According to an article by Fitch Ratings, retail industries are large contributors to global emissions and the investments they require to lower them could threaten long-term profitability and will be affected by changes in consumption as the world moves to a more sustainable model. Apparel and durable goods and consumer electronics (DGCE) are the segments of the retail sector most vulnerable to climate risks.

• Clothing retailing will be affected by evolving consumer trends and growing environmental awareness, which will encourage longer wear alongside the second-hand economy.
• Consumer electronics retailers, along with manufacturers, should take responsibility for promoting the use of longer-lasting products and facilitating the recycling and repair of products. The low carbon transition will require retailers to gradually shift their offerings towards products made from more sustainable materials and with better durability and repairability characteristics.
• Retailers selling building materials and home improvement products are gradually shifting their revenue structures towards environmentally friendly products. They are also encouraging customers to purchase more resource-efficient to reduce energy and water consumption, backed by stricter regulations.
• Food and pure online retail are the least vulnerable to transition risks. They will need to make some investments to adapt, but these investments will not significantly affect free cash flow and demand factors will remain strong during the transition.