Our latest Sustainability Report
Our 2022 climate impact
To maintain focus on reducing our environmental footprint, we have set climate targets within all three scopes of the Green House Gas (GHG) protocol and in line with the Paris Agreement. We have calculated our carbon emissions in scope 1 and 2 since 2018, and in all three scopes since 2020.
Our climate calculations for 2022 show a reduction of emissions in scope 1 and 2 by 8% compared to baseline year (2018), but a significant increase of as much as 39% in scope 3 compared to baseline year (2020). This increase is primarily a result of a strong overall sales growth, and a large increase in supply levels. However, production emissions per purchased product were reduced by 15% compared to baseline year (2020), to a large part due to an increased share of renewable energy in the supply chain.
The calculations for 2022 show that 1% of our emissions stem from scope 1 and 2, while as much as 99% of emissions stem from Scope 3. Emissions from scope 1 and 2 amounted to 673 tons of CO2e in 2022, representing a reduction of 8% since our baseline year (2018). The majority of emissions (69%) originate from company-operated vehicles within our sales organisations. As we are electrifying the car fleet in line with the Hultafors Group car policy, we aim to reduce these emissions significantly. As little as 1% of emissions stem from purchased electricity, due to the high use of renewable electricity (97%) across our sites.
Since as much as 99% of Snickers Workwear’s emissions lie in scope 3, we need to collaborate closely with our partners, suppliers, and customers in order to significantly reduce them. In 2022, emissions in scope 3 came to 59 466 tonnes of CO2e, representing an increase of 39% compared to baseline. The increase can in part be explained by continued strong sales growth, but also from increasing our stock levels to be able to meet customer demand in the aftermaths of the pandemic. As pandemic related disruptions, such as factory lock downs and logistical challenges, eased in the latter part of 2022, supply-chain lead times picked up fast, resulting in increased stock levels and thus increased emissions.
On a positive note, calculations show a 15% reduction compared to baseline on the production emissions per purchased product [kg CO2e/purchased product]. The decrease in emissions can be attributed to greater utilisation of renewable energy sources within the supply chain, as well as a shift in the purchased product mix towards a larger quantity of items with lower emissions.
As much as 93% of emissions in Scope 3 come from purchased goods and services, with the largest share of that impact coming from fabric production and raw material extraction. A vast majority of emissions occur during wet processing, a highly energy-intensive process used in textile manufacturing. Through direct communication with all material suppliers, established purchase practices and with a deeply rooted, long-term partnership and supply-chain strategy in place, our work to reduce the footprint is already well underway. However, to achieve further substantial climate reductions, transparency and continuous cooperation with both garment and raw material producers will be crucial.
For 2022, the share of primary data taken into the GHG calculation has increased significantly. By calculating the impact with primary data rather than global averages, the reported impact reflects the actual scenario in Snickers Workwear's supply chain. Primary data forms the foundation for supply chain change dialogue, and any impact changes made at the producer level are reflected in the brand's climate reporting. The highest potential to reduce Snickers Workwear’s impact in the supply chain lies in increasing energy efficiency and transitioning to renewable energy. However, both aspects require complex and time-consuming transitions, and the effects of any changes can only be measured and reported in the year after implementation.
During the last quarter of 2022, we initiated an in-depth analysis to quantify the reductions required to meet our climate target using a climate-reduction model. The outcome will serve as an important steering document by providing a basis for prioritisation, identifying risks, challenges and opportunities, and above all, become a supporting tool in the ongoing work of our climate strategy.
Explanation on Scope 1, 2 and 3
DIRECT: SCOPE 1 Direct greenhouse gas emissions occur from sources that are operated by the company.
INDIRECT: SCOPE 2 Greenhouse gas emissions from the generation of purchased energy by the company.
SUPPLEMENTAL: SCOPE 3 Indirect greenhouse gas emissions that occur in the value chain of the company.