Scaling clean energy transitions among suppliers will be essential for Target to achieve significant near-term emissions reductions across its supply chain, according to the retailer’s 2026 Sustainability and Governance Report.
Target identifies supplier energy consumption as the largest contributor to its upstream carbon footprint and, consequently, one of the most important levers for decarbonizing its operations. The retailer is therefore concentrating its efforts on helping business partners improve energy efficiency, expand renewable electricity procurement and shift process heat toward renewable energy solutions.
Through its supplier climate engagement program, Target works directly with suppliers to provide tailored assistance in calculating their carbon footprints, scaling emissions-reduction solutions and monitoring progress. According to the report, this support also extends to the adoption of lower-emissions technologies as well as improvements across transportation and logistics operations.
For the second consecutive year, Target has partnered with Schneider Electric through its Forward Renew program. The free initiative is open to all Target suppliers and provides live and on-demand resources designed to support the transition to cost-effective clean energy, according to the program’s registration page.
Forward Renew is intended to help suppliers overcome what Target describes as “common barriers” to renewable energy adoption. Since its launch, the program has provided advisory support to 187 U.S. business partners, Target reported.
“By enabling long-term renewable electricity procurement, the cohort strengthens supply chain resilience and establishes a scalable model,” Target said in its report. “We intend to expand this model through future cohorts to accelerate renewable energy adoption across our supply chain.”
Target is also working with the Corporate Energy Buyers Association, a business group focused on advancing low-cost, carbon emission-free electricity systems, as well as its Clean Energy Procurement Academy.
Through this partnership, Target is seeking to expand regional programs and capability-building initiatives with suppliers in India. At the same time, the company plans to continue strengthening its existing engagement with suppliers in China, Vietnam, South Korea and Indonesia.
Overall, Target has set a goal of reducing its supply chain emissions by 32.5% by 2035. The retailer reported that, through supplier engagement and other initiatives, it had achieved a 10.7% reduction in supply chain emissions against its 2017 baseline as of the end of fiscal year 2025, which concluded on January 31, 2026.
Scope 3 emissions covering emissions generated through sourcing, production and transportation currently represent 98.5% of Target’s total emissions footprint, according to the retailer.
Within Scope 3, upstream manufacturing and materials associated with Target’s owned and national brand products account for 45% of the company’s emissions. Product use by guests represents a further 26%.
