Dr. Martens plc
Climate Impact & Sustainability Data (2021, 2023-04-01 to 2024-03-31, 2024)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:2263.12 tCO2e/year (total)
Scope 1 Emissions:705.81 tCO2e/year (global)
Scope 2 Emissions:1,551.97 tCO2e/year (global)
Scope 3 Emissions:5.34 tCO2e/year
Renewable Energy Share:Over 97% of electricity in UK from green tariff
Total Energy Consumption:4,475,654.39 MWh/year (global)
Carbon Intensity:2.93 tonnes CO2e/£ turnover (FY21)
ESG Focus Areas
- Environmental impacts from supply chain manufacturing processes
- Modern slavery, human rights and labour rights in the supply chain
- Chemicals management and product compliance
- Innovation in design and sustainable materials
- Responsible treatment of suppliers
- Waste management
- Circular economy (resource efficiency, durability, repair, end of life)
- Land, biodiversity and ecosystems impacts of raw material production
- Energy and climate
- Packaging materials and design
- Volunteering, charitable support and local communities
- Diversity, equity and inclusion
Environmental Achievements
- Achieved ISO 14001 certification in our Made in England factory
- Eliminated single-use plastic lace bags, saving over 500kg of plastic
- More than 98% of leather sourced from LWG medal-rated tanneries
Social Achievements
- Paid all employees in full through the pandemic and made no redundancies relating to Covid-19
- Launched the Dr. Martens Foundation
- Created a dedicated department for diversity, equity and inclusion
Governance Achievements
- Developed and committed to sustainability targets, including net zero by 2030
- Undertook a gap and materiality analysis to comprehensively understand our most significant impacts and priority action areas
- More than 90% of Tier 1 finished product suppliers were independently audited physically and all surpassed required CSR audit criteria
Climate Goals & Targets
Long-term Goals:
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Medium-term Goals:
- All products align to defined sustainable design criteria by 2028
- 100% of packaging made from recycled or other sustainably sourced material by 2028
- Develop a sustainable vegan upper material by 2028
- Remove fossil-based chemicals from products by 2030
Short-term Goals:
- Minimise packaging use through reduction and reuse by 2025
- Roll out environmental certification standards to all Tier 1 suppliers by 2025
- Achieve 100% leather traceability by 2024
- Offer options and guidance for consumers to maximise useable life of products by 2025
Environmental Challenges
- Waste management in countries with weaker waste infrastructure
- Climate change impacts throughout the supply chain
- Ensuring responsible sourcing of leather and PVC
Mitigation Strategies
- Requiring Tier 1 suppliers to have formal waste management plans
- Commitment to net-zero emissions by 2030
- Working with LWG certified tanneries for leather and researching sustainable alternatives for PVC
Supply Chain Management
Supplier Audits: More than 90% of Tier 1 finished product suppliers were physically audited in FY21
Responsible Procurement
- Supplier Code of Conduct
- Migrant Worker Policy
- Environmental Standards
- Animal Derived Materials Policy
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD, Greenhouse Gas Protocol, SASB, UN SDGs
Certifications: ISO 14001
UN Sustainable Development Goals
- Climate Action (Goal 13)
- Responsible Consumption and Production (Goal 12)
The report highlights alignment with several SDGs, particularly those related to climate action and responsible consumption and production.
Sustainable Products & Innovation
- 50/50 Recycled Poly Tract collection
- Use of post-consumer recycled polyester in Airwair heel loops, laces, and upper fabrics
Awards & Recognition
- Drapers – Best Place to Work 2019
- HR Distinction Awards – Distinction in Employee Engagement and Experience 2019
- Business Culture Awards – Business Culture Achievement Award 2019
Reporting Period: 2023-04-01 to 2024-03-31
Environmental Metrics
Total Carbon Emissions:280,456 tCO2e (FY23)
Scope 1 Emissions:955 tCO2e (FY24, Global)
Scope 2 Emissions:4,057 tCO2e (FY24, Global)
Scope 3 Emissions:277,402 tCO2e (FY23)
Renewable Energy Share:93.5% (EMEA including UK, FY24)
Total Energy Consumption:11,746,360 MWh (FY24, Global)
ESG Focus Areas
- Climate
- Operations
- Materials
- Packaging
- Lifecycle
- DE&I
- Human Rights
- Communities
Environmental Achievements
- 93.5% of electricity consumption for owned and operated UK and EMEA sites came from renewable sources
- Launched footwear made from reclaimed leather
- UK distribution centre was zero waste to landfill throughout 2023
- 100% of upper leather for AW24 sourced from LWG certified tanneries
- Rollout of Forest Stewardship Certified (FSC) recycled cardboard across standard shoe boxes
Social Achievements
- 10% increase in women in senior leadership roles since FY23 (FY23: 36%, FY24: 46%)
- Launched resale platform in the USA (ReWair)
- Launched authorised repair service in the UK
- Developed Responsible Purchasing supplier charter
- 100% of Tier 1 and Key Tier 2 suppliers CSR audited met high standards
Governance Achievements
- FY40 Net-Zero target validated by SBTi
- Executive bonuses linked to achievement of specific sustainability initiatives
- Undertook first human rights risk assessment
Climate Goals & Targets
Long-term Goals:
- Net-Zero greenhouse gas (GHG) emissions across the value chain by FY40
- 100% of footwear made from sustainable materials by 2040
- 100% of the natural materials in products from regenerative agriculture by 2040
- 100% products sold have sustainable end-of-life option by 2040
Medium-term Goals:
- Achieve 100% renewable electricity across all owned and operated sites by 2025
- Sustainable alternative to outsoles by 2035
- Sustainable vegan upper material by 2028
- Reduce absolute scope 3 GHG emissions 30% by FY30 from a FY20 base year
Short-term Goals:
- Reduce water consumption
- Offer options and guidance for wearers to maximise useable life by 2025
- Environmental certification standard to all Tier 1 suppliers by 2025
- 100% leather traceability for all countries by 2024
Environmental Challenges
- Supply chain disruptions due to extreme weather events (riverine flooding)
- Increased prices of input materials due to decarbonization standards
- Carbon taxation
- Achieving 100% leather traceability
- Developing sustainable alternatives to PVC outsoles
Mitigation Strategies
- Diversification of sourcing countries and Tier 1 suppliers
- Counter sourcing of high-volume new products
- Transitioning to low-carbon materials (bio-based alternatives)
- Increased material efficiency and circularity
- Scaling up repair and resale business models
- Sourcing 100% renewable electricity
- Implementing energy efficiency measures
- Engaging with suppliers to improve environmental performance
Supply Chain Management
Supplier Audits: 100% of Tier 1 and Key Tier 2 suppliers CSR audited
Responsible Procurement
- Supplier Code of Conduct
- Responsible Purchasing Practices Charter
- Environmental Standards agreement
Climate-Related Risks & Opportunities
Physical Risks
- Riverine flooding
- Changes in temperature
Transition Risks
- Carbon taxation
- Production standards
- Increased prices of input materials
- Land-use & agricultural practices
Opportunities
- Repair and resale
- Alternative materials
Reporting Standards
Frameworks Used: TCFD, SASB
Certifications: ISO 14001
Third-party Assurance: Third party limited assurance for SECR disclosure
Sustainable Products & Innovation
- Footwear made from reclaimed leather
- Products with recycled components
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:280,456 tCO2e (FY23)
Scope 1 Emissions:955 tCO2e (FY24)
Scope 2 Emissions:438 tCO2e (FY24)
Scope 3 Emissions:3,844 tCO2e (FY24)
Renewable Energy Share:93.5% (UK and EMEA DTC)
ESG Focus Areas
- Climate Change
- Diversity, Equity & Inclusion
- Human Rights
- Community
- Supply Chain Responsibility
Environmental Achievements
- 93.5% of electricity used by DTC operations in the UK and EMEA came from renewable sources.
- Launched an authorized repair service in the UK.
- Launched ReWair, a resale platform in the USA.
- Launched footwear made from reclaimed leather (Genix Nappa).
Social Achievements
- 100% of Tier 1 and Key Tier 2 suppliers underwent CSR audits meeting high standards.
- 10% increase in women in senior leadership roles since FY23 (36% to 46%).
- Developed and launched the first Responsible Purchasing Practices Charter.
Governance Achievements
- Appointment of new CFO, Giles Wilson.
- Announced Kenny Wilson's intention to step down as CEO, to be succeeded by Ije Nwokorie.
- Executive bonuses linked to the achievement of specific sustainability initiatives.
Climate Goals & Targets
Long-term Goals:
- Net-Zero emissions by FY40 (2040).
Medium-term Goals:
- Achieve 60% DTC revenue mix.
- Roll out omnichannel in EMEA.
- Open 25-30 stores globally.
Short-term Goals:
- Reduce inventory levels in Americas by March 2025.
Environmental Challenges
- Weak consumer demand in the USA, particularly in the boots category.
- Widespread caution from wholesale customers in the USA.
- Challenging macroeconomic environment with weak consumer confidence and high inflation.
- Increased operating costs due to inflation.
Mitigation Strategies
- Implementing a detailed action plan to reignite demand in the USA.
- Targeting £20m to £25m of cost reduction through organizational efficiency and design, better procurement, and operational streamlining.
- Shifting marketing efforts globally from storytelling focused on culture to a relentless focus on product marketing.
- Increasing marketing investment in the USA.
Supply Chain Management
Supplier Audits: 100% of Tier 1 and Key Tier 2 suppliers audited.
Responsible Procurement
- Supplier Code of Conduct
- Supplier Environmental Standard
- Responsible Purchasing Practices Charter
Climate-Related Risks & Opportunities
Physical Risks
- Riverine flooding
- Changes in temperature
Transition Risks
- Carbon taxation
- Production standards
- Increased prices of input materials
- Land-use & agricultural practices
Opportunities
- Repair and resale
- Alternative materials
Reporting Standards
Frameworks Used: TCFD, SASB
Certifications: ISO 14001
Sustainable Products & Innovation
- Genix Nappa reclaimed leather