Climate Action and Biodiversity
Introduction
At GANNI, we approach our work on Climate Action & Biodiversity through three key areas: 7by27 decarbonisation strategy, Carbon Insetting, and Biodiversity.
2024 marks the second year of our GAMEPLAN 2.0 strategy, and with climate action remaining a steady priority, we’ve been doubling down on the work outlined in our 7by27 decarbonisation strategy, our pathway to halving absolute emissions by 2027. But while the long-term work continues at pace, 2024 has been a year of firsts in many ways.
This year, we completed our first full year with no virgin leather in our collections, a commitment we made back in 2019. We’re now seeing the carbon reductions that come with it, and we’re building on that momentum by doubling down on our materials strategy. To make sure we’re capturing every part of garment production, we kicked off a partnership with Carbonfact, our new carbon accounting partner, and recalculated our entire carbon footprint all the way back to our 2021 baseline (more on that later!). For the first time, we also ran product-specific LCAs (life cycle assessments) to get a clearer picture of where emissions are coming from, and where we can cut them. Next up, we were able to reflect the positive impact of our Carbon Insetting initiative in our carbon footprint for the first time. This initiative involves investing directly in our supply chain by installing solar panels on our suppliers' rooftops. And last but not least, we’ve tapped into space technology, launching a pilot project to explore how satellite data can help us understand the impact on biodiversity across our supply chain.
The Scientific Stuff
Calculating our Carbon Footprint
Calculating and monitoring our carbon footprint is one of the most effective tools in our decarbonisation toolkit, helping us pinpoint where the biggest chunks of carbon are coming from, assess whether they represent opportunities for change, and understand the impact of our business as deeply as possible. We’ve been tracking our emissions since 2016. In 2020, we partnered with Plan A to align our carbon calculations with the Greenhouse Gas Protocol framework, set our 2021 baseline, validate our decarbonisation goal, and carve out initial reduction pathways through our 7by27 strategy.
In 2024, we recognised the need to unpack the full picture of our product emissions, knowing that the majority of our total emissions stem from the making of our products. This led to a new and exciting partnership with Carbonfact, a leading software solution tailored specifically for the fashion industry. As a result, we are now running life-cycle assessments (LCAs) across our entire product catalogue, analysing our data to pinpoint the most emission-intensive stages of production, and modelling design changes that can lead to measurable carbon savings. This marks the start of a new chapter in our decarbonisation journey, and we’re excited to take you with us.
To maintain year-on-year comparability (think being able to compare apples to apples), we recalculated our full carbon footprint dating back to our 2021 baseline - known in the industry as ‘re-baselining’. This means that, compared to our previous Responsibility Report, you’ll notice consistently higher carbon figures. That’s because we’re now accounting for all processing stages of product making, from raw material treatment and processing to assembly, finishing touches, and even packaging. Because these stages represent the largest share of our product emissions, our latest results offer a more complete picture of our carbon footprint, while still fully aligned with the Greenhouse Gas Protocol.
Scopes Explained
SCOPE 1
Direct emissions from owned or controlled sources. e.g. stores and offices
SCOPE 2
Indirect emissions from the generation of purchased energy
Scopes 1 and 2 make up just around 1% of our total emissions, but they’re still part of the picture. These come from the energy used in our own spaces, like our offices and stores around the world. We track this by collecting data from each location, looking at the type of electricity and heating used, as well as overall consumption. With over 70 sites globally, it’s no small task and often means working with landlords, architects, and facility teams.
SCOPE 3
Indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions
Scope 3 is where the bulk of our carbon footprint sits. It includes everything that happens across our value chain, from how our products are made, moved, and used, to how our employees travel for work. The biggest share comes from our products (formally known as “purchased goods”). From raw material extraction to final assembly, every processing step is captured here before a product even reaches the shelf. Transportation emissions are captured here too, reflecting the carbon footprint from moving products from suppliers to warehouses, to stores and wholesale partners, and to our customers when ordered online.
Scope 3 also covers the use phase (how our products are cared for after they’re sold), as well as employee commuting and business travel.
2024 Carbon Emissions
GANNI reaches 50% absolute reduction in CO2 emissions by 2027 based on a 2021 baseline
After recalculating all our data, our new 2021 baseline is set at 41,756 tCO2e. This means that our yearly progress towards our 50% emissions reduction goal is measured by comparing our annual emissions to this number.
In 2023, we reported our first reduction in absolute emissions, dipping 7% below our previous baseline. After recalculating, we’re pleased to confirm this reduction, with our new 2023 results now standing at 33,435 tCO2e, an actual reduction of 20% in 2023 compared to 2021.
As of 2024, our total emissions total to 31,708 tCO2e, marking further progress towards our goal with a 24% decline in total emissions compared to our recalculated 2021 baseline. We’re proud to report a reduction for the second year in a row, deepening our commitment to decoupling emissions from business growth and strengthening confidence in our strategy and bet on innovation.
Following the same pattern as in previous years, 99% of our total emissions stem from Scope 3. The largest share comes from our material choices and garment production (accounting for 70% of total emissions), followed by transportation and non-product-related business expenses, such as marketing services, IT, and more.
Here is a breakdown of our Scope 1, 2 and 3 categories with respective tCO2e emissions for 2021, 2023, and 2024.
Overview of GANNI’s Carbon Footprint
Here is a breakdown of our Scope 1, 2 and 3 Categories with Respective tCO2e for 2021, 2023, and 2024.
Chart Key:
Direct Emissions (Scope 1): 0.36%
Indirect Emissions (Scope 2): 0.74%
Purchased Goods (Products) (Scope 3): 71.75%
Purchased Services (Scope 3): 7.66%
Upstream Transportation and Distribution (Scope 3): 8.83%
Business Travel (Scope 3): 0.42%
Employee Commuting (Scope 3): 0.00%
Upstream Leased Assets (Scope 3): 1.16%
Downstream Transportation and Distribution (Scope 3): 1.09%
Use of Sold Products (Scope 3): 5.58%
End-of-life Treatment of Sold Products (Scope 3): 2.42%
Carbon Accounting Category
2021 Result
(Baseline)
2023 Result
(tCO2e)
2024 Result
(tCO2e)
% difference from baseline (2021)
Scope 1 & 2
Direct Emissions
64.94
98.46
113.86
+75%
Indirect Emissions
91.44
218.14
233.25
+156%
Scope 3
Purchased Goods (Products)
31,650.00
24,810.00
22,750.00
-28%
Purchased Services
1,280.00
2,190.00
2,430.00
+90%
Upstream Transportation and Distribution
4,870.00
2,810.00
2,800.00
-43%
Business Travel
39.96
102.42
132.08
+231%
Employee Commuting
1.29
0.75
0.36
-72%
Upstream Leased Assets
708.65
357.11
367.06
-48%
Downstream Transportation and Distribution
212.13
527.74
344.90
+63%
Use of Sold Products
1,910.00
1,550.00
1,770.00
-7%
End-of-life Treatment of Sold Products
927.34
770.09
766.17
-17%
TOTAL CO2 Emissions
41,755.75
33,434.71
31,707.70
-24%
Decarbonisation
No goal is complete without a plan to get there. That’s why our climate action efforts are built around seven key workstreams, forming our 7by27 decarbonisation strategy (introduced for the first time in our 2022 Responsibility Report). These workstreams are spread across the four pillars of this report (social impact, climate action, materials, and circularity), enabling us to tackle carbon reduction holistically. Each workstream is rooted in a careful analysis of our carbon footprint and represents a clear opportunity to drive change where it matters most. To reach our vision of cutting absolute emissions by 50%, progress across all seven areas needs to happen in tandem, with each one influencing the others along the way.
The 7 by 27 Workstreams
1. Materials & Innovation
Using Preferred Materials & Fabrics of the Future
2. Climate Action Awareness
Creating internal & external awareness campaigns
3. Renewable Energy
Ensuring the use of renewable energy in stores & offices
4. Circularity
Designing for circularity, circular business models, increasing recycling & upcycling
5. Transportation
Decreasing emissions in inbound, outbound & last mile delivery
6. Carbon Insetting
Investing directly in our supply chain to reduce carbon emissions
7. No Coal
Removing the use of coal in our supply chain
In the Spotlight
Product LCA of Our Cotton Poplin Blouse
We already mentioned that over 70% of our total emissions come from our products. That’s why we teamed up with Carbonfact, to get to the bottom of this major slice of our footprint. Using Carbonfact’s proprietary LCA engine, we’re now able to run life cycle assessments on every single product we make. This breaks down a product’s environmental impact across key stages like raw materials, processing, final assembly, distribution, use phase, and end-of-life. It means we can pinpoint exactly where emissions are coming from – and where we have the biggest opportunities to reduce them.
We can also slice this data in so many ways: which product categories are the most carbon-heavy, where in the world our most emission-intensive garments are produced, and even model different scenarios to explore the impact of switching materials. To the right is an example of the LCA of our Printed Cotton Poplin Blouse.
- Product composition: 100% organic cotton
- Product weight: 180g
- Assembly (Tier 1): India
While we celebrate our continuous progress, we know that our 50% absolute emissions reduction goal is highly ambitious. But that’s the point. We need a moonshot target to drive urgency, mobilise our teams, and make sure climate action stays front and centre, not something to “worry about later.” Only then can we make real progress, spark broader change in our industry, and honour the targets set by the Paris Agreement. That said, staying on track won’t be easy. Because our goal is based on absolute emissions, business growth isn’t factored in. So every year, we need to cut emissions just to hold the line, and even more to move closer to our goal.
Our biggest gains so far have come from our materials strategy. In 2024, we saw the impact of phasing out virgin leather, a milestone we’ve worked toward since 2019. While we replaced it with other materials, its removal drove a clear drop in emissions, getting us almost halfway to our target. But now that this decarbonisation lever is pulled, future reductions will need to come from multiple angles. That’s why in 2025, we’re doubling down: advancing our materials strategy further, scaling the commercial adoption of Fabrics of the future, finding ways to cut air freight, and tapping into circular business models. Part of our progress also hinges on broader industry collaboration and external innovation, whether that’s new next-gen materials, or breakthrough tech. Now more than ever, we need to work together to move the needle.
Carbon Insetting
Scale and evolve carbon insetting to 7 suppliers by 2025
Between 2022 and 2023, we partnered with four of our suppliers to install solar panels on their rooftops: three Tier 1 suppliers (manufacturing) in Portugal and Italy, and one Tier 2 supplier (textile production) in Italy. By the end of 2024, all four sites had fully operational solar systems in place and are now running production with support from renewable energy. Thanks to our partnership with Carbonfact, we can now link this initiative to a reduction in our product emissions. We do this by tracking the electricity usage at each supplier site (including how much comes from solar panels) and factoring that data into the calculation of the carbon footprint of the products made there.
Measurement of the Impact
In 2024, we focused on measuring the impact at two manufacturing sites. The first is in Braga, Portugal, where the supplier has had operational solar panels for two years. This site produces some of our iconic organic cotton t-shirts and software collection. The second is located in Prato, Italy, where a portion of our knitwear is manufactured. This supplier used solar energy for most of last year.
By using renewable energy to power production, emissions associated with product assembly at these two supplier sites were reduced by an average of 35% across both factories.
Reducing emissions by investing directly in our supply chain, rather than relying on offsets, makes complete sense to us, and we’ll continue monitoring the impact of the four sites already running on solar power. But we’re not stopping here. Our goal is to onboard three more suppliers by the end of the year, bringing our total to seven suppliers with carbon insetting by 2025.
What makes this tricky is that global fashion supply chains are under a lot of pressure right now, and deciding which suppliers to partner with next isn’t straightforward. It’s not just about financial investment; it also involves committing to certain production volumes at the site, and for several years ahead. On top of that, many of our newer suppliers already have solar panels in place (which is a big win), but it means we’re running out of Tier 1 suppliers where we can still make a difference. Going deeper into Tier 2 and Tier 3 would be a big move, and notably more impactful (this is where yarn spinning, knitting, and fabric dyeing or printing take place, all energy-intensive, high-emission processes). But our leverage here is limited, simply because GANNI doesn’t make up a large share of production at that level. To drive meaningful change in this part of the supply chain, collaboration between multiple brands is essential. It’s the only way to build enough influence and direct investment where it can drive the greatest impact, something we’re exploring further for 2025.
Biodiversity
Pilot 2 measurable biodiversity projects in Portugal by 2023
As part of our carbon insetting initiative, we also partnered with the same two Portuguese suppliers in 2022 to launch pilot projects focused on enhancing and restoring local biodiversity around their factory sites.
To shape the scope of the projects, we teamed up with STRIX, a local biodiversity consultancy, who conducted an ecological assessment of the surrounding areas and recommended a range of actions to support local fauna and flora.
At one factory, the measures were implemented in September 2022, with STRIX returning in November 2023 to assess the impact. You can read more about those findings in last year’s Responsibility Report.
For the second supplier, some measures were rolled out in late 2023, with more following throughout 2024. Since the full set of actions only wrapped up recently, STRIX will return for an impact assessment in spring 2025, just in time for nature to do its thing. We’ll share the findings in next year’s Responsibility Report.
Develop a biodiversity strategy by 2023
Developing our own biodiversity strategy remains a priority within our sustainability roadmap, GAMEPLAN 2.0. To ensure a meaningful approach, we're focused on gathering as much data as possible about our own impact, so we can pinpoint where action is needed.
Our local projects in Portugal, run in collaboration with STRIX, allow us to make tangible changes, helping promote biodiversity and improve the natural surroundings of our suppliers. But their impact is limited to the micro-environments directly around those factory sites. To truly help restore healthy ecosystems and support climate adaptation, we also need to explore more systemic solutions that can scale. That’s why we partnered with EUSPA and are now exploring how space data can support this mission (more on that below). Broader industry collaboration is just as important here, because biodiversity isn’t influenced by one brand alone.
By combining what we’ve learned from our pilot projects with a push to contribute to wider industry efforts, we’re working on a clear, actionable strategy to protect biodiversity across our full value chain.