Greenhouse Gas Inventory Assessment

American Eagle Outfitters' environmental policy is "to make a better world by reducing our environmental impact in all areas of our business." Therefore, we strive to implement environmental accountability and transparency in our business decisions company-wide. A key component was to conduct a greenhouse gas (GHG) inventory for FY 2012 using World Resources Institute's GHG Corporate Accounting and Reporting Standard to understand our current carbon emissions. American Eagle Outfitters' GHG Inventory included Scope 1, Scope 2 and Employee Travel in Scope 3. Our GHG Inventory boundary included American Eagle Outfitters offices, distribution centers, data centers and retail stores residing primarily in North America.

Scope 2 was the largest contributor to American Eagle Outfitters' total greenhouse gas emissions. As displayed in Table 2, Scope 2 was responsible for 94% of the absolute GHG emissions in 2012.

As a result of our GHG Inventory, we have identified areas for energy reduction and set an aggressive GHG goal consistent with our company value of being passionate stewards of our limited natural resources. By the end of 2017, American Eagle Outfitters' goal is to achieve a 20% reduction below the 2012 baseline of 0.014 CO2e mt/square foot (29.9 CO2e lbs/sf) which would amount to 0.011 CO2e mt/sf (23.9 CO2e lbs/sf).

Our retail stores and distribution centers accounted for 93% of Scope 2 emissions, with the remaining emissions attributed to offices and data centers (Chart 2). Total Scope 2 emissions were fueled 97% from electricity and 3% from natural gas (Chart 3).

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