- Sets goal to achieve net zero greenhouse gas emissions by 2040
- Demonstrates increased transparency with expanded workforce diversity data, climate impact data and factory disclosure data
- Incorporates ESG metrics into executive remuneration
Ralph Lauren Corporation (NYSE:RL) has published its fiscal year 2021 annual Global Citizenship & Sustainability Report (FY21 Report), a detailed progress update on its Design the Change strategy. This year, the Company strengthened its commitment to climate by establishing a net zero goal with a clear roadmap to achieving this target and deepened its transparency with increased diversity data, climate data and factory data disclosures. The Company also announced that from Fiscal 2022 onwards, key environmental, social and governance (ESG) metrics will be incorporated into executive remuneration.
“The convergence of the global pandemic, climate crisis and call to action to dismantle systemic racism has been a catalyst for the business community to focus and accelerate its progress toward a more equitable and sustainable future,” said Patrice Louvet, President & CEO, Ralph Lauren Corporation. “We embrace that call to action wholeheartedly at Ralph Lauren, demonstrated by the progress our teams have made in the last year – including our increased transparency, climate goal and integration of ESG metrics into executive remuneration. As we look to the future, we will continue identifying ways to accelerate this work through partnership and collaboration that can deliver positive impact at scale.”
Building on its existing goal of reducing absolute greenhouse gas (GHG) emissions across its operations and supply chain by 30% compared to Fiscal 2020 levels, Ralph Lauren has set a goal to achieve net zero emissions by 2040. As part of this, the Company has also published a Net Zero Commitment Statement that details how it expects to achieve this target. These actions are in line with Ralph Lauren’s pledge to the climate goals identified in the Paris Agreement and build on the steps the Company has already taken to reduce its carbon footprint throughout its value chain.
The FY21 Report also reflects Ralph Lauren’s continued focus on increasing transparency across environmental and social issues as well as its operations. The Company has added the Task Force on ClimateRelated Financial Disclosures (TCFD) Index to this year’s report and discloses new carbon and water footprints. In the report, Ralph Lauren also introduces expanded factory disclosures, which provide more clarity on the Company’s operations by listing tier 1 factories that represent approximately 90% of its apparel and home textile business volume.
Building on the workforce diversity data disclosures from previous years and the Company’s focus on ensuring increased representation in its workforce — specifically its goal to have at least 20% of the Global Leadership Team represented by underrepresented racial and ethnic groups by 2023 — the FY21 Report includes expanded workforce diversity data with additional gender and U.S. race and ethnicity breakdowns, inclusive of the Company’s Board of Directors, Global Leadership Team and corporate and non-corporate employees.
Looking ahead, beginning in Fiscal 2022, Ralph Lauren will incorporate key ESG metrics into its executive remuneration. These metrics will include the Company’s advancements on its commitments to protect the environment and progress on its journey to deepen diversity and inclusion across its workforce.
Additional progress reported in the FY21 Report includes:
- Producing 33% of products (units) that met the Company’s sustainable material criteria;
Launching a circularity strategy supported by three new goals —
- Secure Cradle to CradleTM (C2C) certification for five iconic products by 2025,
- Establish resale and recycling experiences for consumers by 2022 and
- Produce 100% recycled cotton products of high quality by 2025;
- Launching Color on Demand, an innovative breakthrough in fabric processing with the ambition to deliver the world’s first scalable zero wastewater cotton dyeing system;
- Continuing its partnership with World Wildlife Fund, completing the Company’s first global water footprint measurement and setting targets that will help it achieve its 20% total water use reduction goal and increase community water access; and
- Making $20 million in combined charitable contributions in FY21 between the Company and the Ralph Lauren Corporate Foundation.
The full FY21 Report and ESG Supplement are available for download on the Company’s website. The full press statement announcing Ralph Lauren’s Net Zero Commitment Statement is available for download here.
ABOUT RALPH LAUREN
Ralph Lauren Corporation (NYSE:RL) is a global leader in the design, marketing and distribution of premium lifestyle products in five categories: apparel, footwear & accessories, home, fragrances and hospitality. For more than 50 years, Ralph Lauren has sought to inspire the dream of a better life through authenticity and timeless style. Its reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company’s brand names—which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, Chaps and Club Monaco, among others—constitute one of the world’s most widely recognized families of consumer brands. For more information, go to https://corporate.ralphlauren.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made from time to time by representatives of the Company, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our environmental and social goals and plans for future executive remuneration, and are indicated by words or phrases such as "anticipate," "outlook," "estimate," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to certain risks and uncertainties, many of which are unforeseeable and beyond our control. The factors that could cause actual results, performance or achievements to materially differ include, among others the risk factors identified in the Company’s Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.