Achieving Net-zero Emissions

Our goal to achieve net-zero emissions aligns with the Paris Agreement and demonstrates how we are doing our part to limit the global temperature rise and avoid the worst impacts of climate change. We are aiming to reduce global Scope 1 and Scope 2 GHG emissions by 70% by 2025 as compared to 2018 levels. Starting in 2021, we are working to implement a strategy to reduce Scope 3 emissions, including engagement with our key business partners. Our three-pronged strategy to advance our commitment to achieve net-zero emissions is to: 

• Reduce our energy use
• Avoid emissions by using renewable electricity     
• Offset our remaining carbon emissions

We also continue to use our voice to advocate for responsible climate action, and we report on our own impacts. We have reported through the CDP (formerly the Carbon Disclosure Project) since 2006 as a demonstration of our continued commitment to climate action. We are honored to have earned an “A-” for our most recent CDP climate disclosure.

The first priority of our three-pronged approach to achieve net-zero emissions is to reduce our energy use and emissions through operational efficiency initiatives.

Tiffany operates manufacturing operations, including diamond cutting and polishing workshops in addition to our retail stores, offices and distribution facilities, which enables us to directly reduce our emissions connected to our core business through energy efficiency projects.

We seek high-impact efficiency improvements when we build new facilities and renovate existing ones. As part of our 2025 Sustainability Goals, we are aiming to reduce the electricity intensity per square foot across our retail stores by 10% compared to 2018 levels. In addition, the Company will aim for at least 30% of our floor area (by square foot) to be LEED (Leadership in Energy and Environmental Design) Silver certified or above by 2025. To date, we have over 20 retail stores, offices and manufacturing locations certified LEED Silver, Gold or Platinum, demonstrating excellence in sustainable building design and construction. All of our new retail stores are equipped with LED systems. We are also improving efficiency by incorporating more efficient heating and cooling systems, installing building energy-management systems and upgrading to energy-efficient computers and office equipment.

As we continue to reduce our energy use and purchase renewable energy to avoid generating emissions, we also purchase carbon offsets to account for those emissions we are unable to reduce or avoid. As we are procuring carbon offsets, we look for carbon-saving projects that seek to deliver additional social, environmental and economic impact beyond the climate benefits.

Beginning in 2017, we have invested annually in an initiative to conserve and restore 4,000 square kilometers of critical forest ecosystem in Kenya’s Chyulu Hills. Located between Amboseli and Tsavo National Parks, the Chyulu Hills are home to more than 140,000 Indigenous people who make their living through agriculture and livestock farming. The land also provides a critical habitat for endangered elephants and lions.

As the first major corporate investor to support the Chyulu Hills Conservation Trust project, Tiffany & Co. received credits to offset our carbon emissions and support our climate goals. We selected this REDD+ project (Reducing Emissions from Deforestation and Forest Degradation) because the funds are used in many ways, from teaching farmers about sustainable agriculture to helping entrepreneurs launch their businesses. It also empowers the people of Chyulu Hills to help protect endangered species and sustain the health of their watershed. To date, the Chyulu Hills Conservation Trust project has supported a number of programs, including school and water infrastructure for the local community, the employment of rangers and investment in new resources for firefighting, community outreach to understand local needs and enhance community-based conservation work, and resources to bolster forest and wildlife protection.

We were inspired by the collaborative approach of the Trust, which includes community members, government agencies and local nongovernmental organizations (NGOs) such as the Maasai Wilderness Conservation Trust. As a technical advisor for the project, Conservation International helps to market and sell the carbon offsets.

Addressing our Scope 3 value chain emissions, which represent approximately 90% of our carbon footprint, is a key component of our climate strategy to ensure we address the emissions of any activities related to our business. We began assessing our Scope 3 emissions in 2018, looking back to 2016, and since that time, we have further refined our methodology. Since our products do not have emissions during the use phase, we believe the most relevant Scope 3 categories for Tiffany are purchased goods and services, transportation and distribution, employee commuting and business travel. We are currently working to implement a strategy to reduce our Scope 3 GHG emissions, including engagement with our key business partners.

Climate change affects everyone—exacerbating natural disasters, accelerating biodiversity and ecosystem loss, and contributing to more frequent extreme weather events, including flooding and fires. In addition to reducing our greenhouse gas emissions, Tiffany & Co. is working to evaluate the different dimensions of risk climate change poses to our business:

• Physical risks: These include unpredictable and more frequent and severe weather events.
• Reputational and regulatory risks: Risks linked to consumer preferences and the transition to a lower-carbon economy.
• Social, cultural and economic risks: These risks include supply chain disruptions, impacts to local infrastructure and transportation systems that could limit the ability of our employees and/or clients to access our stores or manufacturing locations or damage to our stores or a reduction in the quality of raw materials we rely on to make our products.

In 2020, we began work to increase our climate resilience in line with our 2025 Sustainability Goals. We started with an assessment of the physical climate risks to our facilities worldwide, including potential exposure to heat stress, flooding, hurricanes and cyclones, water stress and sea level rise in various climate scenarios. With thorough and thoughtful planning, we aim to increase our resilience and prepare for unpredictable climate changes that lie ahead.