Climate Change, Energy & Emissions
We recognize our responsibility to reduce our contribution to global climate change by conserving energy, investing in renewable sources of energy and reducing our greenhouse gas (GHG) emissions.
Understanding Climate Change Related Risk
In FY2015, we completed a comprehensive climate change risk management analysis. We identified the physical, business continuity, sourcing, regulatory and reputation risks and how consumer preferences might be affected by climate change. This process strengthened our ability to anticipate risks to our business from rising energy demands and costs and other impacts from climate disruption.
Greenhouse Gas Emissions
Our climate and energy practices center on reducing operational (Scope 1 and Scope 2) GHG emissions. While we recognize that the vast majority of emissions in our value chain are attributed to upstream suppliers, our focus for the near-term is to improve our footprint in operations where we have the most direct control.
Every year, we report our GHG emissions to the CDP, which monitors corporate approaches to tackling climate change. We are proud to be included in the CDP Climate Disclosure Leadership Index for the third consecutive year. Our performance score was a B and our disclosure score was 99[TR1].
The energy consumed by our manufacturing, distribution and retail stores accounts for the majority of our GHG Scope 1 and 2 footprint. In addition to ongoing energy efficiency initiatives, such as the use of ENERGY STAR equipment and high-efficiency airflow and temperature management systems, we have been piloting programs around efficient lighting, energy dashboards in our facilities, and reducing transport-related emissions.
Increasingly, we will focus on energy efficiency projects to meet our GHG goals for our growing number of freestanding stores. We have established high efficiency lighting standards for all new freestanding stores, and existing stores are being retrofitted over time as additional scalable approaches to energy efficiency are identified.