How Co-op's Procurement Strategy Drives Sustainability

As one of the world's largest consumer co-operatives, Co-op's business model is structured to serve its members and support the causes they value.

Co-op operates across multiple sectors, including food, retail, funeralcare, insurance and legal services. With a network of more than 2,300 food stores and 800 funeral homes in the UK, Co-op also manages a wholesale operation that supplies approximately 6,000 other retail sites.

Its supply chain and procurement activities are fundamental to translating its business operations into a vehicle for sustainability.

The procurement function is central to Co-op's mission, and its influence is growing under the guidance of Chief Procurement Officer Imran Rasul.

Imran explains: "As the biggest Co-op in the UK, we buy power for our own business and we decided to use our buying power to help other like-minded businesses save money and source energy in an ethical and sustainable way."

Energy procurement and green strategy

Co-op’s sustainability strategy leverages its procurement expertise through the relaunch of Co-op Power, the UK’s largest co-operative energy buying group.

The initiative utilises Co-op's own energy demand to support its internal needs and assist other businesses aiming to adopt more sustainable energy strategies.

Through this programme, Co-op shares its knowledge in purchasing, managing and using energy sustainably.

A key example is the energy management at its Biggleswade distribution depot, where procurement and sustainability goals are aligned to enhance operational efficiency.

This approach is an extension of internal procurement decisions from 2022, when Co-op updated its energy hedging strategy to navigate a volatile energy market.

By integrating its sustainability and property teams, Co-op developed a green strategy centred on corporate Power Purchase Agreements (cPPAs) and embedded generation.

These procurement methods allow Co-op to secure energy from renewable sources while managing financial risk.

The updated Co-op Power model was introduced to supplier partners in June 2025 and later presented to a wider audience.

Expanding services through Co-op Power

With its relaunch, Co-op Power now provides four main services to help businesses manage their energy needs.

• Green strategy consultancy helping businesses build their own energy plans
• Energy procurement leveraging internal buying expertise for flexible purchasing strategies
• Portfolio and bill management, overseeing customer energy portfolios through dedicated bureau services
• Account management offering direct support for ongoing needs

"We're building on Co-op's experience as a major energy user to help businesses take control of their energy strategies", says Imran.

"Our team brings deep expertise in sourcing, buying and managing energy, and we're committed to using that knowledge to deliver real value – helping businesses cut costs while sourcing energy in a way that's sustainable and ethical."

Responsible sourcing and seafood certification

The procurement team's influence also extends to Co-op's food business, particularly its sourcing decisions for seafood.

Co-op is focused on improving transparency and traceability in its supply chain, pledging to transition 100% of its own-brand fresh and frozen farmed seafood to Aquaculture

Stewardship Council (ASC) certification by 2027. The ASC standard is internationally recognised for responsible seafood farming, covering animal welfare, environmental impact and traceability.

The first product to feature the ASC certification is Co-op’s seabass, which is now available in stores.

The range is set to expand over the next 15 months to include products like fresh smoked salmon, whole prawns and 18 other seafood lines.

In addition to the ASC certification, Co-op continues its relationships with the Marine Stewardship Council (MSC) for wild-caught fish and the RSPCA-Assured scheme for its premium Scottish salmon.

Sam Darley Co-op’s Fisheries and Agriculture Compliance Manager explains: "Offering high-quality sustainably-sourced seafood on our shelves is at the heart of our commitment as a responsible retailer and moving 100% of our farmed fish to ASC by 2027 reflects the rigorous standards we have upheld since 2008 ensuring all seafood is sourced from well-managed farms and fisheries whilst minimising our impact on the marine environment."

The integration of these certification standards shows how procurement can directly contribute to Co-op's sustainability targets and public image.