Burberry is recognised externally for leading sustainability performance and desirability as an employer.
- Burberry has been recognised as the Industry leader in the 2016 Dow Jones Sustainability Index in the 'Textiles, Apparel & Luxury Goods' sector. This is the second consecutive year that Burberry has been included in the index, reflecting the company’s strong commitment to continuously explore more productive and sustainable ways of working. Click here to view our press release for further details.
- Recognised in RobecoSAM’s 2016 Sustainability Yearbook as ‘Industry Mover, Bronze Class’ in the Textiles, Apparel and Luxury Goods category, for having achieved the largest proportional improvement in our sustainability performance.
- Listed by LinkedIn as the 12th most sought-after employer in the United Kingdom and 29th in Europe, Middle East and Africa.
The following indicators illustrate Burberry’s activities during 2015/16.
|2017 Targets||Heritage Raw Materials||2015/16 Progress|
|Improve the environmental and social impacts of how we source cotton||Cotton:
Burberry continues to partner with CottonConnect, supporting a group of Peruvian farmers in the northern Piura region to improve the way they grow their cotton. In year two of the project, farmers reported using 26% less chemical fertilisers and 68% less pesticides, while increasing their yield by 15% against a control group of farmers. Farmers involved in the programme also reported reductions in irrigation, as their practices are becoming more water efficient. In 2015 Burberry also became a member of the Better Cotton Initiative (BCI), a programme that aims to improve the environmental and social impacts of cotton farming in the industry by collaborating with over a million farmers worldwide.
|Improve the environmental and social impacts of how we source cashmere||Cashmere:
In 2015 Burberry became a founding member of the Sustainable Fibre Alliance (SFA), a UK-based NGO working in Mongolia to restore grassland, promote animal welfare and ensure a decent living for cashmere goat herders. Since launch, the SFA has drafted an Animal Welfare and a Land Management Code of Practice, to be piloted with several hundred herder communities in Mongolia in 2016/17.
|Reduce the environmental impact of leather||Leather:
Burberry is working with its accessories’ supply chain to: increase the proportion of leather originating from tanneries with Leather Working Group Certification or approved alternative certifications; reduce tanneries’ water, energy and chemical consumption; and improve leather traceability to slaughter house and farm level.
In 2015, 55% (m²) of leather used in accessories was sourced from tanners holding LWG or approved alternative certification. In addition, Burberry is actively researching environmental impacts beyond tanners and engaging the wider industry to understand and act on opportunities to mitigate these impacts.
|2017 Targets||Chemicals||2015/16 Progress|
|Chemical use in manufacturing:
Eliminate chemicals from use that have a negative impact on the environment, beyond legal limits
|Burberry continues its efforts to eliminate chemicals in the supply chain through regular testing of effluent, products and raw materials, and publically reports on progress. The Company also works closely with its supply chain to create a community of chemical managers who can share knowledge and assist in upskilling others in the supply chain. In addition, Burberry has been active in the research and analysis of new alternatives, as well as piloting the testing of new chemical formulations.||On plan^|
|Reduce the environmental impact of PVC||Burberry continues to utilise bio alternatives to PVC in key lines and is working with major suppliers as well as the wider industry to develop alternative materials that have a markedly reduced impact on the environment whilst retaining their performance and quality criteria. A strong commitment remains to removing PVC from our products and we are actively pursuing research to accelerate that outcome.||Behind plan|
|2017 Targets||Product Packaging||2015/16 Progress|
100% of point of sale packaging to be sustainably sourced (where available)
|100% of paper and baseboard used in Burberry’s mainline and concession retail packaging now comes from certified sources. Furthermore, all baseboard and ribbon are made of 100% recycled materials.||On plan|
|2017 Targets||Energy Use||2015/16 Progress|
Reduce Burberry controlled store and office energy usage by up to 15%*
|Digital monitoring equipment and in-store energy audits have enabled Burberry to identify and implement a number of in-store energy saving opportunities during 205/16. At our London office campus, the Company achieved an 11% reduction in absolute energy usage compared to its base year of 2012.||Behind plan|
All Burberry controlled stores and offices to be powered either by on site or green tariff renewable energy (where available)
|All Burberry offices, stores, warehouses and internal manufacturing sites in the UK and Italy, as well as 25 of the Company’s office and retail locations in the Americas, are powered by renewable energy. This includes energy generated by solar panels installed at our UK head office, US distribution centre and flagship stores in Beverly Hills and San Francisco, which provide over 1 million kWh of clean energy a year. Overall, electricity covering 37% of global square footage is either generated on site or comes from renewable sources.||Behind plan|
75% of lighting to be LED or energy efficient in new concept stores
|Burberry has surpassed this target, reaching a total of 97% LED lighting fixtures in all new builds and full store refurbishments. Recent updates mean that, as of next year, 100% of ‘new concept’ store lighting will be LED.||Achieved|
|2017 Targets||Office Consumables||2015/16 Progress|
60% of office consumables to be sustainably sourced (where available)
|Whilst office consumables represent a very small proportion of our environmental impacts, Burberry is committed to driving employee engagement and improvements in corporate offices globally. In 2015/16, 43% of all office consumables in corporate offices globally were sustainably sourced.||Behind plan|
|2017 Targets||Construction Projects||2015/16 Progress|
All new builds will be sustainable build certified [LEED (silver), BREEAM (very good) or Greenmark (silver)]
|In 2015/16, Burberry’s new Cheongdam flagship store in South Korea received a G-SEED rating of ‘Green 3’. G-SEED is the Korean national equivalent of BREEAM or LEED. Burberry continues to make good progress on this target, with all recent and planned new builds already certified or awaiting confirmation of certification.||On plan|
30% of wood by spend is either recycled materials or sourced from certified supply chains
|Working with key internal teams and global suppliers, Burberry introduced a new tracking methodology to monitor where our construction wood originates from. In 2015/16 over 60% of the wood used in Burberry’s furniture, flooring and in-store fixtures came from certified, responsibly-managed forests.||Achieved^|
30% of construction waste to be recycled for global major projects
|In partnership with our contractors, Burberry has been able to go above and beyond its initial target and in 2015/16 reached an 85% waste recycling rate across all major construction projects.||Achieved|
|Focus Areas||Water Use and Waste Management|
|Water||Burberry collects and analyses water consumption data for key operational sites in the UK^.|
|Waste||The company constantly explores new opportunities to reduce and re-use waste. Across our UK sites, over 95% of general waste is diverted from landfill with the majority being recycled^. All food waste from UK corporate offices is sent to an anaerobic digester to produce biogas or bio-fertilisers.|
Supply Chain KPIs:
|2017 Targets||Internal Manufacturing||2015/16 Progress|
Reduce the energy use from Burberry's two UK manufacturing sites by 25%*
|Burberry owned manufacturing sites in Yorkshire, UK, have reduced their normalised energy consumption by 15% at Castleford and 28% at Burberry Mill. Burberry continues to implement energy saving opportunities to drive energy efficiency. In November 2015, the Company announced plans to develop a new state-of-the-art manufacturing and weaving facility in Leeds that will support 1000 jobs and require an initial £50 million investment.||Behind plan^|
|2017 Targets||Third-party Suppliers||2015/16 Progress|
Work with key suppliers to assist them in reducing their energy use by up to 20%*
|Over the last year, Burberry has engaged key suppliers and mills in the Higg index environmental tool for facilities, produced by the Sustainable Apparel Coalition. To date, 115 supply chain partners have participated and Burberry has assisted them in benchmarking their environmental performance and identifying areas for improvement. In addition, 20 key supply chain partners are now part of an ongoing impact reduction programme, which is modelled on the Natural Resources Defence Council 'Clean By Design' programme. As part of this work, internal teams have conducted more than 70 visits and identified around 180 energy and water saving opportunities in the supply chain.||Behind plan^|
Work with key mills to assist them to reduce their water consumption by up to 20%*
|This target has been merged with the above Suppliers target, in order to streamline the Company's approach to supply chain partners.||Behind plan^|
Reduce energy use in Burberry's five third-party distribution centres by 10%*
|As well as achieving a normalised reduction of 33% compared to base years (these are variable based on the opening dates of the distribution centres), the five distribution centres have accomplished an absolute reduction of 17% compared to last year. This is mainly due to energy efficiency measures including the implementation of LED lighting and lighting motion sensors.||Achieved^|
Reduce carbon emissions from the transport of Burberry products by 10%*
|Burberry has reduced carbon emissions by 15% per unit compared to the base year (2012/13). In the coming year, Burberry will continue to target volume reduction opportunities, for example those arising from goods on hangers, and will increase its efforts to engage transport carriers on sustainability.||On plan|
|Focus Areas||Ethical Trading|
|Auditing tier 1, tier 2 and
selected tier 3 suppliers
|Burberry's Ethical Trading Programme, comprising of announced and unannounced audits, monitoring and improvement programmes, was extended in 2015 to cover key raw material, fragrance, make-up and leather suppliers.
|Building capacity of workers and management in the supply chain||As Burberry's Ethical Trading Programme continues to evolve, rather than increasing the number of audits the Company is increasingly focused on making meaningful, positive impacts on the lives of people throughout our supply chain.
|Driving performance improvements at finished goods' manufacturers||Results of Burberry's 2015/16 audit programme showed an overall positive shift in ethical trading performance by apparel and non-apparel partners^. Manufacturers who did not meet key requirements as outlined in Burberry's Ethical Trading Code of Conduct were rejected; others were found to meet key requirements but were asked to implement further improvements.
|Focus Areas||Community Investment|
|Financial support||Since 2010 Burberry has been donating 1% of Group adjusted profit before tax to charitable causes each year, for example supporting innovative youth charities through the Burberry Foundation, nurturing emerging creative talent through the Burberry Design Scholarship at the Royal College of Art and sponsoring an apprenticeship programme at the British Fashion Council.|
|In-kind donations||Burberry in-kind donations range from one-off gifts of non-trademark fabric and materials to assist young people enrolled in creative courses, to donations of smart business clothing to support vulnerable people enrolled in employability programmes and preparing for interviews.|
|Employee time||Employees worldwide are encouraged and empowered to take part in impactful community projects during working hours. During 2015/16, over 2,300^ employees in 74^ cities around the world dedicated nearly 12,000^ hours to supporting their local communities.
* When normalised by a relevant productivity factor.
^ Selected information denoted by this symbol has received limited assurance by Ernst & Young LLP.
External assurance of corporate responsibility disclosures
Burberry appointed Ernst & Young LLP to provide limited external assurance over selected statements relating to the environmental targets and 2015/16 performance data. The statements and data that formed part of the review are denoted with a ^.
Click here to view the full Independent Assurance Statement and click here to view the Burberry’s Basis of Reporting for further details.