Strategic Intelligence: Net Zero Strategies in the Retail and Apparel Sector (2024)

Strategic Intelligence: Net Zero Strategies in the Retail and Apparel Sector (2024)

Summary

Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy. Most retail and apparel companies have

set 2050 as the target year for achieving net zero carbon emissions.

The mining sector is concentrating on three main strategies to reach these targets: Low carbon logistics, green buildings, and sustainable materials and resale

The retail and apparel sector is concentrating on three main strategies to reach these targets:

Low carbon logistics to reduce carbon emissions within the transportation of goods.

Increased use of green buildings designed to minimize environmental impact throughout their lifecycle.

Sustainable materials and resale to offset emissions from waste.

Why do mining companies need a net zero strategy?

Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy.

Why retail and apparel companies need a net zero strategy

Regulatory pressure in the form of emissions pricing and fossil fuel phase-outs is putting pressure on retail and apparel companies and their supply chains to reduce their greenhouse gas (GHG) emissions.

Sustainable materials and resale can help reduce supply chain emissions

The fast fashion industry is built on virgin materials that are quick and cheap to produce but take years to biodegrade and release microplastics into the environment. Materials like leather, cotton, polyester, and econyl can all be recycled and repurposed to reduce waste in landfills, which helps reduce GHG emissions.

Last-mile delivery is the biggest challenge in low-carbon logistics

The need to deliver goods directly to consumers’ homes rather than stores or collection points has increased in tandem with the growth of ecommerce. Reducing emissions from last-mile delivery through methods like fleet electrification requires substantial upfront investments. Retailers must balance consumer demands for fast and cheap deliveries with reducing their

carbon footprint.

Few companies have made big investments in green building technologies

Green buildings are designed with eco-friendly materials and energy-efficient technologies like heat pumps. Few retail and apparel companies have made significant investments in green building technology, but there have been some key investments by well-known brands like IKEA and Hermés.

Who is winning the race to net zero?

Out of 20 selected retail and apparel giants, Nike and IKEA have achieved the largest reductions of emissions in their

operations over the last two years

Key Highlights

• The retail and apparel sector is concentrating on three main strategies to reach net-zero
• Low carbon logistics to reduce carbon emissions within the transportation of goods.
• Increased use of green buildings designed to minimize environmental impact throughout their lifecycle.
• Sustainable materials and resale to offset emissions from waste.

• This report offers a comprehensive analysis of net zero strategies within the mining industry, highlighting the key approaches being implemented by companies to reach this goal.
• It features prominent mining companies making significant progress towards achieving net zero emissions, along with detailed case studies showcasing specific strategies in action.
• Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for 20 major mining companies, providing valuable insights into their environmental impact reduction efforts.

• GlobalData’s thematic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
• This report is essential reading for senior executives to understand how the retail and apparel industry is striving towards net zero.