Crocs' Emissions Increased Following Expansion
Footwear brand Crocs has extended its net zero target date by a decade, from 2030 to 2040, due to the company's acquisition of HeyDude, which has led to a sharp rise in its carbon footprint.
In its latest Environmental, Social and Governance (ESG) annual report, the company disclosed that its emissions have increased by 45% in the past year. The increase is due to continued sales growth and improved data transparency following the acquisition.
Crocs admitted that it had "learned a lot" since its 2021 public commitment to reach net zero emissions by 2030, adding that it is now working towards a new enterprise goal.
When Crocs first made its pledge to achieve net zero by 2030, it had not yet acquired the HeyDude brand or completed its comprehensive greenhouse gas inventory. Over the past year, the company has collected primary and secondary data from its supply chain to finalise its greenhouse gas inventories for 2021 and 2022, which are now inclusive of both brands and are in alignment with the GHG Protocol.
Crocs stated that its growth is a significant hurdle for its climate ambitions, confirming that the surge in emissions seen last year was the result of its continued sales growth and improved data transparency.
The company has adjusted its course to create the timeline needed to deliver on its sustainability ambitions while supporting its growth ambitions. Crocs aims to reach net zero emissions by 2040, which it acknowledges is still an ambitious goal but is more realistic and credible given its significant total emissions and aggressive growth projections.
During the period, Crocs recorded 4,253 tCO2e Scope 1 direct emissions from both the Crocs and HeyDude brands. Its indirect Scope 2 emissions for the period reached 11,144 tCO2e, and its Scope 3 emissions from its value chain came in at 762,358 tCO2e. The company plans to spend the next year identifying how each brand can actively contribute to its collective enterprise goal.
In addition to its net zero target, Crocs has a range of wider ESG goals, including plans to reduce the carbon footprint of its classic clog by 50% by 2030 and source 50% bio-based content for Croslite, the material used to make Crocs.
Crocs' CEO, Andrew Rees, said the company will continue moving forward equipped with data, unafraid to experiment to deliver on its ambitions. He added that the company's go-forward ESG strategy is ambitious and calls upon all of its employees, suppliers, and partners to contribute their diverse talents.
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Source: Business Green