planet
scope 3 emissions
As Scope 3 emissions make up the bulk of our GHG emissions, we are actively exploring emissions reductions in opportunity areas including materials purchasing and logistics. To support these efforts, we have established a supplier engagement target that requires 77% of our purchased goods and services suppliers by spend to set science-based targets by 2027. We continue working with our suppliers to increase data completeness and accuracy to track our progress through annual questionnaires that contribute to an internal supplier scoring system. Currently, 58% of purchased goods and services suppliers by spend and 52% by count have established such targets, an increase
compared to 2023.
933,688
(metric tons CO2e)
2024 scope 3 emissions
Purchased goods and services
Category 1
776,110 metric tons CO2e
Fuel and energy-related activities
Category 3
10,413 metric tons CO2e
Upstream transportation
and distribution
Category 4
92,473 metric tons CO2e
Waste generated in operations
Category 5
6,832 metric tons CO2e
Business travel
Category 6
1,417 metric tons CO2e
Employee commuting
Category 7
10,309 metric tons CO2e
End-of-life treatment of sold products
Category 12
36,134 metric tons CO2e
58%
Goal
Require 77% of our purchased goods and services suppliers by spend to have science-based targets by 2027
2024 PROGRESS
58% of these suppliers by spend and 52% by number have set science-based targets
our suppliers
Collecting comprehensive and accurate supplier data is fundamental to managing and reporting our Scope 3 emissions. Our supplier data collection strategy combines direct engagement with industry-standard tools to create a comprehensive picture of our supply chain emissions.
We collect primary data from our Tier 1 and logistics suppliers, which make up the majority of our Scope 3 emissions. This enables us to:
- Track progress towards our science-based target with increased accuracy
- Identify potential opportunities for improvement of data collection
- Evaluate potential reduction initiatives and improvements undertaken by our suppliers
We leverage Cascale’s Higg Facility Environmental Module (FEM) to assess the environmental impacts of our apparel and accessory suppliers. These impacts include energy, emissions, water, and chemical management. Beyond data collection, the Higg FEM helps us identify opportunities to support our suppliers in developing their carbon reduction strategies. In 2024, more than 99% of our Tier 1 and 2 suppliers completed the Higg FEM, and Tier 1 suppliers were asked to report on their science-based emissions, water, and waste reduction targets.
Additionally, we implemented a strategic supplier assessment framework in 2023 that incorporates ESG criteria, including environmental initiatives, worker empowerment programs, and public disclosure. This framework guides supplier selection and production allocation decisions.
We are also enhancing our data management systems to prepare for the European Union’s Digital Product Passport (DPP). This will enable us to:
- Better understand and manage our product environmental impacts
- Increase Scope 3 emissions accuracy
REDUCING OUR FOOTPRINT
Since 2021, we have been working with one of our trim suppliers, YKK, to incorporate materials derived from recycled plastic into the zippers of our products. To date, this effort has supported the diversion of more than 9.4 million plastic bottles from landfills and the avoidance of 330 metric tons of CO2.15
life cycle assessment (LCA)
We anticipate our goal to transition to 100% sustainable cotton by 2030 will reduce GHG emissions from raw materials. To measure this impact, we launched a cradle-to-gate LCA in 2023 on our bestselling product that year—the six-to-nine-month bodysuit five-pack. To expand our understanding, in 2024, we began additional LCA work on our top three bestselling products of the year—girls’ cotton briefs, three-month bodysuit, and set of toddler pants. These efforts have provided visibility into which stages of manufacturing are most impactful, and we plan to further expand the assessment scope and develop targeted reduction strategies going forward. We will use this data to evaluate key decision points throughout our manufacturing process and help support compliance with DPP. The data will also inform our supplier and manufacturing strategy based on factors such as water scarcity in specific regions, minimizing environmental impact while maintaining production efficiency.
Recognizing the importance of post-purchase impacts in our emissions reduction journey, we include cold-water wash instructions on all care labels to minimize customer energy consumption and its associated environmental impacts.
