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. To support our commitment to achieve net-zero emissions, we have a three-pronged strategy to reduce, avoid and offset our carbon emissions. We also continue to use our voice to advocate for responsible climate action.

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 of June 2020, 16 of our new and renovated retail stores in our Asia-Pacific region received LEED (Leadership in Energy and Environmental Design) Silver or Gold certification, demonstrating excellence in sustainable building design and construction. All new retail stores are equipped with LED systems and in 2019, we converted lights at 16 of our existing retail locations. Globally, we have LED lights now at 36 of our retail stores. 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. In 2020, we began renovations to the New York flagship store that incorporate additional ways to minimize our environmental footprint and make the Tiffany New York flagship store a model of our company’s broad sustainability commitment.

Separate from our purchases of renewable electricity, our global greenhouse gas emissions decreased by 8% between 2013 and 2019 even as our global operations grew, and we reduced our emissions per square foot by 21% over the same period. We are also taking steps to better understand our carbon footprint outside our direct operations (Scope 3 emissions), including from sourcing, transportation and third-party manufacturing. In 2018, we completed a baseline assessment of our Scope 3 emissions and are currently assessing our approach to reducing those emissions.

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. Outside of our business, we also 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.

We were inspired by the collaborative approach of the trust, which includes community members, government agencies and local 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.

Climate change affects everyone on the planet—exacerbating natural disasters and contributing to more frequent extreme weather events, flooding, fires, warming oceans, unpredictable weather patterns and more. In addition to reducing our greenhouse gas emissions, Tiffany & Co. is working to evaluate the risks climate change poses to our business. We focus our risk assessments on key operational areas, including our physical assets, infrastructure and retail locations and our employees, as well as the potential supply chain impacts on the materials we need to conduct our business. 

In 2020, we began 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. For more information about our climate risks, please reference our 10-K and our annual CDP disclosure.