How we've calculated emissions
Emissions calculations are complex, and it's sometimes hard to grasp data covering the entirety of one business. We want to be fully transparent and are publishing all details of our emission mapping below. But we also want to break it down into more digestible pieces. Therefore, we have made our first emissions and water calculations on the product level, found on the product card next to our transparency data in the online shop.
The product calculations include the emissions and water use connected to the production processes, transport in the supply chain, and transportation from the last supplier in the supply chain to our warehouse in Sweden. We have also included emission and water use from the packaging materials used.
We did not include the emissions and water use created by the transports from our warehouse to the end customer, the emissions and water use in the user phase, or the end-of-life treatments in the product calculations. We decided to exclude these data points as they vary widely based on how and where the products are used and shipped. We still want to highlight that the emission from the transport of the products to our customers has a significant impact. The average transport of one product bought in the online shop creates emissions of 3,8 kg CO2e/product. This equals the emission from 1-2 Nudie Jeans t-shirts.
What can we as consumers do to decrease our climate impact while still enjoying Nudie Jeans garments?
• If buying your garments in one of our physical stores, take the bike, the train, or the bus and leave the car at home! How you get to the store has a significant climate impact.
• If visiting our online store and finding the perfect jeans there, choose the more sustainable transport option at the checkout. It's totally ok to wait that extra day before starting to use your new pair of jeans.
• When using your Nudie Jeans garment, wash them only when necessary. Hang them outside for a natural refresh, and if stained, take a cloth and remove that stain instead of tossing the jeans in the washing machine.
• When they need that wash, don't tumble dry or iron your jeans, let them hang dry, and you save both energy and stress on the fibers.
• A hole in your jeans? No worries, take them to your nearest Nudie Jeans repair shop and have them repaired for free. But here, we do want you to wash them first! Like this, you prolong the life of your jeans – the most sustainable thing you can do! And if you have no Nudie Jeans Repair shop close by, order a free repair kit online.
• When you no longer want your Nudie Jeans, hand them in at one of our shops, and we make sure to put them to good use.
Be part of our journey to decrease our emissions; we need your actions while we continue to do what we can to reduce the emissions in the supply chain.
The climate and water data was calculated for the first time for the Fall21 collection, we are currently working to provide these calculations for all products in the coming collections. We do this with an explorative mindset, staying humble before the complexity of emission calculations and the rapid development within this field. We hope this increased awareness of our products' climate impact will drive consumption and garment use in a more responsible direction.
In 2021, for the third year in a row, we mapped the full emissions of our business. We follow the Greenhouse Gas Protocol methodology for our emissions mapping, which means we cover scope 1, 2, and 3: our own emissions and energy use, as well as the emissions of the full supply chain and user phase.
We have continued our engagement in the Swedish Textile Initiative for Climate Action (STICA), which is an important initiative for learning, benchmarking, and developing climate work in the Swedish textile industry.
The continuity entailed by mapping our emission data, with a significant share of actual data, has enabled us to compare data points and correct and clarify certain mistakes that occurred in the previous year's calculations. We have therefore recalculated our base year according to the corrections.
75% of our total emissions are based on actual data from our shops, offices, and suppliers. For the remaining data gaps, we have been able to reuse the suppliers’ actual data from last year adjusted to production volumes for 2020. If the supplier did not report actual data, we used an average based on actual data from suppliers working with similar processes, in similar geographical locations, and in the same tier. For the remaining suppliers where none of the above could apply, we used average data based on reported values 2018 – 2020 from suppliers in tiers 1-3. This means that only data from Tier 4 suppliers (raw material), and trims suppliers are based on MSI higg standard values. The data calculated with MSI higg standard values account for 9 % of our total emissions. Another 9% of our total emissions are based on Nudie Jeans total tiers average, while 7% of our emissions are based on recalculations of reported data from 2018 and 2019. We reused the result of the customer survey we conducted in 2019 to map the user habits of Nudie Jeans customers but recalculated the data based on 2019’s sales numbers. By mapping our supplier's actual emissions and by working with a baseline based primarily on actual data instead of generic data, we hope to be able to see the real changes we are working toward in our supply chain reflected in the numbers moving forward. The emission mapping result for 2021 will be published early fall of 2022
We have set science-informed targets in line with the 1,5-degree pathway of the Paris Agreement following the methodology created by Science Based Targets (SBT). We will move towards officially applying for SBTs in the coming years.
Scope 1 and 2 – direct emissions
According to the Greenhouse Gas Protocol, direct emissions from company-operated cars, direct heating. and refrigerant leakage in Nudie Jeans’ facilities are included in scope 1, while electricity for heating, cooling, and general electricity consumption is included in scope 2. In scope 1 and 2, we have a more direct impact and greater resources to shift toward using only renewable energy in our Nudie Jeans Repair Shops, sales offices, and head office. For the full year of 2010, our electricity use from renewable energy sources stood for 22% of the total energy consumption in scope 1 and 2. Increased use of renewable energy in our stores and offices has played an important part in the 17% decrease in emissions in scope 1 and 2 since the base year 2018.
In 2021, we continued to work toward converting more of the electricity contracts for our stores and sales offices to subscriptions of 100% renewable electricity. In markets with a limited supply of renewable energy subscriptions, investments in Renewable Energy Certificates are accepted as a temporary alternative solution.
Scope 3 – indirect emissions
We have continued to map all of our emissions in scope 3, indirect and direct emissions from upstream and downstream activities in the supply chain. Our scope 3 emissions mapping showed that 5% of our total energy use in scope 3 comes from renewable sources. Switching to renewable energy throughout the supply chain will significantly reduce our total emissions. But we are aware that there are national and regional challenges that can sometimes prevent a rapid shift to renewable energy. We will apply the same strategy for the change toward renewable energy in our supply chain as in our own stores; in markets where the supply of renewable energy subscriptions is limited, we will investigate the possibility of investing in Renewable Energy Certificates as a temporary alternative solution.
All our transports are included in our scope 3 emissions. This includes all transports in between suppliers in the supply chain, incoming transport from our main suppliers to our warehouse, and outgoing transports from our warehouse to retailers and online customers. With transports to every continent, we inevitably generate CO₂ emissions. The emissions created by our transport stand for 21% of Nudie Jeans’ total emissions.
We transport incoming goods by truck, boat, air freight, and train. For outgoing shipments from our warehouse in Sweden, we use trucks for delivery in Europe and air freight for all other destinations. The transport of online orders to customers is mainly done by air freight. The main reason for our high transport emissions is our distribution set up, with a global distribution but with one main warehouse in Sweden.
Airfreight is contributing to most of the emissions for our transports, that is why it is important for us to focus the transport-related emission reduction actions on air freights first and foremost. This work will begin in 2021 with the roll-out of our omnichannel solution that has the potential to decrease the airfreights related to online purchases in Europe, and we will start exploring the possible solutions for increased use of sea freight instead of air freights focusing on the Australian market.
We will continue to work with more efficient packing of our goods to decrease transport. We are working on our production planning to allow suppliers to deliver according to the established timeframe, to be able to use sea freight, and not have to compensate for delayed production by cutting transport time by using air freights.
We have started to highlight the transport alternative in our online shop, in some markets, that are better from an emission perspective to push the customer to choose lesser emissions intense transport alternatives. Given the innovations and developments in the logistics sector, such as bike couriers and smart delivery boxes, we see a potential to decrease our “last mile” emissions – transports from the terminal of the carrier to the end customer.
All emissions from transportation, both inbound and outbound are compensated for by carbon offsetting, either by our logistic partner's own carbon offset program or by our annual carbon offsetting for our business full emissions.
Climate neutral or climate positive
We do not believe nice words will do the trick for the climate; we believe in working toward change. Therefore, we do not talk about being climate neutral or climate positive through carbon offsetting. We focus on creating roadmaps to real change. This is challenging, but it is the only way forward. Meanwhile, we are working toward our reduction targets, we are investing in carbon offsetting to cover emissions from our business in all three scopes. Others call it climate neutral; we see this as the minimum amount necessary to even begin to claim that we take responsibility for the climate impact of our business.
Our climate work is a journey; we are gradually developing our strategy and actions as our knowledge and possibilities around our climate initiatives expand. We have mapped our emissions for three consecutive years, and we have offset our business’ full emissions for these years.
In 2021, we invested in offsetting covering all emissions connected to our business 2020. For 2020 this means that we have invested in offsetting covering our emissions of 9,363 tons of CO2. The offsetting projects are invested in through the UN Carbon Offset Platform. We have invested in three different projects, one biomass-based power plant based in Chilakapalem Village in Andhra Pradesh20, close to Odisha where Chetna Organic, our Indian organic Fairtrade cotton supplier is based. Two wind power projects; one in Rajasthan and Karnataka,21 and one in Tamil Nadu. The latter is based in the same area as our Indian jersey supplier. All the above projects generate renewable electricity for the regional grid, replacing energy from fossil-based sources. We aim to continue to invest in carbon offsetting covering our business' full emissions as a complement to actual reduction activities.
Since July 2016, we have been part of the UPS Carbon Neutral program, in which we offset the CO2 emissions generated by our exports, imports, and returns. Carbon offsetting is achieved through different projects, such as reforestation or the development and installation of renewable energy power plants. The projects are verified by Société Générale de Surveillance (SGS).
Our bags and packaging supplier, Avisera, has created its own label for all its bags and packages. They plant trees to compensate for the carbon emissions generated by the production process. All our bags and packaging are made under this label, and thus we support their tree-planting and preserving activities. In 2021, the production of our bags and packaging generated 46 tons of CO2 emissions, and to offset them Avisera protected and planted 6,300 trees in the projects Envira Amazonia Tropical Forest Conservation in Brazil and Guanaré Forest Restoration in Uruguay.