The announcement came as the Wal-Mart-owned grocer posted sales up 6 per cent, but profits down by a third last year.
Asda aims to deliver cost savings of about£40 million this financial year, although by February 2012 the grocer expects cost savings to slow once some initiatives, such as reduced packaging, have hit their targets.
This year’s savings include£13 million from reduced packaging on its own-label foods and further savings from schemes such as avoidance of landfill tax and revenue generation from recycling schemes. Reducing energy consumption of its transportation fleet and in stores also played a part.
Asda executive director John Longworth said: “Our view is that it is a virtuous circle: we go green, save money and pass on savings to customers.” He dismissed as “complete nonsense” the idea that supermarkets may have to raise prices to pay for green initiatives.
Asda’s green initiatives include sending zero waste to landfill by 2010, reducing its own-brand food packaging and carrier bag usage by 25 per cent by the end of next year and reducing CO2 emissions from stores and depots by 20 per cent by 2012.
In accounts posted at Companies House this week, Asda registered sales up 6 per cent to£17.02 billion in the 12 months to December 31, 2006, which it said was “a year of recovery”.
Post-tax profits tumbled 33 per cent to£257.6 million, compared with restated figures of£385 million the previous year.
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