What sustainability commitments are retailers making for their physical stores?

Agnè Baltakienė · 19 Aug 2026

Retailers are making sustainability commitments across their physical stores in several key areas: energy use, materials, fit-out design, visual merchandising, and supply chain sourcing. Most large retail brands now publish formal sustainability targets tied to their store operations, though the depth and verifiability of those commitments vary widely. Below, we unpack the most common questions retailers and their partners are asking about sustainability in physical retail right now.

Which sustainability areas are retailers prioritizing in physical stores?

Retailers are prioritizing energy efficiency, sustainable materials in store fit-outs, responsible sourcing, and reduced carbon emissions from their physical store operations. These four areas consistently appear at the top of ESG retail strategies because they are measurable, visible to customers, and increasingly expected by regulators and investors alike.

Energy is typically the first area retailers tackle because it delivers fast, quantifiable results. Switching to LED lighting, installing smart energy management systems, and sourcing electricity from renewable providers all reduce both costs and emissions simultaneously. Many large retail brands have set binding targets to run their store portfolios on 100% renewable electricity within the next few years.

Materials come next. Retailers are scrutinizing what their stores are built from and what fills them, including fixtures, fittings, flooring, and display equipment. The goal is to move away from single-use or non-recyclable materials toward options that can be reused, refurbished, or recycled at the end of their life. Supply chain transparency is closely linked to this, with more retailers requiring suppliers to demonstrate responsible sourcing practices rather than simply taking their word for it.

How are retailers reducing the environmental impact of store fit-outs?

Retailers are reducing the environmental impact of store fit-outs by choosing lower-emission materials, designing for disassembly, extending the life of fixtures, and working with suppliers who operate nearby to cut transportation emissions. The shift is from treating a store fit-out as a one-time build to treating it as a long-term asset that can be adapted and reused.

Designing for disassembly is one of the more practical changes gaining traction. Instead of gluing or permanently fixing components together, retailers are specifying modular systems that can be taken apart, reconfigured, and redeployed in other locations. This reduces waste when a store is refitted and lowers the volume of materials that end up in landfill.

Nearshoring is another lever retailers are pulling. Working with European or regionally based suppliers rather than sourcing fit-out components from distant markets cuts the carbon footprint of transportation significantly. It also tends to improve quality control and makes it easier to verify labor standards throughout the supply chain, which matters increasingly to brands with public sustainability commitments.

What role do visual merchandising materials play in retail sustainability?

Visual merchandising materials, including mannequins, display forms, props, and signage, play a meaningful role in a retailer’s overall sustainability profile because they are used in large volumes, replaced regularly, and often made from materials that are difficult to recycle. Choosing the right materials for these items can meaningfully reduce a store’s environmental footprint over time.

Mannequins are a useful example. Traditionally, many mannequins have been manufactured from fiberglass or polyurethane, neither of which offers straightforward recyclability. Polystyrene-based mannequins offer a different profile: polystyrene is 100% recyclable through widely available mechanical recycling processes, meaning the material can re-enter production cycles rather than going to waste. For retailers buying mannequins at scale across dozens or hundreds of stores, the material choice adds up.

Packaging is another area where visual merchandising suppliers can make a difference. FSC-certified cardboard packaging, for example, ensures that the materials used to ship and protect display items come from responsibly managed forests. Retailers building out their retail sustainability strategy should factor in what their visual merchandising suppliers are doing, not just what their own store teams are doing.

Are retailers required to meet sustainability standards for physical stores?

Retailers are not universally required by law to meet specific sustainability standards for their physical stores, but regulatory pressure is increasing rapidly, particularly in Europe. Reporting obligations, building efficiency standards, and supply chain due diligence requirements are all tightening, making voluntary action today a practical way to stay ahead of mandatory requirements tomorrow.

In the European Union, the Corporate Sustainability Reporting Directive (CSRD) now requires large companies to disclose detailed information about their environmental and social impacts, including those tied to physical store operations. This is not a performance standard in itself, but the requirement to report publicly creates real accountability. Brands that cannot demonstrate progress tend to face scrutiny from investors, media, and customers.

Beyond reporting, building regulations in several European markets already mandate minimum energy performance standards for commercial premises, and these are being tightened progressively. Retailers planning new store openings or major refits need to factor in compliance with current and anticipated energy efficiency requirements from the outset, rather than retrofitting solutions later at greater cost.

How do retailers communicate their in-store sustainability commitments to customers?

Retailers communicate their in-store sustainability commitments through a mix of physical signage, product labeling, digital touchpoints, and staff training. The most effective approaches connect specific, verifiable actions to what customers can see and experience in the store, rather than relying on broad statements about caring for the planet.

Point-of-sale materials that explain where products come from, how displays are made, or what happens to packaging at the end of its life tend to land better with customers than generic sustainability messaging. Shoppers are increasingly skeptical of vague environmental claims, so specificity matters. Saying “this display is made from 100% recyclable polystyrene” is more credible than saying “we care about the environment.”

Staff are also an underused channel. When store teams understand the sustainability story behind the products and materials they work with, they can answer customer questions confidently and authentically. Retailers who invest in sustainability training for frontline staff tend to get more consistent and believable in-store communication than those who rely on signage alone.

What’s the difference between a sustainability pledge and a verified commitment?

A sustainability pledge is a public statement of intention, while a verified commitment is a target or practice that has been independently assessed and confirmed by a credible third party. The difference matters because pledges are easy to make and difficult to hold anyone accountable for, whereas verified commitments come with external scrutiny and documented evidence.

Third-party verification takes several forms in the retail and manufacturing sector. Certification schemes like FSC (Forest Stewardship Council) for wood and paper products, or EcoVadis assessments for overall business sustainability performance, or SMETA audit results, provide independent ratings based on documented evidence and physical inspections rather than self-reported claims. A company holding an EcoVadis Silver Medal, for example, has been assessed against internationally recognized standards and placed in a specific performance percentile relative to other companies.

Scope 1 and Scope 2 greenhouse gas emissions targets are another area where verification adds credibility. Any organization can announce a target to reduce emissions. What distinguishes a serious commitment is whether emissions are measured annually using a consistent methodology, whether reduction targets are binding rather than aspirational, and whether progress is reported transparently. Retailers evaluating their suppliers should ask for this kind of documented evidence rather than accepting sustainability claims at face value.

At IDW Display, sustainability is not a pledge we made once and filed away. We measure our greenhouse gas emissions every year, source electricity exclusively from renewable energy, and hold active certifications including FSC, EcoVadis Silver Medal and a clean SMETA 4 pillar audit report. Our mannequins are made from 100% recyclable polystyrene. If you want to work with a display partner whose sustainability commitments are documented and verified, read about our sustainability approach or get in touch with our team to talk through what we can build together.

Frequently Asked Questions

How do we get started with auditing our store fit-out materials for sustainability?

Start by creating a full materials inventory of your current store fixtures, fittings, flooring, and display equipment, noting the material type and end-of-life recyclability for each item. From there, you can identify the highest-impact swap opportunities, typically items used at scale or replaced frequently, and set a prioritized roadmap for transitioning to lower-emission or fully recyclable alternatives. Engaging your fit-out and visual merchandising suppliers early in this process is key, as they can flag which materials are available in sustainable alternatives without compromising on performance or aesthetics.

What are the most common mistakes retailers make when trying to reduce the environmental impact of their stores?

One of the most common mistakes is focusing exclusively on headline initiatives, like switching to LED lighting, while overlooking the cumulative impact of high-volume, frequently replaced items such as visual merchandising props, packaging, and signage. Another frequent misstep is accepting supplier sustainability claims at face value without requesting documented evidence or third-party verification, which exposes brands to greenwashing risks. Retailers also tend to underestimate the carbon footprint embedded in their fit-out supply chain, particularly when sourcing components from distant markets, where transportation emissions can significantly offset other gains.

How should we evaluate whether a visual merchandising or display supplier is genuinely sustainable?

Ask for specific, documented evidence rather than general statements: look for active third-party certifications such as FSC for materials or an EcoVadis rating for overall business sustainability performance, and ask whether the supplier measures and reports its greenhouse gas emissions annually using a consistent methodology. It is also worth asking practical questions about the materials used in their products, how those materials are sourced, and what end-of-life options exist for items when they are no longer needed. Suppliers who can answer these questions with specificity and point to verified data are far more credible than those who rely on broad environmental messaging.

How does the CSRD affect retailers who operate physical stores across multiple European markets?

The Corporate Sustainability Reporting Directive requires large companies operating in the EU to publicly disclose detailed environmental and social impact data, which includes emissions, energy use, and supply chain practices tied to their physical store operations. For multi-market retailers, this means consolidating sustainability data across all store locations into a single, auditable report, which requires consistent measurement methodologies and reliable data collection from both internal teams and external suppliers. Retailers who have not yet established baseline measurements for their store portfolio's energy consumption, material use, and supply chain emissions should treat CSRD compliance as the business case to start now, since the reporting obligation creates public accountability that voluntary pledges alone do not.

Can sustainable store design and materials choices actually save money, or is it always a higher upfront cost?

Many sustainable choices do deliver measurable cost savings over time, even if some carry a higher upfront price. Energy efficiency upgrades such as smart lighting controls and renewable electricity contracts typically reduce operating costs within a few years, and modular fixture systems that can be reused across refits lower the total cost of ownership compared to single-use fit-outs. Choosing durable, recyclable materials for visual merchandising, while sometimes priced at a premium initially, tends to reduce replacement frequency and disposal costs, making the long-term financial case stronger than a simple unit-cost comparison would suggest.

What's the best way to avoid greenwashing accusations when communicating sustainability in store?

The most effective safeguard against greenwashing is to make only specific, verifiable claims that are directly tied to documented evidence, rather than using broad language like 'eco-friendly' or 'sustainable' without qualification. In-store communications should reference concrete facts, such as the recyclability percentage of a specific material, the certification held by a supplier, or the measurable emissions reduction achieved, and these claims should be backed by third-party verification that can be produced if challenged. Aligning your in-store messaging with the verified commitments already published in your sustainability reports or supplier certifications creates consistency across channels and gives customers and regulators a clear evidence trail.