Dilmah Tea’s net-zero journey recognised at Reuters Global Sustainability Awards

Dilmah has co-founder Biodiversity Sri Lanka to encourage corporate sector participation in biodiversity conservation

Training for Dilmah and other companies on EU Deforestation Regulation 

• Reuters honours Dilmah for science-based climate action

Dilmah Tea has been named a finalist at the Reuters Global Sustainability Awards 2025, honoured for its leadership in supply chain decarbonisation towards net-zero. It is the only Sri Lankan brand recognised in this category.

This recognition reflects Dilmah’s ambitious, science-based climate commitments validated by the Science Based Targets initiative (SBTi). The company has pledged to cut Scope 1 and 2 emissions by 46.2% and Scope 3 emissions by 27.5% by FY2031, on its path to achieving net zero by 2050. As the first food and beverage processor in Sri Lanka with near-term, long-term, and FLAG targets validated by SBTi, Dilmah is shifting from carbon neutrality to measurable emissions reductions, an approach now acknowledged on the global stage by Reuters.

The company’s targets, aligned with the Paris Agreement goal of limiting global warming to 1.5°C, reflect a strong strategy to de-carbonise operations across its value chain. Dilmah’s approach focuses not just on offsetting emissions but on reducing them at source – through energy-efficient upgrades, operational changes, improvements to supply chain sustainability and innovations in packaging.

This is part of a broader strategy deeply steeped within Dilmah’s Environmental, Social and Governance (ESG) governance framework. The company’s ESG structure ensures that sustainability infuses every aspect of its operations – from board-level oversight to frontline implementation by the Dilmah Conservation and Sustainability Department, EMS Team, and the MJF Charitable Foundation.

Further, Dilmah has been awarded a Silver medal by Ecovadis, placing it in the top 15% of global companies assessed for sustainability, ethics, and responsible business practices. 

These honours build on the legacy of Dilmah Founder the late Merrill J. Fernando, who championed the philosophy that “business is a matter of human service”. Long before sustainability became a buzzword and global business norm, his vision guided the establishment of Dilmah Conservation and the MJF Charitable Foundation – two arms dedicated to environmental stewardship and humanitarian action. This legacy continues to guide the company’s net-zero mission today.

To support its emissions reduction goals, Dilmah is taking action across operations, products and its supply chain:

At the operational level, the company has invested in asset-decarbonisation including the use of energy-efficient machinery and the implementation of a real-time Energy Monitoring System to identify and reduce inefficiencies.

On the product front, Dilmah has made industry-leading advances with its home and industrial compostable Pot Tea Bag/Tag-free Tea Bag range, which earned certifications from the Australasian Bioplastics Association (ABA) and DIN CERTCO. These certifications mark a significant innovation in sustainable packaging, further reinforcing Dilmah’s commitment to reducing its environmental footprint.

Extending these efforts across its supply chain, Dilmah drives transformation through its ‘Stronger Together’ initiative which includes supplier training on environmental and ethical standards, ESG self-assessments, a comprehensive Supplier Code of Conduct, regular site visits, and technical support. Prioritising local sourcing helps reduce emissions and strengthen communities. Guided by the TCFD framework, Dilmah integrates climate and biodiversity risks into enterprise risk management, using a double-materiality approach to address both business and environmental impacts.

Present in over 100 markets, these achievements reflect not only Dilmah’s leadership in the tea industry, but also its unwavering dedication to brewing a more sustainable and equitable future – for people and the planet.