VF Corp performed particularly poorly in the Progress towards 2030 category of this scorecard. The company’s emissions increased dramatically in 2022, mirroring an increase in revenue which demonstrates very limited success in decoupling emissions from production which would show evidence of effective decarbonization. VF Corp does claim to have engaged with a number of suppliers to help them access rooftop solar opportunities, but it is not clear that the company provides financial support in the form of either grants or loans Neither does it provide evidence of supportive purchasing policies to help enable suppliers to decarbonize. However, VF Corp does provide a relatively high level of transparency into its supplier lists, which is positive. As a priority, VF Corp should publish a time-bound and ambitious decarbonization pathway for its manufacturing, with a focus on financing and equitable purchasing, and report transparently on its progress.
Total Score
Emissions
About the Clean Energy Analysis
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards. It provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands. Their performance is measured against the runway to an equitable fossil fuel phase-out by 2030 on criteria related to energy efficiency and renewable energy, drawing in data shared publicly by manufacturers in their supply chains.
Read Report Download Report (PDF)
Score Breakdown
| Target | Brand Commitment | Meets Benchmark |
| Stores and offices GHG Emission reduction target (Scope 1 & 2) | 55% reduction from 2017 levels by 2030 [125] | ✔ |
| Stores and offices Renewable Electricity target (Scope 2) | 100% in own operations by 2030 | ✔ |
| Manufacturing emissions target (Scope 3) | 30% reduction in Scope 3 emissions from purchased goods and services and upstream transportation from 2017 levels by 2030. | ❌ |
| Manufacturing Renewable Energy target (Scope 3) | No | ❌ |
| Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass | Coal phase out by 2030 | – |
VF Corp publishes a 3-year history of its Scope 1 to 3 and discloses Scope 3 breakdown by category.[126] The company shares a Tier 1 supplier list and 70% of Tier 2 suppliers on its website.[127] It has also experimented with sharing Tier 1 – Tier 4 data for a number of its best-selling products, but this has not been extended across all categories. [128]
The company is transparent about the percentage of renewable energy in its own operations. There is no disclosure on the renewable energy used in Scope 3 with regional/geographic or facility level breakdown, including sources, nor is there information on thermal energy demand in the supply chain by source.
Of the 11 brands assessed, VF Corp had one of the largest increases in Scope 3 category 1 emissions from 2021 to 2022, rising 19.05% from 3,417,000 CO2e to 4,068,000 CO2e.[129] This reflects a similar increase in annual revenue, which suggests that the company has yet to make significant progress decoupling its emissions from production.
The company reports on the renewable electricity ratio in its own operations securing RECs and generating on-site renewable energy equivalent to 29% of global electric usage for the financial year of 2022, compared to 26% in 2017. This is a slow rate of increase for five years,[130] especially given the escalating GHG emissions in other areas.
To obtain higher points, VF Corp should focus on high-impact procurement and disclose the full extent of this sourcing in future disclosures. Similarly, to score better in future, it is essential that the retailer sets a renewable electricity target for its supply chain and reports progress on this.
Positively, VF Corp supports its commitment to phase out coal-fired boilers from manufacturing by 2030 through its Coal Substitution Program with the IFC for Tier 1 and Tier 2 suppliers.[131] The company does not mention biomass specifically in its communication to phasing out coal nor on how it will engage its supply base on the burning of alternative fuels. In the company’s CDP disclosure, it cites biomass as a source of energy included in green tariffs. VF Corp has previously been linked to suppliers in Cambodia that burn biomass via Mongabay.[132][133]
On increasing renewable energy capacity ahead of 2030, in 2023, VF Corp announced the closing of a €500 million green bond offering, representing its second green bond issuance.[134] Even though the 2023 green bond framework was linked to renewable energy installations, the company still has no concrete target for renewable energy in its supply chain.
Step 1: VF Corp exhibits support to encourage energy efficiency amongst its suppliers through resource efficiency programs with the IFC, training with the UN Industrial Development Organization and the Aii Clean by Design program. The company participates in the GIZ Fabric Partnership, IFC & Vietnam Improvement Program, UNIDO, USAID and collaborated with solar developers.[135] Since 2019, it has reported helping 59 factories to install rooftop solar panels. These solar PV systems generate 14% of the total electricity consumption of these factories and help avoid more than 74,000 MT of CO2e per year, according to the company.[136]
Step 2: VF Corp does not appear to provide financial support to help suppliers with renewable energy or energy efficiency, beyond reporting partnerships with IFC.[137] VF Corp should be transparent about the value it is investing in these partnerships as well as scale up the quantity of projects it invests in to have a wider impact.
Step 3: There is little evidence of supportive procurement policies in line with a just transition. VF Corp does not include climate requirements as a condition of supplier contracts but communicates that it plans to do so over the next 2 years. Like other companies, it does request that suppliers collect and upload GHG emissions data in line with the SAC Higg FEM standards.[138]
VF Corp was awarded some points for its renewable energy advocacy efforts. This includes involvement with Ceres to encourage the adoption of a federal clean energy standard in the U.S. to power the grid with 100% clean energy by 2035. [139]
Supply Chain Movement
10 of 17 manufacturers connected with VF Corporation have published emissions targets, while six also have renewable energy targets. Two of VF’s biggest suppliers, Yue Yuen Industrial Holdings and Huali Industrial Group had a relatively high renewable electricity ratio in 2022, at 16% and 31.7% respectively, although only a relatively small amount appears to come from high impact sources rather than REC purchases. Several companies reported investing in biomass boiler to replace coal, mentioning the use of rice husks, wood pellets, and sawdust as biomass feedstocks.