UK retailers have made progress in reporting greenhouse gas emissions and improving operational carbon performance, but supply chain emissions continue to pose a significant barrier to net zero ambitions.
The latest UK Retail 2025 Net Zero Stocktake from the British Retail Consortium (BRC) shows that while many firms have established emissions baselines and started reporting publicly, most of the carbon footprint of the retail sector lies outside direct corporate control and within complex supply chains.
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Experts say that without stronger supply chain decarbonisation and supplier engagement, the industry’s broader net zero goals are at risk.
Most retail emissions sit outside direct control
The BRC’s 2025 stocktake updates the industry’s net zero roadmap five years after its launch, assessing progress against milestones for 2030, 2035 and the overarching 2040 target.
The report finds that more than 93% of UK retail emissions are classed as Scope 3 — linked to supply chains and consumer use rather than stores and logistics directly controlled by retailers.
This concentration of emissions outside direct operations makes supply chain carbon management critical to achieving net zero.
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By GlobalDataRetailers have generally improved GHG emissions reporting, with about 91% having set a baseline and disclosed their emissions, and many making operational changes such as upgrading lighting and training drivers on fuel efficiency.
But comparing operational emissions with the sheer scale of supply chain impacts highlights the gap between internal improvements and the broader net zero challenge.
Transparency and supplier data gaps hamper Net Zero progress
A key issue identified in the stocktake is the lack of detailed supplier emissions data, which limits the ability of retailers to measure and reduce their full carbon footprint.
Only around 30% of large suppliers currently provide GHG emissions data, according to the report, and 70% of products lack responsible sourcing information for consumers.
This data gap means retailers cannot fully account for or manage emissions embedded in the manufacturing and transport of goods. As a result, actions aimed at reducing supply chain emissions remain uneven and difficult to scale.
Complex global supply networks and varying reporting standards further complicate efforts to create reliable carbon inventories and track progress over time.
External stakeholders, including policy-makers and data platforms, are often cited as playing a role in filling these gaps and supporting better supply chain transparency.
Systemic challenges and path to deeper decarbonisation
Retailers also face wider systemic challenges that affect net zero progress, such as policy uncertainty, financial pressures and the technical complexity of decarbonising supply chains.
These factors are reflected in sector-level analysis showing that updated data methodologies have, in some cases, revealed higher overall emissions than earlier estimates, underscoring the importance of robust measurement frameworks.
Industry groups and analysts highlight the need for cross-sector collaboration to influence suppliers, align on data standards, and unlock investment in emissions reduction initiatives.
Programmes that coordinate measurement and reporting across major food and drink supply chains exemplify efforts to harmonise approaches and support consistent action.
Retailers are expected to use the findings from the 2025 stocktake to refine their net zero strategies and advocate for policy frameworks that support supply chain decarbonisation.
Achieving the UK retail industry’s net zero goals will require both internal operational improvements and expanded engagement with suppliers to address the dominant sources of carbon in the value chain.
