Mavi Giyim Sanayi ve Ticaret A.Ş.
Climate Impact & Sustainability Data (2019-02-01 to 2020-01-31, 2020-02 to 2021-01)
Reporting Period: 2019-02-01 to 2020-01-31
Environmental Metrics
Total Carbon Emissions:25459.95 tCO2e/year
Scope 1 Emissions:647.5 tCO2e/year
Scope 2 Emissions:24812.45 tCO2e/year
Scope 3 Emissions:72763.17 tCO2e/year
Total Energy Consumption:54679.21 MWh/year
Waste Generated:11.22 tons/year
Carbon Intensity:0.0000108 tCO2e/TRY
ESG Focus Areas
- Climate Change
- Supply Chain Sustainability
- Product Sustainability
Environmental Achievements
- Reduced energy consumption by 8% in 10 stores through smart monitoring systems.
- Phased out leather back labels on jeans, replacing them with vegan alternatives.
- Reduced the amount of paper information cards in products from 2 to 1.
Social Achievements
- Launched the "All Blue" sustainable collection, increasing customer loyalty.
- Engaged with suppliers to collect data for product lifecycle assessments.
- 81% of the entire collection is sourced locally in Turkey.
Governance Achievements
- Board-level oversight of climate-related issues by the CEO.
- Established an internal continuous life cycle assessment procedure.
- Renewed Remuneration Policy to encourage achievement of short and long-term goals.
Climate Goals & Targets
Long-term Goals:
- Implement a Science-based Target within the next two years.
Medium-term Goals:
- Achieve at least 10% and at most 30% reduction in Scope 2 emissions within 5 years.
Short-term Goals:
- Expand smart energy monitoring systems to all stores.
- Implement renewable energy purchasing agreements for more stores.
Environmental Challenges
- Increased direct costs due to climate change impacts on raw materials (water scarcity).
- Decreased revenues due to reduced demand for products (changing customer behavior).
- Increased indirect costs due to potential future carbon pricing mechanisms.
Mitigation Strategies
- Launched "All Blue" sustainable collection with sustainable materials.
- Implemented energy efficiency projects (smart monitoring, LED lighting).
- Conducting product lifecycle assessments to identify and mitigate environmental risks.
Supply Chain Management
Supplier Audits: 0.83% of suppliers
Responsible Procurement
- Data collection for LCA studies.
- Monitoring social, economic, and environmental performance of suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Water scarcity impacting raw material supply.
- Extreme weather events disrupting supply chain.
Transition Risks
- Changing customer behavior reducing demand.
- Emerging carbon pricing mechanisms increasing costs.
Opportunities
- Increased revenues from increased demand for sustainable products.
- Reduced operating costs through energy efficiency and renewable energy.
Reporting Standards
Frameworks Used: AA1000 Stakeholder Engagement Standard, SASB
Sustainable Products & Innovation
- "All Blue" sustainable collection using organic cotton, recycled cotton, and Tencel.
Reporting Period: 2020-02 to 2021-01
Environmental Metrics
Total Carbon Emissions:101,328.61 tCO2e/year
Scope 1 Emissions:773.9 tCO2e/year
Scope 2 Emissions:17,024.7 tCO2e/year (location based)
Scope 3 Emissions:93,480 tCO2e/year
Water Consumption:8,849.94 m3/year
Waste Generated:2,417.11 tons/year
ESG Focus Areas
- People
- Planet
- Community
- Denim
Environmental Achievements
- Reduced CO2 eq. emissions by 2,573.31 tonnes per year through energy efficiency and renewable energy projects.
- 101 stores using renewable energy as of January 2021.
- Opened first highly energy-efficient eco-store.
- 26% less water and 24% less energy consumption in manufacturing process with strategic partner Erak compared to the previous year.
- 54% of total denim production done with laser and sustainable wash treatment.
Social Achievements
- Launched Mavi Pro Sport Repreve® line using 593,750 recycled plastic bottles.
- 30 female university students benefited from the TEV Mavi Scholarship Fund.
- 150,000 hatchlings reached the sea with the Indigo Turtles project.
- Employee satisfaction was 91.79% at year-end 2020.
- Female employment ratio at 54%, female manager ratio at 46%.
Governance Achievements
- Signed UN Global Compact.
- Completed materiality analysis.
- Formed Sustainability Committee and working groups.
- Disclosed carbon footprint transparently to CDP, receiving a B score in environmental performance and an A- in Supplier Engagement Rating (SER).
Climate Goals & Targets
Long-term Goals:
- Become a climate-positive company by 2050.
- Become a carbon neutral company by 2040.
Medium-term Goals:
- Achieve 100% traceability in the supply chain by 2030.
- Reduce Scope 1+2 GHG emissions by 50% by 2030.
- Reduce Scope 3 GHG emissions by 20% by 2030.
- Source 100% cotton from sustainable resources by 2030.
- Ensure whole denim collection consists of sustainable All Blue products by 2030.
Short-term Goals:
- Increase female manager ratio to 50% by 2023.
- Ensure compliance of all main suppliers with Code of Conduct by 2025.
- Ensure all label, cardboard, and paper packaging materials are FSC-certified by 2025.
Environmental Challenges
- Supply chain disruptions due to the COVID-19 pandemic.
- Climate change impacts on supply chain and operations.
- Reducing Scope 3 emissions (84% of total emissions).
Mitigation Strategies
- Implemented remote working model and hygiene measures during the pandemic.
- Developed self-assessment forms for suppliers to ensure social compliance audits continued.
- Investing in renewable energy and energy efficiency projects.
- Collaborating with suppliers to reduce their environmental impact.
- Implementing the Remote Energy Management System with Reengen in all Mavi stores.
Supply Chain Management
Supplier Audits: 52 main audits and 21 follow-up audits in 2020; 21% of existing suppliers inspected.
Responsible Procurement
- Supplier Code of Conduct
- Global Purchasing Principles
- Social compliance audits
- Preference for BSCI and Sedex certified suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Natural disasters impacting suppliers
Transition Risks
- Rising costs of sustainable raw materials
- Changes in consumer preferences
Opportunities
- Development of energy-efficient products
- Increased demand for sustainable products
Reporting Standards
Frameworks Used: GRI Standards (Core option), UNGC, WEPs, CDP
Certifications: ISO 27001, ISO 9001, OCS, RCS
Third-party Assurance: PwC Turkey (limited assurance on Scope 1, 2, and 3 GHG emissions)
Sustainable Products & Innovation
- All Blue collection
- Mavi Pro Sport Repreve® collection
- Les Benjamins x Mavi collection
- Coca-Cola x Mavi collection
Awards & Recognition
- Rivet Awards (Most Sustainable Collection)
- A.C.E. Awards (Gold award in apparel category)