Carbon Footprint
We have been tracking our carbon footprint since 2007, Hanesbrands’ first full year as an independent company. We have worked hard to reduce our footprint through a combination of energy efficiency efforts and the sourcing of renewable energy. We have set a goal of reducing CO2 emissions intensity (that is, CO2 emissions per manufactured unit) by 15 percent by 2012 from a 2007 baseline. As of the end of 2009, we have already achieved a 12.4 percent reduction.1
On an absolute basis, our total CO2 emissions fell by 24 percent from 2007 to 2009, excluding transportation. The absolute reduction rate is higher than the intensity reduction due to inventory reductions and a drop in production levels.
| Hanesbrands Carbon Footprint (metric tons CO2) | 2007 | 2008 | 2009 |
|---|---|---|---|
| Manufacturing Facilities | 585,094 | 563,506 | 440,670 |
| Distribution Facilities | 33,425 | 32,479 | 27,709 |
| Offices / Other Facilities | 12,740 | 11,754 | 11,435 |
| Total CO2, Excluding Transportation | 631,259 | 607,739 | 479,814 |
Percent change vs. prior year |
-3.7% | -21.0% | |
| Transportation | Not measured | 171,194 | 100,500 |
| Total CO2, Including Transportation | 778,933 | 580,314 | |
Percent change vs. prior year |
-25.5% |
Our 2009 Carbon Footprint
Our total CO2 emissions for 2009 were 580,314 metric tons. This total includes both direct and indirect emissions, including transportation and emissions belonging to our major suppliers.2 Our own direct emissions (Scope 1 emissions) come mainly from our manufacturing, distribution, and office facilities. There are also indirect emissions from purchased electricity (Scope 2 emissions) used to power these facilities. (Our 2009 carbon footprint excludes our retail stores, which will be incorporated in 2010 measurements.) In addition, our total emissions footprint includes other indirect emissions associated with energy use by our major suppliers (Scope 3 emissions). These include:
- Outsourced production. In late 2009, we sold or closed our yarn manufacturing facilities. However, we continue to track the energy use and CO2 emissions associated with the yarn that we now purchase from our suppliers. Our carbon footprint also includes a small amount of emissions from other contract manufacturing that was outsourced in 2008 and 2009.
- Transportation. Virtually all of our transportation is contracted out to third parties. We include the CO2 emissions for the transportation of yarn to our facilities, and all transportation between our manufacturing facilities and to our distribution centers.
The majority of our CO2 emissions come directly from manufacturing, which accounted for 76 percent of our emissions in 2009. Seven percent of our emissions came from our distribution and other facilities, while transportation represented the remaining 17 percent of our carbon footprint.
Next Steps
While we are proud of our progress to date, we intend to expand our carbon footprint measurement and reporting activities in the near future. Our goals include:
- Expanding our carbon footprint measurement to include emissions from our retail stores and other direct sources. While we are not primarily a retailer, we do operate a significant number of outlet stores. We also own service and material handling vehicles which have a de minimus CO2 impact. Incorporating these emissions will allow us to account for all of our Scope 1 and 2 emission sources.
- Expanding our measurement to include other greenhouse gases. While CO2 accounts for the majority of our greenhouse gas emissions, we plan to expand our carbon footprint measurement to include methane, nitrous oxide, and fluorinated gases.
- Reporting to the Carbon Disclosure Project. We intend to voluntarily submit detailed information on our 2009 carbon footprint to the Carbon Disclosure Project. The CDP is an independent organization that holds the world’s largest database of corporate information on greenhouse gas emissions.
- Setting an updated reduction goal. Having nearly met our 2012 carbon reduction goal in 2009, we plan to establish an updated goal in the coming year.
We will continue to disclose our carbon footprint and use it as a tool to identify opportunities for reducing emissions—and in many cases, saving money.
[1] Our CO2 reduction goal encompasses emissions from our manufacturing, distribution, and office facilities. CO2 emissions from retail stores are not yet tracked, and emissions from transportation were not measured in 2007.
[2] The Greenhouse Gas Protocol (GHG Protocol), the leading international standard for measuring corporate greenhouse gas emissions, defines direct and indirect greenhouse gas (GHG) emissions as follows:
- Direct GHG emissions are emissions from sources that are owned or controlled by the reporting entity.
- Indirect GHG emissions are emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity.
The GHG Protocol further categorizes these direct and indirect emissions into three broad scopes:
- Scope 1: All direct GHG emissions.
- Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or steam.
- Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc.”