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Carbon and Energy

 

We aim to be Climate Positive by 2040 and achieve carbon neutrality in our own operational energy use by 2022,  obtaining 100% of our electricity from renewable sources in the same 2022 time frame.


Our commitments in relation to climate change extend beyond our business operations and activities. We have two climate goals approved by the Science Based Target initiative (SBTi): to reduce our absolute Scope 1 and 2 greenhouse gas emissions by 95% by 2022 and our absolute Scope 3 greenhouse gas emissions by 30% by 2030 (all from a 2016 base year).

The Scope 1 and 2 target focuses on emissions from our direct operations (including electricity and gas consumption at our stores, offices, internal manufacturing and distribution sites), while the Scope 3 target relates to indirect emissions in our extended supply chain (which includes the impact from the sourcing of raw materials and manufacturing of finished goods). The targets covering greenhouse gas emissions from Burberry’s operations (Scopes 1 and 2) are consistent with reductions required to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement. To date, we have reduced our Scope 1 and 2 emissions by 84% compared to FY 2016/17. In 2020, we have furthered our ambitions and signed up to the British Retail Consortium Climate Action Roadmap, committing to Net Zero by 2040.

At Burberry, to achieve our climate-related goals we focus on energy efficiency first and foremost. We drive energy efficiency across our stores by instilling good practice behaviour and installing more efficient lighting systems at our new and refurbished stores. We then reinvest savings into renewable energy procurement in the region, before finally offsetting any remaining emissions, reducing our emissions footprint to zero. We currently source 93%^ of our electricity from renewable sources and are on track to achieve our target of using 100% renewable electricity in our own operations by 2022.

Ensuring our supply chain partners share our ambition for a Climate Positive future is crucial to achieving meaningful change at scale. In January 2021, we launched a programme in partnership with the Apparel Impact Institute (Aii) to establish a platform for Italian manufacturers to coordinate, fund and scale environmental programmes with measurable impact. Working alongside two fellow luxury brand partners, the initiative demonstrates a shared ambition to pursue a collective mission to make fashion’s supply chains more sustainable.

These initiatives, alongside our transition to more sustainable raw materials, are contributing to our Scope 3 science based target.  To date, in line with our Science Based Targets, we have reduced our our scope 3 emissions from purchased goods and services by nearly 8,700 tonnes compared to FY 2016/17. We are supporting the UN Climate Change's efforts in the fashion industry and have taken a leadership position by collaborating with other brands to promote energy efficiency and renewable energy across the entire fashion industry. In addition, we signed the Fashion Charter Communique at the 25th session of the Conference of the Parties. The Communique encourages countries with major fashion production and consumer markets to partner with us to bring the industry in line with the Paris Agreement goal of limiting average global temperature rise to 1.5°C. In December 2018, we became a founding signatory of the UN Climate Change Fashion Industry Charter for Climate Action. The initiative aims to drive improvements across the fashion industry with an initial goal of reducing aggregate greenhouse gas emissions by 30% by 2030. 

Product is at the heart of our strategy and our runway shows are key moments of inspiration and brand heat. However, it is important to us to take steps to protect our planet and ensure we operate in a responsible way. That’s why all our events, including shows and presentations, have been certified carbon neutral since 2019. . To achieve this, we set a minimum carbon price for each show, this carbon price was reinvested  in Verified Carbon Standard (VCS) certified projects in areas that had been recently devastated by fires in Australia and Brazil.

In February 2020, we announced the creation of our Regeneration Fund. The fund is designed to support a portfolio of carbon insetting projects to directly tackle the environmental impact of our operations. The new insetting projects will be implemented within Burberry’s own supply chain and will work to promote biodiversity, facilitate the restoration of ecosystems and support the livelihoods of local producers. The projects will enable us to lock to store carbon at source and remove it from the atmosphere. Kick-starting the programme, Burberry has partnered with PUR Projet to design and implement regenerative agricultural practices with some of its wool producers in Australia. The project will work at farm level to improve carbon capture in soils, improve watershed and soil health, reduce dryland salinity and promote biodiverse habitats.

We are also a member of the RE100, a global initiative led by The Climate Group in partnership with The Carbon Disclosure Project (CDP) that brings together influential businesses committed to 100% renewable energy. As members of RE100, we hope to drive wider demand for low carbon power and encourage all energy providers to introduce renewable energy options. 

ENERGY AND GLOBAL GREENHOUSE GAS EMISSIONS

The disclosures required by the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 are included below. Year to 31 March 2021.

  Reporting year 20/21 Reporting year 19/20 Reporting year 18/19
  Global UK and UK offshore only
Global UK and UK offshore only Global UK and UK offshore only
Total energy, including energy from fuel used in vehicles / kWhTotal energy including: purchase of electricity, the operation of any facility, combustion of fuel for facilities and vehicles / kWh 63,293,411^  20,826,276 70,316,810 23,432,093 77,307,069 21,293,761
Combustion of fuel and operation of facilities (Scope 1) / tCO2e 2,089^  1,478  2,061  1,581 2,155 1,487
Combustion of fuel use from owned or leased transport (Scope 1) / tCO2e 66 0 78 5 85 2
Electricity purchased and used for operations (Scope 2) / tCO2e 20,582^ 2,934 22,661 3,400 25,298 3,793
Total emissions location based (Scope 1 & 2) / tCO2e 22,737^ 4,412   24,800  4,986 27,539 5,281
Electricity purchased and used for operations (Scope 2, market-based) / tCO2e 1,879^ 0 3,122 0 12,086 60
Total emissions (Scope 1 & 2, market-based) / tCO2e 4,034^  1,478  5,261  1,586  14,327 1,549
Total emissions offset by Verified Emissions Reduction Certificates / tCO2e 2,089^ 1,478 1,072 815  377 0
Location-based tCO2e per £1000 sales revenue 9.7^ n/a 9.4 n/a 10.1  n/a
% of energy from renewable sources 76%^ 61% 82% 81% 58% 78%

Note: Burberry applies an operational control approach to defining its organisational boundaries. Data is reported for sites where it is considered that Burberry has the ability to influence energy management. Data is not reported for sites where Burberry has a physical presence, but does not influence the energy management for those sites, such as a concession within a department store. Overall, the emissions inventory reported equates to 98% of our net selling space square footage. The Company uses the Greenhouse Gas Protocol (using a location and market-based approach to reporting scope 2 emissions) to estimate emissions and applies conversion factors from Defra, IEA and RE-DISS. All material sources of emissions are reported. Refrigerant gases were deemed not material and are not reported. Market-based emissions for the UK relating to electricity purchased and used for operations (Scope 2) is stated as 0 due to 100% of UK electricity being procured from renewable sources. Combustion of fuel use from owned or leased transport is reported from FY 2018/19 onwards. Burberry has updated GHG data for FY 2019/20 and FY 2018/19 to account for updated emission factors and improvements in data availability and estimation methods. GHG emissions data reported is based on the period 1 April 2020 to 31 March 2021. For the avoidance of doubt, the company’s financial accounting period is from 31 March 2020 to 27 March 2021. However, references to FY 2020/21 for the selected KPIs included in the Responsibility section of Burberry’s Annual Report 2020/21 refer to the period 1 April 2020 to 31 March 2021.

Principle measures taken for increasing operational energy efficiency

At Burberry, to achieve our climate-related goals we focus on energy efficiency first and foremost. To manage our operational energy efficiency we set annual energy reductions targets to drive behaviour change. We drive energy efficiency across our stores by instilling good practice behaviour and installing more efficient lighting systems at our new and refurbished stores. We then reinvest savings into renewable energy procurement, before finally offsetting any remaining emissions.

Further information about Burberry’s basis of reporting is available here.

^ Please see page 65 of the Annual Report for details on external assurance.

Carbon and Energy - additional details