In today’s marketplace, retailers are increasingly asking suppliers to provide greenhouse gas emissions (carbon footprint) data for their operations, products, and packaging. This shift is driven by the fact that the effects of climate change (wildfires, droughts, sea-level rise) are happening in real-time and the climate science states that we must halve global greenhouse gas emissions by 2030, and achieve net-zero emissions by 2050 to avoid catastrophic effects of climate change. There is also increasing consumer demand for more sustainable products; new regulations like California’s SB 253 and SB 261 and retailers’ commitments to reducing their overall environmental impact. Understanding and communicating your carbon footprint is no longer optional—it’s a business imperative.
Why Retailers Care About Your Carbon Footprint
Retail giants like Walmart, Target, and REI are responding to consumer expectations for transparency and sustainability by adopting strict environmental standards. By measuring their suppliers’ carbon footprints, retailers can make informed decisions about their supply chains, reducing overall emissions and promoting sustainability. For businesses, this means meeting these requirements is essential for maintaining valuable retail partnerships and remaining competitive in the marketplace.
How to Measure Your Carbon Footprint
Measuring your carbon footprint might seem daunting, but it can be simplified by breaking it down into three key steps:
- Identify Emission Sources: Start by identifying sources of greenhouse gas emissions within your operations. This includes direct emissions (Scope 1), such as company vehicles, indirect emissions from purchased energy (Scope 2), and other indirect emissions (Scope 3), including supply chain activities and product use. Scope 3 emissions likely makes up 80-95% of your brand’s carbon footprint.
- Collect Data: Gather data on fuel consumption (scope 1), electricity usage (scope 2), and purchased goods & services, waste production, and business travel among other categories (scope 3). Use the Greenhouse Gas (GHG) Protocol to streamline data collection and ensure accuracy.
- Calculate and Report: The EPA Simplified GHG Emissions Calculator is a great tool for measuring your company’s scope1, 2 and partial scope 2 emissions, but it doesn’t include scope 3.1 purchased goods & services, which is most likely your largest source of emissions, so you can look to work with experienced sustainability professionals like Emerger Strategies to calculate your emissions in metric tons of CO2 equivalent (MTCO2e). Regularly report these findings to your retail partners and leverage this data to identify opportunities for reduction. Walmart and Target use CDP for GHG emissions reporting, and REI has recently added The Climate Label, which is a certification administered by The Change Climate Project, as a preferred product attribute.
Taking these steps not only meets retailer requirements but also positions your business as a responsible and proactive partner, increasing your competitive advantage and securing customer loyalty. By understanding, measuring, and reducing your carbon footprint, you can enhance your brand’s reputation, mitigate risks, and ultimately contribute to a healthier planet.
At Emerger Strategies, we specialize in helping businesses simplify sustainability. Reach out to learn how we can assist you in measuring and managing your carbon footprint—making the business case for sustainability every step of the way.