Enviromental Responsibility
ODLO commits to:
- Ensure environmental responsibility along the supply chain
- Contribute to industry collaboration on environmental protection through multi-stakeholder engagement
Sustainable Apparel Coalition membership
Since 2016, ODLO has been a member of the Sustainable Apparel Coalition (SAC), a multistakeholder initiative of the global footwear and apparel industry. With this membership, ODLO joins over 250 global brands, retailers and manufacturers, as well as government, non-profit organisations and academic institutions, all of which are collectively committed to improving sustainability performance along the supply chain.
The Higg Index is the group’s sustainability measurement suite of tools. It includes facility, brand, and product tools that are open-source and indicator-based. The Higg Index enables manufacturers, brands, and retailers to valuate their materials, products, facilities, and processes all based on environmental and product design choices. With the implementation of the Higg Index, ODLO’s supply chain, as well as the brand itself, is regularly assessed against an industry benchmark, thereby clearly demonstrating the strengths and weaknesses of our corporate activities holistically, which in turn empowers ODLO to make meaningful improvements.
More information about the Sustainable Apparel Coalition can be found at: apparelcoalition.org
Environmental responsibility
New partnerships on climate action
ODLO and Protect Our Winters (POW) partnership October 2020
ODLO and Protect Our Winters (POW) agreed to join efforts by becoming brand partners. This collaboration is embedded in a long-term sustainability strategy that will reshape the brand’s presence in the market and in society.
As a brand, we see sustainability as a journey – and it is on this journey that we find great potential to be accompanied by enthusiasts and experts like POW who will join us to maximise the impact of our initiatives and identify new opportunities. At ODLO, we are aware that we still have much to improve as a brand, and to have POW as a partner will help us on this path.
“We are very excited to embark on this journey together with ODLO. By adding ODLO to our Brand Alliance, ODLO is joining a large coalition of like-minded brands and companies engaged for the climate. We feel a real momentum in the outdoor industry to stand up for the climate,” Nicholas Bornstein, head and founder of POW Switzerland said when announcing the partnership. As part of this partnership, we will collaborate on several projects, with a specific focus on education and awareness-raising.
Environmental responsibility
New partnerships on climate action
ODLO and Protect Our Winters (POW) partnership October 2020
ODLO and Protect Our Winters (POW) agreed to join efforts by becoming brand partners. This collaboration is embedded in a long-term sustainability strategy that will reshape the brand’s presence in the market and in society.
As a brand, we see sustainability as a journey – and it is on this journey that we find great potential to be accompanied by enthusiasts and experts like POW who will join us to maximise the impact of our initiatives and identify new opportunities. At ODLO, we are aware that we still have much to improve as a brand, and to have POW as a partner will help us on this path.
“We are very excited to embark on this journey together with ODLO. By adding ODLO to our Brand Alliance, ODLO is joining a large coalition of like-minded brands and companies engaged for the climate. We feel a real momentum in the outdoor industry to stand up for the climate,” Nicholas Bornstein, head and founder of POW Switzerland said when announcing the partnership. As part of this partnership, we will collaborate on several projects, with a specific focus on education and awareness-raising.
ODLO starts collaboration with ClimatePartner in May 2021
As part of our holistic sustainability strategy, ODLO has set ambitious climate action goals. Since May 2021, we began collaborating with ClimatePartner to further develop our existing Climate Action Strategy in a targeted manner. To do this, we need to know where we stand, set a clear baseline, and assess our entire carbon footprint - including our own company and our entire supply chain.
To support us in this journey, we chose ClimatePartner as the best match to assess our carbon footprint (corporate and product), to identify CO2 reduction potentials, prioritise and implement measures, and refine the ODLO Climate Action Strategy. ClimatePartner is a pioneer in the field and boasts extensive experience.
After a kick off in June 2021, we started with data collection for our corporate carbon footprint, and then as a second step, data collection for our product carbon footprint. ODLO is already taking steps against climate change, our focus areas are:
- Our material portfolio: we know the biggest impact we have as a producing sportswear company lies with the raw materials of our products. Therefore, the switch to recycled polyester and polyamide is our highest priority.
- Transportation: we changed the transport mode for our production in Romania to truck and rail which can save 70% of emissions per transport to our warehouse and reduce air transport from the Far East by 2%.
- Energy: both energy efficiency and green energy. For example, switching to LED lights in our own production or purchasing green energy at our own offices and in our warehouse. In 21/22 ODLO is also reevaluating the installation of photovoltaic solar panels at ODLO Romania and at the logistic center in Brüggen.
ODLO starts collaboration with ClimatePartner in May 2021
As part of our holistic sustainability strategy, ODLO has set ambitious climate action goals. Since May 2021, we began collaborating with ClimatePartner to further develop our existing Climate Action Strategy in a targeted manner. To do this, we need to know where we stand, set a clear baseline, and assess our entire carbon footprint - including our own company and our entire supply chain.
To support us in this journey, we chose ClimatePartner as the best match to assess our carbon footprint (corporate and product), to identify CO2 reduction potentials, prioritise and implement measures, and refine the ODLO Climate Action Strategy. ClimatePartner is a pioneer in the field and boasts extensive experience.
After a kick off in June 2021, we started with data collection for our corporate carbon footprint, and then as a second step, data collection for our product carbon footprint. ODLO is already taking steps against climate change, our focus areas are:
- Our material portfolio: we know the biggest impact we have as a producing sportswear company lies with the raw materials of our products. Therefore, the switch to recycled polyester and polyamide is our highest priority.
- Transportation: we changed the transport mode for our production in Romania to truck and rail which can save 70% of emissions per transport to our warehouse and reduce air transport from the Far East by 2%.
- Energy: both energy efficiency and green energy. For example, switching to LED lights in our own production or purchasing green energy at our own offices and in our warehouse. In 21/22 ODLO is also reevaluating the installation of photovoltaic solar panels at ODLO Romania and at the logistic center in Brüggen.
Logistics
When it comes to a company’s environmental footprint, logistics play an important role. While the mode of transportation has a major environmental impact on the environment, there are also many other areas we address: from packaging and material recycling to energy use in our own distribution centre in Brüggen, Germany. Mode of transportation (goods received 2020):
Transportation
Our actions include:
- Moving to a new combination of rail and road shipping from our own production in Romania. With this change, in 2020 we were able to save 40 543kg CO² for a total of 56 full truck loads. In 2020, we shifted 80% of our deliveries from ODLO Romania to our central warehouse using rail and road, a huge achievement over just one year in reducing our CO2 footprint.
- Moving from road to sea deliveries from Turkey and further exploring the options to apply this to more European countries.
- Reducing our air shipments from 3% to 2% in 2020. This great accomplishment was achieved by improved planning, continuous tracking and flexibility on order splits which significantly improves our carbon footprint. In addition, we continued with direct inbound shipments from Asian production partners to distribution parties in Asia which minimises the amount of double freight.
Climate neutral outbound shipments with DPD
In the last business year 2020/21, ODLO delivered 250k packages, representing a growth rate of 15%. Through our clear commitment to 100% climate neutral shipments, our team achieved an outstanding result of 97% climate neutral shipments beginning in July 2021, even though in 2020 it was still only 35%.
Being active in many countries also leads to a variety of logistic providers at the various country level which made it far more complicated than one might think to switch to climate neutral.
Climate neutral cartons - supporting forest conservation, Kenya
In 2020/21 we made a great step forward by introducing climate neutral cartons for all outbound shipments. We decided to actively support climate protection with our packaging by offsetting our emissions through Climate Partner.
How does carbon offsetting work?
With the help of Climate Partner, our carton supplier calculates the CO2 emissions of the entire order of cartons which are in turn compensated by supporting a climate protection project. It is important to mention that all projects are verified by an independent third party. Our project in Kenya is verified by Det Norske Veritas and received the VCS, CCBS gold level. Every time you receive a package from ODLO there is a QR code on the box offering more details about the amount of emissions we compensated and the project we support. More information can be found here: climate-project.com
Packaging – material improvement initiatives
Our logistics and E-commerce team further analysed our packaging footprint for outbound shipments. In 2020/21 we started with saving material resources for our steadily growing E-commerce business. We reduced the carton size and changed the material to 100% recycled material. Switching the bigger cartons to recycled material was not yet possible to ensure carton stability, but for these we continue to use certified FSC material. In addition, to seal the cartons, we started using wet adhesive tape made from natural rubber instead of conventional plastic adhesive tape. In this we apply the approach that every small step counts.
Environmental initiatives – central warehouse Brüggen
Our central distribution centre, with a warehouse of 26,000 m2, is based in Brüggen (Germany). Increasing sustainability within all operational process is a key driver for the local team.
Ökoprofit viersen 2020/21
In February 2021, ODLO Logistik GmbH successfully completed the Ökoprofit project. Environmental and climate protection with revenue is the goal of the project. Originally started in the 80s in Austria, this project supports companies in their practical sustainability strategies through a regional network. Using open dialogue with consultants, municipalities and partners, as well as the on-site process analysis, participants are helped in developing and implementing improvement plans. The project framework consists of three steps: workshops (energy waste, water, EMS, procurement, etc), consulting, and verification. In the latest edition of the Viersen Region, 13 regional companies participated and successfully completed the project and were awarded certification.
ODLO Logistik GmbH joined with an environmental project team of Horst Römer, Frank Rudolph and Bernd Wolf. Thanks to great team efforts, seven improvements were achieved in these areas: waste, transportation, packaging and resource efficiency through reuse. Thanks to the new measures implemented, our warehouse was able to significantly improve the carbon and waste footprints of the logistic center and save costs as well. A win win for everyone. The electricity supplied to our warehouse comes 70% from renewable sources in 2020, 100% renewable sources in 2021. To save energy, the warehouse is equipped with a geothermal heat pump and a lighting system which can be regulated independently by workplace division.