Luxury goods retail group and distributor Chalhoub Group has committed to providing its suppliers with a host of essential sustainability tools and access to training thanks to a partnership with Schneider Electric.
The Middle East-based retail group initiated a sustainability services agreement with Schneider Electric, with the announcement made amid the United Nations COP28 climate conference in Dubai last week.
The partnership with Schneider Electric, which ranked as number one in analyst group Gartner’s latest list of supply chain leaders, partly due to significant focus on sustainability, aims to help Chalhoub reduce Scope 3 emissions by 30% by 2032 and pave the way to meet its net zero by 2040 targets.
Florence Bulté, chief sustainability officer at Chalhoub Group, commented: “The Middle East is among one of the biggest luxury markets globally and has demonstrated growth and resilience despite supply chain disruptions and worldwide affairs.
“Our partnership with Schneider Electric is testament to our commitment to a more sustainable future for this sector. We recognise the challenges posed by reducing Scope 1, 2 and especially Scope 3 emissions, and this partnership is poised to accelerate our sustainability journey and meet our net-zero commitments.”
Farrukh Shad, head of APAC/MEA for Schneider Electric’s sustainability business, added: “Incorporating climate action into core business strategies is no longer an option; it’s a necessity.
“We are proud to play an integral role in Chalhoub Group’s sustainability journey and are confident that we can set new benchmarks in decarbonisation and sustainability, not just for the company, but for the entire industry.”
Chalhoub Group has said its aim is to to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50.4% by 2032 from a 2021 base year. It has also committed to reducing absolute Scope 3 GHG emissions from purchased goods and services, upstream transport and distribution, upstream leased assets and investments by 30% within the same timeframe.
Within that final goal includes emissions associated with activities such as purchasing goods and services, transportation and distribution, waste generated, business travel, employee commuting, and the end-of-life treatment of sold products.
The collaboration with Schneider Electric will primarily target selected suppliers in the purchased goods and services category of that wider plan, as they account for most of the Group’s Scope 3 emissions. This comes after a 2023 diagnostic mapping of Chalhoub Group’s suppliers identified those with high emissions that which were yet to establish science-based carbon reduction targets.
This analysis kickstarted a supplier engagement programme, and Schneider Electric’s decarbonisation consultancy services will include monthly training sessions for selected suppliers, data collection and gathering through extensive surveying, a tool to track Scope 3 emissions, as well as guidelines to complement suppliers’ decarbonisation journeys.
According to a survey issued by Boston Consulting Group, the Middle Eastern luxury goods market is expected to double in size by 2030 and grow to a value of $32-$37 billion, driven by the UAE and especially Saudi Arabia. However, McKinsey research suggests the sector is responsible for over $2 billion in GHG emissions annually, which reportedly amounts to approximately 4% of the world’s total output.
Read more about Schneider Electric on Green Retail World
[Image credit: Green Retail World]
