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What is the Energy Pathway?

Retailers occupy a range of different site profiles, from small local shops in high streets and towns, to out-of-town shopping malls and superstores, and to large distribution warehouses that facilitate large global supply chains and the rise of online shopping.

All retail properties have an associated energy demand, primarily for lighting, space heating and cooling and refrigeration. Responsibility for site operations and energy will depend on building ownership and tenancy agreements, with control lying with the residing retailer, the landlord, or specialist site managers.

Retail sites are a small portion of total value chain emissions. However, although site operations are not the largest emissions hotpots, they are generally under full or partial control of the retailer, and actions that reduce the operating carbon footprint can provide operational cost savings.

Sourcing renewable energy and installing energy-efficient technologies can make zero emission direct operations a near term reality.

A 20% cut in energy costs can represent the same bottom-line benefit as a 5% increase in sales.

Carbon Trust
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Energy Pathway Guidance

Read the Energy pathway guidance for context, insights, case studies, key sector initiatives, actions for the retail industry, and priorities for government and BRC support.
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Energy Pathway Milestones Summary

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2025

  • All new buildings powered by renewable energy.
  • 100% LEDs in all new buildings.
  • Only low impact refrigerant gases (max 150 global warming potential) for all new refrigeration installations.

2030

  • Sourcing 100% renewable electricity.

2035

  • Renewables to cover all sites’ total energy uses.
  •  Only low impact refrigerant gases (max 150 global warming potential) in use for all systems. 
  • > 100% LED lighting across all buildings.

Energy Pathway Actions Summary

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For Retailers

Short term priorities

  • Monitor whole-building energy efficiency.
  • Improve heating efficiency and infrastructure by building fabric improvements and installing renewable heat equipment.
  • Switch to LED lighting.
  • Improve refrigeration efficiency and utilise low global warming potential refrigerants.
  • Source renewable energy through on-site renewables, Power Purchasing Agreements (PPAs) and Energy Attribution Certificates (REGOs).

Longer term transformations

  • Incorporate ambitious design guidance for new net zero buildings.
  • Seize emissions reduction and operation efficiency co-benefits in warehouses and distribution centres.
  • Invest in on-site renewable energy capacity.
  • Adopt smart building control systems that provide granular information on energy use.
  • Consider technologies that have the potential to reduce emissions and lower costs.

For Government

  • Consider measures to speed the rapid decarbonisation of the UK energy system including accelerating grid decarbonisation and deployment of zero carbon heat.
  • Enhance action to drive building efficiency including building standards and efficiency requirements for landlords.
  • Provide support for the upgrade of refrigeration systems to utilise low global warming potential refrigerants.

For BRC

  • Support the retail industry to shift to sourcing responsible, competitive renewable electricity.
  • Support retailers in leveraging collective power in landlord discussions to assist in shift to 100% renewable energy sites.

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