As part of its pledge to reach net xero in its own operations by 2035, UK retail chain Sainsbury’s plans to invest £5m in the next four years in innovative start-ups.

Sainsbury’s Innovation Investments, formed in partnerships with Williams Advanced Engineering (WAE), will invest in start-up businesses commercialising innovative, sustainable technologies that look to reduce operational carbon emissions and water usage.

WAE will scout and invest in early-stage companies, not limited to the Sainsbury’s supply chain, across a range of sectors. The first investment is expected to be announced before the end of 2022. In addition to providing much needed investment, Sainsbury’s is looking to accelerate dynamic start-ups and SMEs in developing, testing and deploying technologies that can reduce carbon emissions and water usage.

This announcement furthers the progress Sainsbury’s has already made in reducing its impact on the environment, having cut its carbon emissions in its own operations by 762,119 tCO₂e, a reduction of seven per cent year-on-year and twenty per cent from its 2018-19 baseline, keeping the retailer on course to meet its net zero target of 2035.

Sainsbury’s Innovation Investments is part of an ongoing partnership with WAE, a technology and engineering services business that combines technological advances and engineers, accelerating the drive for zero emissions.

In 2017, Sainsbury’s began the process of installing aerofoil technology in its fridges in-store. Since then, the energy-saving technology, collaboratively developed by UK start-up Aerofoil Energy and WAE, has been rolled out across the entire estate, resulting in an estimated 15 per cent energy reduction, with other retailers since following suit.

“We are committed to reaching our net zero target of 2035 and are proud to be doing our part in leading the way to reduce carbon emissions and water usage not just in our stores, but across the entire sector,” said Patrick Dunne, Sainsbury’s property and procurement director. “We know that reducing emissions and water use is a critical part of tackling the climate crisis and, to achieve this, we understand the importance of investing in pioneering technologies that can be adopted by all retailers.”

He said tackling an issue of this scale required collaboration.

“We’re really excited to not only invest in these businesses, but also provide a pathway to in-store use, working towards a more sustainable future for everyone,” he said.

Matthew Burke, head of technology ventures at WAE, added: “Embracing new and unproven technologies is a necessary requirement to meet net zero and many of these products and services will emerge from the technology start-up community. Sainsbury’s Innovation Investments will accelerate the commercialisation of these technologies through the opportunity of investment, trial and deployment across Sainsbury’s vast estate and operations. In doing so it will act as a springboard for wider and rapid technology adoption by customers across retail and other sectors who all share common net zero challenges. With WAE’s focus on sustainability and expertise in technology and engineering combined with early-stage technology investing, we are delighted to be supporting Sainsbury’s journey to net zero with the launch of this unique investment initiative.”

WAE can trace its foundations back to 2010 when Williams Grand Prix Engineering began diversifying its operations; a division which later became Williams Advanced Engineering. WAE has grown from an embryonic business in 2010 to a company that employs approximately 500 people. Following the acquisition by Fortescue Metals Group in March 2022, WAE is still servicing its existing customers and commercialise technology opportunities, in addition to playing a role in supporting Fortescue’s decarbonisation strategy.