Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced average product carbon footprint by 12% compared to 2020 (1.21 kg CO2e reduction)
• Achieved 84% ocean shipping in 2021 (up from 80% in 2020)
• Launched Regenerative Wool Capsule Collection with 12-16% lower carbon footprint than non-regenerative counterparts
• Revamped Tree Dasher running shoe with a 5% reduction in carbon footprint

Social Achievements

• Updated Responsible Sourcing audit framework and completed training with 100% of Tier 1 manufacturers
• 68% of partners completed the 2020 Facilities Environmental Module (FEM)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Regenerative agriculture requires time to implement and measure impact
• Balancing durability and performance with natural materials
• Determining the lifetime of shoes based on real-world use
• Influencing customer energy use in caring for products
• Full supply chain traceability remains challenging
• Impact of business growth on overall emissions

Mitigation Strategies

• Partnership with New Zealand Merino for regenerative wool initiatives
• Investment in Plant Leather as a sustainable alternative
• Collaboration with Adidas on FUTURECRAFT.FOOTPRINT running shoe
• Purchasing Renewable Energy Credits (RECs)
• Encouraging best practices for product care
• Working towards Science Based Target to reduce overall emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Sourcing audit framework

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: B Corp

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tree Dasher 2
• Plant Leather
• FUTURECRAFT.FOOTPRINT running shoe (collaboration with Adidas)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Fair Labor
• Water
• Chemistry
• Animal Welfare
• Traceability & Transparency

Environmental Achievements

• Reduced average product carbon footprint by 1.64 kg CO2e (19% reduction compared to 2021)
• Increased preferred mix of renewable materials by 3%
• Improved footwear packaging resulting in a 1% reduction
• Increased ocean shipping to 96%, resulting in a 2% reduction
• Lower production of Wool footwear styles resulting in a 5% reduction

Social Achievements

• Published Tier 1 (finished goods) factory list for the first time
• Captured comprehensive Tier 1 factory performance data through a third-party audit program
• 95% of total finished goods were using the Higg Facility Environmental Module (FEM) to track environmental progress
• 75% of Tier 1 suppliers earned an environmental or chemical certification

Governance Achievements

• Open-sourced life cycle assessment methodology
• Launched a more comprehensive Restricted Substances List (RSL) and chemical compliance program

Climate Goals & Targets

Environmental Challenges

• Limited availability of novel, more sustainable materials
• Difficulties with Renewable Energy Credits (RECs) in some countries
• Lack of robust data about emissions and sequestration on many farms
• Factories not being familiar with natural materials, leading to longer development processes
• Not owning factories limits control over working hours

Mitigation Strategies

• Partnered with Made For Good to improve farm-level traceability and emissions data
• Advocating for policies that support more renewable energy in Vietnam
• Purchasing renewable energy credits in China
• Tracking time worked, confirming worker payment, and ensuring at-will employment
• Working with the factory rated “Orange” to remedy non-compliances

Supply Chain Management

Supplier Audits: 11 factories audited

Responsible Procurement

• Higg Facility Environmental Module (FEM)
• Comprehensive Restricted Substances List (RSL) and chemical compliance program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Climate Neutral

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Reducing carbon footprint through various initiatives

Sustainable Products & Innovation

• M0.0NSHOT net zero carbon shoe

Awards & Recognition

• Not disclosed