El Corte Inglés releases a plan to reach net zero emissions by 2050
What: As part of its EUR 3 billion strategic investment through 2030, El Corte Inglés introduces a new Sustainability Plan focusing on environmental impact reduction, social responsibility, and governance innovation, with the goal of achieving carbon neutrality by 2050.
Why it is important: This development shows how traditional retailers are evolving their business models to address environmental challenges while maintaining operational excellence and financial performance.
Summary: El Corte Inglés's new Sustainability Plan 2025-2030 establishes three key pillars of action: environmental, social, and governance objectives. The environmental focus centers on reducing energy consumption and decarbonizing the group's value chain, laying the groundwork for achieving carbon neutrality by 2050. Social initiatives include participation in circular economy projects and the implementation of a comprehensive environmental, social, and governance risk mitigation program. The governance aspect emphasizes active board participation in sustainability oversight and the development of sustainable corporate policies, including alignment with the EU's upcoming Digital Product Passport requirements. This plan, launched alongside the company's broader strategic transformation that began on March 1st, demonstrates how sustainability goals can be integrated with business objectives. The initiative follows a strong financial year, with net profits reaching EUR 512 million, representing a 6.7% increase from 2023.
IADS Notes: El Corte Inglés's new Sustainability Plan 2025-2030 represents a significant evolution in their comprehensive transformation strategy. This development builds on the company's October 2024 partnership with McKinsey, as reported by Modaes, establishing the framework for integrating sustainability into their broader strategic vision. The EUR 3 billion investment commitment aligns with their existing transformation initiatives, including February 2025's EUR 428 million investment in store renovations and digital innovation, as detailed by America Retail. The company's commitment to environmental and social governance builds upon their strong market position, evidenced by their second-place ranking in corporate reputation reported by Revista for Retail in September 2024, where social commitment accounted for 15% of their score. The integration of sustainability goals with business objectives is further supported by their robust financial performance, with June 2025's Press Release reporting 4.3% like-for-like growth and EBITDA reaching EUR 1.2 billion. March 2025's El Confidencial coverage of their new leadership structure, including the creation of a Transformation Office under CEO Gastón Bottazzini, demonstrates how the company is aligning organizational capabilities with their sustainability ambitions. This comprehensive approach to combining environmental goals, social responsibility, and governance innovation, while maintaining strong financial performance, positions El Corte Inglés at the forefront of retail sustainability transformation in Spain.
