The Wesfarmers Health Climate Policy (‘the Climate Policy’) reflects Health’s desire to support the global goal of reducing greenhouse gas emissions, consistent with the Paris Agreement.

The Climate Policy also outlines the minimum standards for Wesfarmers business units to operate in a carbon aware way to ensure compliance with the Group’s reporting and disclosure obligations.

Wesfarmers Health has met the most critical requirement of the Climate Policy’s minimum standards by establishing a Scope 1 and Scope 2 net zero target, commencing in the 2025 financial year.

The targets were:

• Long-term target: net zero (Scope 1 and Scope 2 market-based emissions) by 2035.
• Near-term target: 100 per cent renewable electricity for new fulfilment and distribution centres.

The division’s two most significant actions to address the impacts of climate change this year are:

Power purchase agreements – Commencing 1 January 2025, Health has procured electricity from 100 per cent renewable energy sources for the new Sydney Fulfilment Centre (“SFC”) and Brisbane Fulfilment Centre (“BFC”) in line with its near-term net zero target

Rooftop solar – Health has installed rooftop solar photovoltaic panel arrays at the new SFC and BFC. SFC has a 1.0 megawatt system that commenced operation in September 2024 and BFC has a 0.5 megawatt solar array scheduled to commence early in the 2026 financial year.

Power purchase agreements

Wesfarmers Health has entered into two three-year power purchase agreements with electricity retailers to supply the SFC and BFC with electricity from 100 per cent renewable energy sources.

These agreements will serve to reduce the volatile and increasing costs of electricity for these sites over a three-year period and ensure that the Scope 2 emissions from these two sites are nullified in support of the near-term net zero target.

Rooftop solar

While it is still too early to gauge the effectiveness of the solar array at the BFC, the system at the SFC has been operating to its nameplate capacity since it commenced operation.

Over two-thirds of the division’s Scope 1 and Scope 2 emissions are generated by its distribution and fulfilment centres.

Based on this understanding, the procurement of ‘green’ (electricity from 100 per cent renewable energy sources) power purchase agreements and onsite solar electricity generation from rooftop solar were considered as the two most substantive and cost-effective mechanisms for Wesfarmers Health to achieve its net zero emissions target.

These two initiatives were identified and modelled by climate change experts appointed by the division to help it develop the net zero targets that were approved by the Wesfarmers Board in April 2024.

While Wesfarmers Health has only commenced the execution of its net zero aspiration this financial year, it remains largely on track to achieve its near-term Scope 1 and Scope 2 emissions net zero target.

This financial year, the division reported combined market-based Scope 1 and Scope 2 emissions of 9.0 kilotonnes CO₂e, which represents a 17.4 per cent reduction compared to the 2024 financial year emissions of 10.9 kilotonnes CO₂e and 11.6 kilotonnes CO₂e in the 2023 financial year.

The primary reason for this reduction compared to last year was due to the impact of the renewable electricity power purchase agreements and energisation of rooftop solar at the SFC during the financial year.

Wesfarmers Health is currently 22.4 per cent below its 2023 baseline.

Scope 3 emissions were 2.0 megatonnes CO₂e comparable to the 2.0 megatonnes CO₂e reported last year and 2.1 megatonnes in the 2023 financial year. Over 95 per cent of this year’s Scope 3 emissions related to Category 1: purchased goods and services using a spend based methodology.

Click here to view the 2025 Wesfarmers Group Climate Disclosures