Decathlon announced a major renewable energy initiative in China
©Decathlon
Sporting goods retailer Decathlon brought together 14 industry partners in China with the China General Nuclear Power New Energy Group (CGN) in the Fujian Province to sign a power purchase agreement for renewable energy.
This initiative is expected to double the volume of renewable energy consumed by Decathlon globally for its production. The company emphasizes that this is equivalent to avoiding carbon emissions from over 35,000 households or 41,000 gasoline-powered cars annually.
Anna Turrell, Sustainability Manager for Decathlon, states, "More than 80% of Decathlon's emissions come from our global value chain (Scope 3) through the production and transportation of our products. To maintain the 1.5°C target, we need to accelerate decarbonization wherever we have an impact and influence." The renewable energy agreement between Decathlon China's industrial partners and CGN represents a crucial step towards ensuring a low-carbon future for global industrial production.
©Decathlon
China stands as the second-largest market for Decathlon in terms of stores, and the country hosts several of its production sites. In 2022, Decathlon's Chinese stores offered a product range composed of 95.9% "Made in China." In comparison, "Made in Europe" for Decathlon's European retail accounted for only 27.2%.
Beyond financial considerations, the "Made in China" strategy aligns with a localized production development strategy. This approach allows Decathlon to mitigate supply chain risks and respond promptly to market demands. Furthermore, the company highlights in its 2022 Extra-Financial Performance Statement that this strategy contributes to developing industry close to consumption areas, fostering the growth of the circular economy. Decathlon operates in 59 distribution countries with 104,116 employees and achieved a revenue of €15.4 billion excluding taxes in 2022.
