Managing our environmental impacts at our own sites and along the value chain, where our products are designed, created, manufactured, transported, and sold, is a key focus of our work. Sustainability is an integral component of our strategy ‘To Empower Luxury’ and we have a clear roadmap for 2025 and beyond. We have developed an approach to address our carbon footprint, water efficiency and quality and are committed to steadily increasing the use of more sustainable materials in our production, products and stores while driving toward circular business solutions.
We do this through the following KPI
Mitigating Climate Change
The responsible use of energy is critical for our planet to survive. In order to mitigate climate change, we are committed to reducing our absolute energy consumption and CO2 emissions, transitioning to clean energy, and looking into energy harvesting opportunities. Royal Distributions is proactively addressing the impacts of climate change through several initiatives in its own operations, its supply chain and through various partners. Royal Distributions has committed to reduce both its own and its suppliers’ greenhouse gas emissions compared to 2017 by 30 percent by 2030 and to achieve climate neutrality by 2050.
- Innovating materials & processes
We are committed to steadily increasing the use of more sustainable materials in our production, products and stores while driving towards closed-loop solutions. From 2024 onwards, Royal Distributions will use only recycled materials in every product and on every application where a solution exists.
- Improving water efficiency & quality
In our own operations: Since 2008, our ‘Green Company’ program strives to achieve ambitious savings in water at Royal Distributions own sites globally, our target for 2020 was to reduce water usage by 35% per employee by 2020 (2008 baseline), which we have overachieved with a 48% reduction per employee.
In our supply chain: Most of our production is outsourced and a significant part of our environmental impact occurs, at different intensities, throughout the supply chain. For this reason, we are working with our suppliers to ensure the highest environmental standards are applied, supporting them to reduce their overall water consumption and improve their overall quality of wastewater. ‘E-KPI’ is our tool designed to measure and improve environmental performance of our strategic Tier 1 suppliers by setting them 20% water intensity reduction targets to be achieved by 2020. And we overachieved this target as our strategic Tier 1 suppliers delivered a 36% water intensity reduction in 2020.Using a benchmarking approach, the E-KPI allows for a high level of transparency into suppliers’ actual water consumption and reduction opportunities, supporting us to define suppliers’ specified areas for improvement and training needs that match their respective situation. We follow a similar approach for our strategic apparel material Tier 2 suppliers, with the aim of them achieving a 35% water reduction by the end of 2020 (baseline 2014). They also overachieved the target and delivered a 43% reduction by the end of 2020. In addition, we have initiated a system of multi-level and cross-functional advisory and training sessions with our global supplier network.
- Empowering renewable energy
All Royal Distributions sites are empowered with solar systems and are independent from the
Local grid stations. By 2025, Royal Distributions aims to invest over 30% in wind energy as well
Royal Distributions Private Limited is in full compliance with all environmental legislation and has not paid any significant environmental fines or penalties in the past four years. Compliance with local legislation and potential environmental violations are e.g. reviewed during the internal and external environmental audits that are conducted regularly at our sites worldwide.