VF Corp. is making progress when it comes to being a more sustainable business.
The maker of brands such as Vans, The North Face and Timberland on Monday said it used 34% renewable energy across its direct operations in fiscal year 2022, which marked a 7% improvement from the prior year. Overall, VF is aiming to utilize 100% renewable energy across all of its owned and operated facilities by fiscal year 2026.
This progress, as well as other social and environmental achievements throughout fiscal year 2022, was outlined in VF Corp’s fifth “Made for Change” report. The company released the report on Monday and analyzed its current achievements against its long-term goals.
“At VF, our performance-driven culture is grounded in purpose, which leads us to remain sharply focused on delivering consistent business results while also achieving high standards in environmental and social responsibility,” said VF chairman, president and CEO Steve Rendle in a statement.
In fiscal year 2022, VF Corp. also said it published “traceability maps” for 100 of its popular products, in line with its goals to be able to to trace five key materials through its supply chain by fiscal year 2028. These maps allow the company “to publicly share deep insights about our supply chain,” Rendle explained.
In fiscal year 2021, 36% of VF’s polyester came from recycled materials, in line with its overall goal to source 50% of its polyester from recycled materials by fiscal year 2026.
VF Corporation is the latest company to provide an update regarding its sustainability goals, a practice that has become commonplace among global companies, especially among those with a significant manufacturing component. In its first-ever sustainability report last month, Allbirds said it reduced its average product carbon footprint by 12% between 2020 and 2021.
Last month, VF reported revenues of $3.1 billion in the second quarter, marking a 4% decline. Adjusted earnings per share were $0.73, down 34% and in line with analysts expectations, according to Yahoo.
By brand, Vans revenue declined by 13% to $1 billion in Q2 and The North Face revenues were $1 billion, up 8% (or 14% in constant dollars). This marks the outdoor brand’s second largest quarter in history. In Q3 of last year, The North Face surpassed $1 billion in sales for the first time.
While VF Corp once again downgraded its financial outlook for fiscal year 2023, the company expects the The North Face to grow by at least 12%.