The retail and wholesale sectors in the UK face significant pressures when it comes to meeting sustainability goals.

Consumers, increasingly aware of environmental issues, are demanding that businesses adopt more sustainable practices. Simultaneously, the UK government has introduced new regulations that require transparency on sustainability and carbon reporting.

Schemes like SECR (Streamlined Energy and Carbon Reporting) demands businesses track their carbon emissions and report on their sustainability progress(1).

The British Retail Consortium is also providing detailed guidance with its Climate Action Roadmap. This underpins the retail industry's ambition to deliver net zero across its supply chains, direct operations, and products sold to consumers by 2040 - 10 years ahead of the UK government's 2050 net zero target(2).

High energy usage in retail outlets-due to lighting, heating, and refrigeration systems-is one of the biggest contributors to environmental impact in this sector. The extended operating hours of many retail stores add another layer of complexity.

Managing energy consumption in a way that balances cost-effectiveness and customer satisfaction requires businesses to implement energy-efficient solutions, from smart lighting systems to energy-efficient cooling and heating technologies.

Moreover, many large retailers are finding that ESG performance is increasingly important for securing investment and retaining customers. Investors are looking for companies with robust sustainability programs, and consumers are more likely to choose brands that demonstrate a commitment to environmental protection(3).

Additionally, retailers are facing increasing scrutiny from both regulators and consumers regarding their supply chain sustainability. With transparency becoming a key factor in procurement decisions, retailers should ensure that their suppliers are also meeting ESG standards.

As regulations like SECR and CSRD (Corporate Sustainability Reporting Directive)(4) become more common, it’s essential for businesses to take proactive steps in reducing their environmental footprint and reporting accurately on their progress. Those that fail to do so may face reputational damage or legal consequences.

Retailers can make meaningful changes by implementing energy-saving technologies, ensuring responsible sourcing, and reducing waste throughout their supply chains. The retail and wholesale sectors are at a turning point, and sustainability is becoming both a regulatory necessity and a powerful business differentiator.

Bibliography

1 Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements  (Accessed May 2025) https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance

2 Climate Action Roadmap (Accessed May 2025) https://brc.org.uk/priorities/sustainability/climate-action/

3 The Triple Impact of ESG: Building Trust with Investors, Customers, and Talent (Accessed May 2025) https://www.cpduk.co.uk/news/the-triple-impact-of-esg-building-trust-with-investors-customers-and-talent

4 Corporate sustainability reporting (Accessed May 2025) https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en