How will we achieve Net Zero?
Our decarbonisation journey
Three categories represent 93% of our total carbon emissions footprint, so these form the main focus categories for decarbonisation, alongside our direct emissions associated with our stores and offices.
Our methodology across each of these three categories will be to first reduce what we need and use, and second convert what we do use to renewable/lower carbon alternatives. Once we have exhausted those options, aligning to SBTi guidelines of achieving a minimum of 90% carbon reduction, we will fund carbon offset schemes.
How our products are made
Our largest source of emissions, and therefore our largest opportunity, comes from how we make our product. We continue to reduce our emissions in this category, through reducing use and converting to lower carbon materials or energy supplier, with significant progress made across multiple targets this year:
- 65% of our garments will be converted to organic, low-impact, or recycled materials by 2025. All cotton will
be organic or recycled by 2030.
- 50% of our garments will be made using renewable electricity by 2025, and 100% by 2030.
- 50% of our garments will be made by factories with certified energy management systems by 2025, and 100% by 2030.
- 100% of our factories will use environmentally optimal boilers by 2030, with all coal boilers in Tier 1 suppliers phased out in FY23, and in ancillary units (Tier 2) by 2030.
As we build our understanding of our impacts, using the Higg Index’s Material Sustainability Index (MSI), we are starting to track the effect of selecting the low-impact materials on our decarbonisation pathway and building this target into our SBT in FY23.
Around 10% of all our emissions come from our Tier 1 factories. Of that amount, electricity consumption from these factories accounts for 2-3% of our total emissions, with the balance (7-8%) coming from heating (eg boilers).
- 14% of our garments in FY22 were made using renewable electricity. Forward supplier agreements are in place to achieve our 2025 target of 50%.
- We remain on track with our plan to extend certified energy savings through our supply chain. This year we increased the number of our factories certified to ISO50001 to 22, covering 47% of our production. The average annual energy saving tracked per factory is 15%.
- In FY22 we started tracking which factories use coal fired boilers. We only identified one factory where this is the case and we are working with them to remove this in FY23.
How our products are used
How our customers use their garments to maintain them and keep them in circulation for as long as possible has a significant impact.
Our emissions from this category are slightly higher than industry peers. However, Superdry is proud that we produce quality garments that are crafted to last, and we want our garments to be loved and worn many times by our consumers. This results in increased levels of washing and
drying over the lifetime of the garment.
We are undertaking some durability studies to help understand how long-lasting our products are. This might possibly increase our emissions in this category, but ultimately reduce a customer’s own carbon footprint as they need to purchase fewer clothes in the first place, saving much more carbon than that associated with washing and maintaining their garments.
How we move our products
In FY22, we continued to take steps to reduce transport emissions further. We continue to use barges to move many of our shipments that arrive at Antwerp (Belgium) to our warehouse in Grobbendonk (known as ‘The Baron’). In FY22, 42% of these containers were moved by barge, reducing the carbon emissions from that leg of the journey by 56%.
We also successfully reduced airfreight to just 2.1% of all inbound freight in FY22. This represents a 61% year-onyear saving and is 88% lower than the reported industry average of 17%. This has saved over 23 KTCO2e per year: about 30% of our total footprint for this category since 2017. In FY23 we plan to further reduce our use of airfreight to 1% of all inbound freight, while also continuing to explore lower carbon routes to move our product from source to sale.
We’re also trialling a “green final mile” scheme which will see 15% of UK standard ecommerce orders delivered by a zero-emissions vehicle ensuring carbon neutral delivery from our distribution centre (DC) to their door.
Renewable and efficient stores, offices and third-party distribution centres
By 2025, 100% of the energy we use across our stores, offices, and third-party DCs will be from renewable sources. In FY22, we achieved 91% renewable energy.
Our global stores and offices have used 100% renewable electricity since 2017, and when combined with our remaining purchased heating and cooling and small amounts of gas, our stores are using 98% renewable energy.
This year we moved our final two DCs (‘The Eagle’, USA and ‘The Dragon’, China) over to a 100% renewable electricity supply, reducing emissions from these sites by 106 tCO2e pa (1% of our footprint in this category). Our UK DC (‘The Duke’) also switched to a 100% renewable gas supply this year, initiating what will be a transition for all sites by 2025. In total, six out of our 13 upstream DCs and consolidation centres (CCs) globally have installed onsite solar panels, which generate an average of 28% of their own electricity needs each year. Having now switched all DCs over to renewable electricty, this year we ran workshops with all CC partners and agreed their roadmap to switch to 100% renewable electricity by the end of FY23.
In FY22, 66% of the total energy (electricity, gas and diesel) used in our DCs & CCs was from renewable sources, which will increase to 70% from the start of FY23.
Over the next three years we have committed to a million-pound investment into two tried and tested technologies: LED lighting and Building Management Systems (BMS). We’ve now installed BMS in 55% and LED in 61% of our own retail estate. This has helped us reduce our global energy footprint (per square metre) by 21.9% in our own stores and offices between 2017 and 2021, saving more than 6.5 million kWh and around 2,000 tonnes of CO2e each year.
We will now maximise this with installations across 100% of our sites and main distribution warehouses, fully optimising energy and reducing electricity consumption by 25% by 2025.
Offsetting our remaining emissions
Our current focus is on reduction and conversion; we will be looking for opportunities to support meaningful offsetting programmes closer to our milestones and goal.
We know there are a lot of opportunities; once we have explored every opportunity to reduce and convert, we will then ensure that we offset any remaining carbon through meaningful and impactful collaborations.
Setting a Science Based Target (SBT)
This year we publicly committed to set a SBT over the next two years, which we are planning to complete by end of FY23, using our full understanding of our scope 1-3 emissions, to ensure our decarbonisation pathway is aligned with a 1.5°c temperature rise.
For full information on our emissions and energy usage, including mandatory disclosures, please refer to Our Sustainability Performance section within our FY22 Annual Report.