Put Your Numbers to the Testwebinar+Dec+2017.… · • For a pair of 501 jeans, ... • Fabric...

Put Your Numbers to the Test:

Data Quality in Sustainability

Measurements and Communication

About Us

2

Kathy Tejano Rhoads

Principal Consultant

Summer Broeckx-Smith

Data Analyst & Head of CDP

Services

Guest Speakers

3

Shreya Sonar Byron Thayer Andy Cummings

Agenda

4

1. Sustainability performance

2. Key data characteristics

3. Insights from guest speakers

4. CEDA database

5. Key takeaways

6. Q&A

5

1. Sustainability performance

Corporate Performance

6

7151000

1864

2415

2868

3,396

40054,300

2009 2010 2011 2012 2013 2014 2015 2016

Nu

mb

er

of

Re

spo

nd

en

ts

CDP Supply Chain Questionnaire

17

7386

141

2014 2015 2016 2017

Nu

mb

er

of

G2

50

Co

mp

anie

s

Climate Targets

Reporting Gap

7

172

162

103

140

20

40

60

80

100

120

140

160

180

200

Scope 1 Scope 2 Scope 3 (Upstream) Scope 3 (Downstream)

Num

ber

of

G250 C

om

panie

s

2015 Corporate Emissions Reporting

Knowing Your Sustainability Impacts

8

1

4

Operational

Supply Chain

Benefits Of Closing The Gap

9

Enhance

Brand Value

Respond to

Investor Inquiries

Reduce Cost &

Improve Efficiency

Innovation

POLL QUESTION:

10

Has your company ever performed a

sustainability impact analysis? If so, what was

it used for?

Select one:

▪ Enhance brand value

▪ Identify areas to reduce environmental impacts

▪ Identify supply chain related risks and opportunities

▪ Respond to investor ESG inquiries

▪ All of the above

Sustainability Impact Measurements

11

Methodology

Data

+

12

2. Key data characteristics

Data Characteristics Checklist

13

Base year and frequency of updates


14


Consistency


15


Consistency

Completeness in scope and breadth


16


Consistency


Transparency of methodology


17


Consistency



Accessibility


18


Consistency



Accessibility

Uncertainty

Uncertainty

19

• How good is the data?

• Would you rather be roughly right or precisely

wrong?

Iterative Analysis

Overcoming Data Limitations

20

1. Identify “hot spots”

2. Refine the results targeting the hot spots

3. Repeat until the data quality goal is met

Understanding Data Trade Offs

21

Keep in mind:

• Impacts of analysis

• Use of financial resources

• Future repetition of

reporting

• External inquiries regarding

results

22

3. Insights from guest speakers

Guest Speaker: Shreya Sonar

23

Shreya Sonar

Sustainability Analyst

What is RefScale?

RefScale & Impact

Tool: RefScale

• For each Reformation product, we use RefScale to measure Farm to End-of-Life impacts

• Benchmark with conventional clothing

Benefits

• External: Shared with customers on web• Internal: Raw material and process selection

RefScale & Impact

Data Quality

• Primary data

• Peer reviewed journals

• Published books

• PDFs

• O Ecotextiles

• Verification via 3rd party consulting firm

RefScale & Impact

Challenges

• Cashmere and alpaca data

• System boundaries

• Quantifying certifications

• Wet processing visibility

Assumptions

• 52 washes/garment cycle

• Deadstock fabrics

• Conventional clothing

Guest Speaker: Byron Thayer

28

Byron Thayer

Manager – Sustainability

Performance & Reporting

• We completed two LCAs prior to our Scope 3 climate change estimate

LS&Co. uses iterative approach to data gathering

29

LCA #1 (2007)

• 1 Product

• US only

LCA #2 (2015)

• 3 Products

• Global

Scope 3 (2017)

• All products

• Non-product categories

• For a pair of 501 jeans, consumer use (laundry) has the greatest impact.

• But we only looked at US consumers’ laundry habits…

In 1st LCA, ‘hot spots’ drove us to improve data

30

Fiber9%

Fabric Production

27%

Cut, Sew, Finish

8%Sundries & Packaging

5%

Transport, Logistics, Retail

11%

Consumer Use37%

End of Life3%

Climate Change Impactsby Phase

• We compared regional consumer use habits, not just US

In 2nd LCA, we further explored our hot spots

31

0

10

20

30

40

50

60

70

Americas Europe Asia

Lifetime Consumer UseNon-Renewable Energy (kwh)

Washing every 10 times a product is worn instead of every 2 times reduces global warming impact by 80%

• Fabric assembly of 501 jeans is 50% more impactful than Dockers

khakis

In 2nd LCA, focused on fabric assembly impact of denim vs. khaki

32

kg of CO2e

FIBERFABRIC

ASSEMBLY

CUT, SEW,

FINISH

SUNDRIES & PACKAGING

TRANSPORTLOGISTICS

RETAIL

CONSUMERUSE

END OF

LIFETOTAL

Levi’s 501 2.9 9.0 2.6 1.7 3.8 12.5 0.9 33.4

Dockers Khakis 4.9 5.9 2.8 0.2 3.2 13.3 0.9 31.3

• Expanded view to all products, including leather goods.

• Addressed 11 different areas of Scope 3, including non-product

sources (commuting, capital goods, business travel, etc)

– (Ultimately, product impact far greater than everything else)

• LS&Co’s annual carbon footprint is 5 million metric tons CO2e.

Equivalent to:

With Scope 3, focused on missing data

33

Emissions

generated by the

state of Vermont

1MM more than

San Francisco

• But we simultaneously improved data precision AND created programs to

reduce impact.

• At first, we focused on accuracy over precision.

– Know hot spots and make 100% sure that in the ballpark (accuracy), then

later sharpen numbers to multiple decimal points (precision)

Avoid paralysis by analysis—Just get started!

34

• We set first round of targets in 2007 (after 1st LCA)

• Likely meet our second round of targets early

– (25% absolute reduction in scopes 1 + 2 by 2020 vs. 2007 baseline)

• CEO recently committed to setting third round: Science-Based

Targets + Scope 3 targets.

LS&Co. is about to start third round of GHG targets

35

• We are founding member of Better

Cotton Initiative.

• Traceability is challenging.

• We launched and ‘Care Tag for the

Planet’ and consumer education

campaign to reduce laundry impact.

• But we can’t measure impact easily.

We are addressing cotton and consumer impact, even with imperfect data

36

Guest Speaker: Andy Cummings

37

Andy Cummings

Account Manager – Supply Chain

www.cdp.net |

@CDP

{{

{{CDP’s Mission

We want to see a thriving economy that works for people

and planet in the long term. To do this we focus investors,

companies and cities on taking urgent action to build a truly

sustainable economy by measuring and understanding

their environmental impact.

www.cdp.net |

@CDP

CDP model

www.cdp.net |

@CDP

Importance of Data Quality

{ Setting a science-based target

{ Meeting your customers sustainability goals

{ Understanding ‘hot spots’ in your value chain

{ Reducing scope 3 emissions

{ Tracking year-on-year progress

www.cdp.net |

@CDP

Case study: Dell TechnologyDell’s guidelines for suppliers:

{ Report GHG emissions via CDP (minimum

scope 1 and 2, scope 3 encouraged)

{ Set public goals to reduce operational GHG

impacts

{ Tier 1 suppliers to establish GHG management

and reporting requirements for their suppliers

{ Report on water via CDP Water

{ Publish a GRI-based sustainability report

Dell publicly states:

{{

Failure to meet these

requirements can impact

your supplier ranking and

potentially diminish your

ability to compete for

Dell's business.

{{

In 2016, Dell achieved an industry-leading

response rate of 95.4 percent, and in

aggregate, their suppliers reduced 6.1M

metric tons of CO2e in the last reporting

year, equal to $606M in savings related to

emissions reductions.

www.cdp.net |

@CDP

More repeat participants reducing emissions

43

4. Comprehensive Environmental

Data Archive (CEDA) database

CEDA

44

380+ sectors

2700+

exchanges

VitalMetrics CDP Scope 3 Tool

45

Data Characteristics

46


Consistency



Accessibility

Uncertainty


47

2014 base year, annual

updates


Consistency



Accessibility

Uncertainty

✓


48


updates


Consistency



Accessibility

Uncertainty

✓

ISO 14040/44✓


49


updates


Consistency



Accessibility

Uncertainty

✓

ISO 14040/44✓

380+ sectors, 2700+

exchanges

✓


50


updates


Consistency



Accessibility

Uncertainty

✓

ISO 14040/44✓

380+ sectors, 2700+

exchanges

✓

Published in a peer reviewed article in

2005

✓


51


updates


Consistency



Accessibility

Uncertainty

✓

ISO 14040/44✓

380+ sectors, 2700+

exchanges

✓


2005

✓

Formatted in Excel, annual license

available

✓


52


updates


Consistency



Accessibility

Uncertainty

✓

ISO 14040/44✓

380+ sectors, 2700+

exchanges

✓


2005

✓

Formatted in Excel, annual license

available

✓

Geometric standard deviation✓

Leveraging CEDA

53

• Corporate greenhouse gas accounts (e.g., CDP)

• Investment portfolio footprints

• Sustainable spend analysis

• Product carbon footprints

Sustainability Spend Analysis

54Note: This table has been truncated.

Product Carbon Footprints

55

0

10

20

30

40

50

60

70

80

90

Ingredients CartonPackaging

Electricity CorrugatePackaging

Natural Gas Kashi DurableGoods

Others

Th

ou

sa

nd

me

tric

to

ns

CO

2e

Flour36%

Oats18%

Fiber Inulin11%

Soy8%

Dairy Products5%

Chocolate3%

Oils3%

Sweetnat2%

Others15%

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5. Key takeaways

Take Home Messages

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• Quality data is the foundation of sustainability

analysis

• Consider data tradeoffs when measuring your

organization's sustainability performance

• CEDA can be leveraged to achieve robust

environmental impact analyses• Corporate greenhouse gas accounts (e.g., CDP)

• Investment portfolio footprints

• Sustainable spend analysis

• Product carbon footprints

QUESTIONS?

58

• Submit them through the chat box

If you have any further questions, please reach

out to us at:

[email protected]

or at

www.vitalmetricsgroup.com

Put Your Numbers to the Testwebinar+Dec+2017.… · • For a pair of 501 jeans, ... • Fabric...

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