Scotch & Soda releases annual impact report
Amsterdam-based fashion brand Scotch & Soda has released its second Impact Report for the 2021/2022 financial year. The report includes its first Environmental Profit and Loss (EP&L) assessment calculated over the last two years and carried out by Sustainalize, a Dutch sustainability consultancy.
Scotch & Soda’s revenue rose to €342.5 million in the reporting year, a 23% year-to-year increase, which was accompanied by a 34% increase in produced material volumes. This has led to a 36% increase in the monetary value of the environmental impact it caused through direct and indirect company activities, from raw material production to a product’s end-of-life, it said in reference to the EP&L assessment. The brand attributes this increase both to the growth of its sales and to the wider scope of its impact reporting that now includes licensee products.
The EP&L assessment further revealed that the greater part of the brand’s environmental impact is due to the materials it uses in its collections and occurs during raw material production, which generates greenhouse gas emissions, air pollution and water usage.
With regards to water consumption, a key metric the company follows, the Water Intensity metric has found that on average 1.4 cubic metres of water are used to produce 1 kilogram of material, a 5% reduction compared to its water footprint the previous year. This shows that the brand’s uptake of organic, recycled and regenerative materials has enabled it to decouple a measure of its business growth from the corresponding environmental degradation.
Scotch & Soda sustainability lead Jelle de Jong commented: “We have implemented the EP&L at the core of our sustainability strategy to generate a 360-degree understanding of our environmental footprint across the entire value chain, from cradle to grave. This approach goes hand-in-hand with our work of obtaining full product traceability down to the stage of raw material production, giving us the opportunity to deal with social and environmental challenges that fit the needs of a specific location.”
The report can be downloaded here.
Image courtesy Scotch & Soda.
