Risks and challenges

Many retail companies have not acknowledged the far-reaching effects that climate change is going to have on their businesses. Extreme weather events of increased magnitude and frequency will affect product supply; global demand for climate friendly technologies is growing; and regulatory changes will affect profitability. Carbon legislation will put upward pressure on the cost of electricity which will, in turn, reduce retailers’ profitability. Moreover, retailers with high carbon emissions will be at a disadvantage as competition in the market place increases.

Opportunities

Market leaders like Mal-Mart have shown that, through efficiencies, companies can reduce emissions and increase productivity significantly. In the next three years, they will be saving 25%, or $50 million, of their fuel costs. Other prominent retailers, such as Tesco’s, give carbon-neutral suppliers preferential treatment and are putting pressure on suppliers to account for their carbon emissions. Research continues to show that consumers prefer to purchase products from retailers who have transparent emissions-reduction policies. By ensuring internal energy efficiencies, retailers are achieving greater profitability and are less susceptible to electricity price increases. Additionally, through communicating their emissions-reduction strategies clearly to investors, listed companies are creating new opportunities for themselves.

What can GCX do for you?

• Efficiency:

Through determining your carbon footprint and a business-case energy efficiency audit, GXC will assess your company’s carbon emissions and help you to set targets and budgets that suit your business. From here, GCX will help you to implement reductions and achieve your cost-cutting goals, which include education campaigns in your organisation to engrain climate-change awareness in your company’s culture and to ensure that employees support internal initiatives. GCX will also undertake to monitor your emissions on a continuous basis. The journey towards becoming a low-carbon business also offers significant PR and marketing opportunities that can be harnessed to differentiate your company as a climate-change leader.

• Supplier efficiencies:

GCX will assist your suppliers in becoming low carbon-emissions companies, which will enable you to enhance your productivity, brand and reputation as a low-carbon-emissions company.

• Legislation and reputation:

GCX will determine the effect that carbon laws will have on your business and identify the best ways to ensure your continued profitability, which also include establishing the reputation risks posed by being affiliated with a high carbon-emissions business.

• Adaptation:

Adaptation involves the adjustment of systems in order to respond to actual or expected weather events or their physical manifestation. These adjustments mitigate the harm or exploit the beneficial opportunities that arise from these events. GCX will assess the effect that climate change will have on your supply chain and business as whole. Our specialists will highlight the risks inherent in your business model and identify solutions to this risk and help you to implement them.