Søstrene Grene, a Danish retailer which has expanded heavily in the UK over the last two years, has reflected on its supply chain decarbonisation journey.
The retailer which offers a unique collection of Scandinavian design, home accessories, furnishings, hobby items, gifts and stationery, said it is working with shipping giant Maersk to grow its operations responsibly.
A case study published on the Maersk website shines a light on the supply chain decarbonisation work.
Claus Tjærby, chief supply chain officer at Søstrene Grene, said: “We needed to work with a transportation partner who has decarbonising high on their agenda, taking concrete actions and having concrete plans to meet the goals and initiatives, and demands from the public, the government and our side.”
The challenge in recent years is that Søstrene Grene has operated with a “relatively straightforward supply structure”, with most of its products shipped via container from manufacturers in Asia to stores in Europe. But as the business has grown – for example, it has opened circa 30 stores in the UK since 2023 – the distribution network has become much more complex.
The plans involve expanding its business to include more than 500 stores by 2027, and it currently has around half that amount, meaning those complexities are growing.
Maersk has set its sights on achieving net zero GHG emissions by 2040, and it has developed a new supply chain tool that can help companies reduce GHG emissions in their own operations.
Mikkel Grene, CEO at Søstrene Grene, commented: “When we first started to look at decarbonisation it was like gazing up at a huge mountain that seemed impossible to scale.
“But by measuring our greenhouse gas emissions and embracing initiatives to reduce them, we now see a path up that mountain.”
For over two years, Maersk has been one of the retailer’s partners. Maersk’s ECO Delivery offering enables Søstrene Grene to allocate GHG emission savings to their ocean shipments by using lower GHG emission fuels.
Maersk defines reduced/lower GHG emissions fuels as those with at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil of 94 g CO2e/MJ.
Although exact fees are not referenced in the case study, Maersk said choosing this delivery product requires an increased investement compared to the standard options.
Indeed, the retailer and supply chain company are working on several initiatives together in the name of supply chain decarbonisation. Maersk is working to introduce electric-powered vehicles to further reduce GHG emissions from Søstrene Grene’s operations, for example.
Maersk said its ECO Delivery offers GHG emissions savings through a value chain decarbonisation allocation method.
As shown in Søstrene Grene’s 2023 stats, by shipping 1,585 FFEs [40 ft equivalent units] on ECO Delivery they reduced emissions with 2,825 t CO2e, a reduction in GHG emissions of 85% compared to transportation on conventional fossil fuels over the full life cycle.
Carbon emissions savings calculations are based on Round Table for Sustainable green fuels (RSB) methodology and tthey are independently audited according to ISAE 3410 – Assurance Engagements on Greenhouse Gas Statements. The CO2e emissions for transporting containers are calculated based on the Clean Cargo methodology.
“If you haven’t started yet then start measuring,” Tjærby urged other businesses which might be looking to make a difference and make improvements in their supply chain.
“Once you start measuring you will open your eyes to where your emissions are and what you can actually do about it.”
Read more about supply chain decarbonisation on Green Retail World
[image credit: Green Retail World]
