As climate change measures become a global challenge, the retail industry in the US and Europe is increasingly focused on achieving net-zero greenhouse gas (GHG) emissions through decarbonization initiatives, which are gaining significant traction.

Addressing climate change has emerged as a critical corporate management issue for most industries.
In PwC's 27th Annual Global CEO Survey, conducted in the fall of 2023 with 4,702 CEOs from 105 countries, 30% of respondents cited climate change as a key factor that will reshape the way their companies create, deliver, and capture value over the next three years.
The survey also revealed a growing commitment to decarbonization, with 65% of respondents reporting that measures to improve energy efficiency were in progress, and 10% saying that such initiatives had already been completed.
On the other hand, regulatory complexity (54%), low returns on climate-friendly investment (51%), and lack of climate-friendly technologies (49%) were cited as barriers to decarbonization. Moreover, 41% said that they have accepted significantly lower rates of return on climate-friendly investments compared to other investments.

Retail giants in the US and Europe are accelerating their shift toward renewable energy as part of their decarbonization strategy.
Walmart, the largest retailer in the US, is aiming at 100% renewable energy use by 2035, with over 47% of its electricity consumption already being supplied from renewable energy sources as of 2022.
In January 2024, the company announced an energy transformation strategy for enabling up to 10 gigawatts of new clean energy projects to be put into service by 2030. In addition to the more than 600 renewable energy projects that have already been developed or are in operation in over 10 countries, in March of the same year the company also committed to the construction of close to 1 gigawatt of new clean energy projects across the US, including investments in community solar and long-term renewable energy purchase agreements.
The UK’s largest food retailer, Tesco, has set a goal for achieving carbon neutrality in its operations by 2035, sourcing a combined 300 gigawatt hours (GWh) of renewable energy annually from four solar power plants and one wind farm in the UK.
In May 2024, the company signed an agreement with a leading renewable energy company, EDF Renewables UK, to purchase 150 GWh of electricity annually from a wind farm in southern Scotland, which is scheduled to start operation in 2026. The contract will provide Tesco with enough clean energy to power 80 standard Tesco stores.

Decarbonization of transportation is also gaining momentum with a rise in the adoption of hydrogen fuel cell-powered trucks.
German supermarket chain REWE deployed its first Hyundai hydrogen fuel cell truck to its fleet in January 2023. The truck is expected to reduce CO2 emissions by 58 tons annually compared to a conventional diesel truck.
In June 2024, Walmart Canada became the first retailer in the country to deploy a hydrogen fuel cell semi-truck, supplied by US startup Nikola Corporation. The truck has an approximate range of 800 km and is expected to reduce annual CO2 emissions by an average of 97 tons.

UK food retail giant Sainsbury’s is actively pursuing energy efficiency measures, aiming at achieving net-zero GHG emissions in its operations by 2035.
In May 2023, Sainsbury’s opened its new flagship store in Hook, Hampshire, which it touts as the "most energy-efficient supermarket" in its portfolio. This 25,000-square-foot (2,322 m2) superstore consumes 50% less energy and 25% less electricity compared to existing stores of similar size.
The Hook store is powered entirely by renewable energy and is not dependent on any fossil fuels for its operation. Over 700 solar panels have been installed on the roof, providing 300 megawatt hours (MWh) of electricity annually.
Lighting in the store is 100% LED lighting, and sensors adjust brightness according to natural light levels to minimize energy waste.
Store aisles are kept at their optimum temperature using a cold aisle retrieval system. The system takes any cool air that may leave the refrigerators and displaces it into other areas of the store to keep those aisles cooler, while repurposing warm air from the back of refrigerators for heating other sections. The system is able to reuse about two-thirds of the consumed energy.
The store is also part of a new trial that uses doors on the chilled cabinets. This prevents cold air leakage and reduces energy consumption by up to 60%. Similarly, lids have been added to the display cabinets in the frozen food section. Additionally, ambient air door curtains have been installed at store entrances to create a more comfortable shopping experience, while improving the efficiency of the air conditioning system by counteracting naturally occurring drafts.
Sainsbury's Hook store is positioned to set the new standard for Sainsbury's Superstores. The company plans to extend the effective energy-saving features introduced at the Hook store to its supermarkets.

Netherlands retail leader Albert Heijn has been steadily integrating electric vehicles (EVs) into its fleet since 2017, with the goal of making all of its store logistics and online supermarket home deliveries in the Netherlands and Belgium emission-free by 2030.
Albert Heijn succeeded in fully transitioning its logistics and home delivery operations to EVs in the city centers of The Hague, Rotterdam, Utrecht, and Amsterdam by 2023. Sixty-two Albert Heijn stores and 6,100 internet supermarket user households are now being serviced with zero emissions. The company plans to accelerate EV adoption in Delft, Gouda, and other cities in South Holland.
As of May 2024, Albert Heijn boasts the largest EV fleet among the country’s retailers, with 74 EV trucks and 250 EV delivery vans. The total distance travelled by the EVs in 2023 reached 2.5 million kilometers, with expectations for this to double in 2024.
The company is also increasing the number of EV charging stations at its distribution centers. In 2018, it opened its first EV fast-charging station in the Zaandam distribution center in western Netherlands. After installing the first fast-charging station at the Pijnacker distribution center in southern Netherlands in 2020, Albert Heijn has been gradually expanding the number of EV charging stations at this center, which now delivers one-third of its goods using EVs.