To reduce their emissions, retailers need to invest in a sustainability data backbone. This is a centralized repository for all of a retailer's emissions data. The data can be used to track emissions, identify opportunities for reduction and report to regulators.
A centralized data repository can help retailers to:
Automate the data gathering process: A sustainability data backbone can help retailers to collect and track emissions data more accurately and securely. This is important for meeting regulatory requirements and for making informed decisions about how to reduce emissions.
Connect supplier data to operations: A sustainability data backbone can help retailers to identify opportunities for emission reduction across operations. This can be done by analyzing the data to identify areas where emissions are high and where there are opportunities for improvement.
Ensure data operability between retailers and suppliers: A sustainability data backbone can help retailers to collaborate with their suppliers and educate customers to reduce emissions. This can be done by sharing data with suppliers and customers so that suppliers can work towards reducing emissions throughout the supply chain and customers can understand how their actions like frequent returns have a negative environmental impact.
For example, the Sustainable Retail Action Group (SRAG) is an industry association that brings together retailers from around the world to share best practices on sustainability. SRAG has developed several tools and resources to help retailers track and reduce their scope 3 emissions, including a data-sharing platform that allows retailers to share data on their emissions with each other.
Walmart and Target have already partnered with the Sustainability Consortium to develop a common framework for measuring and reducing scope 3 emissions. This framework is being used by hundreds of retailers around the world to track and reduce their emissions.