At PVH, we are committed to playing our part in the global fight against climate change and we are taking steps to manage resources responsibly in the face of increasing resource scarcity. In particular, we aim to reduce our carbon footprint by cutting energy consumption and increasing energy efficiency – both within our business and across our value chain.
In 2015, we collaborated across our organization to calculate our first global greenhouse gas ("GHG") footprint for all PVH facilities. A dedicated team supported facilities managers worldwide in measuring and reporting energy use. Together, they gathered data from 43 countries and nearly 1,700 facilities, including offices, stores, showrooms, warehouses and distribution centers.
Overall, PVH’s scope 1 and scope 2 emissions totaled nearly 135,000 MT CO2E. We discovered that 69% of our emissions are derived from purchased electricity (Scope 2), with 28% produced by our consumption of energy (primarily natural gas) and refrigerants (Scope 1). Our retail facilities, which account for the largest part of our global facilities portfolio, generate our greatest energy impact. By region, North America contributes the most to our global footprint, accounting for 67% of greenhouse gas emissions, followed by Europe (22%) and East Asia (8%).
To better understand our building energy performance, we are supporting the development of the Fair Fashion Analysis Collaboration Tool, an industry platform being developed by engineering firm Arup and the Fair Fashion Institute at Glasgow Caledonian University to help retailers optimize building energy use. This tool will enable us to compare our performance against industry benchmarks, identify opportunities for improvement and realize both financial and environmental savings.
In the coming year, we will develop a targeted energy reduction strategy in partnership with our associates and business partners around the world. We will also prepare to calculate our Scope 3 emissions and continue to build momentum on measuring, managing and reporting our global footprint.
|2015 GHG Emissions by Scope(1)||MT CO2e|
|Scope 1 Emissions||41,293|
|Scope 2 Emissions||93,166|
|Total GHG Emissions||134,459|
Our offices play a critical role in helping us effectively manage our energy use, water use and waste. In 2015, associates in multiple offices launched or continued initiatives to reduce their environmental footprints:
PVH’s North America private fleet transports our products to distribution centers and retail stores. The fleet, which contains four trucks and 24 trailers, undertook several initiatives in 2015 to reduce its carbon footprint. First, it started increasing fuel efficiency by participating in SmartWay, a U.S. Environmental Protection Agency initiative that helps companies streamline their transport and logistics operations. Using data on fuel consumption and carbon emissions from SmartWay, the fleet is taking action to minimize impact. So far, it has fitted anti-idling devices to tractors, introduced a maximum speed limit of 72 mph and specified fuel efficient engines for new tractors. It also made aerodynamic modifications to trailers that saved 20,172 gallon of fuel and resulted in cost savings of approximately $55,000 compared to 2014. Overall, the fleet expects to improve fuel efficiency by about 35% through the aerodynamic changes and new engines alone. Our overseas fleets are also implementing measures to cut GHG emissions, with our Retail Logistics team in Russia cutting its annual mileage by 11,000 miles, reducing the fleet’s carbon footprint by 7 tons of CO2e.