What metrics do retailers use to track sustainability progress in their stores?

Agnè Baltakienė · 19 Sep 2026

Retailers track sustainability progress using a combination of environmental, social, and operational metrics that cover energy use, carbon emissions, waste reduction, water consumption, and the proportion of sustainable products sold. The most useful metrics connect directly to a retailer’s biggest environmental impacts, which for most store-based businesses means energy consumption in buildings, supply chain emissions, and product sourcing. Below, we break down the specific measurements, tools, and reporting approaches that retail sustainability teams rely on most.

Which sustainability metrics matter most to retailers?

The most important sustainability metrics for retailers are greenhouse gas emissions (measured across Scopes 1, 2, and 3), energy consumption per store or square meter, waste diversion rates, water usage, and the percentage of products sourced sustainably. These metrics cover the areas where retail operations create the largest environmental footprint and where meaningful improvement is most measurable.

Beyond the environmental side, leading retailers also track social metrics: supplier labor compliance, employee health and safety incidents, and diversity data. The combination of environmental and social indicators gives a fuller picture of how a retail business performs against its sustainability commitments.

Most sustainability frameworks used in retail, including the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), organize metrics around these same categories. Choosing metrics that align with a recognized framework makes it easier to benchmark performance against industry peers and communicate progress credibly to external audiences.

How do retailers measure their carbon footprint across stores?

Retailers measure their carbon footprint by calculating greenhouse gas emissions across three scopes: Scope 1 covers direct emissions from owned sources like company vehicles and on-site heating, Scope 2 covers purchased electricity and heat, and Scope 3 covers indirect emissions from the supply chain, product transport, customer travel, and product end-of-life. For most retailers, Scope 3 accounts for the largest share of total emissions.

Scope 1 and Scope 2 emissions in retail

Scope 1 and Scope 2 emissions are the starting point for most retail carbon measurement programs because the data is relatively straightforward to collect. Scope 1 includes fuel burned in delivery vehicles or store heating systems. Scope 2 is primarily electricity used to power stores, warehouses, and offices. Retailers can reduce Scope 2 emissions directly by switching to renewable electricity tariffs or installing on-site solar, which is why many large retailers now report 100% renewable electricity as a near-term target.

Retail scope 3 emissions and the supply chain

Retail Scope 3 emissions are harder to measure but represent the majority of a retailer’s total carbon impact. They include everything from the raw materials used to make products, to the freight that moves goods across borders, to the energy customers use when they drive to a store. Retailers typically estimate Scope 3 using spend-based or activity-based calculation methods, working with suppliers to gather primary data where possible. Reducing Scope 3 often means prioritizing suppliers who manufacture closer to the point of sale, use renewable energy, or use materials with lower embedded carbon.

What tools do retailers use to track sustainability data?

Retailers use a mix of dedicated sustainability management software, energy monitoring platforms, and integrated ERP systems to collect, aggregate, and report sustainability data. Common platforms include tools like Salesforce Net Zero Cloud, Watershed, and Sweep, which pull data from utility bills, logistics providers, and supplier questionnaires into a single dashboard. Smaller retailers often start with spreadsheet-based tracking before moving to dedicated software as their data needs grow.

Energy sub-metering at store level is another practical tool, giving facilities teams visibility into exactly where electricity is being consumed within individual locations. This makes it possible to identify high-consuming equipment and prioritize efficiency upgrades. Many retailers also use supplier portals or third-party audit platforms to collect sustainability data from their supply chains, since manually chasing supplier information at scale is not workable.

The choice of tool matters less than the consistency of the data collected. Sustainability reporting is only credible when the underlying data follows the same methodology year on year, making trend analysis and target-setting reliable.

How is sustainable product ratio calculated in retail?

The sustainable product ratio is calculated by dividing the number or value of products that meet a defined sustainability standard by the total number or value of products sold, then expressing that figure as a percentage. Retailers define “sustainable” based on criteria they set themselves or adopt from recognized third-party standards such as FSC certification for wood-based products, GOTS for textiles, or Cradle to Cradle for broader product categories.

The definition of what counts as a sustainable product is the most contested part of this metric. Without a clear and consistent internal definition, the ratio becomes difficult to compare across product categories or over time. Best practice is to document the criteria explicitly, apply them consistently across the assortment, and disclose the methodology when reporting externally so stakeholders can evaluate the figure meaningfully.

Some retailers track sustainable product ratio by revenue rather than by unit count, which can give a more commercially relevant picture of how sustainable lines are performing relative to the overall business. Both approaches are valid, but the method should stay consistent between reporting periods.

What’s the difference between absolute and intensity-based sustainability targets?

Absolute sustainability targets set a fixed reduction in total emissions or resource use regardless of business growth, while intensity-based targets set a reduction relative to a unit of output such as emissions per store, per square meter, or per unit of product sold. An absolute target might be “reduce total GHG emissions by 30% by 2030.” An intensity target might be “reduce GHG emissions per store by 20% by 2030.”

Both types of targets are legitimate, but they tell different stories. Absolute targets are more demanding because a growing retailer opening new stores will generate more total emissions even if each store becomes more efficient. Intensity targets reward operational improvement but can mask the fact that overall emissions are still rising as the business scales. Many retailers now use both in parallel: intensity targets to measure operational efficiency, and absolute targets to demonstrate genuine emissions reduction in line with climate science.

Science-based targets, which align a company’s emissions reduction trajectory with the Paris Agreement’s temperature goals, are increasingly expected by investors and large brand partners. These are almost always expressed as absolute targets, which is why the distinction between the two target types matters when a retailer is deciding how to frame its public commitments.

How do retailers report sustainability progress to stakeholders?

Retailers report sustainability progress through annual sustainability or ESG reports, regulatory disclosures, and increasingly through mandatory frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD). Most large retailers publish a dedicated sustainability report each year that covers performance against targets, progress on material topics, and forward-looking commitments. These reports typically follow GRI Standards or SASB frameworks to ensure comparability.

Beyond formal reports, retailers communicate sustainability progress through supplier scorecards, investor presentations, and customer-facing product labeling. Transparency is the standard that stakeholders now expect: vague claims about being “committed to sustainability” without supporting data are increasingly challenged by regulators and advocacy groups alike.

For retail brands that source physical store fixtures and display solutions, the sustainability credentials of suppliers form part of their own Scope 3 reporting. That is where we come in. At IDW Display, our sustainability approach is built around measurable commitments: we track Scope 1 and Scope 2 GHG emissions annually, set binding reduction targets, source electricity exclusively from renewable energy, and manufacture all mannequins from 100% recyclable polystyrene. Our EcoVadis Silver Medal places us in the 93rd percentile of all assessed companies, giving retail partners documented evidence they can include in their own sustainability reporting. If you want to talk through how our production model fits your sustainability targets, get in touch with our team.

Frequently Asked Questions

How do we get started with sustainability tracking if we're a small or mid-sized retailer with limited resources?

Start by identifying your two or three biggest environmental impacts — for most store-based retailers, that means electricity consumption and waste. Begin with spreadsheet-based tracking using utility bills and waste contractor invoices before investing in dedicated software. Once you have 12 months of consistent baseline data, you'll be in a much stronger position to set meaningful targets and evaluate whether a platform like Watershed or Sweep is worth the investment.

What are the most common mistakes retailers make when setting sustainability targets?

The most frequent mistake is setting intensity-based targets without also committing to absolute reductions, which can create the impression of progress while total emissions continue to rise alongside business growth. Another common pitfall is choosing metrics that are easy to report rather than metrics that reflect actual environmental impact — for example, focusing on packaging weight while ignoring Scope 3 supply chain emissions, which typically dwarf in-store impacts. Aligning targets with a recognized framework like the Science Based Targets initiative (SBTi) from the outset helps avoid both problems.

How should we handle sustainability data gaps in our supply chain when not all suppliers can provide primary data?

When primary supplier data isn't available, use spend-based or activity-based estimation methods as a starting point — most established carbon accounting platforms have built-in emission factors for this purpose. Be transparent in your reporting about which figures are estimated versus verified, and prioritize collecting primary data first from your highest-spend or highest-impact suppliers. Over time, embedding sustainability data requirements into supplier contracts and onboarding processes is the most reliable way to close those gaps systematically.

What does third-party verification of sustainability data involve, and is it necessary?

Third-party verification involves an independent auditor reviewing your data collection methodology, checking calculations, and confirming that reported figures are accurate and consistent with the standards you claim to follow — similar in principle to a financial audit. For large retailers subject to CSRD or those publishing public sustainability commitments, limited or reasonable assurance from an accredited verifier is increasingly expected rather than optional. Even for smaller retailers, having a supplier like a display manufacturer hold a recognized rating such as an EcoVadis medal provides independently verified evidence that can be included in your own Scope 3 reporting without additional audit cost on your side.

How do we evaluate whether a supplier's sustainability claims are credible enough to include in our own reporting?

Look for suppliers who can provide independently verified evidence rather than self-declared claims — EcoVadis ratings, ISO 14001 certification, or audited GHG emissions data are all meaningful indicators. Ask specifically whether the supplier tracks Scope 1 and Scope 2 emissions, has binding reduction targets, and can share documentation you can reference in your own Scope 3 disclosures. Vague commitments to being 'environmentally responsible' without supporting data or third-party validation should be treated as insufficient for formal sustainability reporting purposes.

How often should we review and update our sustainability metrics and targets?

Performance data should be collected and reviewed at least quarterly so that operational teams can identify and act on issues before year-end reporting. Targets themselves typically run on a 5–10 year horizon aligned with frameworks like the Paris Agreement, but they should be reassessed whenever there is a significant change in business scale, a new regulatory requirement, or updated guidance from the standard-setting bodies you report against. Annual sustainability reports are the natural moment to publicly communicate both performance against existing targets and any revisions to the target framework.

What is the CSRD and which retailers does it actually apply to?

The Corporate Sustainability Reporting Directive is an EU regulation that requires companies to disclose detailed, audited sustainability information covering environmental, social, and governance topics using the European Sustainability Reporting Standards (ESRS). It applies to large EU companies first (those with over 500 employees from reporting year 2024), then to all large EU companies by 2025, and to listed SMEs and non-EU companies with significant EU revenue from 2026 onward. Retailers operating in or selling into the EU market should assess their obligations now, since the data collection infrastructure required for CSRD compliance typically takes 12–18 months to put in place reliably.