The food system accounts for more than 30% of global greenhouse gas emissions. In today’s climate emergency, where the planet is on track for a catastrophic 3.1°C increase in temperature since pre-industrial times, the grocery sector has a critical role to play here – needing to take rapid and meaningful action in accelerating its decarbonisation efforts.
Central to this issue is the industry’s vast consumption of energy, with its extensive supply chains, considerable refrigeration needs and large-scale operations. In the UK alone, the major supermarkets consume approximately 3% of the country’s electricity.
Whilst the likes of Sainsbury’s are leading the way with 100% renewable electricity across all its sites since 2022; others need to take a considered look at the methods they’re employing, to ensure efforts are creating genuine impact in helping them reach their net zero targets at pace, writes JP Cerda, CEO and Co-Founder of Renewabl.
Challenges in carbon-free energy procurement
One of the difficulties many grocers face is procuring clean energy that genuinely aligns with their operational needs and emissions targets. Central to this issue is the absence of real-time data, which makes it difficult to match their electricity consumption with renewable generation on an hourly basis.
Green energy certificates (known as REGOs in the UK and GOs in the EU) have provided companies with a way to demonstrate their support for renewable energy and a commitment to cover their electricity consumption with renewable sources. However, many grocers still procure certificates on an annual or quarterly basis, often selecting bulk quantities of the cheapest options available, regardless of alignment with their actual consumption patterns or locations.
Ultimately, these methods are not an accurate representation of how the energy market works, leading to inaccuracies and even the reputational risk of greenwashing. This approach is therefore no longer adequate, and we need to see grocers adopting more accurate and transparent solutions, looking to procure energy certificates that truly align with their consumption. Fundamentally, enabling them to be more impactful in achieving their net zero targets.
The solution – 24/7 carbon-free electricity (CFE)
24/7 carbon-free energy (CFE) enables grocers to align clean energy portfolios with energy use with up to hourly precision. This allows them to buy certificates on an hourly basis and match a given volume of clean electricity demand with an equal volume of clean electricity generation -at the exact time the electricity was actually used.
With 24/7 CFE through the Renewabl platform, grocers can ensure that they are genuinely powered by clean energy and are truly moving towards their environmental goals – without needing to deal with the guesswork and uncertainties linked to annual procurement.
This doesn’t imply that a grocer’s consumption must be correlated to clean energy certificates every hour of every day (although that is the ultimate goal). However, it means that they can be confident that their procurement methods have an actual impact.
In an industry that grapples with tight profit margins, the transition to 24/7 CFE also presents a significant opportunity for grocers to save costs. By moving away from bulk purchases of green energy certificates, it will enable them to not over procure. Plus, 24/7 involves more energy-efficient equipment and the potential to attract investment – with investors increasingly adopting ESG criteria and channelling capital to sustainable companies.
The added layer of Scope 3 emissions
With supermarkets’ supply chains estimated to account for over 95% or more of their total greenhouse gas footprint, this is a critical area that needs to be addressed.
However, it can be incredibly tricky to accurately determine the emissions of supermarket supply chains as they are lengthy and complicated. i.e. the biggest supermarkets sell thousands of products, and each product can come from numerous suppliers. Each of these suppliers will rely on their own suppliers to source the raw materials needed to create that product. Overall, there can potentially be thousands of suppliers involved which adds layers of complexity here.
Whilst this could make grocers feel that the issue of Scope 3 emissions is too convoluted and therefore beyond their control; it’s imperative that they take responsibility and collaborate closely with their highest-emitting suppliers and partners across the value chain to promote renewable energy adoption. Tactics could include incentivising renewable energy use (for example, through financial means), integrating metrics in supplier evaluations (to ensure accountability), and maintaining real-time access to data and ensuring transparency across the supply chain.
The benefits for grocers
Moving to transparent and efficient 24/7 CFE will not only help grocers succeed in meeting their net zero targets, but it will help strengthen and futureproof their business.
The pressure from stakeholders to make grocery sustainable is rapidly mounting on all sides, with shoppers increasingly expecting retailers to act on their sustainability commitments. Currently, 43% of consumers aren’t satisfied with the extent to which supermarkets are working to help reduce the UK’s carbon footprint. For example, 57% of consumers want to see energy efficiency in their sustainable practices, whilst 52% want them to use sustainable transport. This filters down to their purchasing habits, with a recent YouGov survey demonstrating that 53% of consumers are willing to pay 10% extra for sustainable food and drink. Therefore, there are huge financial and reputational advantages here for grocers to transition to 24/7 CFE.
Furthermore, from 2025 large companies in the EU will be obliged to report the carbon footprint of their entire value chain. And under the EU’s Corporate Sustainability Reporting Directive, they will need to disclose specific carbon data that hourly matched renewable energy can directly support, creating a considerable advantage for those already adopting 24/7 CFE.
Grocers must act now
Decarbonisation is the issue of our time, and grocers must now work even harder to achieve their net zero goals. To do this, it’s essential that they work collaboratively with their suppliers and partners to accelerate this transition, by tackling their scope 3 emissions and achieve real, rapid and lasting change.
By committing to 24/7 CFE, grocers can be at the forefront of prioritising environmental stewardship and social responsibility, whilst benefitting their bottom line through saving costs and attracting consumers and investors. We’re fast approaching this tipping point where sustainability will be considered a baseline requirement for purchase, and grocers need to invest in 24/7 CFE now to reap the rewards.
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