Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds

 
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Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
EHI WHITE PAPER

Sustainable Smart Stores 2021
Digital Sustainability Solutions for the Retail Industry

                                                 With generous support from:
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
2

Contents
03 INTRODUCTION
03      What Does Sustainability Have to Do with Smart Stores?

04 WHAT IS SUSTAINABILITY?
04      In Society
05      In Technology
08      In Retailing

09 WHAT ARE SMART STORES?
09      Formats

12 WHAT ARE SUSTAINABLE SMART STORES?
12      Technology

15 RESULTS OF THE EHI RETAILER SURVEY
24 DIGITAL SUSTAINABILITY SOLUTIONS FOR THE RETAIL INDUSTRY
24      Headquarters
29      Supply Chain & Logistics
32      Product Range & Production
38      Stores
48      Customers & Circular Economy

55 CONCLUSION AND OUTLOOK
55      Appendix
55      Customer Stories – Overview
56      Microsoft Partner Solutions – Overview

57 APPENDIX
57      List of Figures and Tables
58      About EHI
58      About Microsoft
59      Publication Details

                                                                            Some of the graphics shown in this study are
                                                                            available in our online statistics database at
                                                                            www.handelsdaten.de and can be downloaded as
     Information                                                            xls, pdf and jpg files.
                                                                            You can find further statistics and graphics on
     Click on the headings under Naviga-
                                                                            smart stores on our topic pages at
     tion to go directly to one of the sec-                                 https://www.handelsdaten.de/
     tions.                                                                 handelsthemen/smart-store

Navigation
Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
Text: Xenia Giese, Microsoft                                                                                                  Introduction         3

Introduction
What Does Sustainability Have to Do with Smart Stores?
Sustainability has become a familiar term in busi-                             As a consequence, “smart stores”, which rely on
ness and everyday life. In retailing, it plays an espe-                   sensor systems, the Internet of Things and artificial
cially important role in business operations, and at                      intelligence (see the previous EHI + MSFT white pa-
the same time it is a key consideration when it                           pers Smart Store, AI in Stores), are more energy-in-
comes to enhancing a store’s image with custom-                           tensive than those which make little or no use of
ers.                                                                      digitalisation.
     Sustainable business processes are now easier                             In the following we will look at some examples
to organise and monitor thanks to increasing digi-                        of smart stores that are increasingly applying digi-
talisation. However, digitalisation can also have a                       tal technology while still being able to contribute to
negative impact on sustainability goals. For exam-                        sustainability.
ple, CO2 is generated through the manufacture of
smartphones, computer monitors and IT-infra-
structure, and energy is required to operate digital
systems.

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
Text: Xenia Giese, Microsoft                                                                                   What Is Sustainability?             4

                       What Is Sustainability?
                       In Society
                       In 2015, the United Nations adopted Agenda 2030,                          ble on the use and reuse of renewable resources. In
                       which laid out a global roadmap for a more sustain-                       this way the current linear economy is to be re-
                       able future. The Agenda comprises 17 Sustainable                          placed by a circular economy. One of the tools is a
                       Development Goals (SDGs) for civil society, the pri-                      comprehensive SDG Tracker, which reports in de-
                       vate sector and science. Its objective is to achieve                      tail on the worldwide status of the 17 goals and mon-
                       sustainable consumption, based as much as possi-                          itors the progress being made by each country.

17 United Nations Sustainable Development Goals
Source: UNDP – United Nations Development Programmes

                       Navigation
                       Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
                       Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
                       7. Conclusion

                                                                                                                EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
What Is Sustainability?             5

Map in the SDG Tracker for Goal 6.1, “Clean water and sanitation for all”
Source: WHO/UNICEF

       Through their purchasing behaviour, end consum-                                Manufacturers of consumer goods have a di-
       ers in industrialised and newly industrialised coun-                      rect influence on sustainability goals through their
       tries have a decisive impact on value chains and                          production conditions and the organisation of their
       supply chains, and thus on the global sustainabili-                       value chains. Retail enterprises, which serve as a
       ty goals. Consumers are guided by numerous seals                          link between manufacturers and consumers, are in
       that show compliance with standards. One exam-                            a unique position to promote sustainability in their
       ple in Germany is the Blue Angel, a government eco-                       product ranges and business processes. In this way
       label that has been in existence for 40 years. More                       they can also foster consumer awareness.
       than 12,000 products and services fulfil its strict cri-
       teria.

       In Technology
       Digitalisation of business processes has gained ac-                       only be leveraged if the energy and resources they
       ceptance among retailers and producers of consum-                         consume are saved through other measures.
       er goods by helping them to increase efficiency and                           Digital solutions can also lessen the impact of
       harness synergies to cut operating costs. Another                         business processes on our climate and environ-
       advantage is that it allows them to meet customers’                       ment. For example, knowledge derived from data
       needs and expectations. However, the potential of                         and algorithms can be used to increase efficiency
       digital solutions to contribute to sustainability can                     and optimise processes. This can reduce the

       Navigation
       Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
       Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
       7. Conclusion

                                                                                                EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
What Is Sustainability?             6

consumption of energy and resources, and it can fa-                        gation Through the Use of Digital Technologies
cilitate reuse and recycling. Climate Change Miti-                         (bitkom.org)

Microsoft’s commitment to sustainability
As a company with global operations, Microsoft is                           carbon from the atmosphere that it has emitted,
very much aware of its responsibility in regard to                          directly or through power consumption, since it
sustainability. Protection of our planet is the foun-                       was founded in 1975.
dation of our mission, which is to enable every per-                      ƒ Measures: We will increase the share of renew-
son and organisation to achieve more. Microsoft an-                         able energy sources used for powering our data
nounced its first sustainability goal, reduction of                         centres to 100 percent, and we intend to reach 70
carbon emissions, already back in 2009. During the                          percent by 2023. We are requiring our suppliers
past ten years we have continually expanded our                             to disclose their carbon emissions and are help-
sustainability goals throughout the company.                                ing them to reduce their carbon footprint.
     Together with partners, researchers and NGOs,                        ƒ Tools: In order to achieve greater transparency
Microsoft is now making great efforts to increase                           relating to emissions caused by services and
sustainability. The focus is on four areas: carbon                          products, we have developed a Sustainability Cal-
emissions, waste, water and biodiversity.                                   culator that companies can use to analyse their
Carbon EMISSIONS                                                            carbon footprint from using Microsoft Cloud Ser-
ƒ Goal: To be carbon-negative by 2030                                       vices and compare it to the carbon footprint of
ƒ Significance: By 2030, we will be removing more                           their on-premise data centres. The results can be
  carbon from the atmosphere than we release into                           used for reporting on sustainability.
  it. By 2050, Microsoft will have removed all of the

Microsoft’s annual carbon emissions leading up to achievement of its carbon-negative goal.
Source: Microsoft

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
What Is Sustainability?             7

ƒ Alliances & partnerships: As a founding mem-                              soft, enables companies to quantify the financial
  ber of the „Transform to Net Zero“ Alliance we                            risk associated with water availability and quali-
  are cooperating with a number of companies, in-                           ty. It uses local information on water use, costs,
  cluding A.P. Moller-Maersk, Danone, Mer-                                  quality, business volume and predicted produc-
  cedes-Benz AG, Nike, Starbucks, Unilever and Wi-                          tion to calculate the total value of water used and
  pro, to move the economy towards net zero                                 discharged, taking possible local water shortages
  emissions. The measures applied by these com-                             into account.
  panies will remove all of their greenhouse gas                          ƒ Alliances & partnerships: We are a member of
  emissions from the atmosphere.                                            The Water Resilience Coalition, a cooperative al-
                                                                            liance of companies and NGOs dedicated to the
WASTE                                                                       responsible use of water.
ƒ Goal: To be waste-neutral by 2030
ƒ Significance: Waste production and disposal are                         BIODIVERSITY – SPECIES PROTECTION IS ALSO
  major sources of emissions. For this reason, we                         CLIMATE PROTECTION
  are taking special measures in our data centres                         ƒ Goal: Collecting environmental data from around
  and through our product packaging to promote                              the globe, processing it by means of machine
  sustainability.                                                           learning and making it available worldwide.
ƒ Measures: The Circular Centres at Microsoft’s                           ƒ Significance: Global warming is closely associat-
  data centres sort through discarded hardware                              ed with large-scale ecosystem destruction, spe-
  components on site by means of artificial intelli-                        cies extinction and other dramatic consequenc-
  gence in the cloud and mark them for repurpos-                            es. But the threat is not limited to species
  ing. This will increase the reuse of servers and                          diversity on our planet; it extends to the ecosys-
  their parts to 90 percent by 2025. In addition, sin-                      tems on which these species depend.
  gle-use plastics will be eliminated in packaging                        ƒ Measures: The Planetary Computer will collect
  and replaced by innovative packaging solutions                            environmental data from throughout the world
  with greater sustainability.                                              and record trillions of data points.
ƒ Tools: We are investing in the collection of waste                      ƒ Tools: The Planetary Computer will give the AI
  data and the development of digital solutions for                         for Earth community access to important data
  tracking waste chains.                                                    sets through more than 500 projects in 81 coun-
ƒ Alliances & partnerships: Microsoft is investing                          tries. It will also provide a platform for analysing
  USD 30 million in funds from Closed Loop Part-                            the data.
  ners to support supply chain digitalisation, recy-                      ƒ Alliances & partnerships: AI for Earth is a glob-
  cling and the creation of a circular economy.                             al community of environmental researchers, en-
                                                                            vironmental engineers and companies who are
WATER                                                                       developing models to protect our planet based on
ƒ Goal: To be water-positive by 2030                                        the open-source principle and AI tools. Besides
ƒ Significance: Across all business units, we will                          contributing its technological expertise, Microsoft
  treat more water than we consume.                                         is investing USD 50 million in this initiative. In
ƒ Measures: Microsoft will reduce its water con-                            addition, over the next four years we will be in-
  sumption, treat the water it uses and return this                         vesting USD 1 billion through our Climate Inno-
  water to use.                                                             vation Fund in new technologies for climate
ƒ Tools: The Water Risk Monetizer, a tool devel-                            change mitigation and the solution of environ-
  oped by Ecolab together with Trucost and Micro-                           mental protection problems.

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
What Is Sustainability?             8

                    In Retailing
                    Sustainability has played an important role in re-                             Retailers must meet a number of requirements
                    tailing for some time. For years, many large retail                       in their efforts to achieve sustainability, including
                    enterprises have been publishing sustainability re-                       legislation at the national and EU levels such as the
                    ports outlining their goals, initiatives and progress,                    German Packaging Act and an act, currently under
                    often with reference to the Sustainable Develop-                          discussion, applying to supply chains. There is also
                    ment Goals of the United Nations. Small and medi-                         the European Green Deal and the European Climate
                    um-size retailers have likewise emphasised sustain-                       Law based on it, which sets the goal of making Eu-
                    ability, for example by establishing energy-efficient                     rope climate-neutral by 2050.
                    stores or installing sustainable lighting.                                     These approaches are reflected in a variety of
                         Industry organisations have also launched rel-                       initiatives and measures covering the entire supply
                    evant initiatives. Examples are the German Retail                         chain and process chain. They are summarised in
                    Federation (HDE) and the EHI Retail Institute with                        the following table.
                    its many special topics such as energy management
                    and building. Another organisation focusing on sus-
                    tainability is GS1, with its projects to promote a cir-
                    cular economy.

Typical areas of focus and action
(Table 1)

  Area of focus                                                                   Approaches/measures

  Headquarters                                                                    ƒ   Cloud infrastructure & digital collaboration
                                                                                  ƒ   Sustainability tracking & reporting
                                                                                  ƒ   Central smart energy management
                                                                                  ƒ   Green building and ecology minded building*

  Supply Chain & Logistics                                                        ƒ Supply chain transparency
                                                                                  ƒ Optimised logistics processes
                                                                                  ƒ E-mobility and alternative drive technologies*

  Product Range & Production                                                      ƒ   Sustainable production
                                                                                  ƒ   Product range optimisation for waste reduction
                                                                                  ƒ   Process optimisation in production
                                                                                  ƒ   Sustainable packaging*

  Stores                                                                          ƒ   Smart energy management in stores
                                                                                  ƒ   Inventory optimisation
                                                                                  ƒ   Waste reduction
                                                                                  ƒ   Generation of electrical and thermal energy*

  Customers & Circular Economy                                                    ƒ   Customer commitment to sustainable consumption
                                                                                  ƒ   Transparency & traceability
                                                                                  ƒ   Circular economy & recycling
                                                                                  ƒ   Electric vehicle charging stations*

* Not dealt with in this white paper because most approaches are non-digital.
Source: Microsoft

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                    Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
                    Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
                    7. Conclusion

                                                                                                             EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
Text: Xenia Giese, Microsoft                                                                                   What Are Smart Stores?              9

What Are Smart Stores?
“Smart store” is an umbrella term for stores that uti-                         This is what bricks-and-mortar retailing will be
lise a variety of digital solutions. The purpose is to                    all about in the future. Using sensors, the Internet
make operations more efficient and offer custom-                          of Things, machine learning, mixed reality and tech-
ers more information or services. Many of these                           nologies that leverage artificial intelligence (AI),
solutions are necessary in order to enable linking of                     fixed-location stores will offer all the personalised
online and offline channels, and they open up fur-                        shopping advantages that we have come to appre-
ther channels for hybrid shopping such as online                          ciate from e-commerce.
ordering followed by pickup at an automatic vend-
ing machine or delivery by car.

Formats
Stores with digital solutions
CUSTOM SOLUTIONS Increasing numbers of                                    structure, and their internet bandwidth may be lim-
stores are applying solutions that are tailored to                        ited. By taking advantage of their cameras and us-
their individual requirements. For example, they are                      ing computer vision, i.e. AI-based image analysis,
using existing security cameras or motion sensors                         these stores can cover a variety of needs, such as
at their entrances to count customers. This can al-                       supporting operative processes and monitoring pro-
low them to set up customer traffic lights with dig-                      motion shelves for stock levels and customer traffic.
ital signage showing “green – entry permitted” and                        Examples: Bütema, Dynamics 365 Connected
“red – please wait”. In most cases these stores are                       Store.
not part of a modern, comprehensive outlet infra-

Autonomous and semi-autonomous stores
FOCUS ON SELF-CHECKOUT Autonomous, un-                                         Semi-autonomous formats, with limited staff
staffed stores usually have a small floor space of ap-                    or no staff at all, are an increasingly common vari-
proximately 50 sqm and some 800 articles on offer.                        ant. Customers can enter the store outside normal
Customers gain entry by means of a special app. The                       shopping hours or even 24/7 and pay at a self-check-
doors are closed during shopping. Purchases are                           out station or with an app. Security and theft pro-
completed by self-checkout via the app or at a check-                     tection are ensured by cameras, employees or per-
out station. After checkout, the doors open and cus-                      sonalised access. Examples: MishiPay, Rapitag, GK
tomers can leave.                                                         Software.

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Sustainable Smart Stores 2021 - Digital Sustainability Solutions for the Retail Industry - Microsoft Industry Clouds
What Are Smart Stores?              10

Automated stores
FROM ROBOTS TO MICROWAREHOUSES A new                                           In another new trend, certain parts of a store
format, based on a system that has already been                           are being transformed into what are called micro-
used for some time by pharmacies, relies on a small                       warehouses. Goods that are ordered online can be
warehouse which receives deliveries when orders                           picked from here instead of from the store shelves.
are placed online. When customers come to pick up                         This increases picking efficiency, simplifies inven-
their purchases, a dispensing robot moves the items                       tory management and prevents possible competi-
to the pickup window. Products can be fetched and                         tion in the store between customers and pickers.
paid for at any time. The robots optimise warehouse                       Microwarehouses can also be automated by means
efficiency and considerably accelerate the provision                      of robots that combine the characteristics of a dis-
process. The automatic gripper systems can retrieve                       pensing robot and warehouse robot and can oper-
and move up to 14 packages at a time. A video cam-                        ate in small areas. Examples: BD Rowa, Self Point-
era identifies the products and records them.                             Stor.AI, Attabotics.

Automated parcel machines and retail machines
THE SOLUTION FOR HYBRID SHOPPING Auto-                                    show dynamic prices and videos. Sensor systems
mated parcel machines and retail machines are ide-                        can monitor stocks automatically. Automated par-
al as shopping points or pickup stations in hybrid                        cel machines can be configured according to the
shopping. They are available in a wide range of types                     number and size of the compartments and can be
(for example, for refrigerated or unrefrigerated                          equipped with special management software and
goods), with different payment methods and in dif-                        retailer-specific apps to encourage customer loyal-
ferent sizes. Many automated retail machines offer                        ty. Examples: Stora Enso Smart Cabinet, Invenda,
additional functions such as digital screens that                         StrongPoint, Ombori together with ITAB.

Seamless or frictionless shopping
AUTOMATION OF THE ENTIRE SHOPPING PRO-                                    able fully automatic checkout without a stop on the
CESS THROUGH GRAB & GO Frictionless shop-                                 way out. A wide range of sensor systems are re-
ping, sometimes called grab & go, is the ultimate in                      quired, such as cameras on ceilings and shelves and
automation. Here customers simply select their                            weight-sensing mats. In addition, IoT solutions are
merchandise and walk out of the store. However,                           needed for aggregating the sensor data, and AI must
these concepts are very hard to implement. Custom-                        be used analysing the data and following the move-
ers must be identified when they enter. The move-                         ment of customers and goods. Examples: AWM,
ments of people and goods must be tracked, and the                        Zippin, UST Global/CloudPick.
two must be correlated – this is the only way to en-

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
What Are Smart Stores?              11

Digital store twins
STATE OF THE STORE IN REAL TIME A digital twin                            sensor data. Considerable computer power is re-
is a digital representation of an object or building,                     quired for checking and displaying this information
including all equipment, things and processes. Ac-                        on a continuous basis. Ideally, digital twins should
cordingly, a digital store twin is a digital represen-                    be possible for large stores, but at present there ex-
tation of a store together with all equipment, ma-                        ist only conceptual approaches and pilot versions.
chines, furnishings and articles – in real time. This                     However, in the manufacturing industry they are
requires a large number of sensors, a suitable IoT                        already possible for production facilities. Examples:
platform and artificial intelligence for evaluating the                   Azure Digital Twins.

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Text: Xenia Giese, Microsoft                                                                  What Are Sustainable Smart Stores?                   12

What Are Sustainable Smart
Stores?
Sustainable smart stores are stores that are                              and refrigeration, and efficient generation and use
equipped with digital solutions in order to make                          of electrical and thermal energy. Digital solutions
their operations more efficient and offer their cus-                      additionally make it possible to optimise store op-
tomers more services. At the same time, these solu-                       erations and make them more sustainable. This in-
tions make it possible to pursue a variety of sustain-                    cludes waste management and predictive monitor-
ability goals.                                                            ing of refrigeration equipment to prevent losses.
     For example, digital solutions help to save en-                      Store assortments and warehouse stocks are mon-
ergy, thereby minimising carbon emissions. They                           itored by sensor systems and optimised by AI so
are used in control systems for buildings and equip-                      that both waste and out-of-stock situations are
ment, including lighting control, energy-efficient                        avoided.
light management, optimisation of air-conditioning

Technology
Energy requirements of traditional data centres vs. cloud data
centres
According to the International Energy Agency                              liver more computing power per unit of energy than
(IEA), data centres account for about 1 percent of                        traditional data centres.
global energy demand. Although the need for com-                               Through exact management of capacity, these
puter power is increasing due to digitalisation, there                    data centres can better predict their energy require-
has been hardly any rise in worldwide electricity use                     ments and plan their consumption. This means, for
by data centres in the last 10 years (Figure #). The                      example, that they can use green electricity from a
reason is that traditional data centres with low en-                      variety of suppliers to reduce their carbon footprint.
ergy efficiency are being replaced by cloud data cen-                     Moreover, modern data centres are built in such a
tres and, increasingly, by hyperscale cloud data cen-                     way that they are cooled by the environment instead
tres.                                                                     of by air-conditioning equipment. Microsoft, for ex-
     Hyperscale cloud data centres are very large,                        ample, successfully operated an underwater data
highly efficient data centres that operate at high ca-                    centre in a two-year pilot project in order to study
pacity. Thanks to state-of-the art hardware, they de-                     the requirements.

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
What Are Sustainable Smart Stores?                   13

Global data centre energy demand by data centre type
(traditional on-premise, cloud non-hyperscale, cloud hyperscale), 2010–2022, IEA
Source: IEA

Digital solutions on the cloud edge
In view of these capabilities and the advantages they                     and processed by a special device (also called an ap-
bring for sustainability, it would make sense for                         pliance) right at the sensor or close by. The predic-
stores to operate their digital solutions in the cloud.                   tive ability of AI is transferred to the device and pre-
Many, however, do not have sufficient bandwidth to                        installed so that it is available even without a
make use of cloud solutions. A connection to the                          connection to the cloud. A connection is needed only
cloud is necessary in particular for computation-in-                      for the initial AI teaching process and later possible
tensive tasks like processing data from IoT sensors,                      changes. This cuts bandwidth requirements consid-
analysis of the data by means of AI and forecasts                         erably. An additional advantage of edge technology
based on this. Applications like these would quick-                       is that data can be processed in near-real time, with-
ly bring stores to the limits of their bandwidth.                         out appreciable latency.
     The answer to this problem is edge computing.
Here the data generated by a sensor are aggregated

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
What Are Sustainable Smart Stores?                   14

Store infrastructure and architecture
The infrastructure of a smart store is a key factor af-                   STORE:
fecting the sustainability of digital solutions. It de-                   3. Stores have an edge platform for aggregation of
pends on the digital solutions in the store itself and                       IoT data, analysis by AI and creation of forecasts.
on the solutions provided by the retail enterprise.                       4. IoT data are provided by sensors in store equip-
     The graphic below shows an example of the ar-                           ment such as reverse vending machines, bread
chitecture of a sustainable smart store.                                     baking machines, doors and gates.
                                                                          5. After aggregation of the IoT data and forecast-
HEADQUARTERS:                                                                ing by means of AI on the store edge platform,
1. Retail enterprises typically have a large number                          tools and simple workflows on the modern work
   of centrally located core systems, such as ERP/                           platform can be used to send notifications and
   merchandise management, CRM and FiCo. De-                                 instructions to store employees.
   pending on their age, these systems run in a tra-                      6. A variety of sector-specific solutions can utilise
   ditional data centre (on-premise), in a hybrid                            information from sensor systems, IoT and AI,
   configuration or in the cloud.                                            enabling them also to benefit from processing
2. In addition, retailers operate modern cloud plat-                         on the store edge platform.
   forms, for example for data. Usually there is also
   a modern work platform for use by headquar-
   ters as well as store staff.

Architecture of a smart store with connection to headquarters
Source: Microsoft

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Text: Ulrich Spaan and Çetin Acar, EHI                                                           Results of the EHI Retailer Survey                15

Results of the
EHI Retailer Survey
Retailers unanimously agree that technology will be                       there are also promising applications in the non-
able to make an enormous contribution to sustain-                         food sector. In food retail, refrigeration accounts for
able store concepts in the future. Although this is                       by far the largest share of energy consumption,
especially true for stores in the food sector with their                  whereas in non-food the most important category
comparatively high level of energy consumption,                           is lighting.

Breakdown of electricity consumption by                                   Breakdown of electricity consumption by
categories – food retail                                                  categories – non-food retail
(Figure 1)                                                                (Figure 2)

Shares in percent                                                         Shares in percent

                                                                                         15
      20
                                                   22

                                                             10
                                                                           28                                                                57

     48

    Lighting                                                                    Lighting
    Air conditioning/ventilation                                                Air conditioning/ventilation
    Refrigeration                                                               Other
    Other

Basis: 34 food retail chains, more than 27,000 stores,                    Basis: 26 non-food retail chains, more than 11,000 stores,
approx. 35 million sqm selling space                                      approx. 20 million sqm selling space
Energy Management in Retail 2020                                          Energy Management in Retail 2020
Source: EHI                                                               Source: EHI

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Contents | 1. Introduction | 2. Sustainability | 3. Smart Stores | 4. Sustainable Smart Stores | 5. Results of the EHI Study | 6. Sustainability
Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                16

Little involvement by retail IT departments
Although retailers are already using automated sys-                       centralised energy management, including clear, us-
tems to monitor and control energy-consuming ap-                          er-friendly visualisation, is often named as a goal
plications, they are nowhere near exhausting the                          but not yet achieved.
technical possibilities. Responsibility for these ac-
tivities, referred to here as smart energy manage-
                                                                              BRIEF INFORMATION
ment, often does not lie with the IT department but
with facility management or the construction de-                              Facts & Figures
partment. Moreover, there is often no uniform plat-
form for giving an overall view.                                              The IT department is closely involved in energy
     Monitoring of certain applications is some-                              management in 18 percent of companies.
times assigned to service providers like the manu-                            Source: EHI: Technology Trends in Retailing
facturers of refrigeration units. A comprehensive                             2021
approach comprising smart, highly automated and

Political encouragement for the use of technology
Political incentives can be expected to encourage                         and regulation will continually increase as volatile
the use of technology. Phased increases in the price                      renewable energy takes on an ever greater role in
of carbon emissions will stimulate investment in                          electric power generation and the need grows for ef-
energy-efficient heating and the use of renewable                         ficient heat management. Retailers will therefore
energy sources. The effort and expense of control                         increasingly have to rely on smart IT systems to

Measures to save heat energy – food retail
(Figure 3)

Shares in percent

              Heat recovery/                                                                                                        100
        waste heat utilisation

Intelligent control/regulation                                                                                    81

                 Building shell                                         38

    Generation of heat from
        renewable sources/                                       31
     thermal energy storage

                          Other                      19

Basis: 16 retail chains, approx. 11,000 stores, approx. 14 million sqm selling space; multiple answers possible
Energy Management in Retail 2020
Source: EHI

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                17

handle these complex tasks. Although                                       prises in Germany, Austria and Switzerland were
81 percent of the food retailers surveyed in the most                      asked about the most important trends and devel-
recent EHI energy management study say they are                            opments in the years ahead. For the reasons out-
already using smart control and regulation systems                         lined above, the survey also covered the topic of
to save heat energy, it can be assumed that they                           smart energy management and the importance of
could go a lot further.                                                    sustainable store concepts from the technological
     In the present study on technology trends in re-                      point of view.
tailing, CIOs and IT managers from 97 retail enter-

AI is still the most important trend for IT decision makers
One of the main results of the study is that artificial                    an increasingly important role in various applica-
intelligence continues to be seen as highly import-                        tions and have a lasting impact on many processes
ant for the future in the retail sector. Of the decision                   in the medium term.
makers surveyed, 63 percent think that AI will play

Technology trends and projects
The most important technological trends in the next three years
(Figure 4)

Shares in percent

        Artificial intelligence                                                                               63

              Connected retail                                                         44

         Customer centricity                                                    37

                        Cloud                                              33

Self-checkout/self-scanning                                           30

 Digitalisation of processes                                     26

                     Analytics                                   26

n = 97
Technology Trends in Retailing 2021
Source: EHI

     Here it should be noted that opinions often dif-                      self-teaching algorithms are growing in importance,
fer on the definition of AI. Some decision makers                          especially when it comes to forecasting and replen-
equate machine learning with AI, whereas others                            ishment, and that the applications are becoming in-
make a clear distinction. However, all agree that                          creasingly intelligent and sophisticated.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                18

Specific plans for smart energy management, IoT and electric
vehicle charging stations
The interviewees were also asked about the status                         IT departments were only marginally involved in
quo and their planning relating to new technologies.                      these matters and that other departments were the
The focus here was on IoT, smart energy manage-                           ones with responsibility. On the other hand, initial
ment and parking spaces with charging stations for                        steps to establish comprehensive, highly sophisti-
electric vehicles. More than half reported that they                      cated smart energy management with AI-support-
were already using simple solutions. However, as                          ed applications can be observed, especially in the
already mentioned above, they often said that their                       food sector.

Assessment of new technologies
Smart energy management
(Figure 5)

Shares in percent

                          8

25                                                                                        Currently in use
                                                                                          Specific planning for the years ahead
                                                                    50                    Interesting for the future, but not relevant at
                                                                                          present
                                                                                          Of no interest to the company

                17

n = 97
Technology Trends in Retailing 2021
Source: EHI

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                19

Closely connected with this is the assessment of IT                       so, 34 percent say that they are already using IoT
decision makers concerning the Internet of Things                         technologies and a further 37 percent do not see
(IoT) in stores. In the future, IoT applications can be                   them as relevant at present but think they could be
expected to take on particular importance for mon-                        interesting in the future. These results indicate a
itoring refrigeration, lighting and other energy-in-                      high potential in the medium term, and it will be in-
tensive applications. Most of the panel participants                      teresting to watch developments in the years ahead.
are currently somewhat reserved on this issue. Even

Assessment of new technologies
Internet of Things
(Figure 6)

Shares in percent

                     11

                                                                34
                                                                                          Currently in use
                                                                                          Specific planning for the years ahead
                                                                                          Interesting for the future, but not relevant at
                                                                                          present
37                                                                                        Of no interest to the company

                                              18

n = 97
Technology Trends in Retailing 2021
Source: EHI

The CIOs and department heads were also asked to                          ready providing charging stations for their
what extent they have implemented charging op-                            customers and a further 10 percent plan to do so in
portunities for customers with electric vehicles.                         the near future. The technical challenge here will be
Here it must be noted that some stores do not offer                       to integrate this service in the store’s IT infrastruc-
parking in the first place (for example, in inner cit-                    ture, for example by analysing usage behaviour or
ies) and some let other companies provide this ser-                       creating offers that are tailored to individual cus-
vice. However, 56 percent reported that they are al-                      tomers.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                20

Assessment of new technologies
Parking spaces with electric vehicle charging stations
(Figure 7)

Shares in percent

              21

                                                                                          Currently in use
                                                                                          Specific planning for the years ahead
                                                                                          Interesting for the future, but not relevant at
                                                                                          present
                                                                    56                    Of no interest to the company
14

               10
n = 97
Technology Trends in Retailing 2021
Source: EHI

As mentioned above, many IT departments are not
                                                                              BRIEF INFORMATION
(yet) involved in energy management. This can be
expected to change in the years ahead, at least in                            Facts & Figures
food retail. A separate analysis of this sector shows
that 33 percent of all decision makers surveyed al-                           In the food retail sector, the IT departments in
ready concern themselves with this topic, and ac-                             33 percent of companies are closely involved in
cording to many individual statements the trend is                            energy management. Source: EHI: Technology
rising.                                                                       Trends in Retailing 2021

                       56 %
                       of companies report that they are already providing
                       electric vehicle charging stations for their customers,
                       and 10 percent plan to do so in the near future.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                21

The cloud as a basis for sustainable smart stores
In order to make meaningful use of applications                           increasingly using a cloud platform, which can pro-
based on AI and the IoT, companies need to put their                      vide a wide range of solutions and services.
IT infrastructure on a suitable foundation. Many are

                                                            “Cloud-based applications are already very
                                                                 important for 48 percent of retailers.”
                                                            Ulrich Spaan, Member of the Management Board
                                                            EHI Retail Institute

Cloud
Importance of cloud-based applications in companies
(Figure 8)

Shares in percent

      21

                                                                                          Already very important
                                                                                          Importance will rapidly increase
                                                                                          Importance is still low
                                                             48

         31

n = 97
Technology Trends in Retailing 2021
Source: EHI

The former scepticism towards cloud solutions in                          nies prefer to avoid complicated in-house
this sector is yielding to a friendly attitude, and there                 installations and instead get flexible, up-to-date ser-
are many reasons for this. For one thing, retailers                       vices from the cloud. Another reason is that they can
want greater scalability when they roll out new solu-                     focus on their core strengths. In addition, resource
tions. Quick and simple implementation has be-                            conservation and energy efficiency have been men-
come a critical factor for success, so many compa-                        tioned as reasons.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey              22

“Resource conservation and energy efficiency
were often mentioned as relevant factors, but
not as decisive ones.”
                Çetin Acar, Project Manager, Research IT
                                                   EHI Retail Institute

             Reasons for cloud use
             What are the most important drivers for the use of cloud-based applications?
             (Figure 9)

             Shares in percent

                             Flexibility                                                                                         53

                     Scalability/speed                                                                     38

                   Cost-effectiveness                                                                 36

                  Availability/security                                                        32

             Focus on core strengths                                15

             n = 97, multiple answers possible
             Technology Trends in Retailing 2021
             Source: EHI

             Some retailers are trying to reduce the load on band-                     edge technology, which keeps artificial intelligence
             width from digitalisation and taking advantage of                         locally available.

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             Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
             7. Conclusion

                                                                                                      EHI White Paper: Sustainable Smart Stores 2021
Results of the EHI Retailer Survey                23

Dynamic pricing to reduce waste
In recent years, electronic shelf labelling (ESL) has                     Although bricks-and-mortar stores have not come
become much more common among food retailers                              nearly as far as online retailers when it comes to dy-
in German-speaking countries. Many large retail en-                       namic pricing, there are applications for perishable
terprises have introduced this technology over wide                       goods that could make a very important contribu-
areas, and leading discounters are taking a very                          tion to sustainability. Smart digital control of pric-
close look at it. One advantage of ESL is that it re-                     es for fruits and vegetables can cut back on waste
duces handling effort because price labels no lon-                        and reduce the quantities of goods that have to be
ger have to be placed by hand. Another is that pric-                      thrown out at the end of the day.
es can be adjusted as needed during the day.

Electronic shelf labelling
The use of electronic labels in food retail
(Figure 10)

Shares in percent

                      4     0

    17
                                                                               Already in use
                                                                               Project is planned
                                                                               Under observation
                                                                               No projects planned

                                                                          ƒ Numerous implementations are currently in
                                                                            the pilot stage.
                                                                          ƒ However, 54 percent of food retailers are
                                                                            planning to expand their use.

                                         79

n = 97
Technology Trends in Retailing 2021
Source: EHI

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Text: Xenia Giese, Microsoft                                         Digital Sustainability Solutions for the Retail Industry                      24

Digital Sustainability Solutions
for the Retail Industry
The following pages feature a range of digital sus-                       posed by Microsoft and its partners in the follow-
tainability solutions for retailers and manufactur-                       ing areas: Headquarters – Supply Chain &
ers offered by Microsoft customers and partners.                          Logistics – Product Range & Production – Stores
They will be presented according to the typical ar-                       – Customers & Circular Economy.
eas of focus and action listed on page 8. What all the                    The bottom of each page features a Quick Naviga-
solutions have in common is that they are based on                        tion bar to help move between the different areas.
the Microsoft platform.                                                   The Microsoft customer stories and partner solu-
    This compendium comprises 46 solutions, in-                           tions are also listed in the overview in the Appen-
cluding 29 customer stories and 17 solutions pro-                         dix.

Headquarters
Cloud infrastructure & digital collaboration
MICROSOFT SUSTAINABILITY CALCULATOR A                                     efficiency, modern IT equipment and infrastructure,
study on the Carbon Benefits of Cloud Computing                           and renewable energy.
(MSFT and WSP, updated 2020) found that the Mi-                                The Microsoft Sustainability Calculator is a
crosoft Cloud is up to 93 percent more energy effi-                       tool that provides companies with a transparent
cient than traditional on-premises data centres.                          overview of their carbon footprint when using the
When renewable energy is taken into account, the                          Azure and Dynamics365 clouds. The tool details
Microsoft Cloud is between 72 and 98 percent more                         both the direct and indirect carbon emissions a
carbon efficient than traditional data centres. These                     company generates when it uses the Microsoft
improvements can be attributed to IT operational                          Cloud.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Digital Sustainability Solutions for the Retail Industry                      25

MSC overview of a company’s carbon emissions from its Microsoft Cloud usage

Source: Microsoft                                                                        Source: Microsoft

MSC comparison of a company’s cloud/on-premises carbon emissions and detailed emissions report

Source: Microsoft                                                                        Source: Microsoft

                    The tool provides an overview of the carbon emis-                          ƒ Multiply this by the carbon intensity of the elec-
                    sions a company generates using the Microsoft                                tricity available (gCO2eq/kWh) in the correspond-
                    Cloud. The data are made available either in aggre-                          ing region to get the equivalent carbon emissions
                    gate form or in detail so that the company can use                           of the data centre over the period of time
                    them in its sustainability reports.                                        ƒ Visit the electricityMap or consult documents
                         The MSC furthermore compares the carbon                                 from local energy providers to find out the carbon
                    emissions generated using the Microsoft Cloud with                           intensity of the electricity available (gCO2eq/
                    those produced using a generic traditional data cen-                         kWh) in any given region.
                    tre (Figure). For a more accurate comparison of car-
                    bon emissions from cloud and on-premises data                              The MSC is currently available as a trial version for
                    centres, a separate calculation can be made using                          Azure enterprise customers with an existing ac-
                    the electricity consumption of a traditional data                          count and will be made generally available in July
                    centre:                                                                    2021; further updates beyond Azure to the other Mi-
                    ƒ Determine the electricity use of a traditional data                      crosoft Clouds are also expected at this time.
                      centre over a period of time (kWh)

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                    Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
                    7. Conclusion

                                                                                                             EHI White Paper: Sustainable Smart Stores 2021
Digital Sustainability Solutions for the Retail Industry                      26

REMOTE WORK AND PROCESS AUTOMATION                                        ity efforts by reducing paper-based processes and
(IKEA & MICROSOFT) Digital productivity tools en-                         replacing travel with digital collaboration. “Using
able retail company employees, from the central of-                       Teams makes our life in the store easier and helps
fice to the front line, to work together virtually and                    us meet our sustainability goals because we don’t
automate operational processes. This means great-                         need to use as much paper,” explains Fabian Hae-
er efficiency and a smaller carbon footprint.                             berlein, Deputy Marketing Manager at IKEA Kun-
     IKEA uses Microsoft 365 for its 166,000 em-                          gens Kurva, the largest IKEA store in the world.
ployees. IKEA staff were quick to adopt Microsoft                         “We’ve calculated that in this store, we could save
Teams for internal and external collaboration and                         SEK 364,000 (around EUR 36,000) by replacing our
store employees in particular were very pleased                           current scheduling process with Shifts. And you can
with the mobile Teams app. Adopting Microsoft                             imagine how much we could save as a company if
Teams helped the company support its sustainabil-                         we used Shifts at IKEA stores all over the world.”

Sustainability tracking & reporting
MASTER DATA MANAGEMENT FOR SUSTAIN-                                       cuses on how well a company has integrated the
ABLE PROCESSES (UNILEVER DACH & SYSTRI-                                   sustainability/CSR principles in its business and
ON) Efficient master data management is import-                           management models. The luxury goods company
ant for manufacturers and retail companies, not                           LVMH Moet Hennessy Louis Vuitton SE uses the
only because it forms the basis of many of their core                     EcoVadis solution to monitor the sustainability of
processes but also because it is essential to success-                    its many suppliers for its business activities in
fully monitor sustainability. The benefits of digital                     wines & spirits, fashion & leather goods, perfumes
master data management solutions are configurable                         & cosmetics, watches & jewellery, and selective re-
data import, and constant monitoring of data qual-                        tailing. “New regulations can be helpful because un-
ity at maximum scalability using flexible error anal-                     til recently sustainability was something that each
ysis and reports. Data errors are indicated clearly so                    LVMH House had to approach on its own. Now,
that they can be corrected quickly, improving data                        with Sapin II and “Devoir de vigilance” (Duty of
quality in the master data pool. Unilever DACH                            Care) regulations, especially in France, the group as
used the Systrion synfoxx solution to raise the                           a whole is also responsible for what happens at the
quality of its master data from less than 50 percent                      subsidiary level. This means we need to create more
to more than 99.2 percent, effectively halving efforts                    links between what can be done at House level, the
and redundancies due to errors along the entire sup-                      business line level, or at the group level. It also
ply chain.                                                                strengthens all the synergies we want to create be-
                                                                          tween our subsidiaries. This is a very positive thing
SUSTAINABILITY RATINGS FOR COMPANIES                                      for us. The advice I would give about using EcoVadis
(LVMH & ECOVADIS) EcoVadis develops sustain-                              is that it can help you to make a quick and fairly ac-
ability ratings for companies and oversees a global                       curate mapping of the suppliers who are at risk,”
network of more than 75,000 rated companies. As                           says LVMH Chief Procurement Officer Christian
part of its sustainability assessment, EcoVadis fo-                       Galichon.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
Digital Sustainability Solutions for the Retail Industry                      27

                    SUSTAINABILITY REPORTS – PLATFORMS FOR                                    ƒ IMPACT solution: Enables automated documen-
                    DOCUMENTATION & MANAGEMENT A great                                          tation, reporting and data collection. The reports
                    number of data are required to publish certified sus-                       document the sustainability strategy using the
                    tainability reports and these must be constantly up-                        SDGs and are certified according to CDP and GRI
                    dated to show that progress is being made towards                           standards.
                    meeting sustainability goals. This means that any                         ƒ Stratsys sustainability plan: Helps plan and doc-
                    gaps in reporting or irregularities, for example con-                       ument sustainability strategies. Sustainability key
                    cerning supplier data, must be quickly identified and                       figures can be gathered in one place, responsibil-
                    addressed. There are many digital platforms, with                           ities allocated and a clear link between activities
                    differing focal points, to do just this:                                    and strategy created.

                    READY-MADE PLATFORMS:                                                     CUSTOM SOLUTION:
                    ƒ ESGeo sustainability intelligence solution: Eval-                       ƒ Diconium custom sustainability dashboard: The
                      uates ESG-related (environmental, social, gover-                          advantage of a custom solution is that it can flex-
                      nance) risks and opportunities, integrates new                            ibly integrate pre-existing source systems, and
                      ESG factors, and streamlines sustainability re-                           automatically incorporate data via company-spe-
                      porting with a transparent disclosure process.                            cific workflows and display them in user-friend-
                                                                                                ly dashboards together with information on
                                                                                                reaching sustainability goals.

Example components of a custom solution for sustainability reporting
Source: Diconium

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                    Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
                    7. Conclusion

                                                                                                             EHI White Paper: Sustainable Smart Stores 2021
Digital Sustainability Solutions for the Retail Industry                      28

Central smart energy management
BUILDING MANAGEMENT PLATFORM (MICRO-                                      ƒ Johnson Controls OpenBlue Enterprise Man-
SOFT & ICONICS) The Microsoft headquarters in                               agement: Monitors and manages devices, build-
Redmond currently comprises 125 buildings, 35,000                           ings and companies. Proactively analyses build-
pieces of equipment and 500,000 data points. Close                          ing data to improve performance with dashboard
to 15 million sqm of office and laboratory space are                        and app for control.
spread over 500 hectares. The campus used many                            ƒ Bosch Energy Platform: Connects to IoT devices
different building systems with a peak energy con-                          in buildings such as existing meters, sensors, and
sumption of 100 MW and a yearly cost of USD 60                              machines and evaluates data for measurement,
million.                                                                    control and analysis in order to improve energy
     In 2018, Microsoft decided to integrate the dif-                       efficiency.
ferent systems to make remote monitoring and
management possible. This is where the ICONICS                            WATER MANAGEMENT (ECOLAB, TRUCOST, MI-
Genesys64 automation solution came into play,                             CROSOFT) Global water resources are being deplet-
which connects workshops and buildings with com-                          ed. As such, it is becoming increasingly important
pany business systems. A comprehensive building                           for companies to view water as a company resource
management platform was built on the Azure plat-                          and to pursue risk minimisation, performance max-
form with Power BI, SQL Server and Dynamics 365                           imisation and cost optimisation strategies for this
Field Service. The solution can reduce energy us-                         resource if they wish to ensure their growth. Mic-
age, improve building performance and increase                            rosoft has joined forces with Ecolab and S&P Tru-
work efficiency. The campus and its 59,000 users                          cost to develop two tools to help companies man-
was able to reduce its energy usage by 25 percent                         age water resources and estimate water risks:
and achieve ROI within 2 years.
                                                                          ƒ The Smart Water Navigator is a comprehensive
Further building and energy management plat-                                way to manage water. Following a simple 13 ques-
forms:                                                                      tion evaluation, a practical guide is generated that
                                                                            presents intelligent, sustainable water manage-
ƒ Deutsche Telekom Building Monitoring & Ana-                               ment practices for individual plants, buildings
  lytics makes it possible to manage buildings sus-                         and factories.
  tainably. Sensors are used to capture and visual-                       ƒ The Water Risk Monetizer provides support in
  ise energy consumption and the use of building                            assessing water risks and the impact of reduced
  space. In addition to monitoring functions, the ap-                       water availability and quality on operating costs
  plication also provides analytics to better use re-                       and revenue. Based on risk-adjusted water prices
  sources and save energy. ISS, a leading global pro-                       for incoming and outgoing water, potential reve-
  vider of facility services, uses the solution to use                      nue at risk is calculated to identify risks and en-
  available space, building technology and resourc-                         able informed decisions about strategies and in-
  es more efficiently, improve comfort parameters                           vestments.
  and lower costs.
ƒ ABB OPTIMAX® for industrials and commer-
  cials: Sustainably improves the energy efficiency
  of sites and manages all elements of a microgrid
  such as energy production, energy storage, ener-
  gy distribution, building automation and energy
  services and marketing.

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Solutions – Headquarters – Supply Chain & Logistics – Product Range & Production – Stores – Customers & Circular Economy |
7. Conclusion

                                                                                         EHI White Paper: Sustainable Smart Stores 2021
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