Managing Scope 3 Emissions Across the Supply Chain

Case Study: DFI Retail Group Establish a Science-Based Target

Client: DFI Retail Group
Sector: Retail + Agriculture
Location: Hong Kong
Ambition to: Address Scope 3 Emissions and Establish a Science-Based Target (SBT)
Services: Hotspot Analysis | Target Setting | Roadmap Development

About DFI Retail Group:

Based in Hong Kong, DFI Retail Group is a leading pan-Asian retailer operating well-known brands spanning food, health and beauty, home furnishings, restaurants, and other retailing, including North Asia IKEA and 7-Eleven. 

The Challenge:

As part of its goal to reduce emissions, DFI enlisted RESET Carbon to support them in setting a Science-Based Target (SBT). With a highly diverse range of products and suppliers, DFI’s main challenge lay in managing scope 3 emissions spanning their entire supply chain.

Our Approach:

We first calculated the emissions based on DFI’s best available data, which allowed for broad categorization of DFI’s emissions across diverse products. We were able to gain the appropriate level of data granularity in order to drive actionable insights without resorting to highly complex and resource-intensive data collection methods. Our data-centric approach revealed rice, dairy, meats, and beverages as the major contributors to emissions.

Next we used emission scenario modelling and mapping to project potential emission reductions and analyze suitable carbon reduction opportunities. From there we developed carbon reduction strategies that were informed by sustainability initiatives, independent research into each commodity and comprehensive risk and opportunity analysis. We engaged with major food suppliers to assess their sustainability maturity and willingness to adopt low-carbon practices, undertook robust stakeholder engagement, and delivered workshops. DFI were ultimately provided with a tailored and actionable roadmap to implement.

Taking into account the emission reduction targets set by various companies and countries, we estimated the potential carbon reduction that could be achieved for each of DFI’s products. This model provided insights and guided DFI’s focus on achieving its emission reduction targets, ultimately instilling DFI with confidence to set Science-Based Targets and fulfil the requirements of SBTi.

Key outcomes at a glance:

  • Identified major emission hotspots
  • Developed a model to project potential emissions
  • Engaged with stakeholders and suppliers to test interventions and assess feasibility
  • Established a potential carbon reduction that could be achieved for each of DFI’s products
  • Developed an actionable roadmap to achieve its Science-Based Targets
  • Provided clarity on how to navigate its complex carbon footprint

Result:

The strategic plan for Scope 3 emissions reduction forms a robust foundation for DFI’s ongoing sustainability initiatives. By leveraging a data-driven approach, we were able to navigate a complex carbon footprint and shape an actionable roadmap to establish and achieve its Science-Based Target. As a result, DFI successfully submitted its target to SBTi and received validation—a tribute to its ambitious dedication to reducing carbon emissions. 

Is your company ready to drive positive change through decarbonization? Connect with our team to begin your journey.