Ralph Lauren is expanding efforts to reduce its emissions and lower its impact on climate change, the company said Tuesday.
The apparel and home textiles company plans to reach net-zero emissions by 2040 and will link environmental and social goals, focused on such issues as climate change, water waste, and workforce diversity, to its executive compensation starting in 2022, joining a growing list of companies, including Nike and Apple, that are tying diversity goals to CEO pay.
For Ralph Lauren, some of the goals tied to executive compensation include having at least 20% of its global leadership from underrepresented racial and ethnic groups by 2023; producing 100% recycled cotton products by 2025; increasing volunteer hours by 25% by 2025; and achieving net-zero greenhouse gas emissions by 2040.
To meet the net-zero emissions goal, the company will increase investments in nature-based carbon removal, which includes buying agriculture carbon credits. Ralph Lauren also plans to use 100% renewable power in its stores, offices, and distribution centers by 2025.
Beyond the company’s in-house operations, it is also collaborating with its suppliers to drive down factory greenhouse gas emissions. When it comes to its highest volume raw material, cotton, the company said it will increase its use of recycled material and prioritize the uptake of cotton grown using regenerative farming practices.
“Our net-zero goal and road map are anchored in our belief that through deliberate action we can deliver the change required to reduce our climate impact and help create a more sustainable future for generations to come,” said CEO Patrice Louvet in a statement.
The company’s net-zero emissions strategy builds on its previous goal to lower absolute greenhouse gases 30% across its operations by 2030.
Every year, the company will report progress toward the net-zero goal in its global citizenship and sustainability report, which outlines the company’s sustainability approach.
As the pandemic battered retail last year, Ralph Lauren faced revenue declines and a drop in its stock price. In its most recent earnings report, for the 2021 fiscal fourth quarter, the company saw a revenue increase of 1% to $1.29 billion, and its stock has rebounded to pre-pandemic levels.
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