direct emissions and removal
National programme for carbon footprint assessment Promotion of joint projects for the purpose of analysing and reducing the carbon footprint for the clothing manufacture and retail industry OVS S.p.A.
OVS S.p.A. Carbon Footprint calculation and reporting
1. REFERENCE CONTEXT:
In the last few years, the subject of sustainable development has become a key part of the international debate in every field: economic, institutional, political, and social. This interest can essentially be traced to climate change and to the negative effects it is having on the world in which we live.
This phenomenon has undergone strong acceleration, starting with the industrial revolution, and it is closely tied to greenhouse gas emissions, mainly caused by the use of fossil fuels, but also to other processes, such as those linked to farming.
In Europe and the rest of the world, initiatives intervening on these aspects have multiplied as a direct consequence of the commitment of international communities, following the Kyoto and Paris agreements of 2015. Some countries, including France – with the Grenelle Law – and Italy – with voluntary initiatives such as the Made Green in Italy mark or binding procedures, such as the Minimal Environment Criteria for public calls for tender - have begun to implement institutional projects to favour the marketing of sustainable products and services within their domestic markets. They have also begun to impose the use of means to understand and measure sustainability performance on national businesses and organisations. Consumers are now more and more aware of the intangible assets of the products they buy and services they receive, to the extent that today, many feel that the quality of products and services also means respect for the environment and the wellbeing of the community.
OVS S.p.A. understands the value of sustainability, and for some time, it has been implementing a policy to reduce its own environmental impact. One of the most important elements along this journey was the company’s joining the Italian National Programme for Carbon Footprint Calculation in October 2018. This is a voluntary initiative promoted by the Ministry of the Environment and for Protection of the Land and Sea to raise awareness with the business world with regard to calculating and reducing the potential environmental impact linked to its activities and in particular, its carbon footprint. For OVS S.p.A. this calculation has concerned all the brands of the company, except for Shaka and Croff.
2. THE PROJECT:
The ambitious project devised by OVS S.p.A. in accordance with Ministry of the Environment and for Protection of the Land and Sea, has involved three main stages:
1) calculation of the carbon footprint from the activities of OVS S.p.A. according to the international standard ISO 14064-1
2) study of ways to reduce environmental impact
3) study of ways to develop a plan to offset greenhouse gas emissions
With the aim of managing activities according to strict scientific criteria, OVS S.p.A. has decided to work with the research sector and to collaborate with UNISMART – University of Padua Foundation.
3. THE SCIENTIFIC METHOD UNDERLYING CARBON FOOTPRINT CALCULATION:
The method used followed the requirements set out by international standard ISO 14064-1 for calculating the emission of greenhouse gases at organisation level, with a view to lifecycle.
This method is based on the principles of responsibility towards the environment and transparency in the communication of results.
Lifecycle is taken to mean the set of processes that follow in succession, starting with the extraction of raw materials, through to end-of-life treatment (landfill, recycling, etc.), passing through the processing and application of every product or service we use.
OVS S.p.A. has focused its efforts on analysing the carbon footprint of the OVS, UPIM, and BluKids brands, with a specific focus on 5 representative sales points located nationally (stores outside Italy and franchise stores are not included). Each operation carried out by the company to manufacture the clothing that it sells has been studied in order to understand its potential impact on climate change, also generated outside the company but which can be traced back to it (e.g. the energy produced by suppliers and consumed by the company, means of transport, and the manufacture and processing of fabrics).
The study carried out has supported the company in implementing a model to monitor these impacts and in analysing possible improvements to reduce GHG emissions over time; this has taken 2018 as a reference, as this was identified as the base year for checking the reduction of emissions over time.
4. WHAT IS A CARBON FOOTPRINT? WHAT DID WE MEASURE WITH OUR PROJECT?
A carbon footprint is the measurement used to quantify the GHG of a product, service, or organisation and to assess the potential impact of same on climate change. Like our feet leave their prints on the ground, every process and product leaves its prints on the environment.
Our study was carried out to analyse the potential impact from extracting raw materials and then processing same, through to the sale of the finished garments, also including the management of any waste produced.
The carbon footprint was calculated using the “IPCC 2013 GWP 100a” assessment method.
5. The activities of OVS S.p.A. accounted for the purposes of carbon footprint calculation
The activities of OVS S.p.A. are aimed at retailing clothing for men, women, and kids through the OVS, UPIM and BluKids brands. OVS S.p.A. also sells products under the names Croff (homewares) and Shaka (cosmetics).
For the purposes of building up an inventory of GHG and reporting the emissions produced by its activities, OVS S.p.A. has decided to adopt a financial control approach. As a result, branches and commercial offices outside Italy are included in the survey, while any stores outside Italy or any franchises (whether located within or outside Italy or having the OVS or UPIM name) have not been considered. Moreover, warehouses and depots are not included since these are not the property of OVS S.p.A. With reference to Italy, OVS S.p.A. has 590 OVS stores, 2 PIOMBO stores, and 159 UPIM stores (which include the brands BluKids, UPIM and CROFF).
The GHG emissions considered in the analysis are linked to different sources, which can be identified as follows: consumption of mains electricity; consumption of self-produced electricity; fugitive emissions of refrigerant gas from conditioning systems; fuel consumption for transport; fuel consumption for heating; heat consumption from district heating systems; emissions from logistics; emissions caused by raw materials used to make the products sold or used for primary and tertiary packaging.
The abovementioned processes and activities, which cause GHG emissions have been classified according to that stated in Annex B of the standard ISO 14064-1:2018:
• Category 1: direct emissions and removal;
• Category 2: indirect emissions from energy imports;
• Category 3: indirect emissions from transport operations;
• Category 4: indirect emissions from products used by the organisation;
• Category 5: indirect emissions associated with the use of products from the organisation;
• Category 6: indirect emissions from other sources.
6. RESULTS OF THE IMPACT ASSESSMENT
OVS S.p.A.’s carbon footprint is 409,295.88 tons of CO2 eq (see table at the end of the report for the equivalences). The analysis has shown how category 4 is the largest contributor to the production of greenhouse gases. This category includes all emissions caused by products used by OVS in its company activities, which means the raw materials used to make the garments, the different processing of these materials, and the packaging used. Category 4 is followed by category 3 and category 2, which concern logistics and energy use respectively. In the analysis of the five sales points, together, these two categories account for 32% of total emissions.
View the report.
OVS S.p.A.’s Carbon Footprint results
Carbon Footprint results for 5 sales points
indirect emissions from energy imports
indirect emissions from transport operations
indirect emissions from products used by the organisation
7. CERTIFICATION OF RESULTS
The results have been certified by the entity SGS, which read the GHG report and the report from the data management system put in place by OVS S.p.A. Using samples, SGS checked the numerical data used during the modelling stage, as well as compliance with the requirements envisaged by the standard ISO 14064-1.
View the certification.
8. CARBON OFFSETTING AND REDUCTION PLAN
OVS SpA’s carbon footprint has provided an analysis of the life cycle of the company’s products and activities, identifying the areas of intervention to reduce and offset greenhouse gas emissions. The reduction and compensation targets for these emissions concern raw materials (increases in the amount of organic cotton and recycled materials to make garments), purchasing power from renewable sources, replacing plastic packaging with card and paper or recycled plastic, as well as implementing a virtuous system to recycle and recover used clothing.
The results of the analysis are available to the public. For more information, please contact the company’s Head of Corporate Sustainability, Simone Colombo at firstname.lastname@example.org.
Shops are our window onto a better world, built on respect for the environment and care for the people around us.
With this inaugural sustainability report, OVS begins an important journey of sharing.
We are aware of the role that we can have in taking care of a more sustainable future for the environment.