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Total Score

D

Emissions

25.61% i
* No 2019 data available

However, AEO has not reported providing any financial support for its suppliers to transition to renewable energy, and does not actively engage in policy advocacy in deploying renewable energy. The company reported an increase in GHG emissions from both purchased goods and services and upstream transportation and distribution from 2020 to 2021. To keep up with its other big brands like H&M, the company should advocate for a renewable energy transition in key manufacturing countries, act faster to break away from fossil fuel-derived materials, and set a short-term green shipping target.

Score Breakdown

GHG emissions:

AEO has set an emissions reduction target for its own operations of 80% by 2030 from a 2018 baseline, which is in line with keeping warming below 1.5°C.
The company has also set an emissions reduction target for its supply chain of 40% by 2030 from a 2018 baseline. This target is not in line with the 55% reduction required.

Renewable energy:

AEO has set a renewable energy target in its own operations of 100%, though it is not clear whether the energy will be additional to the grid.
AEO has yet to set a target of 100% renewable energy for its supply chain by 2030, which is an essential step for decarbonising its manufacturing.

Coal phase out:

AEO has publicly set a target to phase out coal-fired boilers from its supply chain by 2030 to reduce air pollution and cut emissions.

GHG emissions:

AEO publicly reports GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.

Energy use:

AEO does publicly report its energy use for its own operations, including a breakdown of its renewable energy use and how that energy is sourced.
For its supply chain, although AEO obtains supplier energy data, it does not publicly report its energy use, and does not provide a breakdown of its suppliers’ renewable energy use or how that energy is sourced.

Suppliers:

AEO does not provide a supplier list.

AEO does provide its suppliers with training and resources to help them make energy efficiency improvements, including piloting Clean by Design. AEO does report providing its major suppliers with financial incentives for energy efficiency measures through the Aii Carbon Leadership Program for suppliers who reduce their operational emissions. But it does not require them to make energy savings as a coandition of contract.

AEO does require suppliers to reduce thermal coal demand in their manufacturing processes.

AEO does report providing its suppliers with training and resources to help them transition to renewable energy, including through the Carbon Leadership Program, but the company does not report providing financial support or incentives to make the energy transition. It does not require suppliers to use renewable energy as a condition of contract.

AEO does require its major suppliers to disclose GHG emissions data and does require them to set GHG emissions reduction targets, and it does require its major suppliers to provide facility level data via the Higg Index.

AEO has not made any commitments to phase out fossil fuel based materials.

AEO has not made a public policy to ban the sourcing of leather from the Amazon Biome or taken measurable steps to ensure that Amazon leather is not contributing to deforestation. But the company does have a commitment to eliminate materials such as leather and viscose sourced from practices that contribute to deforestation by 2030. AEO was found to be at high risk of sourcing leather from deforestation in the Amazon Biome according to the Nowhere to Hide report.

Low-carbon materials:

AEO has not committed to increasing closed-loop apparel-to-apparel recycling for synthetics, and although it has a goal to increase its use of recycled cotton it is not clear that it will be derived from textile recycling. AEO has not committed to reduce the impact of its raw materials sourcing by switching to organic cotton or cotton sourced from regenerative agriculture by 2030, although it does have a goal to source 100% “more sustainable” cotton – which includes recycled, organic and “Better Cotton” – by 2023.

Increasing circularity:

AEO is acting slowly to increase circularity with a limited jean take-back program, but needs to do more to reduce production by improving durability, repair, resale and recycling.

AEO publicly reports its material mix and the volume of materials. But it does not report its volume of deadstock and how it manages its deadstock.

AEO does report its shipping emissions annually, but does not have a target to reduce GHG emissions from transportation and does not provide a breakdown of its transportation methods.

AEO does not have a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does not report having a near-term plan to ship its cargo via cleaner methods. American Eagle Outfitter’s transportation emissions tripled in 2021 compared with the previous year.

AEO has not committed to transitioning to zero emissions vessels (ZEV) by 2030. The company has not used its voice publicly to advocate for Zero Emission Shipping.

AEO has yet to commit to transitioning its last mile delivery to zero emission vehicles.

It is not discernable that AEO participated in advocacy efforts over the 2023 Scorecard period urging policy makers to promote and support increasing renewable energy supply, especially in supply chain countries, or stronger emissions reduction.

Sources

  • “About the Blue Jeans Go Green Program – Denim Recycling,”, https://bluejeansgogreen.org/about-us/.
  • “AEO Annual GHG Inventory Results,” September 2022. https://www.aeo-inc.com/wp-content/uploads/sites/4/2022/09/GHG_2022_Verification-Included_V4.pdf.
  • “AEO Annual Report 2021,” April 26, 2022. https://s26.q4cdn.com/546305894/files/doc_financials/2021/ar/Final-Bookmarked-Annual-Report-4.26.22.pdf.
  • “AEO Material Mix Chart,” 2023. https://www.aeo-inc.com/wp-content/uploads/sites/4/2023/01/2022-Material-Mix-Chart.pdf.
  • “Airterra,”, https://www.airterra.com/.
  • “AirTerra Launch Is New Era for ECommerce: Provides Capacity, Flexibility and Simplicity for All ECommerce Shippers,” September 28, 2021. https://www.prnewswire.com/news-releases/airterra-launch-is-new-era-for-ecommerce-provides-capacity-flexibility-and-simplicity-for-all-ecommerce-shippers-301386959.html.
  • “American Eagle Outfitters CDP,” 2021.
  • “American Eagle Outfitters CDP,” 2022.
  • “American Eagle Outfitters Moves The Needle On Sustainability And More With First ESG Report,” October 3, 2022. https://www.forbes.com/sites/sharonedelson/2022/10/03/american-eagle-outfitters-moves-the-needle-on-sustainability-and-more-with-first-esg-report/.
  • “Building A Better World. AEO 2021 ESG Report,” 2022. https://s7d2.scene7.com/is/content/aeo/Help/2021_AEO_ESG_Report.pdf.
  • “Sustainability,”, https://www.aeo-inc.com/sustainability/.