AUSTRALIAN RETAILERS JOIN FORCES TO TACKLE CLIMATE CHANGE IN THE RACE TO ZERO

The retailers have pledged their support to accelerate a movement in the retail industry in Australiato drive climate action and encourage other retailers to set out their plans to achieve 1.5 degree aligned carbon reduction targets. 

As Australia’s second largest employer after healthcare, the retail sector is a critical player in determining consumer choices and affecting suppliers, producers, and manufacturers across various economic sectors.

While the sector’s retail stores and company offices only represent a small part of its total emissions, it is the value chain of production, transportation, use and disposal of goods that is its biggest contributor. Given this, the Race to Zero is rallying retailers to act as a force for good, asking four ongoing requirements: 

• Pledge to reach net-zero as soon as possible (and by 2050 latest)
• Within 12 months of joining, explain what actions their business will take
• Take immediate action towards achieving their set aims
• Commit to report publicly - at least annually - against targets set

With 8 in 10 consumers caring enough about sustainability that they will make purchasing decisions based on a brand’s sustainability credentials, being a sustainable business is no longer a nice-to-have.

The retail sector needs to consider sustainable practices as a necessary component to the future success of their business. A recent report showed 56% of Australians are actively looking for ‘good’ brands and products from retailers that support causes or have environmentally friendly attributes that make a positive impact on social, community or environmental issues.

The Race to Zero campaign will provide more transparency from local brands on how they’re supporting climate change, and how purchasing from those brands will collectively help the country to reach net-zero emissions.

Paul Zahra, ARA CEO said, “Report after report has demonstrated that Australian consumers want this change. Having navigated the global pandemic, Australian retailers are now moving onto the next big global disruption - climate change. Unlike previous disruptions that have caught some retailers off guard, we’ve had plenty of notice about the need for climate action - the science is clear, the case for change is compelling and our members are acting, with 40% of Australia’s retail trade already covered by net-zero commitments.

The opportunity to play a lead role in the Race to Zero campaign in retailwill galvanise our intent, connect our members with international best practice and send a signal to the global supply chain that Australian retail is ready to play its part in addressing climate change.”

Andrew Petersen, BCSDAustralia CEO said, “With this positive step by IKEA Australia, Officeworks and the Kmart Group, we want to encourage other Australian retailers representing different sectors (e.g. food and agriculture retailers, fashion, electronics, house furniture, office supplies) to start the climate recovery effort that is already underway in other sectors in Australia across the globe, adopt decarbonization roadmaps tailored to local contexts as proposed by the ARA, and achieve net zero carbon emissions by 2050 at the latest. Through this initiative we begin to bridge the gap and work with Australia’s retail sector to a tipping point to accelerate a whole-economy transition for a healthy, resilient, zero-carbon future.”

Sarah Hunter, Managing Director, Officeworks, said, “Collectively, the retail sector serves millions of Australians every day, so the choices that we make can have an enormous impact beyond what we can directly control. From powering our operations with 100% renewable energy, to reducing emissions associated with how we source, design, manufacture and transport products, to helping our customers make more sustainable choices. By working together as an industry, we can demonstrate the leadership and action needed to limit the worst impacts of climate change.”

Ian Bailey, Managing Director, Kmart Group (Kmart Australia and Target Australia) said, “Climate change and the resulting impacts are among the greatest challenges we’ll face in our lifetime and, in collaboration with everyone who is committed to this cause, we hope to achieve a net zero future. I know we don’t have all of the answers right now, however what I do know is that if we join forces together we can work our way through this very complicated challenge and make things right.”

Melissa Hamilton, Sustainability Manager, IKEA Australia, said, “By 2030, our ambition is to be a circular business built on clean, renewable energy and regenerative resources, de-coupling material use from our growth. We are on the journey but have a long way to go. By working together and united under a common goal with this initiative, we want to share our knowledge and experience, and learn from others. Each one of us can be a leader for change. This is a huge opportunity to create a sustainable path forward for the retail sector in Australia and I’m excited to see what we can achieve together.”

Australian retailers can join the Race to Zero effort by setting science-based targets, working to halve greenhouse gas emissions by 2030 and committing to achieve net-zero carbon emissions by 2050 at the latest. The Breakthroughs campaign helps retailers achieve these goals by providing sectorspecific guidance, access to networks and best practices. The campaign is also working with key retail association partners to drive awareness about the Race to Zero, share tools and resources, and accelerate the adoption of net-zero roadmaps. 

References:

Consumer Segmentation Quantitative Research Wave 1, April 2021

The Power and Passion Republic of Everyone and The Bravery 2021