Climate change is a defining challenge of our time. We're working to cut carbon emissions across our value chain, and support a global movement for action.

Our strategy involves increasing efficiency, transitioning toward renewable energy sources, investing in raw material innovation, and cross-industry collaboration. Science-based targets help to align our goals with the Paris Agreement – to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C.

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Renewable Electricity

We are making progress on our climate goals around carbon reduction.

In September 2021, we signed a 15-megawatt virtual power purchase agreement (VPPA) with Enel Green Power for renewable energy from the Azure Sky wind project. The energy purchased is equivalent to the electricity needed to power 100% of our direct operations in North America. For our global operations, we purchased high-quality, renewable energy credits. We will continue to seek new opportunities that support net new renewable energy development in all regions where we operate.

Energy Efficiency

By building on existing initiatives, we're continuing to improve energy efficiency in our owned and operated facilities.

These include LED lighting in stores and distribution centres and implementing Energy Management Systems in our stores to reduce energy use.

Transportation and Logistics

Transportation and logistics currently comprise approximately 14% of our total carbon footprint.

We are investing in new systems that support more efficient planning processes and optimize inbound transportation to reduce air freight. We intend to shift transportation methods when possible, including from air freight to ocean, truck, or train transportation, and recognize that this is challenging in the current COVID environment.

Supplier Environmental Initiatives

As an apparel manufacturer, product life cycle assessments show us that our biggest environmental impacts are in our supply chain.

These impacts are systemic and best addressed through collaborative solutions. We measure and manage our raw material and manufacturing impacts with the Higg Material Sustainability Index (MSI) and Facility Environmental Module (FEM). This helps us better understand and benchmark our supply chain performance, establish targets and priorities, and inform the design and procurement of products.

We collaborate with our suppliers to help improve their energy reduction efforts. As a founding member of the Carbon Leadership Project with the Apparel Impact Institute and RESET Carbon, we seek to collaborate and develop approaches to reduce supply chain emissions that can be adopted industry-wide.

Industry Collaboration

Renewable energy policies, government engagement, and energy sources vary from country to country, making it challenging to implement a globally consistent approach.

By working with stakeholders across our supply chain, we have an opportunity to influence and invest in renewable energy initiatives that meet country-specific needs. As signatories of the UN Fashion Industry Charter for Climate Action, we are committed to net zero carbon by 2050 or earlier.