How On Is Progressing With Its Sustainability Goals
On Holding is making strides in its efforts to become a more sustainable footwear brand.
The popular Swiss running shoe brand on Monday released its 2022 Impact Progress Report, its third progress report since 2019 in which the brand details its progress in meeting its previously outlined sustainability goals.
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On specifically called out two major sustainability accomplishments in the report: the brand has decreased carbon dioxide equivalent (CO2eq) emissions per unit of value added by 12 percent compared to 2019 and has also increased the use of recycled polyester in its products to 85 percent, in line with its broader goal to achieve 100 percent recycled polyester and polyamide in 2024.
By 2024, On aims to use 100 percent recycled, organic, or petrol-free cotton. 30 percent of On’s materials across all categories were fossil free in 2022. On also aims to use 100 percent renewable electricity in its offices and stores by 2024 and have all of its vehicles be electric by 2030.
“We’re incredibly proud of our positive trajectory toward achieving our sustainability targets,” said Begum Kurkcu, On’s head of ESG, in a statement. “We’re proving that we can grow our business and continue to put the environment first. This is extraordinary given the tremendous growth our company is experiencing and our expanded physical footprint with new stores and offices.”
Last month, On delivered another round of record results — and its sixth consecutive record quarter of top line growth — in Q2. Net sales soared 52.3 percent compared to the prior year, hitting 444.3 million Swiss francs, or $504 million at current exchange, for the quarter ending June 30. The company raised its outlook for fiscal year 2023 and now expects net sales to reach at least 1.76 billion Swiss francs, or more than $2 billion, which would represent a full year growth rate of 44 percent.
Like other footwear brands, On has outlined long-term targets to reduce greenhouse emissions. The brand plans to see a 46 percent reduction in Scope 1 and 2 emissions and a 55 percent economic intensity reduction in Scope 3 emissions by 2030. Currently, a third of On’s Tier 1 suppliers use renewable energy and On plans to bring that up to 100 percent by 2027.
In 2022, On collaborated with resale leader Trove to launch its “Onward” program, which allows consumers to shop and trade in pre-owned On products. By the end of 2022, 5,400 customers had purchased more than 9,600 used items through the program.
On also outlined progress in its diversity and inclusion goals in the report. In 2022, the percentage of female employees in On’s corporate workforce increased to 46.9 percent from 46.7 in 2021. The percentage of BIPOC employees increased to 25.8 percent from 23.3 percent in 2021.
“We know there are more places where we can lend our support, and much more we can do to create a positive impact for people,” the report read. “Being transparent is just the very beginning.”
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