Everlane Sets Ambitious Science-Based Targets, Aiming for Net-Zero by 2050

With Everlane’s mission to “empower people to live their best lives with the least impact on the planet — and leave the apparel industry cleaner than we found it,” the clothing and footwear company set out to establish ambitious climate targets. Despite the company’s leadership efforts in supply chain transparency and ethical sourcing, analyzing substantial amounts of data and defining the appropriate greenhouse gas (GHG) emissions reduction targets were challenging on many levels.

To help overcome these challenges, Everlane looked to the sustainability expertise at Pure Strategies. Our team worked with Everlane to complete its GHG inventory, develop a mitigation plan, and define science-based targets that align with the Paris Agreement’s 1.5℃ warming pathway, and are guided by the Science-Based Targets initiative (SBTi) standards.

COMPLETING AN INVENTORY FOR A COMPLEX SUPPLY CHAIN

Having worked with Everlane for other projects, including life cycle assessments of Everlane’s products, our team was familiar with their business and supply chain, which is complex. Many apparel companies’ value chains include raw material production, fiber spinning/tanning, knitting/weaving, dyeing, manufacturing, and other key phases with many different suppliers.

Collecting data and calculating the greenhouse gas emissions across all of these phases can be complicated. That is part of the reason it is helpful to first complete a scope 3 screening level assessment to be sure effort is spent on the areas of highest priority. From this screening, raw materials and processing were two of the top hotspots for Everlane. As a result, for the inventory, we collected a combination of primary data from key suppliers and leveraged industry data in other areas. For example, we used their t-shirt supply chain factory data, for both conventional and organic, from gin to finished manufacturing.

Our team also used the Sustainable Apparel Coalition (SAC) HIGG Material Sustainability Index tool. Most useful from this tool were the emission factors for select apparel materials, but there were gaps for other materials, including some key materials for Everlane. For example, HIGG had emission factors for cotton but did not have emission factors for denim — which is a core material to Everlane’s business. In addition, Everlane has a significant footwear business which uses a lot of leather. So, for denim, leather, and a few other material and processing areas, we augmented the HIGG emission factors by gathering primary data, adapting surrogates, and developing our own factors.

The inventory was completed by also looking at all relevant upstream and downstream impacts, including logistics, consumer use, and end-of-life. Pure Strategies then provided Everlane with a view of its overall carbon footprint, where the hotspots arise, and key drivers of emissions for those hotspots.

DEVELOPING MEANINGFUL TARGETS AND PLANS

Pure Strategies then helped Everlane to develop and establish its science-based targets. A key part of this work was including cross-functional team members first to build an understanding of science-based targets aims and requirements and then to review the inventory to understand the hotspots and help identify ways to reduce those emissions. For Everlane, important contributors were the head of supply chain and members of the product development team.

Pure Strategies then developed reduction scenarios and options for aligning with SBTi to help Everlane select its targets. The baseline year was the most recent year, in this case 2019.

Everlane chose to align their targets with SBTi’s 1.5C pathway to maximize their impact. Everlane’s Scope 1 and 2 targets were set using the absolute contraction approach, and their Scope 3 targets were set using the Greenhouse Gas Emissions per unit of Value Added (GEVA) methodology, which equates a carbon budget to total GDP to drive significant intensity reductions for their rapidly growing business.

The targets include:

• Scope 1 & 2: 46% lower absolute greenhouse gas emissions in stores and HQ by 2030
• Scope 3: 55% reduction in per product greenhouse gas emissions by 2030
• Achieve net-zero emissions by 2050

Everlane’s Scope 1 and 2 targets were approved by SBTi. The company’s targets also cover Scope 3 emissions, but that part of the targets has not been validated by SBTi since Everlane is considered a small and medium-sized enterprise (SMEs) (where SBTi does not have a path for SME Scope 3 target validation). Everlane’s targets align with SBTi’s standards for all scopes, since the company knew that the most credible approach was to aggressively address the majority of their emissions, which are found in Scope 3.

In addition to meeting their own aims and gaining SBTi validation, these targets also helped Everlane commit to the We Mean Business pledge, joining companies taking a leadership position to accelerate climate goals and help push forward to limiting global warming to a maximum 1.5℃.

REALIZING PROGRESS

In 2021, Everlane reduced its Scope 1, 2, and 3 emissions by almost 10 percent, targeting raw materials by significantly increasing the use of preferred materials with recycled or organic content. The company trimmed per-product emissions by 32 percent over its 2019 baseline on the path to a 55 percent reduction by 2030. Scope 1 and 2 emissions were increased in 2021 due to two new store openings and the launch of Everlane’s creative studio. They are actively exploring ways to reduce their Scope 1 and 2 emissions through efficiency improvements and the purchase of renewable electricity.

Everlane shares its progress, and details behind it to help others make similar progress. This information is found at everlane.com.carbon and in their Impact Report.

“We know that threats to our planet’s ecosystems from global climate change are arguably the biggest issue of our time,” notes Katina Boutis, Director of Sustainability. “As a mission-driven company, we knew that setting ambitious science-based and net-zero targets focused on removing emissions from our operations and supply chain would be significant, not just for our company, employees, customers, and value chain partners, but for our industry as well. We are proud to have been the first U.S. apparel company of our size to have approved targets through SBTi, joining a fast-growing number of apparel companies making commitments and taking action. We encourage others in our industry to do the same — we’re all in this together.”