FOCUS ON
Plant One on Us
London’s Regent Street Reforestation Campaign
At Timberland, we’re outdoor people. So we have an active interest in preserving the places where
we love to recreate.
Our Regent Street retail store in London turned this concept into reality. With the “Plant One on Us”
campaign. A guarantee to plant one tree for every pair of boots sold at the store. Even customers who
didn’t buy a pair of boots could contribute. For just $2.50 we offered to plant a tree on their behalf.
(Throughout the store, you could hear staff asking customers, “Would you like a tree with that?”) We liked
the idea and decided to spread the campaign to the rest of our UK retail stores.
We’re making good on our guarantee by partnering with The Marston Vale Trust (www.marstonvale.org)—
a charity that is converting 61 square miles of former industrial land north of London into woodlands
for people and wildlife to enjoy. It is part of their 40-year vision to repair decades of industrial use by
improving the landscape and environment.
What was the result of the initial campaign? In 2006, our UK customers helped Timberland and the
organization plant 20,000 trees. With results like this, you can bet that, in 2007, we’ll roll this initiative
out globally. We believe it’s one way to allow our consumers to make purchase decisions that create
positive environmental transformation.
Environmental Stewardship
progress report: environmental stewardship
Goals for 2006resultsscore
Carbon Neutral by 2010
We expanded the scope of our 2006 greenhouse gas inventory, but failed
to have a third party verify it. Our 400kW solar array went into operation,
reducing our California carbon emissions by approximately 40%. A
carbon-neutral strategy was developed that outlines the company’s plan
for reducing and offsetting its emissions for all its facilities and owned
operations by 2010.
Environmental Assessments
Our environmental code was expanded to measure resource
consumption and waste water recycling this year. Code of Conduct
Specialists received in-depth training in all areas of environmental
assessment, with a high level of concentration in waste water
treatment systems. Timberland was also able to engage in a more
in-depth evaluation at leather tanneries with a new, cross-brand
assessment launched by the Leather Working Group.
Improve Environmental Performance
of Products
After a 2005 program interruption, our water-based adhesive program
rebounded with the creation of a standard for adhesive application.
At the same time, we grew the use of recycled content in our product
line by almost 80% and increased our consumption of organic cotton
by 366,000 pounds. Our new Green Index™ rating system was
launched to guide material and process selections towards
earth-conscious choices.
Develop Systems Procurement
and Waste Management
Our forest product procurement working group worked with Forest
Ethics to establish a Forest Product Procurement policy and baseline.
Our finance and procurement teams led early efforts to reduce paper
and virgin pulp consumption through wireless billing and by switching
to a higher recycled-content paper stock. Our corporate collateral,
annual reports and packaging are now all made from 100% postconsumer recycled fiber. Environmental criteria are now specified in all
of our procurement RFPs.
Key:
no improvement
making progress
achieved objective
Confirming Our Commitment to the Outdoors
We’re outdoor people. We make boots and gear and
our environmental stewardship program, we’re committed
clothes for your journey. We equip you to make your
to doing our part to address these challenges.
difference. So, we had better make sure the trail is there
to hike. The river to traverse. The landscape to inspire.
Because of this passion for the outdoors, we believe that
doing our best to “Make it better” for our planet is at
the core of our business. Unfortunately, some of today’s
biggest ecological challenges have been linked to our
Fortunately, we are not in it alone. We’re leveraging our
partnerships with NGOs, other brands and professional
service companies. And we’re working with our supply
chain to demonstrate environmental leadership and
reduce our impact as a global brand.
industry—from global warming to deforestation. Through
2006 CSR report
35
Our Efforts to Cool the Rate of Global Warming
Global warming is impacting the health of our ecosystems. We contribute to the problem by using energy that produces
carbon emissions. To be a part of the solution, we pledge to be carbon neutral in Timberland-owned and operated
facilities by 2010.
Our Plan
How are we going to achieve this in such a short time frame? Here’s our plan . . .
our plan
processexplanation
STEP 1
Verify our greenhouse gas inventory with a credible third party.
STEP 2
Reduce our energy demand through energy-efficiency improvements at our facilities around the world.
STEP 3
Purchase clean, renewable energy from electric utilities.
STEP 4
Generate our own renewable energy on-site where we can’t purchase clean energy from the electric grid.
STEP 5
Purchase renewable energy credits to offset emissions and help develop local renewable energy projects.
STEP 6
Use service and retail store promotional opportunities to plant trees that sequester (or absorb) carbon
emissions beyond what we’ve reduced or offset as a company.
While becoming carbon neutral is an important
that has already planted 20,000 new saplings. The
and challenging goal for us, we realize that the real
expansion of earth-conscious product lines in footwear
opportunity for reducing global warming is using
and apparel. And promotional activities that support
the marketplace to inspire consumers to make their
regional conservation partners. For Earth Day 2007,
difference. In Europe, Asia and the US, in-store and
consumers had the option to forgo a paper shopping
online programs build awareness and enable action.
bag to make a donation to a local environmental
A cornerstone of our commitment to accountability is an
industry-first nutritional label on every one of our 100%
recyclable shoe boxes. The label provides consumers
organization. They could also purchase 100% recycled
tote bags that featured a one-time discount for a return
visit to Timberland.
with detailed measures of our impact on the planet to
Our love for the outdoors is matched by our passion
invite their analysis and inform their choice. We also
for confronting global warming with focus and a fully
offer a series of service events and promotions that
integrated strategy—from the source all the way to the
engage consumers in environmental action.
floors of Timberland® stores worldwide.
Program highlights include a commitment to plant a
million trees in the Horqin Desert in China through a
strategic partnership with Marston Vale Park in London
36
2006 CSR report
The Evolution of our
Product Labeling
More and more, today’s consumers want to know
what kind of environmental footprint is being left by
the products they buy. In 2006, Timberland began
putting that information on 30 million footwear
boxes: by placing a “nutritional label” on every box to
educate consumers about the product. Where it was
manufactured. How it was produced. And its effect on
the environment.
Green index
MGI-4
A Nutritional Label—for Shoes
Factors
4
™
lower
impact
Climate Impact:
0
higher
impact
4
10
Greenhouse gas emissions through production.
00
Chemicals Used:
10
Presence of hazardous substances
(PVC, Chrome leather* and Solvent Adhesives).
Resource Consumption: 9 10
0
Reduced by the use of recycled, organic and renewable materials.
*Chrome leather present in leather based shoes
For more information about the Green Index™ rating, see inside the
shoe box or visit www.timberland.com/outdoorperformance
green index
™
To create the label, three critical areas are highlighted.
Information about the manufacturing plant. The impact
of manufacturing on the climate. And the impact on
the community, including such factors as the number
of hours of volunteer service performed by Timberland
employees to “Make it better” in the community. We’re
also putting a message inside the box asking consumers
to consider what kind of footprint they themselves are
leaving and encouraging them to become proactive in
Introducing the Next Step: The Green Index™ Rating
the effort to protect our planet.
The next step in this initiative is the Green Index™
Under this initiative, footwear boxes are also crafted
from 100% post-consumer recycled waste fiber, using
no chemical glues. Only soy-based inks are used to
print the labels, which are the first of their kind
in the industry.
rating, which will go beyond printing corporate CSR
information on a nutritional label on the shoebox
to provide product-specific environmental impact
information on the actual shoe. Using a scale of 0 (best)
to 10 (worst), the Green Index™ rating will rate the shoe
on three key environmental factors: climate impact,
The First Step
chemical use and resource consumption. By putting this
So far, public reaction has been positive. But, as the
information—good and bad—at your fingertips, we hope
Chinese proverb states, “A journey of a thousand
you’ll know exactly what you’re putting on your feet. The
miles begins with a single step.” Well-informed CSR
Green Index™ rating will be carried on a select line of
pundit Joel Makeower agreed in his blog. Evaluating
Greenscape shoes in 2007. Our goal is to have it on all
Timberland’s nutritional label, he says, “It’s a step in the
of our shoes by 2010.
right direction” and “a laudable first effort,” but adds
that it left him “hungry for more.”
What to Expect Going Forward
Unveiled in January 2007 at the Outdoor Retailer
We couldn’t agree more. In fact, we see our new
trade show in Utah, the Green Index™ rating helped
nutritional label as just the first step. Of a conversation.
Timberland win the Backpacker Editor’s Choice Green
A promise of our commitment to transparency and
Award for innovation in green product development.
sustainability. And a challenge to our entire supply chain
And industry-wide interest seems to be developing for
and to other companies to “Make it better” for the world
creating a common “eco label” for products. We’re
we share.
excited about this development and look forward to
seeing where this journey leads.
Let your own voice be heard! What do you think? Does this initiative affect your
purchasing decisions or your understanding of Timberland’s footprint? How
can it be improved? Let us know by writing to us at [email protected].
2006 CSR report
37
Energy
Greenhouse Gas Inventory
Timberland-Owned Facilities
As accountable corporate citizens with a genuine
Timberland uses The World Resources Institute (WRI)
commitment to environmental stewardship, we
protocol for measuring greenhouse gas emissions. It’s a
focus almost obsessively on our energy use and the
widely accepted and utilized methodology for businesses
contribution we make to greenhouse gases. Our
like ours that voluntarily choose to report emissions.
comprehensive approach encompasses a broad array
WRI’s tools allow us to take electricity, gas, and oil
of rigorous corporate policies. The development of
bills as well as airline, car and public transit mileage,
new green technologies and innovations. And most
and calculate our contribution to climate change.
importantly, engagement with citizens and partners
Specifically, the model tells us our direct emissions
all over the world. With their wisdom and collaboration,
(the emissions from fossil fuels burned for power or
we seek to achieve carbon neutrality by 2010.
transportation) and our indirect emissions (emissions
from purchased electricity.) Our inventory reports the
The first step to carbon neutrality is to understand
emissions from the facilities and vehicles we own and
your baseline carbon emissions, or in other words,
operate, as well as the emissions from air mileage.
your greenhouse gas inventory. This year, Timberland
worked to expand the scope of our 2006 greenhouse
As you can see in the graph, our carbon emissions
gas inventory by adding information about product
increased across a majority of our business divisions. A
transportation. The results are included in this section.
deeper dive reveals that most of these increases can be
attributed to improved proficiency with data collection.
These results mask what otherwise would be considered
significant emissions reductions. Nobody said this was
going to be easy. In the Fall of 2007, we will release
a report that will include third-party verification of our
greenhouse gas inventory and a detailed brief on our
climate change strategy.
Direct and Indirect Emissions by Division19
8,341
7,328
7,052
Headquarters
5,507
2006
International
Retail
International
Showrooms
Direct Emissions
Indirect Emissions
Direct Emissions
Indirect Emissions
Direct Emissions
930
1,822
Indirect Emissions
46
1,889
211
936
97 112
16
12
123
122
363
Manufacturing
2,708
3,884
US
Showrooms
151
84
91
58
89
269
US Retail
2,483
4,989
2005
2,322
Distribution
Centers
91
2,271
314
2,158
360
291
586
0
353
2,000
303
4,000
2004
4,548
5,263
6,000
6,223
8,000
6,212
METRIC TONS OF CARBON
10,000
International
Offices
The system isn’t perfect. We still haven’t yet found an
We’ve also been working to calculate the emissions
adequate way to estimate the direct emissions from
produced by the third parties that ship our product in
leased spaces where heat is included in our lease
the US and in Asia. That’s why we’ve partnered with
agreements. Sometimes, we don’t have enough stores
Businesses for Social Responsibility’s Clean Cargo
in a single climate regime to make good assumptions.
Working Group to build our 2006 inventory.
19
38
We have restated 2004 and 2005 data to include employee air travel in “indirect emissions” as opposed to “direct emissions.”
2006 CSR report
Transportation Emissions: Ocean Freight
who all are members of Business for Social
The calculation of CO2 emissions is based on a model
Responsibility (BSR). The calculation follows the
developed by the Clean Cargo Working Group
guidelines set forth by CCWG and is our best current
(CCWG)—a group of Carrier and Shipper companies
estimation of our transportation footprint.
tons of carbon emissions related to product transportation20
2005
2006
Asia ➜ North America
10,3069,431
Asia ➜ Europe
6,047
6,448
Asia ➜ Rest of the World
202
483
Other Lanes (excluding Dominican Republic origin)
522
412
Total
17,077
16,774
Engagement: BSR Clean Cargo Working Group
Timberland’s Global Transportation group has engaged with other members of Business for Social
Responsibility (BSR) in a forum known as Clean Cargo Working Group (CCWG), in an effort to understand
the greenhouse gas impact of our product transportation. CCWG promotes the use of industry-wide tools
and methodologies to address the environmental and social impacts of transporting products. This group
is working to capture information about CO2 emissions from vessels and intermodal transportation so that
Shippers (i.e. brands) can understand their share. Once we have a base line understanding of our CO2
emissions, we plan to work with Carriers (i.e. transportation companies) engaged in the CCWG to reduce
our overall greenhouse gas impact.
Summary of Greenhouse Gas Inventory
2006 GREENHOUSE GAS INVENTORY: METRIC TONS OF CARBON21
30,000
Timberland-Owned Facilities
16,774
22,557
Employee Travel
Product Transport:
Inbound Ocean Freight
6,514
METRIC TONS OF CARBON
25,000
EMISSION TREND DATA22
25,084
26,854
29,071
20,000
15,000
10,000
5,000
0
2004
2005
2006
We made several assumptions for this calculation. It’s assumed that the CO2 emission factors calculated by the carrier apply to all the Carrier’s vessels—regardless
of whether the Carrier owns the vessel or charters it. The Carrier CO2 emission factors also assume a fully utilized vessel, which rarely is achieved. We assume that the
distance reported by distances.com (+2%) accurately reflects the true distance between ports.
21
This chart does not include outbound and intermodal product transport. It also does not include greenhouse gases associated with our contract factories.
22
Represents carbon emissions from Timberland-owned facilities and employee travel.
20
2006 CSR report
39
Efficiency Measures
employees to drive hybrid cars. And Timberland plans
In 2006, Timberland continued to work to reduce the
to roll out a comprehensive program in 2007 to reward
amount of energy we require to operate as a company.
employees who have the smallest carbon footprint by
Having installed renewable energy systems at almost all
breaking their dependence on “dirty energy”.
of our largest facilities, we began adding more focus to
our retail stores. With more than 300 stores around the
world, 20 renovations and 30 build-outs per year, stores
represent one of our greatest opportunities for reducing
our corporate energy demand. After incorporating green
building principles and energy-efficient lighting in our
design for years, last year we committed to exploring
a more holistic approach to retail store constructions.
We did that by using the US Green Building Council’s
LEED (Leadership in Energy and Environmental Design)
certification system as the basis for our new global
standards for retail store design and construction. LEED
buildings on average consume 30% less energy, use
30–50% less water and reduce waste costs by as much
as 50–97%23. Our new store designs, which began
construction in spring 2007, are intended to meet, at a
minimum, the silver certification for LEED’s new pilot
program for retail store construction.
In addition, we continue to encourage our employees
Renewable Energy Credits and
Carbon Offsets
In 2006, Timberland purchased Renewable Energy
Credits (RECs) to power key community service projects
and events. We also offset the emissions associated with
mailing our 2005 Corporate Social Responsibility report
to our partners. In this same spirit, all recipients of our
2006 Holiday card received a tree planted on their behalf
by The Conservation Fund at the Illinois Wildlife Refuge.
Reforestation
In 2006, we began to focus on reforestation as a way to
leverage consumer interest in global warming. This plan
involved two major initiatives. In Marston Vale in the
UK, an innovative consumer engagement strategy led
to the planting of 20,000 trees in the first year alone.
And in China, our Timberland Asia team has made a
commitment to plant more than 1 million trees over a
five-year period (2006–2011) in the Horqin Desert.
to live these values. A $3,000 bonus encourages
Renewable Energy
In the last three years, four renewable energy systems (three solar arrays in New Hampshire, California and the
Dominican Republic and a wind turbine in the Dominican Republic) have contributed to our current electricity
utilization rate of 6.6% from clean, renewable sources. The most recent effort was the installation of a 400kW solar
array at our Ontario, CA distribution center. The array provides 60% of the power for our facility—enough electricity to
power 50 homes. In addition, our distribution center in Holland is powered by 100% renewable energy that is bought
from the grid. And we use biodiesel fuel in a service vehicle at our corporate headquarters.
In preparation for meeting our carbon neutral goal for 2010, we spent most of 2006 exploring renewable energy
opportunities for our facilities—in particular, our manufacturing facility and our retail stores. Our goal for 2007 is to
use this information to convert our manufacturing operations in the Dominican Republic to 100% renewable energy,
and to purchase as much renewable energy off the grid as we can to power our retail stores.
Renewable Energy Breakdown (in kWh)
Total Timberland Energy Use
2006
37,089,047
42,540,928
Wind Power
637,317
727,429
Solar Power
3,000
518,518
Hydro Power
910,975
1,017,149
Renewable Energy From Grid
692,173
540,078
Total Renewable Energy Used
2,243,465
2,803,174
Renewable Energy as Percent of Total Energy Used
6.0%
6.6%
Source: http://www.usgbc.org/ShowFile.aspx?DocumentID=1892
23
40
2005
2006 CSR report
Chemical Management
Chemicals are used in material and footwear production
testing of a thermoplastic rubber substitute in 2006 is
paving the way for the launch of PVC-free boots in 2008.
to improve the performance and aesthetics of our product.
Finding substitutes that meet the molding and physical
Timberland is committed to eliminating the use of
requirements for our industrial and full-shot boots remain
chemicals linked to human or environmental harm. To that
the two outstanding PVC-related issues in our footwear.
end, the company is working to identify and adopt safer,
In 2007, we will enlist the University of Massachusetts
more environmentally conscious substitutes for common
at Lowell Green Chemistry Program to develop solutions
footwear components. These components include polyvinyl
to complete our phase-out of PVC across the Timberland®
chloride (PVC), solvent-based adhesives and chrome
footwear line.
leather. In addition, we want to stay informed of the latest
developments regarding restricted substance lists. This
Apparel
desire informs our active participation in AFIRM.
Analysis has revealed that only a few items in our
apparel line contain enough PVC to require material
PVC
substitutions. Changes like the switchover of logos or
Polyvinyl chloride (PVC) has long been linked to human
the use of different trims were easy to make. Finding
health issues. In our last CSR report, we discussed our
substitutes for the inks used in our high-density (puffy)
commitment to phasing PVC out of our products. Used
printed graphics, however, proved to be an issue. Working
in everything from drainage pipes to shopping bags, this
with our regional suppliers around the globe did not
plastic is also found in the inks applied to our t-shirts,
identify a comprehensive solution last year, so in 2007
the linings of our luggage and the midsoles of our boots.
we seek to work with a multi-brand group to stimulate the
Footwear
development of PVC-free ink alternatives.
We voluntarily started removing PVC from our product
Licensed Product
several years ago. In 2006, we made significant strides
For licensed product such as luggage, watches, belts and
with our footwear by implementing a hard-and-fast rule
hats, PVC again showed up in small areas. It was fairly
that all new products developed by Timberland would
simple to find alternatives for watch cases, for example.
be PVC-free. While this initiative didn’t immediately
Working with our luggage supplier to find alternative
eliminate PVC in our carry-over product, such as the
fabric backings is our largest ongoing project in 2007.
midsoles in our classic boot models, the successful
The reward of these efforts? In 2008, Timberland’s
licensed accessories will be PVC-free.
2006 CSR report
41
Solvent-based adhesives
Chrome III
Solvent-based adhesives are used to glue footwear
Chrome III is a mineral agent used in the processing
components. They can emit volatile organic compounds
of leather to impart key performance characteristics
(VOCs), which, if not treated, can produce indoor and
and long-term preservation. Due to the excellent
outdoor air pollution. In addition, the extra adhesive
performance properties given by chrome salts, chrome
is considered hazardous waste and requires careful
remains the most common means of tanning leather.
disposal. Timberland began promoting the use of
Although Chrome III does not pose a direct human
safer, water-based alternatives in 2000. By the end
or environmental threat in the processing of leather,
of 2006, we had converted about 10 million pairs
it can convert to a carcinogenic form known as
of shoes—or about 1/3 of our product line—to
Chrome VI under very specific circumstances, such as
water-based adhesives (WBAs).
incineration. Given the small but serious potential for
We did not achieve our 2006 WBA targets of 14.4
million pairs, however, due to sourcing changes and
costing pressures. To reinvigorate our approach, we
began focusing our efforts on aggressive training
internally and in our factories. Through this
pollution, Timberland has been working with leather
industry representatives to improve the environmental
performance of tanneries that use chrome. As an
organization, we are also working on initiatives to
develop alternative tannages for footwear leather.
comprehensive approach, we began to see immediate
AFIRM
improvements in WBA use. We have forecast this growth
As the global apparel supply chain continues to grow
to continue in 2007 and have projected increases of
and reach many places in the world, it is important for
45% in stockfitting and 25% in assembly over 2006.
brands to stay current on latest developments regarding
We also intend to identify further areas where we can
restricted substances lists. Based on this need, the
reduce overall VOC (e.g., primers and cleaners) this
Apparel and Footwear International RSL Management
year. And we will problem solve other issues relating
Working Group (AFIRM) was formed in July, 2004 with
to materials that typically don’t bond with water-based
the goal of bringing together product chemistry, safety,
adhesives, such as oily leather.
regulatory and other experts within the apparel industry
to discuss emerging restricted substance topics, share
10
WATER-BASED ADHESIVES USED IN FOOTWEAR PRODUCTION24
MILLIONS OF PAIRS
8
6
8.40
are currently ten companies in AFIRM: adidas Group,
C & A Buying, Gap, Inc., Hennes & Mauritz, Levi Strauss
8.42
& Co., Marks & Spencer, Nike, Nordstrom, PUMA
7.00
and Timberland. The guiding principles of AFIRM are
4
4.64
as follows:
3.40
2
0
information and experiences, and benchmark. There
1.40
2004
2005
WBA - Stockfit
•
Chemical product safety must be understood in the
global supply chain as an integrated whole, from
workplace to consumer.
•
Chemical product safety can only be achieved
through partnership among retailers, suppliers and
manufacturers.
•
Retailers must encourage suppliers’ and
manufacturers’ self-governance of chemical
product safety within their spheres.
2006
WBA - Assembly
In 2006, AFIRM conducted a joint Vendor Event to train
nearly 1,000 suppliers about RSL and created a joint
RSL for vendors.
24
42
“Assembly” is the production of the upper portion of the shoe. “Stockfit” is the production of the midsole to the outsole.
2006 CSR report
Resources
Reducing the harmful impacts of manufacturing. And
reducing our overall environmental footprint. These
actions are high on the agenda at Timberland. Over
the past few years, we have pledged to closely review
how we design our products, our stores and even our
packaging. We’re also being much more careful about
how we select our resources and raw materials.
Leather
The durability of our footwear is due in large part to the
quality leather we source for it. Leather is a byproduct
from the meat-packing industry. Even so, it is a resourceintensive material to produce, so, unfortunately, leather
contributes more to our environmental footprint than
any other material we use in our footwear. Even more
unfortunately, there is no winning technology that
In 2007, Timberland will require all of its tanneries to
switch over to this cross-brand assessment process.
Assessments will be performed once per year by
a third-party auditor who is qualified under LWG’s
auditing criteria. The protocol will continue to be a
dynamic one, updated by LWG members as needs and
technology change. Scoring will also evolve over time
as environmental technologies become increasingly
available to tanners. We hope that, as the top level
“bronze, silver and gold” scores become increasingly
challenging to obtain, tanneries will be spurred toward
better management techniques and new technologies.
In the meantime, the bulk of the group’s efforts will be
devoted to making tanners better aware of best practices
and resources, empowering them to “Make it better” in
their operations and their products.
can produce leather in a way that can be considered
Organic Cotton
“earth-conscious.”
In 2006, we grew our consumption of organic cotton
Our opportunity with tanneries is to encourage sound
management and year-over-year improvement in
environmental performance. Having audited factories
and suppliers for nearly 10 years now, we know that this
is easier said than done. Tanneries undergo rigorous
auditing by multiple brands, which creates audit fatigue
and confusion over standards. Often, the by-products are
reports, with little remediation and long-term planning.
to 593,000 pounds (or 5.7% of our overall cotton
purchase) through the sale of 100% organic cotton and
organic cotton blended t-shirts, as well as specialty
woven organic products including shirts, pants and some
women’s wear lines. We also introduced a color palette
specifically designed for organic cotton merchandise.
This new palette was formulated with the help of dye
suppliers (such as Clariant, Dystar and Huntsman)
to use fewer chemicals, less water and less energy—
Many Brands Work toward a Common Goal
ultimately leading to less carbon dioxide emissions in
What’s needed, obviously, is agreement on a common
dyeing. The palette will also help Timberland comply
set of rules. Recognizing this, in 2005 Timberland, Nike
with the new organic certification standard, GOTS
and UK-based BLC Leather Tech convened a cross-
(Global Organic Textile Standard).
brand, cross-tanner working group, called the Leather
Working Group (LWG). This group now also includes
top brands such as Clarks, Marks and Spencer, New
Balance, adidas, Ikea and The Pentland Group.
The first priority that LWG identified was to ensure that
8%
PERCENTAGE OF ORGANIC COTTON PURCHASED
7%
6%
5.7%
5%
4%
valuable brand and tanner resources benefited from a
3%
streamlined assessment process. In 2006, the group
2%
completed a final, peer-reviewed draft of a detailed
1%
auditing process and launched it with tanners who had
0%
2.11%
2.11%
2004
2005
2006
participated in the working group. Tanners are scored on
their environmental performance in over 300 areas, so
Processing our organic cotton with the new eco dyestuffs
the assessment is rigorous. Still, the promise of having a
and using a scouring (vs. bleaching) process to remove
single, comprehensive audit conducted each year, with
knitting oils eliminates approximately 2 hours from the
one standard performance grading system, has proven
total dye processing time. We’re also seeking to save
to be a real incentive for tannery participation. Other
resources by encouraging new developments from textile
incentives provided by the LWG include benchmarking
machine builders, such as Thies, to increases our dye
data, guidance documents and a forum for sharing
houses’ ability to dye at lower liquor ratios. For a typical
best practices.
t-shirt that uses approximately 200 grams of fabric, the
2006 CSR report
43
carbon emission savings from these improvements is
roughly 10gm per t-shirt (an average 15% reduction).
In 2007, we have a new opportunity ahead of us:
howies—a small but growing activewear brand based
in Wales that Timberland acquired at the end of last
year. Howies was founded on strong environmental
Carden Welsh Award for
Environmental Excellence
2006 Winner: Larry Klane
principles and is incorporating renewable materials in
Timberland has long struggled with what to do with
Organic Exchange, we seek to grow our consumption of
unmatched footwear samples used by our sales
organic cotton to 6.5% in 2007.
its product line at every opportunity. For example, their
organic denim is dyed using natural indigo grown in the
Tokushima Prefecture of Shikoku Island in Japan. With
their brain trust and our continued partnership in the
staff. Our distribution centers were never organized
to collect and match these samples. We couldn’t
even find a nonprofit organization willing to accept
so many shoes of the same size. Sadly, in the past,
we ended up having to dispose of well over 15,000
pairs of shoes a year in the United States alone.
Wool
The SmartWool® brand is the U.S. pioneer of woolbased socks, apparel and accessories. SmartWool works
to establish good business practices that focus on
environmental sustainability. Economic sustainability.
That’s where Larry Klane comes in. Through
Improvement in animal welfare. And social change.
research and persistence, Larry developed a
Environmental Sustainability
partnership with several nonprofit organizations that
SmartWool is the largest natural fiber-based brand in the
allows our U.S. sales staff to mail unmatched shoes
outdoor industry—roughly 90 percent of its raw materials
to a central collection site. There, they are matched
are natural and biodegradable. It is also the largest single
by non-Timberland volunteers.
branded purchaser in the world of wool from New Zealand,
The main nonprofit
where sustainable farming helps to maintain undeveloped
involved was Soles4Souls.
Soles4Souls is a relatively
new organization, formally
established post-Hurricane
Katrina. They have
since raised almost 1
lands. SmartWool’s fiber production uses 3 to 5 times
less energy than synthetic fiber production. Plus, recent
research supports chlorine use and chlorine-Hercosett
wool processing, which SmartWool utilizes, as the most
commercially viable and environmentally sensitive wool
processing available.
million pairs of shoes for
Economic Sustainability
displaced people along
Everybody wants job security, and SmartWool helps to
the Gulf Coast. For 2006,
provide that for wool growers, as the world’s first wool
Timberland committed to
product manufacturer to develop seven-year sourcing
donating 30,000 pieces
contracts with them. Also, SmartWool has developed
(15,000 pairs) of footwear
accreditation certification standards for livestock
samples to Soles4Souls.
stewardship, environmental responsibility, and economic
This project is a win, win, win.
Win #1: We reduce our solid waste.
Win #2: We outfit people who cannot
afford footwear.
Win #3: Instead of paying to dispose of the shoes,
we receive a tax deduction that will more
than offset the cost of shipping shoes to
the nonprofit site.
and social values for our growers.
Animal Welfare
SmartWool, along with its New Zealand partners, developed
the first accreditation in the wool industry that ensures animal,
environmental and social values. Their sheep are free-range and
hormone free. They provide safe, effective and responsible use
of medicines and supplements to ensure animal health. And
SmartWool is the world’s first wool-product manufacturer to
mandate that wool growers end
Congratulations to Larry for truly embodying the
the controversial practice of
spirit of “Make it better” at Timberland.
“mulesing” sheep.
Eco-Effective Design
“greening” practices for footwear (e.g. adding recycled or
It makes sense to make something right from the start
organic content) didn’t deliver the greatest environmental
rather than less bad at the back-end. So why don’t
returns. Fewer materials, lighter materials and a reduction
corporate sustainability initiatives incorporate this thinking?
in volatile organic compounds (VOCs) had a far greater
Taking something that’s commercially successful and
impact. Combining material reduction and cement-free side
reinventing it to be environmentally responsible requires an
stitch construction, without compromising performance
entire mindset shift in the people who shape the business
or aesthetics, proved to be tremendously difficult. Few
and design the product. It’s hard. We are starting down
materials were available that combined lightweight
that path, where, instead of becoming waste, products and
renewable or recycled materials while meeting our tough
services become the raw materials for new products and
durability requirements for abrasion, tensile strength, stitch
services. That is the principle behind eco-effectiveness.
tear and crocking. Most required heavy synthetic backers.
Despite pioneering the use of water-based adhesives (WBAs)
Product
more than six years ago, our factories still struggle to keep
The biggest and most important step in the direction of
WBA chemistry at a development pace that matches our
creating eco-effective product is to introduce a tool that
rapid increase in new material use. Working with these
allows our design and development teams to understand
obstacles, we stripped as many parts from the shoe as we
the environmental impact associated with their choice
could (this reduced the shoe’s weight by between 10-15%),
of materials. This tool, the Green Index™ rating, was
employed a hand-stitch construction around the outsole
tested by the Outdoor Group in 2006 as we developed
(saving 50g of VOCs per pair) and used WBAs to construct
the Greenscapes Collection of footwear. The objective
the rest of the shoe (saving an additional 48 grams per pair).
of the collection was to meet the technical performance
and aesthetic requirements of the outdoor enthusiast,
Our greatest challenges were ensuring that our Green
while delivering a more earth-conscious product.
Index™ rating was accurate and our design optimized
sustainability. To do this, we had to obtain detailed
Our challenge was to use this new, objective rating
material content from our factory and from our suppliers.
system to influence product design and development. We
It turned out to be easier to get performance data than
also had to do it within a typical six-month design cycle,
chemical component descriptions of our materials.
using only commercially available materials. The design
In an effort to streamline this data collection (which,
team hoped to achieve a rating that was at least 50%
interestingly, is the biggest obstacle for other brands
better than the rating for our typical product.
as well), we spent six months developing an improved
Application of the Green Index™ rating system taught
us something we didn’t expect—namely that common
factory communication process plan that we’re now
applying across all new Green Index™ rated lines.
Materials Used in our Product Line
The following chart shows the percentage of Timberland® products25 that use one or more of the following types of materials:
25
Category
Explanationpercentage
Natural / Renewable Materials
Harvested materials that are readily available, grow rapidly and
don’t require lots of chemicals to produce.
3.76%
Recycled Content
Materials that contain ingredients from other products. Postindustrial material uses scrap from the manufacturing process.
Post-consumer material is recovered after use by consumers.
79.50%
Recyclable Materials
These materials can be recycled through municipal or private
programs.
75.64%
Reduced Impact Materials
Versions of materials that use less energy, resources and chemicals,
thus saving natural resources.
6.53%
Recycled Packing Materials
This includes shoe stuffers, box stuffers, box tissue and separators
made from recycled materials.
77.46%
There were a total of 6,322 products in the survey that covered Fall 07, Fall Holiday 07 and Spring 08 product lines.
2006 CSR report
45
SmartWool® fabric lining made from
sustainable, biodegradable merino wool
Organically tanned,
premium full-grain leather
and fast-growing hemp.
Vibram® EcoStep® outsole made
with 30% recycled rubber
Mountain Sneaker Low Hemp
The Mountain sneaker is part of our Greenscapes Collection—a technical, casual footwear and apparel
collection which utilizes earth-conscious materials and construction methods without sacrificing the style
and function demanded by the outdoor consumer.
These shoes contain:
• Green Index™ Rating of 3.5: The sneaker features a Green Index™ (GI) rating for the climate,
chemical and resource impact created from raw material extraction through finished
product production.
•
Recycled PET materials: Used for more than 10 years in fleece, recycled PET is a new fiber to
footwear. This fiber comes from post-consumer plastic bottles and is incorporated in the linings
and laces of the sneaker.
•
Rapidly renewable fibers: Hemp is an extremely desirable fiber from an environmental standpoint
because it grows rapidly while requiring minimal input of chemicals and water. Durability and
aesthetics have always plagued the use of hemp in footwear. We found a 25% hemp/75% polyester
blend that allows us to gain some of the environmental benefits of hemp without sacrificing our
performance or aesthetic requirements.
•
Reduced VOCs: Water-based adhesives and hand stitching replaces traditional solvent adhesives,
thus reducing the release of harmful volatile organic compounds.
Store
•
Where we locate our buildings is another area where
we can model eco-effectiveness. Our focus now is to
consider walking and biking distance, and public transit
availability, so that it’s not necessary to generate extra
greenhouse gas emissions by getting in a personal vehicle
to visit Timberland. We’re also looking at how we can
Keeping or simply cleaning exposed brickwork
and raw tongue-and-groove wall claddings, to
support the statement the brand wanted to make.
Refinishing remnants of the banana warehouse,
including steel box rolling-racks, tables and
assorted metal work, then returning them to the
site as display equipment
repurpose the resources in the buildings we occupy to
Resources and Materials
meet Timberland’s fixture requirements. Plus, we’re asking
Designed elements met a set of strict constraints:
if everything in the building design is necessary. Sourced
•
locally. Made entirely out of reused or recycled materials.
Energy efficient. And most importantly, recyclable into
new products after Timberland has moved on.
Build as little as possible: Develop methods of
achieving the desired design goals with a minimum
of materials. These materials were also assessed
for their embodied energy values (e.g., we used a
significant amount of timber as opposed to metal).
In 2006, we launched Timberland Boot Company (TBC),
a premium footwear and clothing brand that combines
•
Use certified products: Use products such as FSCapproved softwood and sheet material in furniture
and framework. These materials were finished using
natural waxes and oils.
•
Design for disassembly: All the designed elements
were designed to be simply unbolted into their
basic raw-material components to either recycle or
biodegrade naturally. Similarly, on a large scale, all
fittings can be removed from the building, leaving
minimal trace on this Grade II-listed Georgian
building. In other words, if Timberland Boot
Company chose to leave the site, they would leave
it in a significantly restored and more usable state.
•
Celebrate Context: Requirements for accessibility
demanded the inclusion of a DDA (Disability
Discrimination Act) toilet facility and a ramped
floor to the centre of the store. In order to integrate
the new seamlessly with the old, reclaimed London
stock bricks were sourced to create the toilet
enclosure and reclaimed warehouse flooring defined
the ramp.
the best of modern-day innovation with earlier ideals of
craftsmanship. The idea is to blend the best of the old
and new, wrapping it all up in a culture of community
responsibility.
It was decided early on that the commercial activities
of the new brand would be guided by our company’s
environmental ethic. We wanted to make sure that
its retail spaces would use resources effectively, by
physically consuming as few of them as possible. In
addition, we sought a site where Timberland Boot
Company could create a “home” for itself within an
established community and make a positive contribution
to it—for example, by using the retail space to hold
community-based events and artistic displays.
Our decision to choose a historic site steered the type of
environmental approach we used in the design. The key
emphasis became the restoration of period features using
traditional craft-based methods. All materials used were
either recycled/repurposed or new materials that were from
certified sustainable sources or that could be recycled
without downgrading their quality. Examples include:
•
•
Applying lime paste and wax finish to
existing flooring
Replacing timber cladding with sourced
like-for-like material
David Kira, once a banana and tomato wholesaler, is now the
Timberland Boot Company.
As a result of these approaches, almost no building
waste was generated during the project.
Energy
Energy use has been kept to a minimum throughout the
project by following a number of different strategies:
•
Transport of materials to and from site was strictly
controlled, and whenever possible all fixtures and
fittings were pre-fabricated and shipped in parts for
efficiency.
•
Day lighting was enhanced significantly to the rear
of the store space, through the inclusion of (new)
skylight to reduce artificial lighting loads.
•
The artificial lighting system installed can be
upgraded to significantly more energy-efficient
lamps in the future.
2006 CSR report
47
we will build the culture
with a global program that
encourages a wide variety of
green office behaviors.
Environmental Stewardship
in our Value Chain
Our assessment process has evolved to include scoring
for the environmental attributes of our factories. While we
have been doing this in our tanneries for several years, in
2005 we began to roll it out to other business units.
What happens is this: The Timberland Code of
Conduct team, trained in our environmental standards,
•
Flexible sun shading to the south-facing shop front
reduces glare and minimizes heat gain during the
summer but, once retracted, allows for heat gain
during the winter months.
•
The heating system is basic but utilizes a boiler
chosen to match the heating requirements of
the store volume. It is also mated to reclaimed
cast-iron radiators.
Looking Forward
Modeling eco-effectiveness is admittedly an unreachable
goal for our company. Every time we will think we’re
closer, new information, technologies and ideas will
show us that there’s more work to be done. This is a
good thing. An infinite goal will keep us hungry for
what’s new and better—and keep us innovating—in the
environmental arena.
In 2006, our goal was to begin delivering the tools
that will empower our product design and development
teams to make product better from the start from a
sustainability standpoint. The Green Index™ rating
was a powerful start. Developing design criteria for
our premium earth-conscious product, Earthkeepers™
collection, provided another important set of guardrails.
In 2007, we will continue down the path of automating
and launching the Green Index™ rating across our line.
In the near future every designer and developer will be
able to get environmental statistics on their product
while they are developing it. In addition, we plan to
publish our internal “Green Guide,” which outlines
Best, Better and Good material choices and services for
everyone from product designers, to printers and facility
managers, so that our entire staff will be empowered
to make more informed procurement decisions. Finally,
we will build the culture with a global program that
encourages a wide variety of green office behaviors. This
expands our existing hybrid-car incentive program to
acknowledge other resource conservation and community
service initiatives spearheaded by employees.
48
2006 CSR report
interviews factory management to make sure that
human and environmental health is protected and
that environmental and management best practices
are encouraged. During the assessment, we search for
environmental hazards such as asbestos and PCBs,
look at chemical, water, waste and energy management
systems, and score factories based on how far above
and beyond compliance they go with their
environmental measures.
With each assessment, suppliers are rated on five
criteria to establish an overall score reflecting their
commitment to minimize their environmental footprint.
For each criterion, a factory is given a score from 1-5,
with one representing no accountability or tracking and
five representing factories that have exceeded stated
targets. Among the areas assessed are:
1. Systems: Making sure that accountability has
been formalized, with effective monitoring and
procedures worthy of independent certification and
a proven history of effectiveness.
2. Compliance: Ensuring full awareness of all
applicable regulatory requirements, with no current
instances of non-compliance in all regulated areas.
3. Chemicals (footwear only): Verifying that waterbased or hot-melt adhesives are utilized in the
manufacture of Timberland® footwear, as well as up
to 100% use of solvent-free cleaners, primers and
adhesives.
4. Energy: Establishing and tracking energy reduction
goals and checking that aggressive efficiency
measures are in place, with up to 100% renewable
energy.
5. Waste: Implementing waste-minimization efforts
that result in up to zero-waste operations (in other
words, all waste streams are either recycled or
re-used).
Environmental Assessment Results
As a footwear-first company, we focused our environmental assessment training and tracking on our tanneries and
footwear factories in 2005 and 2006. The results for 2006 are shown below for these two business units.
ASSESSMENT SCORE
2.5
2006 ENVIRONMENTAL ASSESSMENT (AVERAGE)
Target
2.12
Actual
1.5
1.0
2.0
2.59
2.45
2.21
2.55
2.06
2.00
1.91
1.5
2.55
2.44
Footwear
Tanneries
1.0
0.5
0.5
0.0
2.5
2.53
2.0
2006 ENVIRONMENTAL ASSESSMENT (BY CATEGORY)
3.0
3
3
ASSESSMENT SCORE
3.0
Footwear
Tanneries
BUSINESS UNITS
0.0
Systems
Compliance
Energy
Chemicals
Resources
SCORING CATEGORIES
While neither business unit has achieved the target goal of three, it is clear that our tanneries have outperformed our
finished-goods footwear facilities. We believe these results are consistent with the on-site visits and environmental
guidance that tanneries have received from Timberland personnel for several years. Training and tracking for environmental
performance was expanded to the entire supply chain in 2006, and we plan to share results in our 2007 report.
Looking Forward: 2007 Goals
Climate change: Address our contribution to the most pressing environmental
issue of our time by implementing a strategy that will reduce our energy demand and
emissions. Support the development of clean, renewable energy. And grow carbonabsorbing forests for generations to enjoy. Timberland commits to the goal of carbon
neutrality by 2010.
Product: Continue to implement the Green Index™ rating across our product line
and our industry. This will provide our product development teams with tools to design
product better from the start, and it will inform consumers’ purchasing decisions
around sustainability.
Employees: Launch a comprehensive program, the “Make It better” initiative, which
will inform and inspire our team with opportunities to reduce corporate and personal
environmental footprints. Apply the lessons learned to the development of consumer-facing
initiatives that encourage Timberland consumers to make it better in their communities.
➜
➜
➜
VOICES OF CHALLENGE
question: how far should a company
go to stabilize the climate?
➜
➜
➜
➜
Jonathan Dorn
Editor-in-Chief,
Backpacker
➜
Mindy Lubber
President,
Ceres
As far as it can go. And then a bit farther—
Climate change will have huge financial implications
especially if the company is rooted in the outdoor
in the years to come. How businesses and investors
industry. As users and protectors and beneficiaries
respond to the risks and opportunities from this issue
of wilderness, we bear a unique responsibility to
will have an enormous rippling effect on the global
do more than the other guy, to set an example for
economy. For this reason, Ceres challenges companies,
our culture’s interaction with nature.
like Timberland, to tackle climate change head-on.
Is there any other answer that is acceptable? Not
Adaptive companies know that times have changed,
really. But few businesses can remake themselves
that the 21st century presents unparalleled challenges
overnight. Backpacker faces that predicament
with sustainability at their core. Companies leading
right now. Mea culpa! This magazine is a carbon-
in the climate arena are formulating comprehensive
intensive operation. We know we must eliminate
strategies that involve the measurement and reduction
all those subscription cards. We must use higher
of emissions causing global warming, as well as
grades of recycled paper—and less paper overall.
engagement of key stakeholders. Timberland is on
We know we must reinvent our business to be both
the right track. The company’s 2010 goal to become
profitable and carbon-neutral. And we will.
carbon-neutral includes critical steps to reduce energy
The outdoor industry, led by companies like Keen,
Teko, Patagonia and Timberland, has turned a very
use, pursue efficiency gains, purchase renewables, and,
when necessary, offset emissions.
important corner—the corner of intentionality. We
Stabilizing the climate requires board members and
know what we have to do and how far we need to
senior management to focus on long-term planning.
go. And most of us are on board. The important
We are pleased that Timberland recently added a
thing now is to instill in our companies, and in
sustainability committee to its Board of Directors,
each other, the kind of urgency that leads to some
and expect this Committee will be involved in refining
measurable progress every day, every issue, every
Timberland’s future climate strategy.
show, every year.
However, we also need companies to show strong
leadership in developing meaningful climate policy
solutions in Washington. Investors are calling for
analysis and disclosure of the business and competitive
implications of this issue—including members of Ceres
and the Investor Network on Climate Risk, an alliance
of investors with nearly $4 trillion of assets. This is a
necessary step to move corporate America full throttle
into the clean energy economy.
Chris Walker
US Director,
The Climate Group
Tim Smith
Senior Vice President,
Walden Asset Management
Meredith Benton
Associate Director
of Social Research,
Walden Asset Management
From the leather in its boots and the wool in its socks,
to the transport of its merchandise, to the clothing its
customers wear, climate change has the potential to
change every aspect of Timberland’s business. Given
a complex, interconnected economy and a complex,
interconnected natural world, all companies will be
The climate impact of the retail sector and of many
consumer-facing brands may not be as obvious as
that of a steel mill or power station. But retailers
account for a rising percentage of overall energy
consumption and CO2 emissions. And as the
“hidden” footprint of retailers and brands is also
significant, exciting opportunities for emission
reductions exist not only at the operational level
but also in the supply chain and in the products
and services provided.
affected by climate change. And all companies will need
Exploiting these opportunities will be increasingly
to make changes in order to reduce their greenhouse gas
important as climate change moves up the agenda
emissions and address the difficulties presented.
for consumers and investors. The latest research26
A leader in socially responsive investing, Walden Asset
Management manages clients’ assets to achieve specific
financial and social objectives. With a focus on attractive
investment returns, we seek to identify, and encourage,
sustainable business models. To be sustainable, a
company must approach environmental, social and
governance issues in a holistic manner that incorporates
long-term strategic thinking. We have found that
shows that climate change is likely to be “a
mainstream consumer issue” by 2010. When this
happens, there will be “reputational implications
for many sectors not seen to be addressing the
issue appropriately.” In order to prevent putting
brand value at risk consumer facing retailers and
leading brands will increasingly need to take a
proactive stance on climate change.
operating within a sustainability framework contributes to
Forward-thinking companies are already taking
long-term business success. Addressing climate change
significant action to reduce site-based emissions.
is one key example of sustainability planning.
As a boot-making family business, Timberland does
However, sustainability reaches beyond a company’s
not seem the most likely candidate for leading
direct operations, employees, and consumers, to include
the corporate world in taking action on climate
its entire sphere of influence. Hence, we encourage
change. With a carbon footprint equal to less than
Timberland and all companies to actively work toward
1% of BP’s, Timberland’s definitive contribution to
sustainability wherever they have the ability to do so
emission reduction may seem inconsequential—
effectively. For example, we expect them to address
until the company’s supply chain and consumer
topics such as greenhouse gas emissions and human
outreach are considered.
rights when structuring supplier relationships. We expect
companies to ask hard questions, listen to hard answers
and have the courage to make the necessary changes.
As investors, we believe taking these steps, as daunting
as they may be, is essential for sustaining the long-term
health of a company—and the planet.
With 120,000 factory workers worldwide and
distribution vehicles traveling over 25 million miles
annually, Timberland’s scope for positive change
is obvious. It is our belief that, regardless of a
company’s size, its capacity to make a difference
is infinite.
We commend Timberland for its willingness to
approach sustainability issues thoughtfully, to look
for opportunities for constructive change, and to test
innovative solutions. We encourage Timberland’s
leadership, and to go even further in prioritizing
sustainability goals: in its work with its supply chain,
in its sourcing of leather and other materials, and in its
structuring of stakeholder relationships.
The question before us was: how far should a company
go to stabilize the climate? The answer is simple: as far
as it reasonably can.
26
The Carbon Trust: http://www.carbontrust.co.uk/Publications/publicationdetail.htm?productid=CT-2004-10
2006 CSR report
51