We produce more than 100 million pieces of product annually. Our operations and supply chains span the globe, creating a big challenge and opportunity for reducing energy intensity and emissions.
From 2009 to 2015, our facilities saved 13.6 million KWh of electricity. That’s equivalent to the average annual energy consumption of 1,253 U.S. homes. Approximately 60% of Wrangler products are manufactured in company-owned facilities. So improving the efficiency of these facilities was the logical first step in addressing energy impacts. We prioritized 67 energy-saving projects, such as heat exchangers, lighting retrofits, boiler stack economizers, new HVAC systems, motor replacements, and other equipment upgrades. All together, this energy efficiency work resulted in a 12% reduction in greenhouse gas emissions.*
Working with Suppliers
We facilitate fabric mills and other suppliers in achieving greater energy efficiency through audits and equipment upgrades. We helped initiate supply-chain projects for 2017 that will save an estimated 855,000 KWh of electricity a year through upgrades like efficient lighting, boiler improvements, steam trap repairs, pipe insulation, and streamlined factory processes. Through initiatives like the Partnership for Cleaner Textiles, we introduce investment partners and engineering expertise to suppliers that are committed to reducing energy intensity and strengthening business relationships. Plus, we hold in-person trainings in collaboration with The Sustainability Consortium to teach suppliers best practices and measurement science.
Purchasing Renewable Energy
In 2017, we raised the bar again by setting an ambitious goal:
To power all owned and operated facilities with 100% renewable electricity by 2025.
Ultimately, we'll balance a portfolio of renewable energy strategies to meet this goal. However, the immediate step was to buy Renewable Energy Credits (RECs) for the entire 2017 electricity consumption of the brand’s North American headquarters and distribution centers.
RECs are tradable energy commodities that subsidize the production of renewable energy and serve as proof that it has been fed into the shared electric grid. One REC represents the production of 1,000 KWh of renewable energy from sources like solar, wind and geothermal power projects. A typical home uses about 800 KWh of electricity each month. We purchased a combined 25,500 Green-e certified RECs.
Building Renewable Energy Capacity
In the near future, 100% of the electricity used to manufacture our products in Mexico will be generated by renewable energy. Investing in the construction of renewable energy projects is a complicated task. It’s even more difficult in foreign markets, where language barriers, currency valuations, and changing regulations are just a few of the stumbling blocks. We turned to the experts at Edison Energy for guidance on the analysis and negotiation of wind and solar development opportunities in Mexico. In 2017, after a yearlong process, we chose the appropriate government program and developers to build a utility-scale project.
*An absolute reduction of emissions from electricity consumption (scope 1 & scope 2). Percent variance was calculated using 2009 as a baseline compared to 2015 consumption (the most recently complete and available data during the time of this publication).