The retail sector is taking a more sustainable and environmentally friendly approach. The growing environmental and social awareness of consumers is leading to a significant transformation in this sector, where companies are implementing sustainable measures to reduce your ecological footprint not only in its supply chain, but also in energy and water consumption.

In addition, this trend not only responds to government regulations and consumer demands, but is also perceived as a competitive advantage in a sector that is responsible for 25% of emissions of greenhouse gases.

Implementing ESG practices benefits the environment and society. In addition, it can improve a company's reputation, reduce costs and attract responsible investors. It is a way of ensuring that a company, in addition to being profitable, is sustainable in the long term.

In this article, we explore how the efficient management of basic supplies — electricity, water and gas — in addition to contributing to the reduction of costs, it plays a crucial role in meeting ESG practices and in building a stronger and more attractive brand image for conscious consumers.

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Why are ESG principles essential for retail?

ESG stands for Environmental, Social and Governance, which in Spanish is translated as Environmental, Social and Governance. These criteria are used to measure the sustainability and ethical impact of a company.

Within the environmental criteria, It addresses how a company manages natural resources, their impact on the environment and its sustainability practices.

Los social criteria focus on the company's relationships with its employees, suppliers, customers and the community in general.

And finally, the governance criteria evaluate how the company is managed, its leadership structure, audits, internal controls and shareholder rights.

For the retail industry, adopting strong ESG practices is essential for several reasons:

1. Consumer Expectations: Spanish consumers are increasingly concerned about the environmental and social impact of their purchases. They prefer brands that demonstrate a genuine commitment to sustainability.
2. Competitive Advantage: Companies that lead in ESG attract more customers, investors and talent.
3. Regulatory Compliance: Spanish and European legislation is encouraging the adoption of sustainable practices in all sectors.
4. Long-term resilience: Sustainable companies are better prepared to face future challenges, such as climate change and resource scarcity.

Applying ESG in commercial premises or retail businesses ranges from energy efficiency in stores and warehouses to corporate social responsibility and transparency in the supply chain.

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Efficient supply management in the retail sector: The heart of sustainability

Retail market in Spain, although it is a major contributor to GDP (last year it registered the highest annual growth in retail sales volume in the European Union with 6.1%), it has a significant environmental impact.

The energy demand in the case of businesses is much greater than that of a household, even destined more than 10% of annual income when paying the electricity bill.

Therefore, the management of electricity supplies, as well as water and gas, is a fundamental starting point for any ESG strategy in the retail sector.

Energy efficiency

A study by the European Commission estimates that European companies could save up to 30% on your energy bill implementing efficiency measures. Here are some practical tips:

• LED lighting: Replacing traditional bulbs with LEDs significantly reduces energy consumption and the electricity bill.
• Motion sensors: Installing motion sensors in low-traffic areas ensures that lights only come on when needed.
• Home automation or intelligent systems: There are multiple solutions for making controlled use of electrical appliances through automation or intelligent systems that allow devices to be turned off when they are not in use.
• Use of natural light: Designing stores and warehouses to maximize natural light intake reduces the need for artificial lighting.
• Know and control energy consumption: Considering that the electricity consumption of a business depends on factors such as the type of activity and the equipment necessary for it, as well as on the dimensions of the premises and consumption schedules, carry out a study that allows to consider the contracted power vs. the power that is really needed, helps to choose electricity rates suitable for this purpose. Once the needs have been defined, it is necessary to have control over energy bills and to monitor energy consumption. This allows operating costs to be controlled, impacting profit margins.
• ‍Solar panel installation: They are established as some good measures to generate your own clean energy and reduce electricity costs.
• ‍Renewable energy sources: The use of renewable energy sources also decreases the carbon footprint.

Responsible water use

The star measures to make a more conscious use of water in manufacturing and that lower costs, reduce pressure and demand on water resources and environmental impact, and that industries based on this resource can be maintained, are:

• Savings systems: By installing energy-efficient taps and tanks, as well as water recycling systems, reduces drinking water consumption.
• Maintenance and Leak Detection: Perform regular maintenance and use technologies for the rapid detection and repair of leaks.
• Reuse of rainwater: Collecting and using rainwater for irrigation or cleaning is an excellent sustainable practice.‍
• Recirculation technologies: Implement systems that recycle and reuse water at different stages of the manufacturing process.‍
• Efficient equipment and process optimization: Measures that reduce the amount of water per unit of production. Use machinery and production equipment that are more efficient in the use of water.‍
• Training and awareness: Train employees about the importance of saving water and efficient practices in the retail company, raising awareness among staff working in the plant to improve these water management practices.

Reduced gas consumption

• Efficient boilers: Investing in energy efficient boilers reduces gas consumption and CO2 emissions.
• Thermal insulation: Good insulation in ceilings, walls and windows minimizes heat loss and the need for heating.
• Regular maintenance: Regular checks on gas installations ensure their optimal and safe operation.

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Monitoring and control of supplies to reduce environmental impact

Efficient management of supplies, such as electricity, water and gas, reduces operating costs and reduces environmental impact. The monitoring of these supplies has become essential for identifying areas for improvement and optimizing their use.

Among these areas for improvement are those of working on identify inefficiencies, comply with regulations, improve sustainability and ensure transparency and corporate responsibility. Companies that adopt these systems can improve their reputation and attract more environmentally conscious customers, while generating a significant return to society.

Digital tools for measuring the carbon footprint

Several digital tools can help retail companies measure and reduce their carbon footprint, such as BBVA One View, Logan or Calculatuhuelladecarbono.com. These tools make it easy for energy consumption control, the reduction of emissions and the implementation of strategies of energy efficiency.

On the one hand, BBVA incorporated in 2020, with the aim of dealing with de-escalation during the health crisis, a new functionality Al one view financial aggregator allowing companies to know the amount of greenhouse gases they emit through their daily activities. Thanks to data analysis, valuable information is provided to businesses to be aware of their impact on the planet.

In the same line we find Logan, a company of big data and advertising what has developed 'Net Zero Ads' giving companies the ability to measure, reduce and offset the carbon footprint of their advertising campaigns in the digital environment.

Regarding Calculatuhuelladecarbono.com, this is another software to control carbon emissions. Through the tool, they help you reduce your carbon footprint and save on fuel consumption and other energy sources.

For our side, with Polaroo software you can have a categorized view for each supply of your property, so that by analysing digitized invoice data you can have more information about business consumption and adopt more sustainable strategies. In addition, the team of experts is working on optimization studies to provide recent information on rates with the objective of applying improvement points and savings measures in the consumption of basic supplies. This makes it easier to carry out measures to reduce the carbon footprint.

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The Future of Retail: Sustainable and Profitable

The retail sector is undergoing a process of digital transformation, which also involves improvements in energy efficiency. The adoption of advanced technologies and digital solutions is aimed at optimizing energy consumption and reducing the sector's carbon footprint.

For this reason, ESG criteria are redefining the development of companies so that they adopt a more sustainable vision with society and the environment. Companies that implement sustainable practices in managing their supplies will not only be meeting consumer expectations and current legislation, but they will also be building a more resilient and profitable future. Investing in energy efficiency and the adoption of innovative technologies are key steps towards a greener and more competitive retail sector.

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