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Total Score

D+

Emissions

113.08%

While it appears to have taken some small steps forward it still has a long way to go, and in the meantime its emissions have more than doubled between 2019 and 2021. If On Running wants its climate efforts to be taken seriously, it needs to rapidly ramp up the urgency of its efforts, starting by increasing its weak intensity-based supply chain emissions target to an absolute reduction target of 55% or greater by 2030. On Running only reported minimal engagement with its suppliers on decarbonising, and has yet to set a target to phase out on-site coal from its manufacturing.

Score Breakdown

GHG emissions:

On Running has set an emissions reduction target for its own operations of 46% by 2030 from a 2019 base year, which is not in line with keeping warming below 1.5°C.

The company has also set a relatively weak intensity-based emissions reduction target for its supply chain of 55% per dollar value added. This target is not in line with the 55% reduction required.

Renewable energy:

On Running has set a renewable energy target in its own operations of 80% of offices and stores by 2022, but it is not clear whether the energy will be additional to the grid.

On Running 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:

On Running has not 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:

On Running publicly reports GHG emissions in its own operations, and in its supply chain. The company does not provide a full breakdown of its Scope 3 emissions.

Energy use:

On Running does not publicly report its energy use for its own operations, and does not provide a breakdown of its renewable energy use and how that energy is sourced.

For its supply chain, On Running does not publicly report its energy use, and does not provide a breakdown of its suppliers’ renewable energy use and how that energy is sourced.

Suppliers:

On Running provides a partial supplier list to Tier 1 and Tier 2.

On Running provides its suppliers with training and resources to help them make energy efficiency improvements. On Running does not report providing its major suppliers with financial incentives for energy efficiency measures, and does not require them to make energy savings as a condition of contract.

On Running does not require suppliers to reduce thermal coal demand in their manufacturing processes.

On Running does report providing its suppliers with training and resources to help them transition to renewable energy, including assistance in capacity building, in-kind resource expertise, and preferred supplier status. The company does not report providing financial support or incentives to make the energy transition, and does not require suppliers to use renewable energy as a condition of contract.

On Running does require its Tier 1 and key Tier 2 suppliers to disclose GHG emissions data but does not require them to set GHG emissions reduction targets, and it does not require suppliers to provide facility level data via the Higg Index.

On Running has committed to phase out virgin fossil fuel- derived materials by 2024, but does not have a goal to fully phase out fossil fuel based fabrics.

On Running does not use leather in any of its products, and has committed to never using any in the future.

Low-carbon materials:

On Running has committed to increase closed-loop apparel-to-apparel recycling for synthetics and plant-based materials by working to increase the use of recycled cotton fibre, and has set a priority to increase fibre-to-fibre recycled content sources, including collaborating with Carbios to develop bio-recycling technology. On Running has committed to reduce the impact of its raw materials sourcing by switching to 100% recycled or organic cotton or cotton sourced from regenerative agriculture by 2024.

Increasing circularity:

On Running is acting to increase circularity and address overproduction by policies to improve the repairability, resale, durability and recyclability of its clothes, including by creating a closed loop subscription service for some lines.

On Running does not publicly report its material mix, or its volume of deadstock. But it does report how it manages or disposes of its deadstock to reduce waste.

On Running does report its shipping emissions annually and does include shipping emissions in its GHG reduction targets. But it does not provide a breakdown of its transportation methods.

On Running does have a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does not appear to have a near-term plan to ship its cargo via cleaner methods, and it reported a 6.9% increase in its transportation and distribution emissions between 2019 and 2021.

On Running 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.

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

On Running is in coalition with 39 other companies to sign the Clean Energy Demand Initiative (CEDI) Global Letter of Intent. This letter calls for a global clean energy transition in partnership with governments, non-profits, and other organizations. On Running also signed a joint statement to the government of Vietnam advocating for the creation and implementation of Power Development Plan VIII. This plan must prioritise renewable energy investment while also accelerating the country’s clean energy transition. The company supported the Inflation Reduction Act, which included investments related to reducing climate related risks to the economy.

Sources

  • “Global CEDI Statement of Intent.”
  • “Impact Progress Report 2021,” August 2022. https://s28.q4cdn.com/811960755/files/doc_downloads/2022/08/On-Impact-Progress-Report-2021.pdf.
  • “Joint Statement of Support for High-Ambition Power Development Planning in Vietnam.” Clean Energy Investment Accelerator, November 17, 2021. https://static1.squarespace.com/static/5b7e51339772aebd21642486/t/619565dd1cf92a0d50c0013b/1637180894505/CEIA+Vietnam+Joint+Statement+to+GVN_2021.11.17.pdf.