Chinese supermarkets standing still on climate action

Read the report here

The first-ever assessment and ranking of the climate commitments and actions of eight major supermarkets across four Asian countries—China, Japan, South Korea, and Singapore—by global environment organization Mighty Earth, finds three major supermarkets operating in China, DFI Retail Group and Sun Art Retail Group in Hong Kong, and Walmart, are failing to take action on climate pollution, specifically methane emissions from meat, dairy and rice supply chains.

The analysis examines the supermarkets’ climate commitments in the context of rising meat consumption in Asia–a key driver of the superheater greenhouse gas methane. China is the world’s largest beef importer, accounting for over a third of global beef trade volume.

Livestock agriculture accounts for approximately 32% of human-caused methane emissions, and the sector is the single biggest driver of rising agricultural methane emissions, globally. The report highlights the failure of Asian retailers to address methane emissions in their meat and dairy supply chains, despite the sector’s substantial climate impact in the region.

The retailers analyzed in the report include DFI Retail Group and Sun Art Retail Group Limited in Hong Kong; Walmart in China; AEON and Seven & i in Japan, Emart Inc. and Lotte Shopping in South Korea; and FairPrice Group in Singapore.

One Chinese supermarket in second position

DFI Retail Group scored 17 points in total, sitting in second place on the table behind AEON of Japan, which was just ahead with 20.5 points out of the 100 available points. Sun Art Retail Group Limited of Hong Kong and Walmart were nearer the bottom end of the ranking, scoring 6 and 4.5 points, respectively.

• While DFI Retail Group does not explicitly reference methane, it does recognize the climate impact of livestock-related emissions.
• DFI is one of two retailers to publicly acknowledge the climate impacts of methane from rice cultivation, and it provides financial support to farmers to reduce methane from rice production.
• DFI has launched pilot initiatives on low-emission beef and dairy production through its ‘Sustainability Innovation Challenge’ program and states the company has a Scope 3 reduction plan for rice, dairy, beef and coffee – albeit not publicly available.
• Walmart’s Gigaton Plan to address 1 billion metric tons of carbon across global value chains by 2030, is a commendable target, but it fails to set a clear commitment to reduce the company’s Scope 3 emissions, despite these being upwards of 97% of the company’s footprint.
• Sun Art’s climate reporting and reduction efforts were lacking across the board, scoring just 6 points out of 100.

Meihua Piao, East Asia Manager for Mighty Earth said:

“Retailers in China risk losing face when it comes to tackling climate pollution embedded in meat, dairy and rice supply chains. Demand for beef in China is driving the super-polluting global trade, while massive methane emissions from rice cultivation are being largely overlooked.”

“Rapid cuts to methane emissions are one of the fastest ways to slow global warming, yet only one Chinese supermarket, DFI Retail Group in Hong Kong has taken the first step to acknowledge methane is a problem. Without more action from retailers, the extreme climate impacts that Asia is already experiencing, will worsen.”  

“Transparent reporting is a critical first step that Chinese retailers must take to address methane pollution. Supermarkets are also uniquely positioned to help customers better understand the climate impact of the food they eat and support a shift to diets with more plants.”

Other key findings:

• None of the Asian retailers assessed disclose their methane emissions separately or has set a methane reduction target.

• Not a single retailer has a publicly available deforestation- and conversion-free (DCF) policy, despite the significant impacts of deforestation on climate and nature, driven by meat and dairy production.
• Driving plant-based sales increases is an opportunity currently not been realized by any of the retailers assessed.

• The lowest score—0/100—was awarded to FairPrice Group of Singapore, reflecting a total absence of action on climate pollution.

China’s climate commitments

In December 2025, China took a major step toward mandatory climate reporting by issuing its first domestic climate disclosure standard for companies, known as the Corporate Sustainability Disclosure Standard No.1 – Climate (Trial). The rules require companies to report on their greenhouse gas emissions and climate-related risks. China, however, has yet to become a signatory of the Global Methane Pledge, an international voluntary commitment to reducing methane emissions by 30% by 2030.

Asia’s methane problem

Methane is a short-lived but super-polluting greenhouse gas that is roughly 80 times more potent than carbon dioxide over a 20 year-period, making rapid cuts to methane emissions one of the fastest levers to slow near-term warming.

• In 2023, methane emissions from Asia reached approximately 4.58 billion tons of carbon dioxide-equivalent (CO2e). With the region warming at roughly twice the global average, climate impacts are already being felt across economies, ecosystems and societies.
• Beef is the single biggest driver of agricultural methane emissions globally and is the second most widely consumed red meat in Asia after pork. According to the FAO/OECD, meat and seafood consumption in Asia is set to rise by 78% by 2050. In short, growing meat and dairy consumption is driving Asia’s methane emissions.
• Asia accounts for approximately 90% of global rice production and consumption, with methane emissions from rice cultivation representing a major and persistent climate challenge in the region. Globally, approximately 60 million tons of methane is emitted each year from rice production — around 10% of global anthropogenic methane emissions.

Action needed by Asian retailers

Mighty Earth is calling on the eight Asian retailers to take immediate action, starting with greater transparency in climate reporting, including disclosure of methane emissions from meat, dairy, and rice products. As part of this work, companies must:

• Acknowledge methane’s major role in their emissions profiles and climate change plans and raise consumer awareness of this important issue.
• Set methane reduction targets in line with the Global Methane Pledge of 30% reduction by 2030.
• Support a transition to plant-based diets by setting a target to achieve at least 60% plant-based and 40% animal-based sales ratio by 2030.

ends

Notes to editors:

Methodology:

The assessment of the eight retailers relies exclusively on public disclosures, including company reports, websites, and the SBTi commitment database; no confidential or proprietary data was used. It assesses transparency rather than on-the-ground implementation, treating public disclosure as a core measure of accountability.

• The analysis evaluates eight of Asia’s key supermarkets on their climate disclosure and methane emissions. The retailers included in this scorecard were selected based on their yearly revenue, volume of grocery sales, and overall market dominance in the food retailer sector. These retailers were evaluated on 20 indicators across six categories, with the research conducted between December 1, 2025 and January 15, 2026.
• Where applicable, the analysis focused on the recent climate related disclosure published on retailers’ websites. The sole exception was Indicator 3.4, which also drew data from the Science Based Targets initiative (SBTi) commitment database.
• The total score is 100 points, distributed among 20 indicators. Each indicator was scored on a three-tier scale: full points, half points, or zero points. Indicators were weighted differently, with each assigned a specific score based on its related importance and its potential impact on a retailer’s methane emissions and overall climate accountability.

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