets are a closed-loop product, made entirely from damaged items that have been returned by customers, thereby avoiding 5,000kg of waste. The company will look to expand its range of recycled, closed-loop products in the future; and
• Action has made significant progress in its goals to source more certified sustainable products. During 2023, Action sourced 100% sustainable cotton (private and white label products) and cocoa (private label products), and made significant progress towards its goal of achieving 100% sustainably sourced timber by 2024, with 95% of timber products certified as sustainable in 2023.

Action intends to build on its progress so far to ensure that it is able to meet the expectations of its cost- and eco-conscious customers.