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CARBON FOOTPRINT REPORT BASELINE YEAR: 2016

SKUNKFUNK CARBON FOOTPRINT REPORT 1

CONTENTS

Introduction

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3

Methodology and scope

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3

Results

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4

Summary

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12

Good practices

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13

Reduction targets

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14


INTRODUCTION This is the second carbon footprint study carried out at Skunkfunk, aimed at assessing the progress from the previous report in 2015. This study quantitatively assesses the Greenhouse Gas emissions arising from Skunkfunk operations. Using 2016 as a baseline, the report focuses on the sources of emissions over which Skunkfunk has most control. The footprint focuses on emissions of Greenhouse Gases (GHGs), which have the most significant impact on climate change. Footprints use a standardized unit of measure, carbon dioxide equivalent (CO2e), which allows for comparisons over time.

METHODOLOGY AND SCOPE Skunkfunk is based in Basque Country and directlyemploys 91 staff members. The quantitative element of this carbon footprint report focuses on scope 1, 2 and 3 emissions, as defined by the GHG Protocol2:

SCOPE 1 - DIRECT EMISSIONS • •

Fuel combustion from SKUNKFUNK owned vehicles and other fuel powered equipment . Air conditioning system gas substitution.


SCOPE 2 - PURCHASED ELECTRICITY Emissions from electricity consumption are not considered to be ‘direct’, as the emissions physically occur at power stations, and not on Skunkfunk offices and shops. However, this is considered a central aspect of Skunkfunk carbon footprint, as it has direct control over the consumption of electricity. SCOPE 3 – INDIRECT EMISSIONS OVER WHICH SKUNKFUNK HAS AN INFLUENCE SKUNKFUNK has a broader environmental impact from emissions arising in the supply chain besides its own operations, such as the production process, product transport, staff travels, business trips and the impact of waste and recycling. Within Scope 3, there are some significant sources of emissions over which SKUNKFUNK has control, but lacks adequate data to be included in this baseline footprint assessment,raw materials, product confection and wet processes essentially. To assess these, SKUNKFUNK will publish its individual product carbon emissions starting from 2018.

DATA SOURCES 1. Bills were used to gather precise data on gas and electricity consumption. 2. Staff travel and commuting data was gathered through individual staff survey. 3. The information was gathered and processed by the carbon footprint tool developed by the Basque Government. All units declared in this document are in CO2e (tons or kgs are specified). CO2e is an abbreviation of 'carbon dioxide equivalent' and is the internationally recognized measure of greenhouse emissions. There are many types of greenhouse gases. Six such gases are controlled by the Kyoto protocol.

RESULTS The total Carbon footprint for SKUNKFUNK for 2016 was 334,88Tn Co2 e. Comparing with 2015, the global footprinthas decreased by 8,3%.


SCOPE 1 SCOPE 2 SCOPE 3

Tn CO2 e 2016 2015 18,93 9,57 41,42 43,63 274,53 311,8

Total

334,88

365,20

The emissions related with the internal transport (Scope 1) have increased because of the improved accuracy of the kilometrage calculation of Skunkfunk vehicles. Scope 2 emissions slightly decrease from 2015 thanks to the use ofrenewable energy in shops that in 2015 used conventional energy. Scope 3 indirect emissions on which adequate data is available were included: employees commuting to work, business trips, supply chain deliveries, water consumption and the waste transport. In that case, we see a decrease in emissions mainly due to a better control of stocks leading to less production transportation and returns.


SCOPE 1 Company Vehicles (Km)

Staff KM

45500

Lezama HQ

45000 44500

Retail

44000 43500

The internal transport of Skunkfunk vehicles sums up to 89.000 Kilometers in 2016.

Company VehiclesEmissions Vehicles owned by Skunkfunk (Tn CO2e) 12 10 8 6 4 2 0 Lezama

Retail Spain

Company VehiclesCompensation

210

210 trees planting are necessary for the Scope 1 compensation.


SCOPE 2 Electricity Use (KWh) 72% of the energy used at Skunkfunk facilities comes from renewable sources.

2016 energysplit

KWh

KWh Retail France

40,64%

Retail Spain

72,38% RENEWABLE NON-‐RENEWABLE

Lezama

0

50000 100000 150000 200000 250000

Electricity UseEmissions

47,32 tCO2emissionshave been saved from using renewable energies. Energy emissions (Tn CO2e) 50 40 30 20

41,42

Non Renowable energy emissions(Tn CO2e)

10 0 Shops (Scope 2)-‐Including France


Electricity UseCompensation

460

532

460 trees planting are necessary for compensating emissions generated. 532 trees’ CO2 absorption has been saved from buying from renewable energy providers.

SCOPE 3 Supply chain Quantities of products transported (Kg)

Online Store Deliveries

AIR Factories deliveries to Skunkfunk

ROAD SEA UPS Carbon Neutral

Deliveries to Customers

0

40000

80000

120000

95% of the products are transported from factories by Sea and the last kilometers to our customers by Road. The 5% transported by AIR correspond to the sales man samples. 37% of the online store deliveries are currently compensated through a partnership with UPS (Carbon Neutral shipments). SKUNKFUNK CARBON FOOTPRINT REPORT 8

Product Transportation Emissions Supply Chain emissions (Tn/CO2) B2C Road INBOUND

Air Sea

OUTBOUND 0

20

40

60

80

100

The graph above breaks down supply chain emissions into inbound and outbound deliveries. It shows that inbound deliveries of SMS (deliveries of salesman samples from production locations to Skunkfunk logistic hub) are the biggest source of emissions, ahead of production sea shipment and outbound deliveries (customers’ deliveries from logistic hub).

Product Transportation Compensation

1183

26

1183 trees planting are necessary for compensating emissions generated. 26 trees’ CO2 absorption has been saved with our compensation programs (Carbon Neutral shipments).

Bussines trips and Staff commuting

In total, considering both business trips and staff commuting, in 2016 Skunkfunk staff has travelled over 350.000 kilometers. 58% of staff uses a low impact means of transportation to work (Train, Bus, Shared Car or Bicycle).


Means of transportaRon to work (% of staff) SHARING CAR

4% 8% 10%

CAR BUS

23%

TRAIN

42%

WALK

13%

BICICLE

Business Trips and Commuting Emissions

Bussines trips (Tn CO2 e) Maintenance Sales

AIR

IT

BUS

Design

TRAIN

Supply Chain

CAR

Marke[ng Direc[on 0

5000

10000

15000

20000

25000

30000

Staff comuting average emissions per department Maintenance Design Retail HR Sales Supply Chain IT Accoun[ng Marke[ng Direc[on

Tn Co2/emp

0

1

2

3

4

5

6


Trips Compensation

1868

86

1868 trees planting are necessary for compensating emissions generated. 86 trees’ CO2 absorption has been savedfrom workers walking and cycling to work.


SUMMARY


GOOD PRACTICES Other practices play a role in reducing Skunkfunk’s carbon footprint, although there are not included in this baseline report for the lack of adequate information. Examples of good practices already undertaken include: •

Raw materials : Raw materials are the back bone of Skunkfunk sustainability efforts. 56% of the total raw materials used currently are environmentally preferred fibers (recycled polyester, linen, organic cotton, lyocell, ramie and hemp). Skunkfunk chases its goal to replace all conventional cotton with organic cotton by 2020 (67% in 2017).

•

Recycling: Recycling is commonplace in Skunkfunk offices and warehouse. In 2016, 62% of cardboard boxes arrived with production shipments were reused. Besides, Skunkfunk is collecting used clothes in its retail network in cooperation with Koopera(http://koopera.org/), a Basque organization aimed at creating social employment and giving clothes a second life.

•

Repairing and Upcycling. Skunkfunk has a full time employee working on product repairs and extending the life cycle of its defective or damaged products. Packaging : Skunkfunk uses biodegradable polybags made from corn starch to pack 100% of its products

•

•

Eco-Design: Skunkfunk designers have introduced Zero-Waste product patterns aimed at utilizing every inch of the fabric, leaving no fabric waste behind. Such practices save an average 15-20% fabric waste at cutting stage.https://www.skunkfunk.com/es/zero-waste-2236

2020 SUSTAINABILITY GOALS RAW MATERIALS • 70% low impact fibers in all our products (24% in 2012, 56% in 2017) • 100% organiccotton (17% in 2012 -> 67% in 2017) • 20% of range made with recycled textile waste (including half from postconsumer waste) CIRCULARITY / RECYCLING • 100% of stores offering Repair Service and used garment collection points • 50% of range made with mono-fibers (35% in 2017)


REDUCTION TARGETS Skunkfunk’s goal is to further reduce its own emissions by 30% by 2020 (Scope 1, 2 and 3).

SCOPE 1 The target for compensating the internal transport emissions is to plant 250 trees per year. Skunkfunk has already planted 210 trees in 2017 in collaboration with LurGaia (http://www.lurgaia.org) compensating 200TnCO2 of our 2017 emissions.

Skunkfunk team at work

SCOPE 2 For reducing energy emissions further, our goal for 2020 is to haveall French shops switched to renewable energy and to have 50% of all stores equipped with LEDs.

SCOPE 3 B2C For 2020 the principal objective is to have all the online shop deliveries compensated. In 2016 37 % of online shop deliveries have been compensated.
