Apparel & Footwear Climate Change Question 2

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Question

Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2) and has the brand already reduced or compensated 10% of these emissions in the last 5 years?

  • Dutch version: Heeft het merk (bedrijf) de absolute 'CO2-voetafdruk' als gevolg van de eigen bedrijfsvoering (Scope 1 & 2) gepubliceerd en heeft het bedrijf in de laatste vijf jaar al 10% daarvan gereduceerd of gecompenseerd?
  • German version: Veröffentlicht der Markenhersteller eine absolute Klimabilanz zum eigenen Betrieb? Wurde die Klimabilanz in den letzten fünf Jahren um mindestens 10% reduziert oder kompensiert?

Reference

This question relates to aspects EN5, EN6, EN7, EN16 and EN18 in the Reporting Guidelines & Apparel and Footwear Sector Supplement of the Global Reporting Initiative. A carbon footprint is "the total set of greenhouse gas (GHG) emissions caused by an organization, event, product or person." For this question, the carbon footprint should at least cover the C02 emissions.

A carbon footprint consists out of:

Own operations:
Scope 1: Direct Emissions: Emissions from the sources that are owned or controlled by the company, for example, owned and leased offices, vehicles, factories and shops
Scope 2: Indirect Emissions: Emissions from the used electricity for all of its own sources

Optionally: third-party operations
Scope 3: Other Indirect Emissions: Emissions from suppliers/factories that are NOT owned by the company, business travel, transportation & distribution, employee commuting & teleworking

Please note: Staff flights/travel are regularly included in the footprint as part of the 'own operations' footprint (though it's technically reported as Scope 3 emissions).

Ranking guidelines

A ‘Yes’ is applicable when:

  • Companies publish a carbon footprint including the results from earlier years that give a clear breakdown of the inputs that contribute to this footprint (e.g. Scopes 1 and 2), and show a reduction of at least 10%.
  • Companies indicate that they have reported their carbon footprint on a publicly available website and the ranker has independently verified that it meets our criteria (see hints/reminders in section below).
  • Eligible to this question are also actions to (partly) compensate the carbon footprint (=carbon offsetting), on the condition that the brand/ company clearly reports what the compensation schemes are (concrete projects, concrete numbers) and the brand/company describes the additionality of these projects. Read more here about additionality of carbon credits and here about additionality of renewable energy certificates. Please be sure that the net carbon footprint (so carbon footprint minus compensation) of the last reported year is 10% lower than the highest net carbon footprint in the last 5 years.

A ‘No’ is applicable when:

  • Companies have an increase in their carbon footprint.
  • The percentage of reduction achieved is less than 10%.

A ‘?’ is applicable when:

  • Companies do not report a carbon footprint.
  • No percentage is provided for how much the CO2-footprint has reduced (or increased) and/or there is not enough information to clearly calculate such a reduction (or increase).
  • Companies publish the carbon footprint only relative to e.g. turnover, number of products sold, number of employees etc. The carbon footprint should be presented in absolute terms.

Calculating Reductions:

  • The 10% reduction is calculated relative to the year where the footprint was largest, counted from a base year within the past 5 years. The ‘year of reduction’ is the latest year for which the footprint is made available. Note that this footprint should not be older than 2,5 years (for example if it is now August 2010, the footprint should cover years 2008 or 2009).
  • Also note that when a company e.g. has grown or decreased, or acquired / sold a company part, you don’t take proportional reductions or additions into account.
  • Please mention in the remark section exactly where you found the footprint information and how you calculated the achieved reduction.

Answering guidelines

Answer Yes:

  • [Brand] reduced its footprint from [..Amount] tons of CO2 in [..YR] to [..Amount] tons of CO2 in [..YR], which represents a reduction of [..%] (see page [..]).
  • [Brand] publicly reports its climate footprint on the CDP website. In [..YR], it had a total footprint of [..] metric tons of CO2eq/yr (scopes 1-2), compared to [..] metric tons of CO2eq/yr in [..YR] (scopes 1-2). This represents a [..]% reduction in their own operations.

Answer No:

  • [Brand] reduced its footprint from [..Amount] tons of CO2 in [..YR] to [..Amount] tons of CO2 in [..YR], which represents a reduction of only [..%] (see page [..]).
  • [Brand] increased its footprint from [..Amount] tons of CO2 in [..YR] to [..Amount] tons of CO2 in [..YR], which represents an increase of [..%] (see page [..]).
  • [Brand] publicly reports its climate footprint on the CDP website. In [..YR], it had a total footprint of [..] metric tons of CO2eq/yr (scopes 1-2), compared to [..] metric tons of CO2eq/yr in [..YR] (scopes 1-2). This represents a reduction of only [..]% in their own operations.
  • [Brand] publicly reports its climate footprint on the CDP website. In [..YR], it had a total footprint of [..] metric tons of CO2eq/yr (scopes 1-2), compared to [..] metric tons of CO2eq/yr in [..YR] (scopes 1-2). This represents a [..]% increase in their own operations.

Answer ?:

  • [Brand] claims its climate footprint has reduced by [..]% from [..YR] to [..YR].

However, [Brand] does not publicly provide the details of this climate footprint (or where to find it) on its website.

  • [Brand] does not publish the annual climate footprint of last years on its website. So it is not clear if the policy measures actually helped reduce the total annual climate emissions. Sustainability information should be easily accessible for consumers to make responsible choices.

OR

  • Neither [Brand] nor [...] (brand owner) communicate a climate footprint policy on its websites. Sustainability information should be easily accessible for consumers to make responsible choices.

Hints/Reminders

  • This information is often published in a CSR report, however, we can use other information that is publicly available provided that the brand/company references it first on their own site. For example, when a brand indicates that they have reported their carbon footprint on a publicly available website such as the Carbon Disclosure Project (CDP) website, we can also check that location. Rankers should still verify that the brand has reported on BOTH Scope 1 and 2 emissions.
  • Check the brand website for details first, but often this information can be found on the brand owner website (try sections of the website that are titled: Sustainability, CSR, Corporate Information, Investor Relations, etc.).
  • Keywords might include: carbon, CO2, footprint, emissions, CDP, reduction, operations, etc.