The Coles Group Ltd (ASX: COL) share price is edging lower today despite the release of a positive announcement.
In morning trade the supermarket giant's shares are down almost 1% to $15.45.
What did Coles announce?
This morning Coles increased its green credentials by releasing its Climate Change Position Statement and announcing targets to reduce greenhouse gas emissions.
According to the release, the supermarket operator has committed to delivering net zero greenhouse gas emissions by 2050.
In addition to this, before then, the company intends to power its entire business by 100% renewable electricity by the end of FY 2025.
Another commitment is for Coles to reduce its combined Scope 1 and 2 greenhouse gas emissions by more than 75% by the end of FY 2030 from a FY 2020 baseline.
Coles' CEO, Steven Cain, said: "We have already reduced Scope 1 and Scope 2 greenhouse gas emissions by 36.5% since 2009 and have been a leader in securing renewable energy. Our new targets for Scope 1 and 2 emissions commit us to an accelerated reduction in greenhouse gas emissions that exceed the climate change ambitions of the Paris Agreement and will help sustain Australia for generations to come by working together with our customers, suppliers and members of the community."
Is the Coles share price in the buy zone?
The Coles share price has underperformed this year and was down 16% year to date prior to today.
One broker that is likely to see this share price weakness as a buying opportunity is Morgan Stanley. Last month its analysts put an overweight rating and $20.25 price target on the company's shares.
Based on the current Coles share price, this price target implies potential upside of 31% for its shares over the next 12 months.
The broker is also forecasting a 57 cents per share fully franked dividend in FY 2021. This represents an attractive 3.7% yield currently.
