Transforming Retail Energy Use

In an era where sustainability and energy efficiency are becoming paramount, major retail chains are increasingly focusing on transforming their energy use. Transitioning towards more sustainable energy practices not only reduces environmental impact but also brings significant economic benefits. In this article we explore the innovative strategies that leading retailers are adopting to optimize energy consumption. We will discuss renewable energy integration, advanced energy monitoring systems and smart technologies.

Energy consumption in the retail sector

A long value chain characterizes the retail sector, involving numerous economic actors, activities, and, consequently, consumption and emissions. Not surprisingly, it is one of the most carbon-intensive industries, contributing to high levels of greenhouse gas emissions. The extensive retail value chain produces most of these emissions and accounts for up to 98% of a retailer’s total emissions. According to the GHG Protocol ‘s categorisation of emissions, the retail sector has a large impact on Scope 3 emissions. This includes the sourcing of goods, their transportation and distribution, and the end-of-life processing of products.

Given these numbers, retail companies are increasingly aiming to lower their environmental impact and actively combat climate change. One of these is the renowned fashion chain Golden Goose.

The Golden Goose case

Golden Goose is a distinguished Italian brand specialized in handcrafted sneakers, blending traditional Italian craftsmanship with contemporary urban style. The company began its journey in Venice and quickly expanded to the global market, particularly gaining popularity in the United States. People widely recognize the brand for its commitment to artisanal quality, innovative design, and attention to detail. Golden Goose aims to create unique, high-quality footwear that reflects a fusion of modernity and tradition. The company also strongly commits to environmental sustainability by reducing the impact of its production processes and increasing their efficiency.

The main energy source used by Golden Goose is electricity, not only to power the production processes but also the physical stores and workspaces. In fact, lighting, heating and air conditioning, and vehicles are the most energy-intensive systems. According to their report , the recent business expansion has increased their energy consumption. In 2023, they report being able to meet 100% of the electricity needs of their stores, offices and sites worldwide from renewable sources. They extend their culture of environmental responsibility to their entire value chain, including suppliers, stakeholders, and business partners. They achieved carbon neutrality in Italy in 2023, and BREEAM certified their Milan headquarters.

In 2023, their activities produced 75,464 tons of CO2 equivalent in greenhouse gas emissions, with 99.5% being indirect emissions (Scope 3). The majority of these emissions originated from the upstream and downstream stages of the production chain. These include raw material extraction, product distribution, and end-of-life management.

Their annual reports highlight the progress they have made in energy efficiency, and provide insight into the strategies they have adopted. We have analysed and collected the best advice that can be applied not only to retail companies but also across the industry.

Best practices

Here is a list of the best practices the company has adopted to optimise energy consumption and reduce costs:

• Thermal insulation: Insulation helps maintain stable indoor temperatures, reducing the need for heating and cooling systems. It can also improve the overall thermal performance of buildings, which can be particularly beneficial in climates with extreme temperatures. Moreover, it enhances the building’s longevity and structural integrity.
• Photovoltaic systems: The company has met its 2023 target of 100% renewable energy mainly through photovoltaic systems. In addition, they converted supply contracts and purchased renewable energy certificates for the remaining consumption. Find out more about the recent funding introduced by the recent Industry 5.0 transition plan , which includes incentives for solar PV systems.
• High-efficiency mechanical systems: The company’s facilities use heat pumps for both heating and air conditioning. Moreover, they installed solar thermal systems for domestic hot water and underfloor water heating systems. Finally, they set up rainwater collection systems for reuse in sanitary facilities.
• Regular maintenance: Performing routine maintenance on heating, ventilation, and air conditioning (HVAC) ensures efficient operation. This can be done through condition monitoring and predictive maintenance, two of the latest innovations in the energy management field. They dramatically reduce asset management costs and improve efficiency by continuously assessing asset health and detecting anomalies. Discover here how our energy management software utilises them.
• Brick&mortar eco-design practices: Stores are now equipped with motion sensor lighting in low-traffic areas to adjust lighting based on occupancy. LED lighting has been installed to maximise efficiency and performance, and where possible they have tried to maximise natural light. A multilayer blackout film applied to the building’s windows of the corporate offices helps filter the sunlight and repel heat. This increases indoor comfort while limiting the need for air conditioning. They estimated that this practice cuts energy consumption by approximately 77,000 kW per year.
• Energy management system (EMS): Integrate an energy management system to collectively operate all plant systems and ensure optimal management of energy consumption.
• Energy audits: Conduct regular energy audits to identify inefficiencies and prioritize improvements.