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Sustainability advisors
CASE STUDY The Federation of Wholesale Distributors and the Scottish Wholesale Association

Delivering a roadmap to net-zero for the wholesale sector

3Keel worked closely with the Federation of Wholesale Distributors (FWD) and the Scottish Wholesale Association (SWA) to develop a Roadmap to Net Zero by 2040 for the UK-wide wholesale sector. We also created an accompanying report for Scotland with the SWA, Decarbonising the Scottish Wholesale Sector.

Sustainable commodities
Resilient agriculture
Product ecodesign
Landscape innovation
Climate change
Bespoke analysis

AREA CLIMATE, NATURE AND RESOURCES

LEAD RICHARD SHEANE

CLIENT The Federation of Wholesale Distributors and the Scottish Wholesale Association

The FWD and SWA undertook this project with the overarching aim of setting a net zero ambition to align the wholesale sector’s progress on climate action with other industry groups such as the Food and Drink Federation, NFU, BRC and UK Hospitality.

For 3Keel, the first step was to understand the emissions profile of the wholesale sector. We collected primary data on emissions-generating activities from a representative sample of wholesale businesses. This analysis identified road transport as the largest source of scope 1 and 2 emissions, followed by electricity use in depots and offices.

Focus Areas

Developing this ‘base year’ picture helped us to identify the main areas in which the sector needs to focus reduction efforts: (1) fuel use in vehicles, (2) electricity use in depots and offices, (3) refrigerants, (4) fuel use in buildings, and (5) value chain engagement. The contributions that each of these areas makes to the sector’s emissions are represented in the figure.

Resources

Emissions Calculator and video showing how to use it.

Wholesale Sector Net Zero Roadmap including a step-by-step climate action guide to help wholesalers reduce carbon and ultimately reach net-zero targets.

Decarbonising the Scottish Wholesale Sector

Engaging with stakeholders

Once we had a picture of the scope of the sector’s emissions, we engaged with FWD and SWA members through workshops to gather input on ways these emissions could be reduced. Members helped us to identify which actions would be both effective and feasible for their wholesale business.

Engaging with members throughout the development of the UK-wide roadmap and the Scottish Wholesale Association accompanying report ensured that both final reports accurately reflected the ambitions, aims, and intended actions of UK wholesalers.

Highlighting barriers and the need for government support

Both reports when viewed together not only highlight actions wholesalers can take to reduce their emissions in line with a net-zero pathway, but also emphasises the barriers the sector faces in taking action on climate change, and spotlights the areas where government support will be needed to accelerate the transition to net zero.

Highlighting these barriers has been key to engaging policy-makers on decarbonisation. In recent months, the FWD and SWA have used the reports to engage with English and Scottish decision-makers. FWD presented the report to the Departments for Environment, Food & Rural affairs (Defra) and Energy Security & Net Zero. The Scottish Wholesale Association engaged with various Scottish Government Ministers, MSPs, departments and working groups, including the Zero Emission Truck Taskforce.

Accelerating action

Our hope is that this roadmap will not only accelerate the wholesale sector’s action on climate change, but will also encourage governments to take more ambitious action to achieve its net-zero goal.

Richard Sheane, a 3Keel Director, says, “The impacts of a changing climate are being seen in supply chains today – and the expectations of employees, customers, investors and regulators continue to ratchet up. While the decarbonisation of some emissions sources remains technically and economically challenging, increasing demand for zero carbon solutions is driving innovation faster than ever before.”

“Working with the team at 3Keel has been a very enjoyable and insightful process, and one which I would happily recommend to others. The outcome of the project is excellent and will be key to driving our net zero programme forward,” said Ylva Haglund, Head of Sustainability & Engagement at SWA.

“This groundbreaking report provides a greater understanding of the direct emissions of our sector and offers help to members in understanding their emissions, and the roadmap for members contains interim pledges as well steps to take,” said James Bielby, CEO of FWD.

Read the FWD report here and the Scottish report here
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