Dive Brief:
- Swiss athletics brand On increased its use of recycled polyester in products to 85% last year, contributing to its goal to reach 100% recycled polyester and polyamide by 2024, according to its 2022 Impact Progress Report released Tuesday. Compared to when the brand set its goals in 2019, On has decreased its CO2eq emissions per unit of value added by 12%.
- By 2030, On aims to hit a 46% absolute reduction in its Scope 1 and Scope 2 emissions, and a 55% economic intensity reduction in Scope 3 emissions. However, the brand is “slightly behind” on its Scope 3 emissions target, according to the report. Scope 3 emissions make up about 99% of the company’s impact, while Scope 1 and 2 emissions account for just 0.1% of its total.
- In 2022, 30% of materials On used across all product categories were fossil-free; in apparel and accessories specifically, 64% of materials used were fossil-free. The brand’s increased use of recycled materials in products is the largest reason for its decrease in Scope 3 emissions.
Dive Insight:
As On’s net sales grow, the brand is also reporting progress toward some of its sustainability goals.
“We’re incredibly proud of our positive trajectory toward achieving our sustainability targets,” Begum Kurkcu, head of ESG at On, said in a statement. “We’re proving that we can grow our business and continue to put the environment first. This is extraordinary given the tremendous growth our company is experiencing and our expanded physical footprint with new stores and offices.”
In 2022, On updated its Scope 3 emissions methodology, which now accounts for leased vehicle fuel use. The company said it put in extensive effort to revise its “methodology, improve data quality, and plan for year-over-year comparability.” As such, emission factors were updated and unverified data with quality issues was removed.
On also worked to improve the safety and environmental impact of supply chains with its partners in 2022, with the goal that all of its strategic Tier 1 partners be powered by renewable energy by 2027. At present, a third of its Tier 1 suppliers use renewable energy.
By 2024, On aims to have all of its offices and stores fully powered by renewable electricity. The company says over 90% of its electricity is covered by renewable sources and its next step is to address district heating. In June, On opened its fourth store in the U.S., located in Brooklyn, marking its 23rd owned store globally.
As part of its sustainability goals, On believes resale and subscription services are key aspects. The brand operates a subscription-based circularity program called Cyclon for its Cloudneo running shoe and a pilot re-commerce program called Onward that includes footwear as well as apparel.
As the industry has turned its focus to secondhand goods, brands including Faherty, J. Crew, H&M and Moosejaw have launched resale programs this year. ThredUp’s 2023 Resale Report released in April predicted the worldwide market for secondhand goods could reach $350 billion by 2027.
In September 2022, On debuted the prototype of its Cloudprime shoe that uses carbon emissions as a raw material in its foam. The brand’s latest impact report notes that the company is looking to scale the sneaker's production.
While On works toward its environmental impact goals, the brand has reported record quarterly growth. The company’s second-quarter report in August showed net sales jumped 52.3% year over year to 444.3 million Swiss francs (about $506.5 million at the time), while its net income dropped 93.3% to 3.3 million Swiss francs.
