Timberland’s Quarterly CSR Update

Last month, Timberland announced its 2nd quarter CSR performance. Highlights from this quarter’s performance are as follows, organized by Timberland’s four CSR Pillars: climate, product, factories, and service:

Our Greenhouse Gas emissions increased by 11% in Q2 2011 compared to performance in Q2 2010. This change is primarily due to increases in air travel as our business rebounds, as well as the fact that we are no longer purchasing offsets for our Smartwool operations. With forecasted business growth this year, we are targeting static emissions for our owned and operated facilities (and employee air travel) as compared with our year-end 2010 result. We have prioritized several energy efficiency projects and renewable energy purchases to meet this goal.

Timberland continues to prioritize the use of environmentally-preferred materials in our products. In Q2 2011, 28.75% of materials in our apparel production were recycled, organic, or renewable (ROR). This result is consistent with Q2 2010 ROR use at 29.1%. Timberland’s International Design Center continues to drive improved ROR use across our apparel production. We are also working with our Licensee partners to further incorporate these materials.

34% of our suppliers had High Priority scores in Q2 2011, which is relatively the same as our Q1 2011 results. Controlling working hours and effective wage calculation/payment processes were issues for 85% of the High Priority factories. Our sourcing managers are increasing regular assessments of factories’ production capacities and making adjustments in orders (or securing additional suppliers).

Timberland employees served a total of 45,702 hours year to date, as of the end of Q2 2011. The Hours Utilization Rate (HUR – the percentage of employee service hours used compared to total available according to the Path of Service program) year to date at the end of Q2 2011 was 21%, which is slightly higher than our Q2 2010 result.

Additional Q2 2011 performance data and analysis can be found in the Goals & Progress section of Timberland’s new CSR website.

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