Loblaw Is Putting Serious Investment into Sustainable Energy
Retailers must embrace sustainability for a variety of reasons, including ethics, economics, and to secure humanity’s future. Retail Drive reported that retailers are responsible for roughly 25% of global emissions, according to a report from Boston Consulting Group and Ascential’s World Retail Congress.
Consumers are also increasingly aware of retailers’ impact on the environment and are therefore looking for brands and products that align with their values. By implementing sustainable practices in their operations, supply chains, and investments, retailers can attract and retain customers by showing that they care about the environment and are taking steps to reduce their footprint.
While some retailers have taken some token steps toward sustainability, others have made significant investments in reducing their carbon footprints. Loblaw Companies Ltd., the Canadian grocery and pharmacy giant, is putting its money where its mouth is with a significant green energy investment.
Here’s what Loblaw’s green energy strategy means for the retail industry.
Loblaw Cuts Carbon Emissions by 17%
According to a recent press release, Loblaw has locked in "an unprecedented carbon-free energy deal that will see the electricity it purchases for its supermarkets, drugstores, offices, and distribution centres in Alberta generated entirely by wind, sun, and water.”
According to the statement, this arrangement is "the first of its kind” in Canada. Altogether, the deal will cut the company’s nationwide enterprise operating emissions by 17%.
"Loblaw has been actively reducing its carbon emissions for over a decade, consistently exceeding its own ambitious targets. Last year, when we raised those targets to become net zero by 2040, we knew we would need some breakthrough innovation to reach our goal,” said Galen G. Weston, Chairman and President of Loblaw Companies Limited. "This project delivers that by turning our highest carbon-emitting energy market into our lowest, in one single step.”
The company is making its energy purchase from North American energy company TC Energy, which itself has created Alberta’s first carbon-free energy product to provide sustainable energy full-time. TC Energy operates or has access to carbon-free renewable energy generation and large-scale energy storage facilities, giving it a significant advantage over other energy producers.
The result is "carbon-free energy, available 24/7, generated by Canadian innovation, that will not only power Loblaw’s stores and business but also create more stable and reliable renewable energy for Albertans.”
A Promising Investment for Retailers
Other retailers can learn a lot from Loblaw’s investment in renewable energy. Direct investments into green energy can cost at the outset—but they can pay serious dividends in the future.
For example, green energy has been shown to cost less in the long term than traditional energy sources, the markets of which tend to fluctuate based on supply, demand, and global events. According to the UN, investments into renewables in 2021 saved US $55 billion in global energy generation costs in 2022.
If a company can reduce its energy costs, it will have more money to invest in other areas of the business.
Customers are also likely to be attracted to companies that demonstrate a commitment to sustainable practices. This can lead to increased brand loyalty and higher profits in the long run.
Starting Down the Sustainable Path
A good start would be searching for potential green energy deals in the province or region of Canada. Many energy providers are investing in renewable energy and are prepared to offer it to both companies and consumers.
Retailers can take other steps toward sustainability in addition to green energy investments. For example, they can reduce waste by using reusable packaging and recycling materials. They can also find ways to reduce their water consumption and energy use, such as switching to LED lighting or investing in energy-efficient equipment.
Ultimately, the goal is for retailers to build a sustainable business model that reduces their impact on the environment while creating profit.
Don’t Miss the Next eTail Canada Event
A 17% reduction in carbon emissions is a significant step toward a more sustainable business future, but it could only be the beginning. Moving forward, we are likely to see other retailers make significant investments in sustainable energy sources, especially as availability increases.
If you’d like to learn more about sustainable practices in retail, it’s sure to be an important topic at the next eTail Canada event. It’s happening from September 27th to 28th at the Hyatt Regency Toronto in Toronto, Ontario.
Download the agenda and register for the event today.