Climate Change Data

Skechers U.S.A., Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:79,543 tCO2e (2021, market-based)
Scope 1 Emissions:15,925 tCO2e (2021)
Scope 2 Emissions:63,618 tCO2e (2021, market-based)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Nearly 93% of shoebox materials are fully recyclable.
  • 99% of shoebox material originates from FSC-certified, sustainable forest origins.
  • All foot forms and tissue packaging are substantially recyclable.
  • Launched Our Planet Matters™ collection with recycled materials.
  • Donated $800,000 to The Nature Conservancy.

Social Achievements

  • Donated $9.3 million since 2015 to help save the lives of shelter animals.
  • Donated 16 million pairs of new shoes to kids in need worldwide.
  • Raised more than $21 million for neurodivergent children, public schools, and college scholarships through the Skechers Foundation.
  • Provided various benefits including parental leave, retirement savings, disability accommodations, and health and fitness programs.

Governance Achievements

  • Established an internal, cross-functional ESG Committee.
  • Board comprised of eight members, five of whom are independent (as of April 2023).
  • 38% female and 25% ethnically diverse Board (as of April 2023).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • All Our Planet Matters™ footwear to use at least 20% recycled content of the upper by weight in 2023.
  • All Our Planet Matters™ apparel to be made from at least 70% recycled polyester or at least 50% organically grown cotton in 2023.

Environmental Challenges

  • Increase in Scope 1 and Scope 2 GHG emissions from 2020 to 2021 (28.9% increase).
  • Limited data availability for GHG emissions calculations in 2020 and 2021.
  • Supply chain risks related to compliance with Supplier Code of Conduct.
Mitigation Strategies
  • Implementing emissions reduction efforts in distribution centers (LED lighting, temperature controllers).
  • Improving data collection practices for future GHG inventories.
  • Evaluating technology platforms for data collection and monitoring.
  • Planning to measure Scope 3 GHG emissions in the future.
  • Conducting audits of suppliers and their factories for compliance with the Supplier Code of Conduct.

Supply Chain Management

Supplier Audits: 359 audits in 2021 (77.7% of Tier 1, 21% of Tier 2 suppliers)

Responsible Procurement
  • Supplier Code of Conduct
  • SRSL (Skechers Restricted Substances List)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: LEED Gold (for some facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Our Planet Matters™ collection

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:82,593 tCO2e/year (Market-based Scope 1 & 2)
Scope 1 Emissions:10,610 tCO2e/year
Scope 2 Emissions:71,983 tCO2e/year (Market-based)
Scope 3 Emissions:1,676,892 + 388,612 + 138,061 tCO2e/year (Categories 1, 4, and 14)

ESG Focus Areas

  • Climate Change
  • Workers in our Value Chain
  • Own Workforce
  • Resource Use and Circular Economy
  • Supply Chain Management and Supplier Relationships
  • Pollution

Environmental Achievements

  • Completion of 600,000-square-foot IGBC Platinum pre-certified Mumbai Distribution Center using locally sourced materials
  • LEED Gold certification for new corporate office building (following 2021 LEED Gold certification for HQ expansion)
  • Completion of Canada Distribution Center reducing deliveries from California, improving speed to market and decreasing environmental impact
  • Solar panels installed at all buildings of Corporate Headquarters
  • Continued use of recycled materials in Our Planet Matters® product line

Social Achievements

  • Launched Our Planet Matters® collection with increased use of recycled materials
  • Partnered with The Nature Conservancy with a multi-year commitment of $800,000 donation
  • Donated more than 16 million pairs of BOBS shoes to children in over 60 countries
  • Donated over $1.4 million to Petco Love, Wood Green Animal Shelters, and ALMA
  • Donated $250,000 to Maui fire families and provided supplies to Turkey and Syria earthquake victims

Governance Achievements

  • Engaged a third party for a double materiality assessment involving over 30 stakeholders
  • Established an internal, cross-functional ESG Committee
  • Implemented a Cybersecurity Risk Management Program

Climate Goals & Targets

Environmental Challenges

  • Increasing GHG emissions due to business growth, expanded data collection, and inclusion of previously uncalculated emissions sources
  • Supply chain risks related to supplier compliance with labor and environmental standards
  • Data limitations in GHG emissions calculations in previous years
Mitigation Strategies
  • Improved data collection for GHG emissions calculations
  • Implementation of a robust Social Compliance Program with audits and supplier training
  • Development and implementation of a Skechers Restricted Substances List (SRSL) with testing and compliance protocols

Supply Chain Management

Supplier Audits: 518 audits in 2023 (94% of Tier 1, 28% of Tier 2)

Responsible Procurement
  • Skechers Supplier Code of Conduct
  • SRSL compliance requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: LEED Gold, IGBC Platinum (pre-certification)

Sustainable Products & Innovation

  • Our Planet Matters® collection