Arc'teryx Equipment

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:42,804.6 tCO2e (Scope 3)

Scope 1 Emissions:1,356.4 tCO2e

Scope 2 Emissions:0.0 tCO2e

Scope 3 Emissions:42,804.6 tCO2e

Renewable Energy Share:100% for owned operations

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Climate Change

Environmental Achievements

Switched to 100% renewable energy for all owned operations (retail stores and offices)
53% reduction in combined Scope 1 and 2 emissions versus 2018 baseline
50% reduction in Scope 3 emissions intensity versus 2018 baseline, and 32% reduction in absolute Scope 3 emissions

Social Achievements

Launched Arc'teryx ReBird™ program for upcycling, resale, care, and repair of products
Employee-led initiatives to reduce waste and improve sustainability (e.g., reusable totes, permanent placemats)

Governance Achievements

Science-based targets approved by the Science Based Targets initiative (SBTi)
Senior Manager, Sustainability, reporting to the Chief Product Officer oversees climate commitments

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

65% reduction in GHG emissions from owned operations by 2030 (from a 2018 base year)
65% reduction in Scope 3 GHG emissions per unit of value added by 2030 (from a 2018 base year)
100% renewable energy for finished good manufacturers by 2025

Short-term Goals:

Not disclosed

Environmental Challenges

Pandemic-related impacts (factory and retail store closures) affected 2020 performance and slowed progress in some areas of climate action
Data gaps and inaccuracies in emissions calculations
Difficulty in reducing Scope 3 emissions due to lack of control over supply chain operations

Mitigation Strategies

Adjusted strategies and made progress in other areas (e.g., renewable energy transition)
Improved data collection and calculation methodologies for future reporting
Collaboration with supply chain partners to improve energy efficiency and transition to renewable energy (Clean by Design pilot project)

Supply Chain Management

Supplier Audits: Clean by Design energy and water efficiency pilot project with one textile mill partner

Responsible Procurement

Use of dope dye processes, bio-based yarns, organic cotton, recycled materials and renewable fibres
Roadmap to guide design teams in switching to more sustainable fibres and materials

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Greenhouse Gas (GHG) Protocol

Certifications: Responsible Down Standard (RDS), Bluesign®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Agium Hoody (dope dyed face fabric, bio-derived liner, RDS certified down fill, Bluesign® approved synthetic insulation)

Awards & Recognition

Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:83,458.2 tCO2e/year (market-based)

Scope 1 Emissions:1,177.4 tCO2e/year

Scope 2 Emissions:0.0 tCO2e/year (market-based)

Scope 3 Emissions:82,280.8 tCO2e/year

Renewable Energy Share:14% of raw materials, 5% of final products

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Climate Change
Circularity
Supply Chain Management
Worker Wellbeing
Community Impact
Responsible Procurement

Environmental Achievements

Reduced Scope 1 & 2 emissions by 57% compared to 2018 baseline
Reduced Scope 3 emissions intensity by 55% compared to 2018 baseline
Sourcing 100% of purchased electricity from renewable sources (market-based Scope 2 emissions reduced to zero)
Opened 5 new ReBIRD™ Service Centres globally
Opened a new repair facility in Musselburgh, Scotland
Expanded ReGEAR™ recommerce platform to Canada
5% of final products and 14% of raw materials produced with renewable energy

Social Achievements

Established a Sustainability Steering Committee
Hired a Chief Supply Chain Officer
Expanded ReBIRD™ Service Centres to offer technical wash and DWR reapplications
Supported community organizations through the Arc'teryx Community Grant Program and Strategic Partnerships
Partnered with The Starfish Environmental Society to empower young leaders

Governance Achievements

Established a Sustainability Steering Committee
Hired a Chief Supply Chain Officer
Participation in Amer Sports’ Sustainability Committee and working groups
Implemented Circular Design Principles
Utilized Higg Facility Environmental Module (FEM) to assess supplier environmental impacts

Climate Goals & Targets

Long-term Goals:

Net-zero emissions by 2050

Medium-term Goals:

Achieve 50% renewable energy in supply chain by 2030
100% recycled or lower impact nylon and polyester by 2030

Short-term Goals:

Increase renewable energy use in supply chain to at least 50% by 2030 (Interim milestone of 50% nylon and 75% polyester recycled or lower impact by 2025)
Further expansion of ReBIRD™ Service Centres in 2023

Environmental Challenges

Increased emissions from transport due to supply chain challenges
Increased direct carbon emissions due to growth in global retail footprint
Increased Scope 3 emissions associated with textile production, manufacturing, and air freight

Mitigation Strategies

Hired Chief Supply Chain Officer to address supply chain issues
Ensuring new stores are hubs for care and repair
Expanding ReBIRD™ Service Centres globally to maximize repair capabilities and reduce emissions from shipping
Collaborating with suppliers to reduce emissions and adopt renewable energy
Phasing out coal as an on-site energy feedstock in supplier facilities

Supply Chain Management

Supplier Audits: Over 99% of finished goods production volume captured in Higg FEM

Responsible Procurement

Higg FEM
Collaboration with Apparel Impact Institute (Aii)
Coal phase-out commitment
Renewable energy adoption

Climate-Related Risks & Opportunities

Physical Risks

Wildfires
Storms

Transition Risks

Regulatory changes
Market shifts

Opportunities

Development of energy-efficient products
Growth of circular economy initiatives

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Science-Based Targets initiative (SBTi)

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

ReCUT™ products

Awards & Recognition

Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:159,240.7 tCO2e/year

Scope 1 Emissions:1,468.9 tCO2e/year

Scope 2 Emissions:4,234.4 tCO2e/year

Scope 3 Emissions:157,771.7 tCO2e/year

Waste Generated:7,443 kg/year

ESG Focus Areas

Climate Change
Circular Economy
Responsible Procurement
Supplier Engagement
Employee Engagement
Community Impact

Environmental Achievements

100% of purchased electricity traced back to renewable sources through Energy Attribute Certificates (EACs) in 2023.
93% of production occurs without on-site coal burning (as of end of 2023), with remaining suppliers on track to eliminate coal by 2025.
7,443 kg of waste diverted from landfill in 2023.
Significant growth in repairs and trade-ins across various regions.

Social Achievements

Included climate as part of onboarding for all new employees.
Engaged all employees in monthly “Sustainability Office Hours.”
88 community grant projects awarded across 21 regions in 4 countries, with 73% of supported organizations having BIPOC leadership.
Sustained over 50 strategic partnerships across North America and EMEA.

Governance Achievements

CEO and executive team oversee climate-related initiatives and sustainability efforts.
Amer Sports Nominating and Governance Committee oversees sustainability goals.
Arc'teryx ESG Steering Committee approves targets and oversees progress.
Arc'teryx Sustainability Working Groups collaborate on implementation of targets.

Climate Goals & Targets

Long-term Goals:

Reach net-zero GHG emissions across the value chain by 2050 (90% absolute reduction of Scope 1, 2, and 3 GHG emissions by 2050 from a 2022 base year).

Medium-term Goals:

99% of production volume to be captured in the Higg Facility Environmental Module (FEM).
Increase the number of suppliers participating in energy efficiency audits or programs.
50% of all production to be powered by renewable energy by 2030.

Short-term Goals:

Reduce absolute Scope 1 and 2 GHG emissions by 90% by 2030 from a 2022 base year.
Reduce absolute Scope 3 GHG emissions by 42% by 2030 from a 2022 base year.
Phase-out on-site coal from Tier 1 and Tier 2 vendors by the end of 2025.

Environmental Challenges

Increased emissions in product transportation and distribution (81% increase in 2023 compared to 2022 due to reliance on air freight to compensate for delays).
Increased manufacturing emissions (nearly 40% increase in 2023 compared to 2022), despite reductions in emissions per item created by some suppliers.
Increased raw materials emissions (33.5% increase in 2023 compared to 2022).

Mitigation Strategies

Resetting base year to 2022 and doubling the size of the sustainability team to create a strategic climate program.
Updated science-based targets approved by SBTi.
Working with suppliers on energy efficiency initiatives (energy audits, programs from Apparel Impact Institute and Carbon Tech Assessment Plus).
Shifting to preferred materials (low-impact, traceable materials).

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers (94% verified); 93% of Tier 2 suppliers (84% verified)