The retail sector has a significant carbon footprint, but a relatively small portion of it comes from retailers’ own operations. Partner Peter Spiller and colleagues find that nearly 98 percent of a retailer’s total attributable emissions come from its value chain, encompassing activities such as power needs, agriculture and forestry, shipping, and waste, all of which are part of producing the products a retailer sells. This means that retailers have a major opportunity to reduce their environmental impact by working with their suppliers and customers to reduce emissions throughout the value chain.
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A Voronoi circle chart shows the breakdown of the retail sector’s carbon dioxide emissions by Scopes 1 and 2 (retail operational emissions) and 3 (retail value chain emissions, excluding those from gasoline), reaching a total of 7,755 million metric tons at 100%. Scope 3 emissions make up 98% of the total, and Scopes 1 and 2 make up 2%. The largest contributor to retail Scope 3 emissions is the industry sector, accounting for 2,210 million metric tons, or 28.5% of total retail emissions. Following closely behind is agriculture and forestry at 1,830 million metric tons, or 23.6% of total retail emissions, and then power at 1,753 million metric tons, or 22.6%. The mobility sector contributes 1,148 million metric tons, or 14.8% of total retail emissions, while building accounts for 380 metric tons, or 4.9%. Waste contributes 302 million metric tons, or 3.9% of total retail emissions. Note: figures may not sum to totals, because of rounding. Source: “Climate change,” Walmart, updated December 15, 2023; “Global greenhouse gas overview,” United States Environmental Protection Agency, updated April 11, 2024; “The net-zero transition: What it would cost, what it could bring,” McKinsey Global Institute, January 2022; Walmart climate transition analysis, Planet Tracker, November 3, 2023; Walmart, Inc.—climate change 2021, CDP Disclosure Insight Action, 2021.
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To read the report, see “Retailers’ climate road map: Charting paths to decarbonized value chains,” July 31, 2024.