Retailer Target explores green-energy buyers’ clubs for its suppliers

US retail giant will step up efforts to decarbonise its value chain in the face of flatlining Scope 3 

Target will work with its suppliers to explore the potential of collective renewable energy deals, in a bid to tackle its stubborn Scope 3 emissions. 

The US retail behemoth will move into the next phase of a programme launched last year with French energy firm Schneider Electric, it revealed in its latest sustainability report.   

The Forward Review initiative began by educating its suppliers about green energy, but Target said it will now “focus on energy procurement and help suppliers explore individual or group purchasing opportunities”. 

The firm noted that collective renewable energy deals could give suppliers “access to favourable pricing and contract terms”, compared with working individually. 

The initiative could also help Target, which has a 2040 net-zero commitment, address its flatlining Scope 3 value chain emissions. 

Its current pledge includes a 32.5% reduction in absolute supply chain emissions by 2030, against a 2017 baseline, but its latest figures show it’s managed just 5.6%, with just 0.3 percentage points of that happening between 2023 and 2024.   

Target acknowledged that its current level of Scope 3 decarbonisation would not be enough to meet its “aggressive targets”.  

It has fared better on its own emissions, however, revealing that 76% of its electricity came from renewable sources last year.  

Target had already achieved its 2025 goal of 60% renewable electricity by 2022, and is now seeking to hit 100% by 2030.   

Overall, the firm revealed it achieved a 41.3% drop in its Scope 1 and 2 emissions, compared to its 2017 baseline.