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Retail operations are responsible for significant greenhouse gas emissions and environmental damage. The sources of these emissions include the production, transportation, and disposal of products sold in retail stores, as well as the operations of the stores themselves. According to the NRF's "Retailers Reaching for Net-Zero" guidance, up to 98% of a retailer's greenhouse gas emissions occur outside its operations, in the form of scope 3 emissions that are upstream and downstream. These emissions occur throughout the value chain, from materials to the supply chain and even the consumer's final use of a product. It is important to keep in mind that the source and distribution of emissions are variable within the broader category of retail depending on the type of store goods (grocery, electronic, clothing, etc.) and the storefront model each business employs. Different retail models include the traditional brick-and-mortar storefront, e-commerce, and omnichannel businesses that use a combination of in-store and internet retail models. By understanding the sources of greenhouse gas emissions and environmental damages from retail, businesses can identify areas where they can reduce their environmental impact. Retail operations and supply chain activities also have significant environmental impacts due to the amount of waste, water use, and land use they incur. Water use, waste, and land use in production processes and in-store operations can contribute to water scarcity, deforestation, soil erosion, water pollution, plastic pollution, and habitat destruction. EMISSIONS & ENVIRONMENTAL IMPACTS OF RETAIL S O U R C E S O F E M I S S I O N S O P E R A T I O N S ( S C O P E 1 A N D 2 E M I S S I O N S ) Retail operations have a significant environmental impact due to the energy and fuel used to power stores and the equipment used in the stores (such as refrigeration), contributing to greenhouse gas emissions. However, retail operations' GHG emissions are typically smaller than other value chain phases such as raw material production and product use. The impact of on-site operations can be dependent on the type of retail storefront (e-commerce vs. brick-and-mortar.) For example, In some cases, brick-and-mortar retail stores' lighting, heating, cooling, and refrigeration needs for display cases can contribute more emissions when compared with e-commerce fulfillment centers that do not need a consumer interface. Operational emissions may also include transportation between retail facilities (e.g., warehouses, distribution centers, and stores), but it does not include the final leg of transport from the retail facility to the consumer's home, which is considered the "last mile". 1. Sustainability & Energy Management Simplified

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