Scaling supplier clean energy transitions is critical for making significant near-term emissions reductions across Target’s supply chain, according to the retailer’s 2026 Sustainability and Governance Report.
Target said supplier energy use is the largest driver of its upstream carbon footprint and the most influential lever for decarbonizing operations, per the report. In turn, the retailer is focused on helping business partners improve energy efficiency, increase renewable electricity procurement and transition process heat to renewable solutions.
For example, through its supplier climate engagement program, Target collaborates with its suppliers to provide tailored support to calculate their carbon footprints, scale solutions and track progress. This includes supporting the adoption of lower-emissions technologies and improvements in transportation and logistics, according to the report.
Target also has partnered with Schneider Electric on the retailer's Forward Renew program for the second year, per the report. The free program, which is available to all Target suppliers, offers live and on-demand resources to help with the transition to cost-effective clean energy, according to the program’s registration page. The program aims to help reduce “common barriers” when it comes to renewable energy and has provided 187 U.S. business partners with advisory support since its launch, 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 also partners with the Corporate Energy Buyers Association, a business group dedicated to advancing low-cost, carbon emission-free electricity systems, and its Clean Energy Procurement Academy, according to the report. Through the partnership, Target aims to expand regional programs and capability-building efforts with suppliers in India. The partnership also intends to continue bolstering existing engagement with suppliers in China, Vietnam, South Korea and Indonesia.
At a high level, Target aims to reduce its supply chain emissions by 32.5% by 2035, according to the report. Through supplier engagement and other efforts, Target reported a 10.7% reduction in supply chain emissions compared to its 2017 baseline, as of the end of fiscal year 2025, which ended Jan. 31, 2026.
Scope 3 — which includes emissions created through sourcing, production and transportation — currently accounts for 98.5% of Target’s emissions footprint, the retailer reported. Within Scope 3, upstream manufacturing and materials related to Target’s owned and national brand products make up 45% of the retailer’s emissions. Product use by guests accounts for another 26%.
