Carbon and Energy
BECOMING CARBON NEUTRAL
Our goal is to be carbon neutral in our own operational energy use by 2022 and to obtain 100% of our electricity from renewable sources in the same 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 82% compared to FY 2016/17.
year 18/19Reporting year 17/18Reporting year 16/17Total energy (KWH) - including energy from fuel used in vehicles76,575,371^82,309,19785,150,844Combustion of fuel and operation of facilities (Scope 1) (Kg CO2e)2,096,267^2,144,0912,128,334Electricity, heat, steam and cooling purchased for own use (Scope 2) (Kg CO2e)29,111,338^32,072,00133,839,522Total emissions location based (Scope 1 & 2) (Kg CO2e)31,207,605^34,216,09235,967,856Electricity, heat, steam and cooling purchased for own use (Scope 2) (Kg CO2e) MARKET BASED APPROACH12,729,675^18,060,68623,027,948Total emissions market based (Scope 1 & 2) (Kg CO2e)14,825,942^20,204,77725,156,282Total emissions offset by Verified Emissions Reduction Certificates (Kg CO2e)352,729^170,4110Intensity measurement (Location based Kg CO2e per £1000 sales revenue)11.5^12.513.0% of Energy (kWh) from Renewable Sources76,575,371^58%^48%37%
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 are now carbon neutral in our own operational energy use across 85% of our sites globally and procure 83%^ of our total energy (90%^ of electricity) from renewable sources. Through engaging with our suppliers on energy efficiency and renewable energy, we have reduced emissions in the supply chain by more than 1600 tonnes of carbon. These initiatives, alongside our transition to more sustainable raw materials, are contributing to our Scope 3 science based target. 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.
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 we ensured both our Spring/Summer 2020 and Autumn/Winter 2020 shows were carbon neutral. 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.
On the day of our show 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.
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 2020.
|Reporting year 19/20||Reporting year 18/19||Reporting year 17/18|
|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 / kWh||69,022,600^||22,915,011||76,657,440||24,210,561||82,309,197||27,294,512|
|Combustion of fuel and operation of facilities (Scope 1) / Kg CO2e||1,853,911^||1,485,987||2,079,000||1,433,808||2,144,091||1,746,440|
|Combustion of fuel use from owned or leased transport (Scope 1) / Kg CO2e||77,936||4,592||85,305||1,515||n/a||n/a
|Electricity purchased and used for operations (Scope 2) / Kg CO2e||23,770,998^||3,660,968||26,521,247||4,083,794||29,268,407||4,457,747|
|Total emissions location based (Scope 1 & 2) / (Kg CO2e)||25,702,845^||5,151,547||28,685,552||5,519,117||31,412,498||6,204,187|
|Electricity purchased and used for operations (Scope 2, market-based) / Kg CO2e||3,274,590^||0||12,489,981||60,546||17,529,866||101,705|
|Total emissions (Scope 1 & 2, marketbased) / Kg CO2e||5,206,437^||807,805||14,654,286||62,061||19,673,957||1,714,807|
|Total emissions offset by Verified Emissions Reduction Certificates / Kg CO2e||1,060,547^||803,214||371,316||0||170,411||0|
|Location-based Kg CO2e per £1000 sales revenue||9.8^||n/a||10.5||n/a||11.5||n/a|
|% of energy from renewable sources||83%^||81%||58%||68%||48%||65%|
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 99% of our sq. ft. (net selling space). 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. Combustion of fuel use from owned or leased transport is reported from 2018/19 FY onwards. Burberry has updated GHG data for FY 2017/18 and FY 2018/19 to account for updated emission factors and improvements in data availability and estimation methods. Further information about Burberry’s basis of reporting is available here.
^ Assured by PWC, see the Creating Tomorrow’s Heritage page for more information on Burberry’s basis of reporting.
This built on the work we did in FY 2018/19, when we explored the uncertainties, risks and opportunities associated with climate change impacts to 2040, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Read more about our progress in the FY2019/20 Annual Report.