OVS Group is committed to:
- reduce absolute scope 1 and 2 GHG emissions 46.2% by FY2030 from a FY2019 base year;
- increase annual sourcing of renewable electricity from 91.4% in FY2019 to 100% by FY2030;
- reduce absolute scope 3 GHG emissions from purchased goods and services, and upstream transportation and distribution 46.2% by FY2030 from a FY2019 base year.
FOCUS: SCIENCE BASED TARGETS
The Target Validation Team of SBTi - Science Based Targets initiative - has determined that the Scope 1 and Scope 2 carbon reduction objectives are in line with the global plan to contain the temperature increase below 1.5°C (click here for the certificate).
Furthermore, reduction targets coincide with the Sustainability Performance Targets (SPT) defined within the financial instrument issued in November 2021, the Sustainability-Linked Bond (click here to learn more), thus strengthening the importance of these objectives and Group' s commitment to the actions already undertaken to achieve them.
DECARBONISATION STRATEGY
The decarbonisation strategy drives actions in several areas:
- at product level, increasing the use of more sustainable materials - organic and/or recycled solutions - and lower impact production processes and treatments, as well as replacing current virgin plastic packaging materials with recycled or renewables;
- at the level of headquarter and shops, increasing the use of solar photovoltaic systems, improving energy efficiency - in particular lighting and heating systems - and involving the owners of non-owned stores in the transition to electricity supplies produced by renewables;
- at the supply chain level, collaborating and supporting its suppliers in the adoption of new low-emission technologies and renewable energy sources, also thanks to their involvement in the Worldly platform;
- at the transport level, reducing air freight transportation.
SUPPLY CHAIN IMPACTS
Most of the impacts in terms of energy and water consumption are caused by the production of garments along the supply chain.
Based on the data available on Worldly, OVS Group supply chain consumes 2,400,192.59 GJ in 2024.
OVS, thank you to the engagement activities, including the compilation of Higg FEM and FSLM modules, build awareness among the suppliers about environmental risks and opportunities. In 2024 we registered that 26% of the production volumes is covered by suppliers that have adopted a decarbonisation strategy. Suppliers are also consulted annually through a survey for the investigation on which the double materiality is based.
SUPPLY CHAIN ENERGY CONSUMPTION
Below a breakdown of renewable and non renewable energy consumed by supply chain.
| Renewable (GJ) | Non Renewable (GJ) | Total (GJ) | |
| Bangladesh | 123.19 | 1,833,711.74 | 1,833,834.94 |
| Cambodia | 2,325.36 | 862.39 | 3,187.75 |
| China | 11,739.19 | 405,730.47 | 417,469.66 |
| India | 3,446.83 | 35,291.13 | 38,737.96 |
| Italy | 2.54 | 1,733.30 | 1,735.83 |
| Myanmar | 2,623.22 | 14,360.69 | 16,983.91 |
| Pakistan | 18,811.38 | 68,442.88 | 87,254.26 |
| Tunisia | - | 21.16 | 21.16 |
| Turkey | 20.88 | 224.75 | 245.63 |
| Vietnam | - | 721.48 | 721.48 |
| Total | 39,092.60 | 2,361,099.99 | 2,400,192.59 |
As we can see from the data reported the use of renewable energy in the supply chain is still limited, in 2024 it was 2%.
|
|
Electricity grid (GJ) |
Steam (GJ) |
Fossil fuels (GJ) |
Biodiesel (GJ) |
Biomass (GJ) |
Solar thermal (GJ) |
Third-part renewable electricity (GJ) |
Elctricity from autogenerated photovoltaic (GJ) |
Total (GJ) |
|
Bangladesh |
|
|
|
0 |
0 |
0 |
0 |
|
|
|
Cambodia |
|
0 |
|
0 |
|
|
0 |
|
|
|
China |
|
|
|
|
|
|
|
|
|
|
India |
|
0 |
|
|
|
0 |
0 |
|
|
|
Italy |
|
0 |
|
0 |
|
0 |
0 |
0 |
|
|
Myanmar |
|
0 |
|
0 |
|
0 |
0 |
0 |
|
|
Pakistan |
|
|
|
|
|
0 |
|
|
|
|
Tunisia |
|
0 |
|
0 |
0 |
0 |
0 |
0 |
|
|
Turkey |
|
0 |
|
0 |
0 |
|
|
0 |
|
|
Vietnam |
|
0 |
|
0 |
0 |
0 |
0 |
0 |
|
|
Total |
|
|
|
|
|
|
|
|
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Electricity in 2024 represents 9% of the total energy consumption (in 2023 was 7%) in final products manufacturing. About 3.9% of the electricity was sourced from renewable sources.
OVS has set the target to achieve, by 2040, more than 90% of electricity and 40% of total energy from renewable sources.
This will be achieved by involving main suppliers in developing own renewable plants and buying RECs for grid electricity.
There will be a more specific focus in reducing the use of Natural Gas (LNG and CNG) which represents alone the 80% of energy consumption, by implementing energy savings programs and switching to solar thermal, biomass, bio fuels and electrification, with a focus area in Bangladesh where the majority of the production take place.
USE OF COAL
OVS intends to completely eliminate the use of coal-fired boilers by 2030, by collaborating with suppliers (both of porducts manufacturig and material processing) to move towards electrification and implementation of renewable sources.
In OVS Supply Chain the use of coal occurs only in Pakistan (with just six factories still operating with coal). Coal consumption represents 0.61% of the total energy consumption (in 2023 was 1,2%) used in the garment manufacturing (Tier 1) and the 3.5% of the material processing and material manufacturing tier 2).
These suppliers cover 0,2% of total production.
ENVIRONMENTAL MANAGEMENT SYSTEM
OVS Group has implemented a management system in line with ISO 14001:2015.
OVS does not adopt an internal carbon pricing system.