K-Bro Linen Inc. and its affiliates
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Scope 1 Emissions:51,612 tCO2e
Scope 2 Emissions:5,511 tCO2e
Carbon Intensity:$206 tCO2e / revenue $ millions
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Achieved Clean Green certification in Canadian operations.
- Achieved ISO 14001 certification in UK operations.
- Reduced water usage to 3.7 L per pound of laundry (compared to 6.9 L at home).
Social Achievements
- 97% five-year average customer contract retention.
- 49% enterprise-wide women gender diversity.
- 67% senior executive women gender diversity.
Governance Achievements
- Majority of Board Directors (4 of 5) are independent.
- Hygienically Clean certification from TRSA.
- HLAC accreditation.
Climate Goals & Targets
Environmental Challenges
- Increased compliance costs from changing sustainability reporting requirements.
- Costs to transition to lower emissions technology.
- Increased input prices, volatile energy costs, and supply chain disruptions.
- Operational disruption from severe weather.
Mitigation Strategies
- Monitoring regulatory trends and engaging with industry associations.
- Ongoing investment in proven energy-efficient technologies.
- Supply chain diversification, third-party hedging, and business contingency planning.
- Business contingency planning, preemptive continuity planning with customers, facility site selection and site planning.
Supply Chain Management
Responsible Procurement
- Supplier Diversity Policy
- Emphasis on suitable workplace, health & safety, and ethical employment standards.
Climate-Related Risks & Opportunities
Physical Risks
- Operational disruption from weather
- Higher cost of vacancies, absenteeism and health & safety
- Increased costs related to heating and cooling
- Increased frequency of extreme weather
Transition Risks
- Increased compliance costs
- Costs to transition to lower emissions technology
- Increased input prices
- Energy price volatility
- Supply chain disruptions
- Customer demand for enhanced environmental stewardship
- Impacts to employee attraction and retention
Opportunities
- More efficient modes of transport
- Reduced water and energy usage
- Expanded end of life recycling
- Use of new technologies
- Shift toward decentralized energy generation
- Continued trend to replace disposable products with reusable alternatives
- Continued trend toward outsourcing non-core processes
- Access to new markets
- Enhanced supply chain resilience
Reporting Standards
Frameworks Used: TCFD, SASB, UN SDGs
Certifications: Clean Green (Canada), ISO 14001 (UK), Hygienically Clean (TRSA), HLAC
UN Sustainable Development Goals
- 5
- 6
- 9
- 11
- 12
- 13
K-Bro's initiatives align with SDGs 5 (Gender Equality), 6 (Clean Water and Sanitation), 9 (Industry, Innovation and Infrastructure), 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), and 13 (Climate Action).
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:58502 tCO2e/year
Scope 1 Emissions:53984 tCO2e/year
Scope 2 Emissions:4618 tCO2e/year
Carbon Intensity:183 tCO2e/$M
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- 10% YoY Reduction in Scope 1 & 2 GHG Intensity (2022-2023)
- 6 facilities achieved Clean Green™ certification
- 5 facilities are certified to ISO standard 14001 (Environmental)
- Water savings of approximately 15% observed with Blue Ocean™ system
Social Achievements
- 49% enterprise-wide women gender diversity
- 67% senior executive women gender diversity
- 40% Board women gender diversity
- 97% five-year average customer contract retention
- Participation in community and youth employment programs
Governance Achievements
- Published annual modern slavery reports (Canada and UK)
- 80% Independent Board Members
- 50% Board Committee Chairs are Women
- Updated Supplier Code of Conduct
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Scope 3 GHG Assessment
- Evaluating Sustainability Targets
- Roadmap for Alignment with IFRS S1 and S2
- Enterprise-wide Policy Review
- Indigenous Awareness and Relationships
Environmental Challenges
- Increased compliance costs from changing sustainability reporting requirements
- Costs to transition to lower emissions technology
- Increased input prices, volatile energy costs, and supply chain disruptions
- Customer demand for enhanced environmental stewardship
- Operational disruption from severe weather
- Increased costs related to heating and cooling and extreme weather
Mitigation Strategies
- Monitoring regulatory trends, compliance preparation, and engagement with industry associations and consultants
- Ongoing investment in proven energy-efficient technologies
- Adoption of highly energy-efficient technology, hedging, supply chain diversification, and business contingency planning
- Commitment to environmental stewardship and long-term sustainability program, engagement of expert consultants, and adoption of ESG frameworks
- Business contingency planning, preemptive continuity planning with customers, facility site selection and site planning, and business interruption and property insurance
- Long-term risk assessments and incorporating energy-efficient considerations into operations
Supply Chain Management
Responsible Procurement
- Corporate social responsibility compliance clauses in contracts with significant linen suppliers
- Updating Supplier Code of Conduct to enhance alignment with sustainability strategy
Climate-Related Risks & Opportunities
Physical Risks
- Operational disruption from weather
- Higher cost of vacancies, absenteeism and health & safety
- Increased costs related to heating and cooling
- Increased frequency of extreme weather
Transition Risks
- Increased compliance costs
- Costs to transition to lower emissions technology
- Increased input prices
- Energy price volatility
- Supply chain disruptions
- Customer demand for enhanced environmental stewardship
- Impacts to employee attraction and retention
Opportunities
- More efficient modes of transport
- Reduced water and energy usage
- Expanded end of life recycling
- Use of new technologies
- Shift toward decentralized energy generation
- Continued trend to replace disposable products with reusable alternatives
- Continued trend toward outsourcing non-core processes
- Access to new markets
- Enhanced supply chain resilience
Reporting Standards
Frameworks Used: TCFD, SASB, UN SDGs, IFRS S1 and S2 (working towards alignment)
Certifications: Clean Green, ISO 14001, ISO 45001 (5 facilities), ISO 9001 (5 facilities), TRSA Hygienically Clean Healthcare (2 facilities), HLAC accreditation (5 facilities), HLAC Hygienic Testing (4 facilities)
UN Sustainable Development Goals
- 5
- 6
- 9
- 11
- 12
- 13
Details on page 30 of the report
Sustainable Products & Innovation
- Reusable alternatives to disposable products