3.6.7  Retail sector

647.  The UK retail industry contributes more greenhouse gases from goods sold in a year, than all of UK household emissions generated.463 This places the retail industry among the highest contributors to emissions in the UK (c. 215 MtCO2e, 62% of this is from food, drinks and tobacco)464.

648.  Across the retail business there is a wide variety of activities that contribute to emissions. There is energy required for site and vehicle operations, emissions from farms and production facilities and the energy used by customers to power their purchased devices.

649.  This sector has the opportunity to influence emission reductions from customers to the value chain and mobilise action for growth and decarbonisation during the transition.

650.  Retail is being pushed by both investors and consumers for greater action. Investors in the retail sector have rising expectations around emissions measurement and disclosures, and concrete strategies for reduction. Whilst customers are seeking change with 79% of customers surveyed by the British Retail Consortium (BRC) are changing their preferences based on the social responsibility, inclusiveness, or environmental impact of their purchases and 88% of customers want brands to help them live sustainably.465

651.  We learned from our sectoral roundtable that the sector recognises that skills are important and it is taking action internally, including by engaging with further education colleges to build these skills. Additionally, the Government should be working with the sector to help demystify the carbon impact of products. This should consider that clear messaging for consumers is paramount, and there is often a lot of information for consumers to digest when purchasing products.466

652.  Finally, government support is required on developing ecolabelling for consumers (see more in Pillar 5). This needs to ultimately be integrated with international standards due to the cross-border supply chains for many products sold in the UK.467