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Carbon and Energy

 

We are proud to have met our stretching target of achieving carbon neutrality. All the electricity we use in our own operational footprint is now from renewable sources. Going forward, we aim to be Climate Positive by 2040.

As part of our commitments to being Climate Positive by 2040, Burberry commits to reduce absolute scope 1 and 2 GHG emissions by 95% by 2022 from a FY2016/17 base year. Burberry also commits to reduce absolute scope 3 GHG emissions 46% by FY2030 from a FY2019 base year. The targets, which are consistent with reductions required to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement, have been calculated in accordance with the principles of Science Based Targets initiative and have been validated.

 

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).

All our scope 1, 2 and 3 Science Based Targets are now aligned to the 1.5°C pathway, the most ambitious designation available through the SBTi process., and to date, we have reduced our scope 1 and 2 emissions by 93% compared to FY 2016/17.

Industry-wide impact

We support a number of industry initiatives that address climate change impacts, including the British Retail Consortium’s Net Zero commitment, RE100, Race to Zero, the UN Fashion Industry Charter for Climate Change, The Fashion Pact and Accounting for Sustainability

Principle measures taken for increasing operational energy efficiency

To achieve our climate-related goals, we focus on energy efficiency first and foremost. To manage our operational energy efficiencies, we set annual energy reductions targets. We drive energy efficiency across our stores by instilling good practice behaviour and installing more efficient lighting systems in our new and refurbished stores. We then reinvest savings into renewable energy procurement, before finally offsetting any remaining emissions. We have a global community of Responsibility Champions who play a key role in awareness raising as well as monitoring and reporting data into our systems. In 2022, we also met our target to purchase 100% renewable electricity across our operational footprint.

Supply chain

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 two-year programme in partnership with the Apparel Impact Institute (Aii) support Italian manufacturers to implement energy, water and chemical management efficiency programmes and help them transition to renewable energy sources.

We support the UN’s Fashion Charter for Climate Action’s (UNFCCC) efforts in the fashion industry and play an active role in a number of its collaborations. In the lead-up to COP26, we contributed to UN Climate Change and Race to Zero’s “Decarbonising Fashion Milestones” document, which sets out short, medium and long-term actions required for the fashion and apparel sector to reach net zero. The document aims to find solutions to some of the toughest questions on the road to a more resilient, zero carbon future. To mark the launch, we joined the sector’s leading voices on climate to discuss what it will take to reach net zero, from accelerating decarbonisation solutions to financing the transition and making the 1.5°C target easy to understand for customers.

Product

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 key events, including shows and presentations, are certified carbon neutral since 2019. To achieve this, we set a minimum carbon price for each show. In FY 2021/22 this carbon price was reinvested in Verified Carbon Standard (VCS) and Gold Standard certified projects that focus on grassland conservation and restoration in China as well as health and livelihoods and clean cooking in Ghana and Bangladesh.

The Burberry Regeneration Fund

For the GHG emissions that we cannot reduce directly, and to meet our Climate Positive targets, we are investing in nature-based solutions through our Regeneration Fund. We created the fund to support global mitigation efforts through offsets, helping to avoid the release of emissions in the first place, and fund carbon removal projects in our supply chain and beyond. We take a portfolio approach to investing, focusing on both external removal and avoidance projects, as well as insetting initiatives. For our inaugural supply chain project, we partnered with PUR Projet to design and implement regenerative agricultural practices with wool producers in our supply chain in Australia. The project works at farm level to improve carbon capture in soils, improve watershed and soil health, and promote biodiverse habitats. The initiative in Australia has successfully completed its first year, and more farms will be added to scale the project globally over the next few years.

In FY 2021/22, through the Burberry Regeneration Fund, we also invested in the global Lowering Emissions by Accelerating Forest finance (LEAF) Coalition to support the end of deforestation in tropical and subtropical forest countries. We support the LEAF Coalition’s aim of achieving its Nationally Determined Contributions (NDCs) under the Paris Agreement. As part of the LEAF Coalition, over the next five years Burberry will purchase high-quality Emissions Reductions. These will meet the ART-TREES requirements and contribute to our global mitigation efforts. as part of the Regeneration Fund’s Cut absolute pillars of Planet, Nature and People.

Renewable energy

We are also a member of the RE100, a global initiative led by The Climate Group in partnership with 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.

  Current reporting year 21/22 Reporting year 20/21 Reporting year 19/20
  Global UK and 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 72,548,108^ 18,517,153 63,293,411^  20,826,276 70,316,810 23,432,093
Combustion of fuel and operation of facilities (scope 1) / tCO2e 1,768^ 1,311 2,089^  1,478  2,061  1,581
Combustion of fuel use from owned or leased transport (scope 1) / tCO2e 67 1 66 0 78 5
Electricity purchased and used for operations (scope 2) / tCO2e 25,866^ 2,390 20,582^ 2,934 22,661 3,400
Total emissions location based (scope 1 & 2) / tCO2e 27,701^ 3,702 22,737^ 4,412   24,800  4,986
Electricity purchased and used for operations (scope 2, market-based) / tCO2e 0^ 0 1,879^ 0 3,122 0
Total emissions (scope 1 & 2, market-based) / tCO2e 1,835 1,312 4,034^  1,478  5,261  1,586 
Total emissions offset by Verified Emissions Reduction Certificates / tCO2e 1,835 1,312
2,089^ 1,478 1,072 815 
Scope 1 and 2 intensity (location-based tCO2e per £1,000,000 sales revenue) 9.8% N/A 9.7^ n/a 9.4 n/a
% of energy from renewable sources 86%^ 61% 76%^ 61% 82% 81%

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 92% of our net selling space square footage. Burberry 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 globally and for the UK relating to electricity purchased and used for operations (scope 2) is stated as 0 due to 100% of 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 2020/21 and FY 2019/20 to account for updated emission factors and improvements in data availability and estimation methods. GHG emissions data reported is based on the period from 1 April 2021 to 31 March 2022. For the avoidance of doubt, the Company’s financial accounting period is from 28 March 2021 to 02 April 2022. However, references to FY 2021/22 for the selected KPIs included in the Responsibility section of Burberry’s Annual Report 2021/22 refer to the period 1 April 2021 to 31 March 2022.

^ Information subject to assurance is denoted with a ^. PwC’s assurance report and Burberry’s basis of reporting for assured data are available on Burberryplc.com/en/responsibility/approach-to-responsibility.html.

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

Please see the Annual Report for details on external assurance.

Carbon and Energy - additional details