Review of the Carbon Management Strategies of Retail Industry in Energy Consumption and the Whole Value-Chain of the Product - A Case Study of Auchan Holding

Abstract

Many multinational retail companies are exposed to financial risk related to climate change. Carbon management is important in keeping global temperature increases below 1.5°C to prevent the exacerbated impacts of climate change. Auchan Retail in Auchan Holding provides a good example of carbon management in the retail sector. Auchan Retail’s major emissions are the indirect emissions throughout their value chain (scope 3 emissions). The total estimated emission of scopes 1, 2 and 3 are 37,822,573.9 t CO2e. The firm has reduced these by improving energy efficiency, combating food waste and altering product-sourcing methods. However, the carbon emissions estimates of Auchan Retail are not comprehensive. Internationally recognized carbon emission indicators have not been taken into account. It is crucial to work on all the indirect and direct emissions that occur both upstream and downstream of the company’s operations, instead of focusing only on energy consumption (scopes 1 and 2). Auchan Retail should conduct a more comprehensive and accurate carbon emissions estimate to increase the legitimacy of their carbon management plan. This will facilitate the establishment of improved carbon reduction targets and measures in the future. Auchan Holding is recommended to be more ambitious on the carbon-offset program, exploring new markets and opportunities, which can effectively reach emissions reduction targets, reducing climate risks, and enhancing business growth.