Highlights from this quarter’s performance are as follows, organized by Timberland’s four CSR Pillars: Factories, Climate, Product, and Service.
FACTORIES: Of the 320 active factories at the end of Q2, 36% are rated Accepted, which is a 16% improvement over our Q1 result (31%). For a complete factory list, visit the factories section of our Responsbility site. For more about VF’s Compliance audit process click here.
In 2015, we will be transitioning the measurement of suppliers’ environmental and social/labor management to the Sustainable Apparel Coalition’s Higg Index, consistent with our parent company, VF Corporation. To have the greatest impact on VF’s supply chain as a whole, the focus will be on the top 250 suppliers across all VF brands. In the coming quarters, we will be reporting on Timberland’s highest producing factories and their scores on the Higg Index.
CLIMATE: In 2014, we had a 9% reduction in greenhouse gas emissions compared to 2013 (15,874 vs. 17,514), which is a 46% reduction over our 2006 baseline. This decrease can be attributed to lower energy usage in several of our European and Asian sites, and a decrease in emissions related to employee travel.
Our use of renewable energy decreased slightly in 2014 (18.7% in 2013 vs. 16.7% in 2014). This decrease can be partly attributed to several sites in Europe with expired renewable energy contracts. We are working to re-establish contracts in those locations that previously had them, and 2 large US locations are new procuring renewable energy. As such, we look forward to a more favorable result in 2015.
SERVICE: Timberland employees served 46,509 hours year to date. YTD Hours Utilization Rate (the percentage of employee service hours used compared to the total available hours according to our Path of ServiceTM program) during Q2 2015 was 18.5%, which is even with our Q2 reslut (18.6% increased to 7.6% vs. 4.4% in Q1 2014. Our Benefit Utilization Rate (the percentage of employees who serve at least one hour) YTD increased from 18.1% in Q1 2014 to 34% in Q1 2015.
**This story first appeared in the Timberland newsletter here.