World Business Council for Sustainable Development (WBCSD)
Climate Impact & Sustainability Data (2015, 2016)
Reporting Period: 2015
Environmental Metrics
Total Carbon Emissions:5,087,595 tonnes CO2e
Water Consumption:3.8 billion m3
ESG Focus Areas
- Sustainable Products
- Sustainable Supply
- Sustainable Lives
Environmental Achievements
- Reduced carbon footprint of own operations by 1.4% compared to 2012 baseline
- 40% of cotton used was from more sustainable sources
- 564 tonnes of clothing recycled
- Introduced a new water-saving denim range in Mexico (33% less water)
- Recycled approximately 5.6 million hangers in Brazil
- Reduced energy consumption in daily store operations and renovated facilities for enhanced efficiency
Social Achievements
- Inspiring Women campaign raised €1m+ for 53 charities, with 23,000+ employees participating
- Developed a new global Code of Conduct for suppliers and trained sourcing teams and suppliers worldwide
- Rolled out a global Code of Ethics for employees in Brazil, Mexico, and China
- 90.8% of suppliers had A and B ratings (up from 80.6% in 2014)
- Participated in the National Agreement to Eradicate Slave Labour in Brazil
- Supported Mothers Make the Difference campaign with Save the Children
Governance Achievements
- Became a signatory to the United Nations Global Compact
- Welcomed the United Nations Sustainable Development Goals (SDGs) for 2030
Climate Goals & Targets
Medium-term Goals:
- 67% of raw materials to be more sustainable by 2020
- 100% of cotton to be more sustainable by 2020
- Zero discharge of hazardous chemicals by 2020
- 20% reduction of carbon footprint in C&A stores, distribution centres and offices by 2020
- 100% of products sourced from A/B rated suppliers by 2020
- Develop approach to circular economy by 2020
- Create a culture of sustainability and continuously increase employee sustainability engagement scores by 2020
- C&A to be recognised as the most sustainable retail fashion brand by 2020
Environmental Challenges
- Resource scarcity
- Environmental impacts of apparel production
- Fair labor conditions in the supply chain
- High water usage in cotton production
- High energy demands and carbon dioxide emissions
Mitigation Strategies
- Global Sustainability Strategy with 2020 goals
- Focus on sourcing more sustainable cotton
- Global Chemicals Management Strategy to restrict and eliminate harmful chemicals
- Supplier audits and Code of Conduct
- Collaboration with industry initiatives (e.g., ACT, PaCT, BMI)
- Carbon footprint roadmaps for energy efficiency and renewable energy
Supply Chain Management
Supplier Audits: 100% of factories that produce clothing
Responsible Procurement
- Global Code of Conduct
- Sustainability criteria in supplier scorecard (20%)
- Supplier training
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact, UN Sustainable Development Goals
Sustainable Products & Innovation
- Organic cotton products
- Water-saving denim
- Products made from other sustainable materials
Awards & Recognition
- World’s largest user of organic cotton (multiple years)
- Responsible Business Award from the Mexican Centre for Philanthropy
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Sustainability Risk Management
- Enterprise Risk Management (ERM)
Climate Goals & Targets
Environmental Challenges
- Limited knowledge of sustainability risks
- Omission of opportunities or strategic risks
- Difficulty quantifying sustainability risks
- Limited cross-functional collaboration
- Longer time horizons for sustainability risks
- Differing language used for ERM versus disclosures
- Differing purposes for sustainability versus risk disclosures
- Limited guidance for implementing risk management framework
Mitigation Strategies
- Enhance application of existing risk management framework
- Develop risk management interpretive guidance for sustainability risks
- Leverage capacity building and educational work streams
- Understand and address disclosure gap
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Natural disasters
- Water crises
Transition Risks
- Regulatory changes
- Market shifts
- Carbon tax
Opportunities
- Development of sustainable products and services
Reporting Standards
Frameworks Used: COSO, ISO 31000, GRI G4