To achieve this, we have aligned our Greenhouse Gas (GHG) reduction targets to the Intergovernmental Panel on Climate Change (IPCC)'s pathway to keeping global temperature rises well below 1.5°C above pre-industrial levels.
We are working to lower our carbon emissions and shift to renewable energy solutions while encouraging our partners and suppliers to do the same. We are also contributing to the Circular Economy byadopting circular business models and improving our waste management.
In 2022, we hired an external consultant to produce a comprehensive and impartial assessment of our Greenhouse Gas (GHG) emissions. This has enabled us to align our pathway to Net Zero by 2040 to the Science Based Targets Initiative (SBTi). We have set emissions reductions targets for our Scope 1 and 2 emissions consistent with the IPCC’s trajectory for limiting global warming to below 1.5°C above pre-industrial temperatures, and we have aligned our Scope 3 emissions to a trajectory of warming below 2°C relative to pre-industrial levels. in the near term, this means reducing our Scope 1 and 2 emissions by 50.4 % and our scope 3 emissions by 30%.
Near term targets
Through cross-functional collaborations of teams across different geographies, we developed near-term science based targets, which were validated by the SBTi in May 2023. The 10 year targets are set for 2032 with year 2021 as our baseline.
Scope 1 and 2 trajectory
Reduce our Scope 1 and 2 emissions by 50.4 % (owned fleet, electricity, etc.)
Scope 3 trajectory
Reduce our Scope 3 emissions by 30% (purchased goods, leased assets, capital investments)
Results of 2021 baseline GHG carbon calculation
The aggregate emissions for Chalhoub Group during 2021 was 1,194,918 tCO2e
Scope 1: 0.2% of our total carbon emissions (fleet and refrigerant - direct control)
Scope 2: 0.5% of our total carbon emissions (electricity - direct control)
Scope 3: 99.3% of our total carbon emissions (Supply chain - indirect control)
Our circular economy strategy provides a framework under which we procure consciously, maximize the lifecycle of products, use resources efficiently, recover value from our waste, and integrate the restorative and regenerative design of our business model. Through optimizing material recovery and recycling, and under a revamp of waste management at our stores and offices, we are progressing towards our target of sending Zero Waste to Landfill by 2030. Additionally, we are stopping waste at source through several initiatives. We are investigating how waste can be reduced both in store and in our ecommerce operations, and we have seized the opportunity to re-use and recycle visual merchandise. Furthermore, STEP certification of our stores and the installation of water filtration systems in our offices is conserving water and energy and reducing single-use plastic waste. We have also responded to the huge customer demand for circular products by expanding into the rental and preloved markets, with ventures including our Tanagra service and Preloved for Level Shoes. The cumulative impact of these initiatives is the reduction of 1000s of tons of carbon emissions and waste sent to landfill, alongside the conservation of vast quantities of water, through the provision of products that delight our customers.
We provided Hikaya, a Chalhoub Greenhouse startup, with $500,000 of seed-stage funding through our Startup Studio.
Hikaya produces furniture using recycled materials from old furniture. They build their furniture on demand, meaning they use less building space, and thus, have fewer impacts from their infrastructure. Our customers are increasingly telling us they love products produced according to these sustainability principles. So, we expect Hikaya to be a resounding success.
| Targets | Scope | 2020 | 2021 | 2022 | Target Year | % Achieved |
|---|---|---|---|---|---|---|
| Replace 4 fuel-dependent vehicles with electric vehicles | Group-wide | 0 | 0 | 1 | 2023 | 25% |
| Install Solar Panels in 7 sites | Group-wide | 2 | 4 | 4 | 2025 | 57% |
| Scope 1 and 2 (direct emissions) reduction by 50% from 2021 baseline (excluding refrigerant) |
Group-wide | - | 8,793 | 8,908 | 2032 | - |
| Scope 3 (indirect emissions) reduction by 30% from 2021 baseline | Group-wide | - | 1,190,356 | - | 2023 | 100% |
| Implement sustainability store program in 100% of our stores | Group-wide | 0% | 50% | 100% | 2023 | 73% |
| Increase recycling quantity in UAE offices to 60% from 2019 baseline (431 tonnes) |
UAE | -20% | 16% | 44% | 2023 | - |
| Zero waste to landfill across UAE Chalhoub Group office and warehouse operations | UAE | - | - | - | 2030 |
We implemented Stores Towards Earth’s Protection (STEP) Programme to improve our stores’ environmental performance. The programme encourages energy and water efficiency at stores and ensures that sustainable materials are used for fit-out work wherever possible, to reduce the environmental impact of these stores and provide a healthier environment for our people and customers. In 2022, 59 stores opened across the region; all were STEP assessed, and 55 got STEP certified.
We implemented Stores Towards Earth’s Protection (STEP) Programme to improve our stores’ environmental performance. The programme encourages energy and water efficiency at stores and ensures that sustainable materials are used for fit-out work wherever possible, to reduce the environmental impact of these stores and provide a healthier environment for our people and customers. In 2022, 59 stores opened across the region; all were STEP assessed, and 55 got STEP certified.