Global ranking of retailers on carbon efficiency
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Trucost's Retail sector briefing shows that Carphone Warehouse Group has the best environmental performance of 149 listed retailers analysed. Trucost compared their greenhouse gas (GHG) emissions, measured in carbon dioxide equivalents (CO2e), as well as water and waste impacts.
Broadline Retailers and Food Retailers & Wholesalers were responsible for the majority of total GHG emissions across the sector (345 million tonnes of CO2e). More than 60% of global emissions were from suppliers of goods and services such as packaging, transport and logistics. Supply chains were also responsible for most of the 52.5 billion cubic metres of water use, whereas the retailers directly generated most of the sector's waste (more than 17 million tonnes).
To compare the carbon efficiency of companies of different sizes, Trucost analysed GHG emissions relative to revenue. Seven of the 15 lowest-carbon retailers ranked in the briefing - Retailers: Greening the Aisles - are based in the UK. Findings show that Food Retailers & Wholesalers and Home Improvement Retailers have the widest variations in carbon intensity, which indicates varied potential exposure to energy and carbon costs. The study also looks at the exposure of 34 UK-based retailers to carbon costs under the CRC Energy Efficiency Scheme, a national emissions trading programme.
A similar analysis of U.S. Retailers shows that Food Retailers & Wholesalers could see earnings before taxes, depreciation and amortisation fall most if external costs for carbon, water and waste were internalised.
Leading retailers are stepping up resource efficiency, environmental management and sustainability in supply chains to manage risks from rising resource and pollution costs, help the bottom line and strengthen competiveness.