Our impact on climate
Our goal is to minimize our climate impact. We invest in renewable energy and energy efficiency, and with our actions we have achieved significant reductions in the emissions of our own operations. The biggest climate impact comes from indirect emissions in the value chain, which we are looking for solutions to reduce.
Calculation implementation and reporting
We calculate emissions in accordance with the globally used GHG protocol, where emissions are divided into three categories: emissions from our own operations (scope 1 & 2) and indirect emissions from the value chain (scope 3).
The results have been published in Verkkokauppa.com's Sustainability report (pages 11-12), which is part of Verkkokauppa.com's annual reporting.
Emissions from own operations (scope 1 and 2)
In 2023, the emissions of our own operations totaled 97 tons of carbon dioxide equivalent. There were no Scope 1 emissions at all in the reporting year. Scope 2 emissions consisted of electricity, heating and cooling emissions purchased for stores, office premises and own storage facilities. The amount is small, and corresponds to the average annual carbon footprint of 13 Finns.
Our goal is to be carbon neutral in our own operations by the end of 2025
We have systematically reduced the amount of emissions by improving energy efficiency and increasing the share of renewable energy. All the electricity we purchase is produced with 100% renewable energy: either certified hydroelectricity or solar electricity produced on the roof of the store. In July 2021, we switched to renewable district heating in Helsinki operations, which resulted in a 34% decrease in greenhouse gas emissions have decreased significantly. To further reduce heating emissions, we negotiate with the landlords to increase the share of renewable heating. In Pirkkala, geothermal heat is already used as part of the heating.
Value chain emissions (scope 3)
The biggest climate impact of our business is indirect emissions along the value chain, which is typical in the retail sector. In 2023, these emissions were 209,425 tons of carbon dioxide equivalent and covered 99.95% of the total emissions of our operations. Emissions decreased by 16% from the previous year. However, this reduction was not due to emission reduction measures, rather it can be attributed to a contraction in operations and better inventory management.
The vast majority of emissions consist of the manufacture and use of sold products
About 162,000 tons, or 77% of the emissions, came from the manufacture of the sold products and about 24,000 tons, or 12%, from the energy consumption during their use in 2023 (Scope 3 categories 1 and 11 in the table). However, we cannot directly influence these indirect emissions, but cooperation with suppliers and partners plays an essential role in reducing emissions.
The current emissions calculation is based on product category-specific estimates, such as estimates of the emissions caused by the manufacture of an average computer or a washing machine, instead of product-specific calculations. The emissions during the use of products sold have also been calculated based on estimates, i.e. the energy consumption of an average computer or washing machine multiplied by its estimated lifetime and the average emission factor of the electricity used in Finland. A calculation based on estimates gives an idea of the magnitude of emissions, but the development of the calculation is necessary in order to set emission reduction targets and monitor them. Here too, cooperation with suppliers and partners plays an essential role.
The emissions of online shopping are low compared to shopping in a store
Most of our customers arrive at the store by car. Customers were asked about their mode of travel in an e-mail survey in December 2022, to which 7,700 customers answered. The answers were then related to the number of customers in the stores for emission calculation. In 2023, the calculated emissions of shopping commutes totaled just under 20,000 tons, and their share of the total emissions of our operations was no less than 9%. Deliveries of e-commerce shipments to homes and pick-up points were just under 1,400 tons and made up less than one percent of the total emissions of the operations.
Our goal is to reduce the indirect climate impacts of our activities
The goal of the carbon footprint calculation was to increase understanding of the composition and scale of our value chain emissions. The calculation shows that the key to achieving effective emission reductions is reducing emissions during the manufacture and use of the products sold, which requires cooperation with our suppliers and other partners. Further refinement of the calculation is also necessary.
The measures taken by Verkkokauppa.com to promote circular economy and extend the lifecycle of products play a crucial role in reducing indirect emissions. Additionally, the development of product information is essential for enabling responsible choices, particularly regarding energy efficiency details. Our intention is to make the emissions resulting from product manufacturing visible in product information, which requires better availability of product-specific emission data. Opportunities for emission reduction are also being explored in other areas, such as logistics.
Calculation coverage and implementation
We report the direct and indirect greenhouse gas emissions caused by our operations in accordance with the GHG protocol standard. The calculation of scope 3 emissions was carried out with a partner, and it covers all emission categories assessed as material.
Depending on the product category, the emissions of the products sold were assessed either on the basis of product mass or by piece. The energy consumption during product use was estimated using the energy consumption data of the products and their estimated lifecycle.
Terminology
The GHG protocol
The GHG protocol (Greenhouse gas protocol) is a globally used standard for carbon footprint calculation. According to it, emissions are divided into three different categories: scope 1, scope 2, scope 3.
Scope 2 emissions
Indirect scope 2 emissions consist of the consumption of purchased electricity, heating and cooling. Purchased electricity is reported in accordance with the GHG protocol in two ways: market-based and location-based. In the combined emission figures, the market-based figure is used, which shows zero, because we procure renewable electricity. The location-based emission figure is calculated using the average emission factor of electricity consumed in Finland.
Scope 1 emissions
Direct scope 1 emissions consist of direct emissions from resources owned or controlled by the company. These emissions are very small at Verkkokauppa.com and arise from the fuel refills of the backup generator and sprinkler pumps.
Scope 3 emissions
Other indirect greenhouse gas emissions are included in the Scope 3 category, which is divided into 15 different categories, including purchased products and services, transportation, business travel and waste, among others. Our calculation covers all emission categories assessed as material.
Carbon dioxide equivalent, CO2-ekv2e
Carbon dioxide equivalent, CO2-ekv2e, is a measure of greenhouse gas emissions that takes into account the effect of other greenhouse gases too, in addition to carbon dioxide.