Decathlon Group

At a Glance

Industry

Retail and Apparel

Project Types

Data Analysis, Supply Chain, Sustainability and Energy Management Strategy

Year

2024

Location

Shanghai

Summary

Zishuo Xu evaluated the maturity of China's green electricity market and provided cost and benefit guidance for Decathlon's green transformation.

Goals

Decathlon has climate ambitions and has pledged to reduce emissions across the entire value chain by 42% by 2030. However, Decathlon's scope 3 emissions are facing big challenges on reductions. To help Decathlon achieve its climate goals, Decathlon hired Zishuo Xu to study how to help Chinese suppliers achieve green transformation through the green electricity market, thereby reducing emissions in the value chain.

Solutions

Zishuo approached the challenge using a four-part process: 1. Analyze the policy environment of the green electricity market. Zishuo created a policy database and analyzed the policy trend 2. Assess the maturity of the green electricity market. Zishuo compared power market data with national plans and global currency to assess the market maturity. 3. Analyze supplier electricity procurement costs. Zishuo gathered data on suppliers' electricity use. He found that the cost to suppliers of the green electricity premium was to keep decreasing from 2021. 4. Assess the costs and benefits of Decathlon's green transformation. Zishuo calculated the emission gap for climate goals. He compared the costs of using green electricity versus thermal power, highlighting the emission reduction benefits.

Potential Impact

Decathlon China suppliers can reduce emissions by 100% by purchasing green electricity. These emission reductions can support Decathlon China to achieve its SBTI targets in the coming 3 years. Therefore, Decathlon should deepen its green transformation cooperation with suppliers. The next step is to establish a stakeholder emission reduction framework and gradually increase the scale of renewable energy use. How to reduce economic costs will affect whether the green transformation can be promoted quickly.

Related Links