Kmart Group – the Wesfarmers subsidiary that manages both Kmart and Target retailers – just announced it has met its renewable energy target across its operations, as part of its commitment to be net zero across Scope 1 and 2 emissions by 2030.
This means that Kmart Group’s total electricity use across 448 stores, 10 distribution centres and 12 national and international offices is covered by on-site renewables or off-site agreements from renewable sources. This includes onsite solar generation and power purchase agreements linked to generation assets, including New England Solar Farm (NSW), Numurkah Solar Farm (VIC), Tailem Bend 2 Solar Farm (SA) and Western Downs Green Power Hub (QLD).
Where energy is supplied by its landlords, Kmart Group is surrendering unbundled large-scale generation certificates to match the energy consumed.
Kmart Group shared the news at its distribution centre in Jandakot, Western Australia, with the Assistant Minister for Climate Change and Energy, Josh Wilson.
According to the group’s chief corporate affairs and sustainability officer, Alexandra Staley, this milestone reflects Kmart Group’s efforts to reduce, where it can, the environmental impacts of its operations.
“With a significant footprint of stores across Australia, matching 100 per cent of the energy needs of our stores, distribution centres and offices with renewable electricity marks an important step towards our commitment to reach net zero emissions by 2030."
Assistant Minister Wilson added that Kmart Group has shown how Australian businesses are stepping up to help deliver Australia’s national clean energy goals.
“Kmart is showing that the pursuit of greater sustainability can and should be undertaken across the board, and that large organisations have the scale and resources to keep doing more.”
Kmart Group’s 2025 Sustainability Report confirms that its Scope 1 emissions are largely attributable to natural gas used for heating, LPG gas for forklifts, fuel in fleet vehicles and small refrigerant losses from cooling systems.
Scope 2 emissions come from grid electricity use.
In the same report, Kmart Group added that it achieved a 19.6 per cent reduction in total electricity use since 2017. Energy-efficient lighting design and energy-efficient heating and cooling in stores have reduced electricity consumption by 5.6 per cent from the 2021 financial year baseline (in kWh/m2 ).
Kmart Group installed three rooftop solar systems in FY25, for a total of nine systems across the store network.
Scope 1 and 2 market-based emissions make up 2.03 per cent of Kmart Group’s total emissions, while Scope 3 emissions comprise 97.97 per cent of emissions.
Scope 3 emissions arise from a wide range of activities across suppliers, products and geographies. These emissions are outside the group’s direct control and reflect the Scope 1 and Scope 2 emissions of upstream and downstream suppliers, customers, and team members.
According to Kmart Group’s report, the sources of these emissions are complex, and it has continued to mature its approach to calculating its Scope 3 emissions inventory.
Since making its 100 per cent renewable electricity commitment, the group has also achieved a 4.9 per cent reduction in total electricity use since 2021, while adding ten stores across Australia and New Zealand.