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Decarbonisation software
fit for Retailers

Measure and manage your emissions by store, product category, region and more.
Engage your key suppliers at scale and build joint action plans to address hotspots.

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The Retail landscape encompasses a wide array of sub-categories, from food and CPG, to apparel and electronics. Each features multiple different value chains and emissions hotspots.

For the average Retailer, Scope 3 emissions account for 80-90% of their overall emissions, and the path to reducing Scope 3 emissions is anything but straightforward.

These emissions are not directly controlled by Retailers but associated with their value chain — including the procurement of goods, transportation, distribution, usage and the end-of-life processing of products. Reducing emissions depends on the engagement and efforts of all value chain actors, including suppliers, distributors, customers and consumers.

By deeply understanding and prioritising action in the most material sources of value chain emissions, companies can make faster and more impactful progress towards their sustainability goals

The Challenge

Decarbonising the Retail value chain

In a survey by the World Retail Congress and BCG, less than 20% of Retailers surveyed reported they were on track to meet their emissions targets. One of the most cited challenges was a lack of access to the granular emissions data needed to support decarbonisation action.

Decarbonisation Lever

Engage suppliers
to eliminate deforestation

and promote sustainable farming and land management practices, such as agroforestry and soil conservation

Raw Materials

Land-based emissions from agriculture are a significant driver of emissions within Retailer supply chains. Activities such as land use change, irrigation, fertiliser and pesticide use and livestock management all contribute significant emissions through the release of carbon, methane and nitrous oxide. Value chains for key commodities such as dairy, beef, soy, palm oil, cotton, leather,
rubber, cocoa and coffee are amongst the most material hotspots.

 

Decarbonisation Lever

Transition to clean and renewable energy

increase energy efficiency, invest in the electrification of equipment and reduce waste

Manufacturing Processes

It takes significant energy to power machinery, run production lines, and convert raw materials into finished products. Packaged food requires extensive heating, cooling, assembly and refrigeration, while textiles require substantial energy, water, and chemicals for synthetic fibre production, dyeing, and finishing. Across consumer goods, manufacturing is a major emissions hotspot with significant potential for decarbonisation through renewable solutions.

 

Decarbonisation Lever

Increasing circularity of products and packaging

to reduce dependency on virgin material use

Packaging

Packaging production — whether plastic, cardboard, glass, or metal —is highly energy and resource-intensive. In high-volume consumer categories, where packaging is an integral part of distribution and marketing, emissions are even more substantial. Moreover, non-circular packaging and product design, coupled with insufficient recycling infrastructure, result in a significant portion of recyclable packaging and used products ending up in landfills or being incinerated.

 

Decarbonisation Lever

Review supplier locations and logistics

to streamline the movement of goods and optimise for lower-emission warehousing & transportation

Transportation

For Retailers, the carbon footprint of products is amplified by the global nature of supply chains. Processing, manufacturing, and final assembly often occur in different locations, requiring goods to be transported and warehoused at multiple stages. Retailers can optimise logistic routes to reduce the distance traveled, use lower emission suppliers with electrified fleets, and implement low-emission warehousing solutions — such as minimising storage time and using refrigerants with a lower global warming potential.

 

Feature Highlights

Making it easier for Retailers to meet their carbon measurement and decarbonisation goals 

Poor data leads to ineffective action. Moreover, without granular supply chain or product level emissions data, Retailers will be unable to evidence their progress on decarbonisation targets, leaving them vulnerable to allegations of in-action or worse greenwashing.

 

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5x-faster

Transparent and automated data management

Leverage AI-assistance to automate the process of data ingestion and calculation, as well as to identify data gaps and estimates what is missing. Reduce the time and effort of data collection as much as possible.  

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pcf-estimates
70%-accuracy

Product Carbon Footprinting


Get rapid product lifecycle emissions estimates and insights to support the needs of your procurement, R&D and marketing teams. Simulate the impact of different decarbonisation actions for single or thousands of product SKUs.

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product-portfolio-analysis

Portfolio analysisComing Soon

Slice and dice your emissions data flexibly, and analyse hotspots by store, by product category or by suppliers. Deep dive into carbon intensity metrics and relevant benchmarks to prioritise next actions

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Smarter supplier engagement

Engage key suppliers at scale and acquire product specific emission factors to improve the accuracy of your Scope 3 footprint. Build joint action plans to address shared emission hotspots

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Scope 3 expertise

Implement best practices for data collection and emissions factor matching using sector specific databases, and fill data gaps with Terrascope’s proprietary data and models

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Land-based emissions

Calculate your land use change and land management emissions from activities such as fertiliser application, farm activities, livestock rearing and more

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Decarbonise with AI

Identify the drivers behind your emissions hotspots and data quality gaps, and take advantage of Terrascope’s AI to surface next best actions and simulate their impact

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Carbon data management

Make progress on your carbon data journey by improving the transparency, granularity, quality and auditability of the all the source data underpinning your calculations

The Terrascope Difference

The world’s largest Agri-Food companies trust Terrascope to manage their Company, Product & Supply chain emissions

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Why do Retailers need smart supply chain decarbonisation solutions?

The ability to segment your product portfolio by materiality and engage key suppliers at scale, is critical to make real progress on decarbonisation

Key Retail Sustainability Trends

Prioritising sustainability enables cost savings and improves consumer trust, helping drive long-term business growth.

With Retail value chains responsible for 25% of global emissions, measuring and reducing emissions
in collaboration with suppliers has become essential

Regulatory pressure & carbon pricing

Transparency is key to help Retailers meet growing expectations for corporate climate action. Moreover, as more jurisdictions introduce mechanisms such as carbon taxes, a granular understanding of emissions is needed for modelling and mitigate future carbon costs  

Enhancing supply chain sustainability

Significant cost and emissions reductions can be made by creating process efficiencies across the value chain and bringing suppliers along the journey — such as optimising energy usage, packaging materials, logistics and waste 

Green procurement 

Embedding sustainability into procurement criteria allows for the early identification of physical climate risks that could disrupt sourcing, as well as bring greater transparency to the opportunities and costs of reducing environment impacts.

Changing consumer attitudes & behaviour

Consumers are starting to embrace circularity and sustainability-conscious products. Market demand is driving the shift from a linear ‘take-make-dispose’ model to a circular model, emphasising product repairability or take-back programs

Customer Case Studies

The world’s largest Retailers and Distributors trust Terrascope to measure and manage their corporate, product and supply chain emissions

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Product carbon footprinting for over 240,000 SKUs

Mitsubishi Shokuhin: Gaining visibility of supply chain emissions for climate disclosures
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Emissions reductions of 10% identified 

Barbeques Galore: Cooking Up Deep Changes in Retail through Emissions Transparency

Frequently Asked Questions

 

What are the challenges that Retailers face to measure their Scope 3 emissions and track reductions?

It is difficult for Retailers to accurately report on Scope 3 emissions because of the barriers to gathering reliable data from their value chains. As such, it is critical that Retailers to take a comprehensive approach, identifying where data is missing or of poor quality, and instead of excluding it from their Scope 3 footprint, to  leverage the data they have to estimate and impute what is missing. In this way, they can make meaningful progress and continue to improve their estimates as primary data is made available by suppliers. 

Why should my company engage suppliers on decarbonisation?

Suppliers are an integral part of decarbonising a product value chain. Over 90% of total emissions often come from activities beyond a company’s direct operations, such as the production of intermediate inputs.

Suppliers provide critical primary data on energy use, transportation methods, and production processes, which are necessary for creating accurate estimates of supply chain emissions. By involving suppliers, companies can gain a more comprehensive understanding of these significant emissions and identify opportunities for reduction. Strong partnerships with suppliers can also drive the adoption of sustainable practices, leading to meaningful progress in reducing overall emissions.

What are the benefits of doing product level carbon footprinting (PCF) across my portfolio?

A PCF study breaks down a company’s impact into smaller, more actionable pieces. Instead of looking at emissions for the whole company, focusing on emissions at the product level helps highlight key hotspots and pinpoint decarbonisation opportunities for the most important products or product groups.

Retailers can then use this data to engage more effectively with suppliers, and when shared publicly, it also empowers consumers to make more sustainable choices, helping your company stand out in the market.

While traditional PCF studies usually required a lot of time and resources, Terrascope leverages AI to get product emissions insights fast, across your entire portfolio, even without supplier data. Our proprietary data models help to fill in data gaps while you work on your key data improvement needs—making PCF studies less of a burden and suitable for even companies who just started out on their climate journey.

What are the key actions Retailers can take to reduce emissions in their operations?

For Retailers, the main sources of operational emissions typically include:

  1. Fossil fuel use for company vehicles and machinery

    This includes cars, trucks, forklifts, and generators. In the short term, Retailers can focus on improving fuel efficiency. For long-term decarbonisation, the biggest lever is to electrify the majority of their equipment and switch to renewable electricity.

  2. Electricity, heating, and cooling for offices and retail stores

    Key sources of emissions here include lighting, refrigeration, and air conditioning. To reduce emissions, prioritise energy efficiency first (e.g., upgrading to LED lighting or more efficient HVAC systems) and then switch to renewable electricity to further decarbonise.

  3. Refrigerant emissions

    Many common refrigerants have a high Global Warming Potential (GWP), meaning even small leaks can are hundreds or even thousands times more potent in its warming potential than carbon dioxide. To address this, upgrade refrigeration systems to prevent leaks and consider switching to lower GWP alternatives, such as carbon dioxide, ammonia, or R290.

  4. Waste generated in operations

    Waste types primarily include packaging, product waste, or food waste. Companies can reduce waste by cutting down on unnecessary packaging and promoting circularity (e.g., implementing “ugly food” programs to repurpose food that would otherwise go to waste).

What are the renewable energy options can Retailers explore?

Depending on the Retailer’s circumstances and geographical location, several renewable energy options are available, including:

  • Onsite renewable generation: Installing systems like rooftop solar panels to generate clean energy directly at your facility

  • Power Purchase Agreements (PPAs): Committing to long-term purchases of renewable energy from a specific project. PPAs can be physical (where the renewable energy is directly transmitted to your site) or virtual (where there’s no direct energy transfer, but you’re supporting a renewable project financially)

  • Green Tariffs: Purchasing electricity from your utility provider that includes a higher percentage of renewable energy, as defined by the agreement

  • Renewable Energy Certificates (RECs): Buying certificates that represent the environmental attributes of one megawatt-hour (MWh) of renewable energy generated elsewhere in the grid. This allows you to support renewable energy without directly purchasing it. Different countries have their own recognised REC standards, such as iREC, GEC, REGO etc.

  • Joining initiatives like RE100: Becoming a member of RE100, where leading companies share best practices, resources, and commit to 100% renewable energy. This initiative sets clear standards for responsible renewable energy procurement

When should companies set SBTi FLAG targets?

If your company wants to set ambitious climate targets with the Science Based Targets initiative (SBTi), you may also need to set a FLAG target. FLAG stands for Forest, Land, and Agriculture, and it applies to companies with significant emissions tied to land-based activities. 

FLAG targets are set in addition to the usual energy and industry targets, to cover agricultural and land-based emissions in a company’s operation and value chain.

For a Retailer, FLAG targets would apply if:

  • You’re in the Food and Consumer Staples Retailing sector (a FLAG-designated sector), or
  • Your FLAG-related emissions are more than 20% of your total Scope 1, 2, and 3 emissions. For Retail, sub-categories such as furniture, apparel, luxury goods, tires, or fast-moving consumer goods (FMCG) often cross that 20% threshold.
To know if this applies to you, it’s a good idea to do a quick preliminary assessment of your FLAG-related emissions.
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Making it easier for Retailers to meet their carbon measurement and decarbonisation goals 

Manage your emissions by store, product category, region or supplier. Get started today!