Report Card: Timberland’s Social & Environmental Performance

Today, Timberland released our Q3 2010 CSR results. We issue quarterly reports about our social and environmental performance to be accountable for our impacts and progress towards forward-looking goals. As Timberland’s Strategy and Reporting Manager, it’s my job to collect all of this data and analyze its impact on the business. Are we on track to meet our goals? Are there areas we need to improve upon? We believe sharing both positive and (sometimes) negative results allows us to have a credible conversation with stakeholders – who in turn challenge and push us to reduce our impacts even further.

Here are some highlights from this quarter’s results, organized by Timberland’s Four CSR Pillars. Find the 1-page summary here, or check out the reports yourself by clicking on Reporting & Download tab of the new CSR page on Timberland’s online community.

ENERGY:

We achieved a 3% emissions reduction in Q3 2010 compared to Q3 2009. This achievement is due to energy efficiency improvements (LED lighting retrofits in our stores and energy efficiency improvements in our corporate headquarters) and additional stores in Europe purchasing renewable electricity. The continued decrease in emissions puts us close to our 50% emissions reduction goal.

PRODUCT:

We saw a slight increase in Green Index ® scores (7.28 in Q1 2010 vs. 6.61 in Q1 2009; higher scores demonstrate larger environmental impact) this quarter.  This is primarily due to scoring a greater range of products which include heavier, leather products that have a greater carbon footprint.  We are, however, happy to see a year-over-year improvement in chemicals and resources scores. This demonstrates our product teams’ increased focus on using water-based adhesives, as well as recycled, renewable, and organic materials, and reduced reliance on PVC.

WORKPLACES:

At the close of Q3 2010, 32% of our suppliers hold High Priority scores (compared with 27% of suppliers at the end of Q2 2010) primarily due to Wages and Working Hours.  With the economic situation improving (orders increasing) while labor shortages increase, we anticipate working hours to be a recurrent issue for many factories this year.  Our sourcing managers are working with more focus to regularly assess production capacities of their factories and make adjustments in orders or secure additional suppliers.

SERVICE:

Timberland employees served a total of 57,067 hours in the first three quarters of 2010, which represents a 5% decrease in hours served at the close of Q3 2009.  Continuing high demands on employees‘ time at our manufacturing facility in the Dominican Republic along with our distribution centers in Danville, KY and Ontario, CA led to a significant decrease in hours served as compared to this time last year.  However, in Q3 2010, employees in Europe, our Stratham headquarters, U.S. Retail and Asia posted gains in service hours.

How do you think we’re doing? Share your thoughts here on the blog or visit our online forum to share your thoughts on individual pillars.

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