Outdoor footwear and apparel Timberland (NYSE: TBL) achieved an industry-leading 38% absolute cut in greenhouse gas emissions over the last five years.
But that cut only applies to the facilities it owns and operates, and to employee travel, which accounts for just 4% of Timberland’s total carbon footprint. The vast majority of its footprint is through its supply chain, demonstrating the complex and wide ranging issues companies must address.
In 2006, Timberland established an ambitious five-year target: cut absolute emissions 50% in all the facilities it owns and operates and for employee air travel.
They fell short of that goal, but still plan to achieve it – and more – by 2015.
"2010 was not a typical year. The rebound of our business resulted in an increase in employee travel, and record temperatures, both highs and lows, contributed to increased energy use," says Betsy Blaisdell, Sr. Manager, Environmental Stewardship.
Timberland’s Climate Counts score also improved in 2010, moving up to 86 from 82 in 2009. Timberland received the second highest ratings of the all 150 companies scored.
The company is taking a three-pronged approach:
- Energy efficiency upgrades–such as retrofitting facilities with LED lighting and employing LEED standards for store design
- Purchasing renewable energy–in 2010, 13% of Timberland’s energy came from renewable sources
- Reductions in employee travel–the company encourages employees to seek practical alternatives when considering their travel needs
To meet its carbon neutral goal, Timberland had to purchase offsets for emissions it couldn’t eliminate in 2010. Those offsets are supporting the development of a wind farm in Shangyi County, China – an area that’s home to much of Timberland’s supply chain.
"Beginning in 2010, Timberland began investing more resources in the direct management of carbon in our supply chain. The company will pursue this strategy, versus large offset purchases, going forward," Blaisdell said.
The company will address its supply chain through its proprietary Green Index® rating system – to design products with fewer climate impacts and by helping its supply chain partners to reduce their own footprints.
Timberland already has been working with its contract factories to help them understand the business case for carbon management and encourage better practices. "This won’t be easy, given the lack of direct control we have in our supply chain," states Timberland CEO Jeff Swartz. "But we are committed to doing whatever possible to continually reduce our climate impacts and be a catalyst within and beyond our industry for others to do the same."
More information on Timberland’s climate strategy is available online in an update white paper:
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