Support our suppliers with the decarbonisation of production
Because the use of renewable energy is essential to drastically reduce the CO2 impact.
After an initial climate objective validated in 2020 by the Science Based Targets initiative concerning suppliers representing 90% of the company's purchasing volumes, DECATHLON decided in 2021 to raise its ambitions and broaden its scope of action. Here is a progress report.
DECATHLON's production decarbonisation strategy is structured around several pillars:
- measuring the energy consumed
- committing suppliers to reducing their footprint
- building paths away from coal
- deploying energy efficiency programmes
- deploying renewable energies
These pillars are verified during environmental audits of the sites concerned, and are also promoted more widely among all suppliers, given the priority that this strategy represents for the company.
Science Based Targets validation
In September 2021, the Science Based Targets initiative officially validated Decathlon's new emissions reduction trajectory plan across its value chain.Two targets are directly related to scope 3 and the activities of the company's suppliers:
■ curbing its carbon emission intensity (t. CO2-eq/value added euro) by 53% on scopes 1, 2, and 3 between 2016 and 2026
■ coordinating suppliers representing 90% of emissions linked to product and service purchases to define their own reduction trajectory in line with the science
In constructing its new strategy, the company undertook global work in the second half of the year to move from a commitment to reduce carbon intensity to committing to reduce emissions in absolute terms. Following this work, Decathlon will soon propose a new reduction trajectory to be validated by the Science Based Targets initiative.
Renewable energy sources in production
It is essential that Decathlon’s production sites use renewable energy sources if the company is to drastically reduce its CO2 emissions. For the maximum reduction in impact, Decathlon’s priority today is to focus on setting up new renewable electricity generation capacities.
So, the company now aims to help its suppliers, in this order of priority:
1. Set up new generation capacities.
2. Participate in existing off-site projects.
3. Purchase Energy Attribute Certificates (in addition to the other activities).
The company also established various partnerships in India, Mainland China, Bangladesh and Vietnam in 2022 to support its suppliers in deploying solar panels. This involves conducting feasibility studies for each of the suppliers and seeking external companies to support the rollout locally.
Key figures for 2022
44% of the electricity used by the production sites of Decathlon suppliers managed on decarbonisation issues comes from renewable sources (33% in 2021)
6% of the electricity used by production sites is of renewable origin, excluding energy certificate purchases (4% in 2021)
The example of Tran Hiep Thanh
Apparel component manufacturer Tran Hiep Thanh, an important industrial partner for Decathlon in Vietnam, has drastically reduced its carbon emissions by replacing coal with biomass.
Biomass is a fuel made of organic waste that can be burnt to generate heat, which can be used for manufacturing or converted into electricity.
Using biomass as a source of fuel is a Low Carbon Process.
Coal elimination trajectories
Decathlon is committed to the elimination of all coal use by its Rank 1 suppliers by 2025 and its Rank 2 suppliers by 2030. To reach this goal, the teams have conducted feasibility and cost studies for most of the production sites that use coal, and have worked on setting up reduction trajectories.
Key figures for 2022
43 production sites (32 Rank 1 and 11 identified Rank 2 sites) still consumed coal in 2022 compared with 49 sites in 2021 (31 Rank 1 and
18 Rank 2 sites).
As of 31 December 2022, this number had fallen to 36, with five Rank 1 supplier sites having stopped using coal during the year.
Tristan Louis' testimonial
“Decarbonise our production” project leader
“One of the most critical levers to reduce Decathlon's carbon footprint is the energy used by the industry. Since 2020, we emphatically sped up the measurement of our suppliers' emissions and implemented the Science Based Targets objectives have enabled us to sign up producers to ambitious trajectories, in particular, to the reduction of CO2 emissions in absolute value; I am very proud of that. Suppliers have played their part by our sides, rolling out measures to optimise their consumption, evolving their energy mix, and phasing out the most polluting energy sources. None of this would have been possible without the fifty or so Decathlonians, CO2 intermediaries on the ground in manufacturing, driven by the same willingness to reduce our impact.”
