Though our internal operations do not have a large environmental footprint, Tiffany & Co. continuously works to enhance the environmental performance of our facilities through energy conservation, green building principles, renewable energy use and proactive environmental management.
Since 2006, Tiffany & Co. has been a responding company to the CDP Investor Questionnaire, a voluntary disclosure mechanism, which gathers information on the business risks and opportunities presented by climate change, as well as greenhouse gas (GHG) emissions data from the world’s largest companies.
In 2007, Tiffany & Co. signed on to the United States Environmental Protection Agency’s (EPA) Climate Leaders program, an industry-governmental partnership that worked to develop comprehensive climate change strategies. At that time, we pledged to reduce our U.S. greenhouse gas emissions by 10% per square foot from 2006 to 2011.
As part of our commitment to protect future generations from the impact of climate change, Tiffany & Co. resigned from the U.S. Chamber of Commerce in 2009 to express our disappointment in the Chamber’s approach to legislation and regulatory efforts to address climate change.
Through 2012, we reduced our U.S. emissions per square foot by 18.2% since 2006. Following the successful completion of our 2011 U.S. emissions reduction goal, Tiffany & Co. is re-assessing our global emissions portfolio and carefully reviewing the lessons learned from our energy efficiency projects in the U.S. By revisiting our energy reduction strategy, with a particular focus on our retail stores, we plan to develop new, meaningful emissions reduction goals for our global operations.
Our global Scope 1 and 2 emissions in 2012 were 44,511* metric tons of carbon dioxide-equivalent (CO2-e) in 2012; a 1.8% reduction from 2011†. This reduction is equivalent to the carbon sequestered annually by 686 acres of U.S. forests.
The decrease is in part due to the consolidation of our New York headquarters. Further reductions over the last few years have been achieved through energy efficiency projects such as heating, ventilation and air conditioning improvements, lighting retrofits and the installation of energy recovery ventilators.
We continually monitor our emissions and look for opportunities to improve our efficiency. Following a pilot project in 2010, for example, we expanded an initiative to replace energy intensive lights in our retail displays with efficient LED strips. Over 25 U.S. retail locations installed the efficient lighting retrofits by the end of 2012, with an additional 14 U.S. locations planned for 2013. Tiffany & Co. is also looking to apply the lessons learned from these and other efficiency projects to our international operations.
For detailed information on our GHG emission reduction efforts and reporting methodology, please see our response to the 2013 CDP Investor Questionnaire at www.cdproject.net.
The Tiffany & Co. Santa Monica retail store was our first facility to obtain LEED (Leadership in Energy and Environmental Design) certification. In February 2011, it was certified as LEED-CI (Commercial Interior) Gold. LEED is the most widely used green building standard in the world. It incorporates environmental best practices for the real estate and construction industries, including specific ways to increase energy efficiency, improve water efficiency, use recycled materials and improve air quality.
In 2011, our three New York affiliate headquarters offices were consolidated into a LEED-CI Platinum office. This consolidation reduced the total annual Scope 1 and 2 emissions from our headquarters in 2012 by 23% compared to 2010. To further minimize our impacts, our office facility has occupancy and daylight sensors on our lighting, water efficient fixtures and a recycling and compost program. In 2012, as a part of this recycling and composting program, we diverted over 53,000 pounds of landfill waste from our New York headquarters.
Additionally, in 2012, our manufacturing facility in Kentucky was certified as LEED-NC (New Construction) Silver. Tiffany & Co. is working to incorporate lessons learned from these projects in our new building design and existing building retrofit guidelines.
Tiffany & Co. generated over 2,460 MWh of solar energy and purchased over 6,925 MWh of Renewable Energy Credits (RECs) from wind in 2011 and 2012. Together, these efforts reduced 5,944 metric tons of CO2-e emissions over two years. Tiffany & Co. is constantly evaluating additional opportunities to use renewable energy and reduce the energy footprint of our facilities.
In 2013, Tiffany and Company, along with over 128 private companies and 50 public entities, was able to reach a tentative resolution of certain third-party claims associated with an environmental lawsuit seeking to rectify contamination of the Passaic River. The underlying lawsuit was filed by the New Jersey Department of Environmental Protection in the New Jersey Superior Court in 2005 against the corporate successors of companies (not Tiffany and Company) who allegedly were responsible for contaminating the Passaic River with hazardous chemicals. In 2009, two of the defendants named in the underlying suit filed third-party claims against more than 300 cities, sewer districts, and private companies to require them to contribute to the cleanup. Tiffany and Company was named because it operated a factory in Newark until approximately 1984. The aggregate value of the settlement (spread over all settling parties) is over $40 million. A portion of these funds will be used for cleanup and for new public parks along the river. The agreement must still be approved by the court after a notice and comment period.
We have internal guidelines for our facilities and programs for our employees to ensure their knowledge of regulations, the proper disposal of waste and respect for local communities and environments. Tiffany & Co. works to ensure that waste is recycled where possible.
In 2010, we began a process to enhance the collection of environmental data from our global facilities. This includes the global collection of waste and water data. We monitor our performance and are looking for further opportunities to standardize best practices and enhance our environmental performance.
*Metric included in the Report of Independent Accountants
†The Fiscal Year 2011 greenhouse gas emissions have been revised due to an error correction in the calculation of greenhouse gas emissions. As a result of the error related to 2011, emissions increased by 2.29% to 45,348 metric tons, and the Company does not believe the impact of the change to be material to the 2011 amounts previously presented.
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