Case Study
Global retailer eliminated one gigaton of carbon emissions six years ahead of schedule with data-driven ESG program
CLIENT
With roots dating back to a single store in the early 1960s, this global retailer has grown to encompass a footprint of more than 10,000 stores and e-commerce websites in approximately 20 countries around the world. The company employs at least two million people and generates approximately $6 billion annually.
CHALLENGE
Retail sustainability—reducing supply chain greenhouse gas emissions
The retailer embarked on an ambitious plan to reduce, avoid, or sequester one gigaton (one billion metric tons) of greenhouse gas emissions across its supply chain by 2030. The complex project included thousands of geographically distributed locations in various states of readiness, along with a wide array of single to multi-category supply chain vendors with varied capabilities to undertake intense greenhouse gas reduction efforts. The retailer wanted to partner with a technology vendor to help guide the program.
TRANSFORMATION
Implementing supplier sustainability engagement strategies
UST designed and implemented a comprehensive sustainable supply chain management carbon emissions reduction program that included:
- A supplier sustainability platform and emissions reduction toolkit—designed to support multiple languages and browsers with AI-based predictive sustainability analytics, simulation and dimension reduction methods, and statistical process controls for sustainability using peer comparison and anomaly detection, so suppliers can easily set and track goals, ESG reports to understand progress, and participate in annual surveys
- A sustainability data mart—with metric mapping using United Nations sustainability development goals as a baseline
- Scientific recommendations to help suppliers reduce and measure emissions—based on guidance from the World Wildlife Fund, Environmental Defense Fund, World Resource Institute, and the Carbon Disclosure Project
- Practical tactics to boost energy efficiency—such as redesigning packaging, reducing food waste, and optimizing truck loads
- Knowledge transfer—so UST’s team of emissions reduction experts could support supplier ESG performance
IMPACT
Eliminating a gigaton of carbon emissions six years ahead of schedule with sustainability data analysis
As one of the largest private sector sustainability projects, the initiative achieved its scope 3 emissions reduction goal of eliminating one gigaton of carbon emissions from the company’s supply chain six years ahead of schedule. The program inspired nearly 6,000 suppliers across different product categories and regions around the world to participate in the program by implementing and measuring more sustainable business practices encompassing energy consumption, natural resources, packaging, transportation, and product use and design. Specific activities included using post-consumer recycled, reusable, or industrially compostable packaging; sourcing fish, produce, and other perishable foods more sustainably; and implementing more environmentally friendly cattle grazing and deforestation management practices.
The initiative also sparked innovation in retail sustainability best practices and infrastructure across the company’s supply chain that can further accelerate and expand greenhouse gas reduction and avoidance. The project has helped set the standard for corporate climate action, and the retailer continues to encourage suppliers to participate in the ESG program to eliminate even more carbon emissions.