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Emission of carbon dioxide of selected retailers

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  • Faculty of Economic, Serbia

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Increased attention has been paid recently to the analysis of the effects of applying the concept of sustainable development in retail. In that context we have particularly considered greenhouse gases emission in retail. This is achieved through the use of modern ecological technology in business - through the whole value chain. The ultimate goal is to achieve the planned reductions of carbon dioxide in retail, which positively reflects the overall performance of retailers, environmental in particular. The costs of carbon dioxide emission reduction affect the performance of retailers. Continuous empirical research shows that almost all global retailers achieve a significant reduction in carbon dioxide emissions from year to year. Empirical research conducted in this paper on the example of global retailers in the United States, Europe and the European Union, the United Kingdom, Mexico, China, Croatia and Serbia shows significant and planned reduction of carbon dioxide emissions in retail, especially in countries with developed market economies. This empirical research is mainly based on the analysis of the original sustainable (environmental and ecological) reports officially disclosed by selected retailers, primarily from the countries of a developed market economies, which they started to publish with regular annual financial statements. They are now an integral part of the so-called integrated reporting on performance of global retailers. Due to the general importance, harmonized regulations on sustainable retail reporting are being increasingly applied as a data source for more efficient environmental management. In perspective, this will ease the comparative analysis of the carbon dioxide emission of global and other retailers.
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72 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
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ORIGINAL SCIENTIFIC PAPER
Emission of Carbon Dioxide of Selected Retailers
LUKIC Radojko
23
Abstract
Increased attention has been paid recently to the analysis of the effects of applying the
concept of sustainable development in retail. In that context we have particularly considered
greenhouse gases emission in retail. This is achieved through the use of modern ecological
technology in business through the whole value chain. The ultimate goal is to achieve the
planned reductions of carbon dioxide in retail, which positively reflects the overall performance
of retailers, environmental in particular. The costs of carbon dioxide emission reduction affect
the performance of retailers. Continuous empirical research shows that almost all global
retailers achieve a significant reduction in carbon dioxide emissions from year to year.
Empirical research conducted in this paper on the example of global retailers in the United
States, Europe and the European Union, the United Kingdom, Mexico, China, Croatia and
Serbia shows significant and planned reduction of carbon dioxide emissions in retail, especially
in countries with developed market economies. This empirical research is mainly based on the
analysis of the original sustainable (environmental and ecological) reports officially disclosed
by selected retailers, primarily from the countries of a developed market economies, which they
started to publish with regular annual financial statements. They are now an integral part of the
so-called integrated reporting on performance of global retailers. Due to the general importance,
harmonized regulations on sustainable retail reporting are being increasingly applied as a data
source for more efficient environmental management. In perspective, this will ease the
comparative analysis of the carbon dioxide emission of global and other retailers.
Keywords: greenhouse gas emissions, carbon dioxide, CO2 emission sources, renewable energy sources,
sustainable reporting
JEL: I10, L81, M14, M41, Q42, Q56, Q57
UDK: 005.346:504.5
658.26
COBISS.SR-ID 253500684
Introduction
Close attention has been recently devoted to the analysis of environmental performance in
all sectors, including wholesale and retail trade. Within this, greenhouse gases emission (GHG)
in retail is briefly considered. The overall goal of global retailers is to reduce carbon dioxide
emissions through the entire value chain. The costs of carbon dioxide emission reduction are
significant and affect the performance of retailers.
The subject of research in this paper is the significance and trend of carbon dioxide
emissions in retail. Based on a comparative analysis of the original officially disclosed
sustainable reports of global selective retailers, the aim of the research is to comprehensively
examine the problem of carbon dioxide emissions in retail through an entire value chain and to
23
Faculty of Economics, Belgrade, University of Belgrade, Serbia, rlukic@ekof.bg.ac.rs
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 73
© Filodiritto Editore Proceedings
take appropriate measures to achieve the target reduction. The effects of this are the
improvement of the overall, especially environmentally-friendly performances of retailers. In
this we find the scientific and professional contribution of this work, due to the fact that there is
scarce literature fully devoted to the issue of carbon dioxide emissions in retail.
Numerous factors undoubtedly influence carbon dioxide emissions in retail, and these are:
type of store, product category, nature of the item itself, sales, location and distance (type of
settlement: urban, suburban and rural), carbon policy (Wang et al., 2017), as well as energy
sources, type of ventilation and heating of sales and other premises, cooling devices, mode of
transport (logistics), waste treatment, and others. Taxation is also a factor in carbon dioxide
emissions in all sectors, including retail (Qin, 2015). Regarding retail formats (types of stores,
classical or modern Internet shops) on-line sales have insignificant carbon dioxide emissions
and, viewed through a value chain, it occurs only in warehousing, while in distribution and in
the store, equals zero, contrary to the other types of stores (Seebauer et al., 2016). Carbon
dioxide emissions vary by product category (food and non-food products) and within one
product category, by individual articles, depending on their nature (Linda, 2014; Eriksson,
2017).
All in all, the main sources of carbon dioxide emissions in retail are: electricity, transport,
ventilation and heating, refrigeration and waste. Effective control of the factors that influence
the emission of carbon dioxide can significantly affect the improvement of economic, social
and, in particular, environmental performance in retail. For these reasons, it is necessary to
know the size and intensity of carbon dioxide emissions in modern retail, which is the focus of
this work.
There is voluminous literature devoted to analyzing the way company's performance is
affected by general problems and effects of carbon dioxide emission reduction through the
whole chain (Jones, 2005; Martinuzzi, 2011; Kahn, 2014; Congcong, 2016; Li, 2016; Seebauer
et al., 2016; Bazan, 2017, Clune, 2017), as well as consumer preferences (Ji, 2017). In other
words, it is generally known that carbon dioxide reduction increases the economic performance
of companies (Cusshiella, 2017), the profitability of producers and retailers, as well as
consumer preferences (Eagle, 2017). In view of the significance of the problem of carbon
dioxide emissions, generally speaking, as far as we know, the number of papers dedicated to the
specificities and impacts of carbon dioxide emission reduction on the performance of retail
companies is modest (Patten, 2014; Makarov, 2015; Riboldazzi, 2016; Sullian, 2016).
In Serbian literature this issue is only partially considered in some works (Lukic, 2011a, b,
2012, 2014, 2016a, b, c, 2017). For that reason, this paper attempts to make thorough analysis
of specific issues of carbon dioxide emissions in the retail sector, firstly on the example of
global retailers from different countries, primarily developed market economies, which, due to
the general importance of the matter, publish reports on sustainable development with regular
annual financial reports. This practice of global retailers provides them with more reliable
information base for efficient management of carbon dioxide emissions through the whole value
chain. This is particularly true for retailers in Serbia whose practice of making the reports on
environment and sustainable development publicly available is at the very beginning.
The general research hypothesis in this paper is that the reduction of carbon dioxide
emissions positively reflects on overall (integrated, especially environmental) performance of
retailers. The methodology of the study of the given hypothesis is primarily based on the
comparative analysis of the carbon dioxide emission of global selected retailers from various
comparable countries of the developed market economy. The problem of comprehensiveness of
the research on carbon dioxide emissions in retail is that, at the time being, there is no unified
system of sustainable (environmental) reporting for all retailers. In addition, many retailers still
do not publish this report, what as a consequence, has an incomplete comparability of data on
carbon dioxide emissions by individual retailers. Nevertheless, knowledge of the importance
and trend of carbon dioxide emissions from global retailers is very important in order to manage
overall, integrated and, in particular, environmental performance in (concrete) retail. In view of
74 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
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the global, other retailers will increasingly publish reports on sustainable development (with
data on carbon dioxide emissions). In this way, they will increase its information base for more
efficient management of total business, including environmental protection. This will have a
positive impact on the achievement of the target profit.
Main data sources for the research of the treated problem in this paper are literature, articles,
publications, studies, OECD, Eurostat and, in particular, officially disclosed annual financial
and sustainable reports of (global) retailers. They were processed in such a way that is easy to
comprehend the significance and trend of carbon dioxide emission in retail.
Carbon dioxide emissions in retail companies
Different is the carbon dioxide emissions of individual retailers. This is shown by the results
of the research in this paper.
At WalMart (United States of America, Dominant operational format:
Hypermarket/Supercenter/Superstore), a great significance is given to reducing carbon dioxide
emissions (Table 1). This is achieved by: investing in renewable energy sources, reducing
energy demand, improving energy efficiency, improving refrigeration in stores and maximizing
the efficiency of the vehicle fleet.
Table 1. Carbon dioxide emission (Scope 1 and 2) and retail area at WalMart, 2005-2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Carbon dioxide
emission (million-
ton CO2e)
18,9
19,3
20,1
20,8
20,3
20,6
20,8
21,2
21,0
21,9
Retail area (million
square meters)
740
805
867
921
952
985
1,037
1,072
1,102
1,134
Carbon dioxide
intensity (million
tons CO2e/million
m2) *
0,025
0,024
0,023
0,022
0,021
0,021
0,020
0,020
0,019
0,019
Note: *Calculations performed by the author
Source: Wal-Mart Stores, Inc. 2016 Global Responsibility Report,
https://cdn.corporate.walmart.com/9c/73/3f9abcef444397f2c771e081e095/2016-global-responsibility-
report.pdf#page=58&zoom=auto,-130,628
In generating greenhouse gas emissions, WalMart participates with: electricity supply 69%,
refrigeration 18%, fuel transport 5.9%, fuel on the site 7% and mobile refrigerators with 0.1 %
(Wal-Mart Stores, Inc. 2016 Global Responsibility Report,
https://cdn.corporate.walmart.com/9c/73/3f9abcef444397f2c771e081e095/2016-global
responsibility-report.pdf#page=58&zoom=auto, -130,628. Therefore, the main source of
greenhouse gas emissions in WalMart is electricity supply. With the increased application of the
ecological operation principles, WalMart reduced carbon dioxide emissions from year to year,
which reflects favourably on its overall performance, especially environmental.
In Kroger (United States, Dominant operational format:
Hypermarket/Supercenter/Superstore) carbon dioxide emissions amounted to 32.9 (tonnes of
CO2e/1,000 sq ft) in 2015, and 36.3 in 2006. This means that there was a 9.3% reduction
achieved (2016 Sustainability Report/Kroger, http://sustainability.kroger.com/environment-
energy-carbon.html. The effects of this decrease are the improvement of environmental and
overall performance in the company Kroger.
In Best Buy (United States, Dominant operational format: Electronics Specialty),
considerable attention is paid to the reduction of greenhouse gas emissions. This is shown in
Table 2.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 75
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Table 2. Energy and greenhouse gas emissions at Best Buy
Data
Fuel consumption: 2,883,506,400,000,000 joules
Electric energy consumption: 1,074,586 MWh
Total Scope 1&2: 1,975,560 MWh
0,0332275 MWh/Sq Ft
34,415 MWh or 1,8% reductions from year to year
219,869 MT CO2e
*354,451 MTCO2e
1,019,791 MT CO2e
0.01017468 MTCO2e/Sq Ft
*120,444 MTCO2e, or 17,3% reductions from year to
year
Note: *RECs (Renewable Energy Credits) not included
Source: Best Buy Fiscal Year 2016 Corporate Responsibility & Sustainability Report,
https://corporate.bestbuy.com/wp-content/uploads/2016/06/fy16-full-report-final.pdf
The data in the given table show that it is planned to achieve a significant reduction in
emission of greenhouse gasses in Best Buy primarily by using renewable energy sources.
At Tesco (United Kingdom, Dominant operational format:
Hypermarket/Supercenter/Superstore), as with WalMart, considerable attention is paid to the
research and control of carbon dioxide emissions. This positively reflects on its overall
performance, including the surrounding ones. In Figure 1, an illustration of the specificity of
carbon dioxide emissions measurement at Tesco is shown.
Fig. 1. Tescos emission limit
Source: Carbon Footprint 101: A Guide for Food Retailers,
https://www.fmi.org/docs/sustainability/carbon-footprint-101-a-guide-for-food-
retailers.pdf?sfvrsn=4#page=11&zoom=auto,-121.85
Table 3 and Figure 2 show the greenhouse gas emissions in Tesco.
Table 3. Emission of greenhouse gases in Tesco
Total ton CO2e
2016/17
2015/16
Base year
76 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
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2006/07
Scope 1
1,236,980
1,301,746
1,345,507
Scope 2
Market-based method
1,582,275
2,004,992
Not available
Location-based method
2,357,245
2,528,323
2,259,984
Scope 1 and 2 carbon
dioxide intensity (kgCO2e/sq
ft of stores and distributive
centres)
22,95
26,33
51,14
Scope 3
1,073,721
1,097,491
1,064,460
Total gross emission
3,892,977
4,404,230
4,669,951
CO2e from renewable energy
exported to the grid
1,154
1,513
-
Total net emissions
3,891,822
4,402,717
4,669,951
Overall net carbon intensity
(total net emissions
kgCO2e/sq ft of stores and
distributive centres)
31,69
35,06
66,23
Source: Tesco PLC Annual Report and Financial Statements 2017,
https://www.tescoplc.com/media/392373/68336_tesco_ar_digital_interactive_250417.pdf
The data in the given table show that the intensity of carbon dioxide emissions in Tesco is
decreasing from year to year.
2016/17 total carbon footprint (million tonnes CO2e)
Fig. 2. Total carbon dioxide (million tonnes of CO2e) in Tesco 2016/2017
Source: Tesco Our carbon footprint, https://www.tescoplc.com/tesco-and-society/sourcing-great-
products/reducing-our-impact-on-the-environment/our-carbon-footprint/
Figure 3 shows sources of carbon dioxide emission throughout the value chain, with an
emphasis on Tescos participation in carbon footprint.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 77
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Fig. 3. Emissions of carbon dioxide by source in Tesco
Source: Tesco Our Carbon Footprint, https://www.tescoplc.com/tesco-and-society/sourcing-great-
products/reducing-our-impact-on-the-environment/our-carbon-footprint/
Therefore, Tesco participated in total emission of carbon dioxide through entire value chain
with 9%. Table 4 shows ecological performances at Tesco.
Table 4. Global ecological performances at Tesco
2016/17
2015/16
2014/15
2013/14
Carbon dioxide (million-ton CO2e)
3,9
5,1
5,26
-
Emission of CO2 reduction (stores and distributional centres)
compared to 2006/07
40,5%
39,5%
38,3%
-
Emission of CO2 reduction (distribution) compared to
2011/12
19,7%
17.4%
14,47%
7,8%
Direct water consumption (million m3)
23,5
25,5
32,6
32,9
Waste percentage (food and non-food) which is recycled,
used again or turn into energy
93%
88%
84%
86%
Source: Reducing our impact on the environment,
https://www.tescoplc.com/tesco-and-society/sourcing-great-products/reducing-our-impact-on-the-
environment/
Tesco has tendency to improve ecological performances (carbon dioxide emission reduction,
direct water consumption reduction and waste treatment improvement). This reflects favourably
on its market, economic and financial performances.
Due to the increasing importance, special attention is paid to carbon dioxide emissions in
Marks & Spencer (M & S) (United Kingdom, Dominant Operating Format: Department
Store), as shown in Table 5.
Table 5. Emission of carbon dioxide in Marks & Spencer
Plan A
baseline
2006/7
(000
tCO2e)
Legal
baseline
2013/14
(000
tCO2e)
Last year
2014/15
(000
tCO2e)
2015/16
000
tCO2e
Achievement in
relation to 2006/7
Total gross/location-based
emission CO2e
732
567
592
566
-23%
Total carbon intensity measure
(per 1000 sq ft of sales floor (ton
CO2e/1,000 sq ft)
46
30
30
29
-47%
Source: M & S Plan Report 2016,
http://annualreport.marksandspencer.com/M&S_PlanA_Report_2016.pdf
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At Marks & Spencer, a decrease in carbon dioxide emissions was recorded in 2014/15 in
relation to 2006/7. Reduction was achieved by improving energy efficiency using the so-called
green energy through the whole value chain. In Kingfisher (United Kingdom, Dominant
operational format: Home improvement), significant attention is paid to carbon dioxide
emissions. Table 6 shows the dynamics of greenhouse gas emissions at Kingfisher.
Table 6. Emission of greenhouse gases in Kingfisher (tons of CO2e)
2010/1
2013/14
2014/15
2015/16
Carbon footprint from fuel combustion and factories
(scope 1)
157,590,10
164,172,96
146,806,65
156,062
Carbon footprint from electricity, heating and steam
(scope 2)
247,774,97
230,759,93
258,392,29
246,775
Absolute carbon footprint (scope 1 and 2) (aimed at
25% reduction until 2020)
405,365,07
394,932,89
405,198,94
402,837
Carbon footprint per m2 of sales area
61,00
56,27
53,26
51,9
Source: Kingfisher Sustainability Report 15/16,
http://www.kingfisher.com/sustainability/files/reports/cr_report_2016/2016_Sustainability_Report.pdf
Company Kingfisher achieved a reduction of greenhouse gas emissions by 5% 2015/16
compared to 2010/11. Their goal is to achieve a reduction of up to 25% by 2020. Kingfisher has
been decreasing greenhouse gas emissions from year to year. In IKEA company (Sweden,
Dominant operational format: Other Specialty) that operates with furniture, considerable
attention is paid to improving the research methodology and the greenhouse gas emission
control system. This is shown in Table 7.
Table 7. Emissions of carbon dioxide in IKEA, 2016
FY2016
Carbon footprint (tonnes CO2)
Scope 1
209,484
Scope 2
621,932
Scope 3
39,161,131
Total
39,992,548
Carbon footprint at each stage of value chain (tonnes CO2)
Raw material
16, 562,759
Production and distribution
3,142,796
Suppliers (home furnishing and catalogue)
2,199,035
Goods transport
943,761
IKEA Group operations
1,020,366
Scope 1 and 2 from IKEA operations
831,416
Business travel
52,368
Co-worker commuting
136,582
Shopping centre tenants
172,373
Customers
18,162,615
Transportation to stores
3,480,107
Product use (light sources and appliances)
14,682,507
Products “end of life”
931,639
Total
39,992,548
Source: IKEA Group Sustainability Report FY16,
http://www.ikea.com/ms/en_US/img/ad_content/IKEA_Group_Sustainability_Report_FY16.pdf
Table 8 shows the efficiency of carbon footprint in IKEA.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 79
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Table 8. Carbon efficiency in the company IKEA
Carbon efficiency for Scope 1 and 2 emissions
FY10
FY14
FY15
FY16 (excluding
IKEA centres)
FY16 (including
IKEA centres)
Kg CO2 per m3 product sold
34,3
27,5
24,4
17,5
32,8
Carbon efficiency (% improvement against FY10 baselines)
FY10
FY14
FY15
FY16
FY20 goal
Retail
37,8
39,6
48,0
50
Distribution centres
51,2
54,1
58,2
50
IKEA Industry Group Divisions
flat line and Solid Wood
18,3
30,9
71,0
50
IKEA Industry Group Division
Board
3,0
18,7
36,4
50
IKEA components (base year
FY13)
7,8
33,8
35,8
50
Total
19,8
28,9
49,0
50
IKEA Carbon footprint from consumed electricity in FY16
FY16
Consumed electricity (MWh)
3,008,893
Location based emissions (tonnes CO2)
1,266,578
Market based emissions (tonnes CO2)
578,551
Footprint reduction from using electricity from renewable sources (%)
54,3
Source: IKEA Group Sustainability Report FY16,
http://www.ikea.com/ms/en_US/img/ad_content/IKEA_Group_Sustainability_Report_FY16.pdf
In IKEA, significant reduction in carbon footprint is achieved through the growing use of
renewable energy. The share of renewable resources in the total consumption of electricity in
IKEA year after year was as follows: FY14 40%, FY15 53.4% and FY16 71.0% (IKEA
Group Sustainability Report FY16, http://www.ikea.com/ms/en_US/img/ad_
content/IKEA_Group_Sustainability_Report_FY16.pdf. Increased consumption of the so-called
green energy has had a positive impact on the IKEAs environmental and overall
performance. Also, company IKEA pays significant attention to improving the transport system
(logistics) in order to reduce carbon dioxide emissions. This is shown in Table 9.
Table 9. Product transport efficiency (impact on carbon dioxide emissions) in IKEA
FY14
FY15
FY16
FY20
goal
CO2 per cubic meter of products transported
32,7
28,2
26,6
-
Reduction in CO2 per cubic meter of products transported compared
with FY11 (%)
12,3
24,4
26,7
30
Source: IKEA Group Sustainability Report FY16,
http://www.ikea.com/ms/en_US/img/ad_content/IKEA_Group_Sustainability_Report_FY16.pdf
It is a general conclusion that IKEA has increased reduction of carbon dioxide emissions,
which reflects favourably on its overall performance, in particular its environment.
At H & M Group (Sweden, Dominant operational format: Apparel/Footwear Specialty),
considerable attention is paid to the reduction of carbon dioxide emissions. This is shown in
Table 10.
80 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
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Table 10. Carbon dioxide emission at H & M Group
2012
2013
2014
2015
2016
Carbon emissions per million SEK sales turnover
including VAT (constant exchange rate)
2,04t
2,05t
1,72t
0,69t
0,36t
Total CO2e emissions to previous year in % (Scope 1
and 2) versus growth in sales (in local currencies)
Net sales
9%
14%
11%
7%
Emissions
356,373t
341,675t
151,753t
80,54t
Note: SEC Swedish crown
Source: The H & M Group sustainability report 2016,
http://sustainability.hm.com/content/dam/hm/about/documents/en/CSR/Report%202016/HM_group_Sustai
nabilityReport_2016_FullReport_en.pdf
In 2016, H & M made a reduction of carbon dioxide emissions by 47% compared to 2015.
In Inditex Group (Spain, Dominant Operating Format: Apparel/Footwear Specialty), to
which Zara also belongs, considerable attention is paid to research on carbon dioxide emissions
and its reduction. This is shown in Table 11.
Table 11. Emission of greenhouse gases in Inditex
2012
2013
2014
2015
Scope 1 (tCO2eq)
24,479
22,528
21,347
22,996
Scope 2 (tCO2eq)
589,758
627,982
666,188
622,879
Number of clothes sold on the market
869,167,058
948,745,988
1,018,995,911
1,177,784,343
CO2 per item sold on market
706,70
685,65
674,72
548,38
Avoided emissions by using generators
of thermal energy (tCO2eq)
NA
NA
NA
5,339,59
Scope 3 Downstream transportation
(tCO2eq)
398,168
462,120
596,316
672,307
Scope 3 Upstream transportation
(tCO2eq)
NA
NA
NA
42,258
Scope 3 Franchise stores (tCO2eq)
100,143
108,035
113,094
94,262
Note. NA not available
Source: Inditex Annual Report 2015
https://www.inditex.com/documents/10279/205236/Inditex+Annual+Report+2015+web.pdf/9979097b-
9e63-489a-ad16-a141b6b665b4
Therefore, the result of efficient management is the reduction of carbon dioxide emissions in
Inditex.
In 2015, Carefour (France, Dominant operational format:
Hypermarket/Supercenter/Superstore) emitted 3.61 million tonnes of CO2e. In 2015, carbon
dioxide emissions were reduced by 29.7% compared to 2010. The aim is to achieve a reduction
in carbon dioxide emissions by 40% until 2025 and 70% until 2050 (Unique and Multiple/2015
Annual Activity and Responsible Commitment Report,
http://www.carrefour.com/sites/default/files/carrefour_2015_annual_activity_and_responsible_
commitment_report.pdf. This will have a positive impact on Careffours environmental and
overall performance).
Metro Group (Germany, Dominant operational format: Cash & Carry/Warehouse Club)
regularly discloses reports on corporate responsibility, in which carbon dioxide emissions are
represented in particular, as shown in the Table 12.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 81
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Table 12. Greenhouse gas emissions in Metro Group (tonnes of CO2e)
Year of
reference
2011
2013/14
2014/15
2015/16
Scope 1 direct emission of greenhouse gasses
1,084,509
1,015,598
871,837
760,186
Scope 2 indirect emission of greenhouse
gasses
2,432,102
1,786,594
1,495,710
1,416,418
Scope 3 other indirect emission of greenhouse
gasses
6,113,122
5,562,362
5,151,775
4,589,161
Total emission of greenhouse gasses
9,629,733
8,364,553
7,519,322
6,765,764
Source: Metro Group Corporate Responsibility Report 2015/16 Key Performance
Indicators and Goals, https://www.metrogroup.de/.../reports/metro-group-corporate-responsibility-report-
2015
Data in this table show that Metro Group reduces emissions of greenhouse gases from year
to year. The intensity of carbon dioxide emissions is reduced from year after year (Fig. 4).
This reflects favourably on its overall performance, including environmental.
Fig. 4. Emission of carbon dioxide in Metro Group
(kgCO2/m2 of sales area (referring to total sales space 2,003,960 m2)
Source: Metro Group - Corporate Responsibility Report 2015/16 - Key Performance Indicators and
Goals, https://www.metrogroup.de/.../reports/metro-group-corporate-responsibility-report-2015
Aldi (Germany, Dominant operational format: Discount Store) also publishes reports on
sustainable development, in which special attention is paid to the emission of carbon dioxide.
Table 12 shows the greenhouse gas emissions at Aldi.
Table 12. Greenhouse gases emission in Aldi (tons CO2e)
2014
2015
Scope 1
284,831
312,940
Scope 2
369,961
567,424
Total
654,792
680,364
Source: Aldi Sustainability Report 2015, https://www.cr-aldinord.com/2015/wp-
content/uploads/sites/2/2016/04/ALDI_North_Group_NHB_Sustainability_Report_2015.pdf
At Aldi, greenhouse gases emissions by sectors (in percent) in 2015 were as follows:
electricity 53.1%, cooling equipment 20.0%, heating energy 14.3% and logistics 12.6% (Aldi
Sustainability Report 2015, https://www.cr-aldinord.com/2015/wp-
content/uploads/sites/2/2016/04/ALDI_North_Group_NHB_Sustainability_Report_2015.pdf.
82 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
© Filodiritto Editore Proceedings
In order to reduce greenhouse gas emissions, special attention is paid to the use of energy
from renewable sources (LED lamps).
At Ahold (Germany, Dominant operational format: Supermarket), considerable attention is
paid to the reduction of carbon dioxide emissions. This is shown in Table 13.
Table 13. Carbon dioxide emission at Ahold
2008
2009
2010
2011
2012
2013
2014
2015
Carbon dioxide emissions (thousand
tons)
2,176
2,106
2,107
2,090
2,019
Carbon dioxide emissions (kg CO2/m2
sales area)
567
574
543
507
480
473
465
420
Sources (%)
Electricity
49%
Refrigerant appliances
29%
Fuel
12%
Gas
10%
Source: Ahold Responsible Retailing Report 2015,
https://www.aholddelhaize.com/media/1934/ahold-responsible-retailing-report-2015.pdf
Carbon dioxide emissions at Ahold has been decreasing year after year. Since 2016, Ahold
has been operating under the name of Ahold Delhaize. In view of this, Table 14 shows data on
carbon dioxide emissions for Ahold Delhaize (Belgium, Dominant operational format:
Supermarket) in 2016.
Table 14. Carbon dioxide emission at Ahold Delhaize
2016
Actuals
2020
Target
% reduction in CO2 equivalent emissions per m2 of sales area (from 2008
baseline)
-22%
-30%
Total CO2 equivalent emissions per m2 of sales area location-based
approach
496
n/a
Total CO2 equivalent emissions (thousand tonnes) location-based approach
4,505
n/a
Total Scope 1 CO2 equivalent emissions (thousand tonnes) location-based
approach
1,940
n/a
Total Scope 2 CO2 equivalent emissions (thousand tonnes) location-based
approach
2,420
n/a
Total Scope 3 CO2 equivalent emissions (thousand tonnes) location-based
approach
144
n/a
Offset CO2 equivalent emissions (thousand tonnes)
241
n/a
Avoided grid electricity CO2 emissions (thousand tonnes)
31
n/a
Source: Ahold Delhaize Supplementary report on Sustainable Retailing performance 2016,
https://www.aholddelhaize.com/media/3984/supplementary-report-on-sustainable-retailing-performance-
2016.pdf
Significant reduction in carbon dioxide emissions by 2020 (30%) is expected at Ahold
Delhaize. This will be achieved by using so-called green energy in business operations.
Sources of carbon dioxide emissions were: electricity 60%, cooling devices 31% and
transport 9% (Ahold Delhaize Supplementary Report on Sustainable Retailing performance
2016, https://www.aholddelhaize.com/media/3984/supplementary-report-on-sustainable-
retailing-performance-2016.pdf. Delhaize Serbia is also part of Ahold Delhaize which employs
the same sustainable development strategy and environment reporting as well as company at its
higher organizational level.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 83
© Filodiritto Editore Proceedings
In the Fast Retailing (Japan, Dominant Operating Format: Apparel/Footwear Specialty),
exceptional attention is devoted to the issue of carbon dioxide emission reduction. Figure 5
shows carbon dioxide emissions through the entire value chain in Fast Retailing.
Fig. 5. Sustainable reporting Carbon dioxide emission through value chain in Fast Retailing
Source. Fast Retailing Sustainability Report,
http://www.fastretailing.com/eng/sustainability/environment/co2_popup.html
In 2016, at Fast Retailing, carbon dioxide emissions amounted to 2,917,069 (tCO2e). In
logistics it was 17,707 (tCO2e). Table 15 presents carbon dioxide emission (tCO2e) in stores and
management offices by sources (generators) at Fast Retailing for 2016.
Table 15. Carbon dioxide emission in stores and management according to sources (generators) at Fast
Retailing for 2016 (tCO2e)
Store gas
11,436
HQ gas
38
Total
Scope 1
11,474
Store electricity
123,932
HQ electricity
2,466
Total
Scope 2
126,398
Source: Fast Retailing - Sustainability Report 2017,
http://www.fastretailing.com/eng/sustainability/report/pdf/sustainability2017_en.pdf#page=1&pagemode
=thumbs&zoom=80
Fast Retailing plans to reduce carbon dioxide emissions in stores by 10% by 2020 (Fast
Retailing Sustainability Report 2017, http://www.fastretailing.com/eng/sustainability
/report/pdf/sustainability2017_en.pdf#page=1&pagemode=thumbs&zoom=80.
For the purpose of more complex analyzes of greenhouse gas emissions by selected
retailers, Table 16 shows the trend of greenhouse gas emissions for retailers in the United States
and Great Britain.
84 Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4)
© Filodiritto Editore Proceedings
Table 16. Trend of greenhouse gases in US and UK
Company
Annual Change in GHG Emissions (%/year)
UK Retailers
Asda
-3.67 (over 3 years)
Co-operative
-7.69 (4 years)
Marks and Spencer
-3.21 (4 years)
Morrisons
-2.22 (5 years)
Sainsburys
-0.88 (5 years)
Tesco
+5.28 (4 years)
US Retailers
Costco
5.23 (over 3 years)
Kroger
2.71 (5 years)
Lowe's
-2.11 (4 years)
Sears
-6.05 (4 years)
Target
0.98 (4 years)
Wal-Mart
2.19 (6 years)
Notes: a UK company based on Sullivan and Gouldson (2013).
b US company data based on company responses to the 2012 CDP survey
Source: Sullivan, (2016)
In order to have more comprehensive understanding on differences Figure 12 presents
comparative analysis of the greenhouse gas emission of US and UK retailers for the period
2006-2011.
Fig. 6. Comparative trend of greenhouse gas emissions of US and UK retailers
Source: Sullivan, (2016)
As well as in Fig. 6, the data in the given table show various annual changes in the
greenhouse gas emissions between retailers UK and US. Thus, for example, in the UK, the
highest annual positive percentage changes in greenhouse gas emissions are in Tesco (+5.28),
and in US in the retailer Costco (5.23). Concerning the negative annual changes in the
greenhouse gas emissions, the largest are in the UK in Cooperative (-7.69) and in the US in
Sears (-6.05). The conclusion is that there is, to some extent, higher reduction in greenhouse gas
emissions from retailers in the UK than in the US.
Faculty of Business Economics and Entrepreneurship International Review (2017 No.3-4) 85
© Filodiritto Editore Proceedings
Carbon dioxide emissions in retail companies of Serbia
In Serbia there is a significantly smaller number of (domestic) retailers who disclose
sustainable development reports compared to other countries, with the expectation that this
number will increase significantly in the future. In this regard, the company of the Naftna
Industija Srbije (NIS) is leading and for or a long period of time, it has regularly published a
sustainable development reports, compiled in accordance with the G4 Global Reporting
Initiative (GRI) Guidelines. Table 17 shows the amount of air pollutants emitted in the Naftna
Industija Srbije for 2014, 2015 and 2016.
Table 17. Amount of emitted air pollutants in Naftna Industija Srbije
2014
2015
2016
Emission CO2 (t)
1457
3464
3649
Emission NO2 (t)
601
1064
905
Emission of powdery materials (t)
30
74
51
Source: NIS Sustainable Development Report 2015 a 2016
In Naftna Industija Srbije, appropriate measures are continuously being undertaken in order
to reduce the emissions of greenhouse gases in the future.
Conclusion
A growing number of retailers in the world are increasingly publishing reports on
sustainable development. By their reputation, and because of its importance, other retailers will
certainly tend to publish this report in the future. It provides the basis for a comparative analysis
of environmental performance in retail from various aspects. In this report, special significance
is given to trend of greenhouse gas emissions, in particular, carbon dioxide.
Carbon dioxide emissions in trade, in total and by sectors, vary by country. It is significantly
higher in China than in Europe or the European Union. Likewise, carbon dioxide emissions are
significantly higher in trade of France, Germany and Great Britain than in Greece, Croatia,
Turkey and Serbia. Carbon dioxide emissions are higher in Croatias trade than in Serbian.
These differences are due to the application of various ecological measures in business.
Carbon dioxide emissions differ in individual stages of the product life cycle, retail
companies and product categories. Carbon dioxide emission generators in retail companies are:
electricity, transport, ventilation, heating and cooking, refrigeration, and waste. The goal of all
retailers is to take appropriate measures, primarily ecological in nature, to reach a planned
reduction of carbon dioxide emissions in the future. Among other things, this is achieved with
the increasing use of electricity from renewable sources (so-called green energy), by using
modern ventilation, heating and cooking systems, refrigeration units, green logistics (ecological
vehicles) and more efficient waste treatment. The effect of this is to improve the overall
performance of retail companies, especially environmental.
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Article history:
Received 1 October 2017
Accepted 10 November 2017
... Carbon dioxide emissions in the retail sector are generated from different sources, mainly, electrical, refrigeration, transport ventilation, heating, and waste. Therefore, their controlthrough increased use of "green energy", using ecological vehicles, modern heating system, modern refrigeration units, efficient waste treatment, etc.will improve the performance of retail companies (Lukic, 2017). ...
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The reduction of carbon emission has become an inevitable trend and a world-wide consensus. Under the low-carbon environment, it is an important task for supply chain members to reduce carbon emissions through low-carbon progressing. This paper focuses on the emission reduction behaviors for the chain members in both the retail-channel and dual-channel cases using the Stackelberg game model. The paper analyzes a detailed model which incorporates both cap-and-trade regulation and consumers' low-carbon preference. The results suggest that when the degree of consumers' low-carbon sensitivity satisfies certain conditions, the introduction of the online channel is profitable for the manufacturer. In addition, the cap-and-trade mechanism is acceptable for supply chain members when consumers have strong low-carbon preference. Furthermore, two emission reduction strategies are compared, including single manufacturer's emission reduction in production strategy and joint emission reduction strategy, of which entails manufacturer's and retailer's emission reduction. It can be concluded that the joint emission reduction strategy is more profitable for both the manufacturer and the retailer. When considering consumers' low-carbon preference, the retailer always has motivation to implement low-carbon promotion though without the manufacturer's incentives. The low-carbon promotion can help achieve emission reduction goals, promote economic development and social progress. The results can provide useful insights for policy-makers to implement effective regulations and for decision-makers to implement sustainability initiatives.
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This paper presents two models (classical and VMI-CS coordination) for a two-level closed-loop supply chain with a manufacturer and a retailer with a facility to remanufacture used items. The paper considers three critical environmental issues, which are the energy used in production (manufacturing and remanufacturing) processes, GHG emissions from production and transportation activities (subject to a penalty tax), and the number of times to remanufacture (recover) a used item. Numerical results show that the traditional optimization approach, which minimises the sum of inventory related costs, suggested less remanufacturing, fewer recovery times and more GHG emissions and energy usage; a result of operating at high production rates. The VMI-CS model was shown to be more economical than the classical model for a wide range of manufacturing rates, but not necessarily a more environmentally responsible choice. An extensive numerical analysis was conducted to enrich the discussion and to draw some managerial insights on how to make environmentally conscious decisions.