Mars’ recent case study finds consumer trips to stores are its biggest retail emissions challenge, while ecommerce has a smaller footprint.
In its Retail and Last Mile case study, Mars found that “last mile” activities from retailers and consumers account for 8% of the company’s total greenhouse gas footprint – making it the third largest Scope 3 emissions source for the CPG giant after ingredients (55%) and logistics (12%).
Consumer transportation contributes significantly to emissions, according to Mars. Nearly three quarters (72.8%) of retail and last-mile emissions stems from shoppers traveling to and from stores. In contrast, 10.7% of emissions come from retail store storage, 10.2% from transportation between distribution centers and stores, 6.1% from distribution center storage and just 0.3% from digital commerce last-mile delivery.
The findings are based on a new retail footprint calculator developed with sustainability consultancy Quantis that shifts emissions calculations from general estimates to a more granular model based on physical product activity, storage requirements and transportation. The calculator measures emissions using factors such as average shopping distances, transportation formats, shopping basket weights and freight requirements.
Mars identifies digital commerce as a key factor in reducing retail emissions over time. Digital commerce models are at least three times less greenhouse-gas intensive per unit sold than traditional brick-and-mortar retail, according to Mars. The company attributes the emissions difference between digital and brick-and-mortar retail largely to centralized storage and consolidated delivery routes, which generate fewer emissions than individual consumers driving personal vehicles to stores.
As retail channels continue to evolve, Mars expects greater ecommerce adoption to generally lower retail-related emissions. This comes after the company predicted ecommerce and AI-powered shopping technology to increasingly shape the digital retail experience in it recent retail report.
Reduction strategies point to more industry collaboration towards renewable energy
One way to mitigate emissions, Mars says, is for broader industry adoption towards renewable electricity across the value chain.
The company estimates retail stores and distribution centers associated with selling Mars products consumed more than 690 GWh of electricity in 2024. For reference, 690 GWh of electricity is enough to power roughly 66,000 US homes for one year, based on average residential electricity consumption data from the US Energy Information Administration.
Through its Renewables Acceleration (RAcc) program, Mars plans to cover more than 85% of that electricity usage with renewable energy, which it says would reduce its global greenhouse gas emissions by approximately 388,000 metric tons of CO2e, or about 1% of its total value-chain footprint. Mars’ RAcc program purchases renewable energy credits on behalf of its upstream suppliers and partners.
Beyond renewable energy, future progress will depend on greater cooperation with retailers and other stakeholders involved in product transport, storage and handling, according to Mars. The company intends to use the calculator to identify emissions hot spots, evaluate interventions such as renewable power in transportation and storage, and improve transparent data sharing with retail partners to develop more accurate emissions measurements and reduction opportunities.
