The production of textiles requires large amounts of energy for electricity, heating and cooling processes. We are working to raise our suppliers’ awareness of this issue, providing training and helping them conserve energy.
Our goal: Energy efficiency and conversion to renewable energy sources
VAUDE has set itself ambitious, science-baseVAUDE has set itself ambitious, science-based targets to achieve Net Zero by 2040.d targets to achieve Net Zero by 2040. With Science Based Targets (SBT), VAUDE wants to make its contribution to limiting global warming to a maximum of 1.5 degrees in accordance with the goals of the Paris Climate Agreement. Read more about the VAUDE climate strategy here
»In order to achieve climate-neutral product manufacturing, we will first optimize our supply chain processes from material production to the finished product to ensure maximum conservation of resources as well as high material and energy efficiency and then compensate for unavoidable emissions.«
Hilke Patzwall, CSR Manager at VAUDE
Measuring energy consumption, reducing emissions
One of the largest sources of greenhouse gas emissions at VAUDE comes from the energy consumption of our suppliers. Even though we have worked for years to raise awareness on this issue, some of our suppliers themselves are still working on making their energy consumption more transparent and some are still using climate-damaging fossil fuels. Not just at VAUDE, of course. The global textile industry continues to contribute significantly to the climate crisis. More information on this from the Federal Environment Agency here
We have already achieved a lot, but nevertheless we still have a long road ahead of us with our suppliers in the coming years. Since 2019, we have included the energy consumption of our most important material suppliers in the VAUDE climate footprint. Therefore, we know that the reduction of energy consumption in material production must be an absolute focus of our supplier management, in addition to the great challenge of converting energy consumption at suppliers to renewable energy sources such as wind, sun or hydropower.
Concrete figures on emissions from energy consumption in the supply chain at VAUDE can be found here
EOG Carbon Reduction Project
Together with nine other outdoor brands, we have been working to reduce greenhouse gas emissions in our supply chain and increase the use of renewable energy in the European Outdoor Group's (EOG) Carbon Reduction Project (SCDP) since 2021. The costs of the project were shared by the outdoor brands; there were no costs for the suppliers.
Project workflow
The project comprised three phases: Supplier Mapping, Carbon Tech Assessment (CTA) and Carbon Leadership Program (CLP). In the first step, Supplier Mapping, we worked with the other outdoor brands to assess which common suppliers we have in our supply chains. Since we already knew in advance that most CO₂ emissions were coming from Tier 2 suppliers (material manufacturers, especially dyers) in Taiwan and China, we focused on them for the mapping. As we already expected, there were many overlaps in our supply chains. This resulted in a final supplier list for the project, including our largest and therefore most important suppliers for CO₂ savings.
For the next phase, the Carbon Tech Assessment, we brought in an external service provider with a great deal of expertise in energy management in textile supply chains. The team worked with the suppliers to develop the CTAs. The CTAs are comprehensive questionnaires with information on energy consumption and sources, the efficiency of dyeing machines and processes, and the level of development of energy management systems and planned projects. Using this information, the team determined the potential CO₂ savings over the next 5 years for each supplier. The savings potential for our suppliers varies from 20% - 60%. The suppliers with a high savings potential are those that, unfortunately, still use coal for energy production.
Following the outcomes of the CTAs, suppliers then participated in the Carbon Leadership Programme (CLP). This comprehensive program encompassed both on-site and online energy management assessments, workshops, and training sessions tailored to enhance suppliers' proficiency in carbon management and energy efficiency practices. In addition, suppliers engaged with the Carbon Toolkit, a resource consolidating historical data on energy consumption and CO₂ emissions. Furthermore, it facilitated the development of individualized action plans for each supplier extending to 2030. These action plans delineated the anticipated CO₂ reduction potentials of various measures, the requisite investments, the projected return on investment (ROI), and specific implementation timelines for each initiative.
For most of our suppliers in the project, a potential for savings of approximately 50% by 2030 compared to the base year of 2019 has been identified. This aligns with our SBT Scope 3 goals. There is, therefore, considerable potential for CO₂ reduction in our supply chain. However, the analysis also revealed that our suppliers have already implemented a great deal.
More than 250 measures for CO₂ reduction have been proposed. Examples of these measures include:
A number of individual measures were identified for each of the categories, including:
Increasing the share of green electricity in factories
Installing and expanding photovoltaic systems to generate electricity on site
Coal phase-out / conversion to renewable energy boilers
Insulation of steam valves / installation of a frequency converter in water pumps
Replacement of old machines / improvement of insulation of existing machines
The majority of these initiatives fall within the operational scope of our suppliers, such as transitioning to boilers fueled by renewable energy or upgrading to more efficient dyeing machines. While these endeavors present challenges for our suppliers, notably in terms of substantial investments, they remain directly actionable.
However, the pursuit of renewable energy in Taiwan poses a more formidable obstacle. Access to electricity sourced from renewable outlets, like solar or wind, remains severely restricted and costly for our suppliers due to priority allocation to other sectors, notably the semiconductor industry. Although our suppliers' action plans consistently underscore the considerable potential for savings through increased adoption of renewable energy, political circumstances have hindered their implementation thus far.
This reality is echoed in the current state of action plans for 2023. While most suppliers have made significant strides in implementing measures related to fuel transition, maintenance, and machinery modernization, the adoption of renewable energy sources remains stagnant due to its external constraints.
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After three years of intensive collaboration with our suppliers, the first tangible results of the project are now clearly evident!
The most impactful lever for CO₂ reduction in our supply chain is the phase-out of coal. Throughout the strategic discussions with our suppliers in recent years, this issue has consistently held top priority. Together with our suppliers, we have worked to accelerate the transition away from coal. As a result, we have successfully reduced our coal consumption for production from 1,715 tons in 2022 to 687 tons in 2023. Concurrently, the proportion of biomass has increased. Several suppliers have replaced coal-fired boilers with biomass boilers (e.g., certified wood waste) in recent years. This is a fantastic development and sets a clear direction for the years ahead!
Additionally, the electricity consumption for our production has nearly halved. One contributing factor is the overall decrease in production in 2023. Furthermore, this result can also be attributed to the diverse energy efficiency measures implemented in our supply chain over the years and the transition to more efficient machinery.
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At this juncture, we would like to express our heartfelt gratitude to our suppliers for their strong collaboration over the past years. Together, we have successfully achieved a significant reduction in emissions stemming from the energy consumption of our suppliers in 2023.
This reduction is clearly reflected in our carbon footprint for 2023. In the base year of 2019, the share of our emissions attributable to the energy consumption of our suppliers was 15,425 t CO2e. In comparison, in 2023, this figure decreased to only 7,042 t CO2e. For more detailed information on our carbon footprint, please refer here.
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This remarkable achievement signifies a crucial milestone on our journey. Yet, we understand that our destination is still ahead of us. In the coming years, we remain committed to working closely with the EOG group and our supply chain partners to fully realize our action plans.
Once again, the power of collaboration with fellow brands has proven to be both impactful and transformative. We take pride in our membership within this resilient outdoor alliance, which transcends competition and actively contributes to climate protection throughout our supply chain.
Currently, within the EOG group, we are strategizing a subsequent initiative focused on renewable energy in Taiwan. Stay tuned for further updates in our upcoming sustainability report.
EOG Impact Accelerator Fund for Climate
The Impact Accelerator Fund (IAF) stands as a testament to collective efforts in supporting decarbonization and climate resilience within the outdoor industry's supply chains. We're proud participants in this initiative, and we invite all interested parties, from brands to retailers, to join us in shaping a greener future.
You can find additional insights on the Impact Accelerator Fund for Climate here.
