Climate and Energy

Corporate Responsibility / Environment / Climate & Energy

In April 2022, TJX was pleased to announce new environment sustainability goals, as shown above.

SASB: CG-MR-130a.1
UN SDGs: 7;13

We work across our global business operations to measure, manage, and mitigate our climate impacts. In April 2022, we announced commitments to reduce the climate impacts of our own operations—meaning our stores, home offices, distribution (or processing) centers, and certain vehicles.

Our global climate and energy targets include:

By 2030:

  • We expect to reach a 55% absolute reduction in greenhouse gas (GHG) emissions from our own operations (Scope 1 and Scope 2) by Fiscal 2030 (against a Fiscal 2017 baseline)

  • We intend to source 100% renewable energy1 in our operations

By 2040:

  • We have a goal to achieve net zero GHG emissions in our own operations (Scope 1 and Scope 2)

These commitments were developed using industry guidance, research, and models that support an emissions growth path aimed at limiting global warming to 1.5 degrees Celsius, in line with the goals of the United Nations’ Paris Agreement.

In Fiscal 2023, we established an internal Global Carbon and Energy Management Group (GCEG), a global, cross-functional team with responsibility for supporting TJX in making progress against our operational net zero and renewable energy targets and for managing the process for accurately measuring and reporting key climate and energy data. In Fiscal 2023, the GCEG led the development of the Company’s net zero roadmap, which outlines our plans and strategic approach to achieving our global climate and energy targets.

Through our net zero roadmap, we have identified emissions reduction strategies and tactics that aim to reduce our Scope 1 and Scope 2 emissions in line with our commitments. Initially, we plan to focus on reducing emissions in our facilities by accelerating investments in some energy efficiency technologies, such as HVAC and LED lighting, and increasing renewable energy purchases across our global organization. We also continue to monitor the development of electric vehicles and alternative fuels in order to reduce fleet emissions where feasible.

FY23 Climate and Energy Metrics

GHG Emissions:

  • We have achieved a 29% reduction in absolute, market-based GHG emissions since Fiscal 2017 and are progressing along our modeled emissions reduction pathway. We reduced our absolute, market-based GHG emissions by 1.7% relative to Fiscal 2022.2 We continued to grow our business and operational footprint over the same period.

  • Together, in Fiscal 2023, our energy management and renewable and low-carbon efforts resulted in a reduction of over 240,000 metric tons of CO2e from our operations.

Renewable Energy:

  • 27% of energy sourced in our own operations globally came from renewable sources.

  • In Fiscal 2023 alone, we sourced over 478 million kilowatt hours of renewable energy, generated from a variety of technologies, such as solar, wind, biomass, and hydropower. Together, our renewable and low-carbon energy sourcing strategy in Fiscal 2023 enabled us to reduce our Scope 2 market-based GHG inventory by more than 219,000 metric tons of CO2e.

  • In comparison to Fiscal 2022, TJX’s renewable and low-carbon energy sourcing increased by about 5% in Fiscal 2023.
  • Compared to Fiscal 2022, TJX purchased 22,000 megawatt hours more renewable and low-carbon energy, including renewable energy certificates (RECs), onsite solar power purchase agreements (PPAs), and utility-supplied renewable energy.
Progress against net-zero GHG Emissions target chart

Reducing Emissions: In Our Own Operations

Energy Efficiency

Reducing energy consumption where feasible is one of our first considerations for reducing emissions. Operations teams in each of our geographies are actively working to manage our energy consumption and costs, analyze and improve our operational performance, and test potential technologies in the facilities we operate to help us drive progress against our operational goals. Where feasible, we are taking the following steps:

  • Implementing light-emitting diode (LED) technologies in stores and distribution centers globally
  • Installing high-efficiency HVAC systems in existing stores and distribution centers in certain geographies
  • Utilizing energy-efficient building designs and controls in new buildings
  • Exploring and leveraging utility-level energy efficiency incentives and programs

In Fiscal 2023, we conducted triple the number of store LED lighting retrofits compared with Fiscal 2022, and it is our intention to upgrade all applicable stores globally to LED lighting. We are also exploring, and in some instances piloting, new technologies to optimize access to and use of our energy data as well as evaluating high-volume, low-speed (HVLS) fans and demand-control ventilation for HVAC, which may be applicable across certain facility types.

Renewable and Low-Carbon Energy

We source low-carbon and renewable energy to help further reduce the GHG emissions associated with our electricity consumption. To work toward the achievement of our 100% renewable energy goal, we have developed a variety of renewable energy sourcing strategies across our global operations. Some examples of our current sourcing strategies include:

  • Wholesale off-site power purchase agreements
  • On-site solar power purchase agreements
  • Electricity supply contracts and utility green tariffs
  • Renewable energy credits

We have deployed on-site solar at some of our U.S. distribution centers, including in Arizona, Connecticut, Massachusetts, and Nevada, as well as at our processing center in Germany. Because we lease, rather than own, nearly all our store locations, we have less flexibility in installing solar on store rooftops. That said, we are pleased to have installed solar at select stores in both the U.S. and the U.K. We continue to engage in conversations with certain landlords to explore the feasibility of installing rooftop solar panels at additional locations.

In Europe, for stores where TJX can manage our own electricity use, we covered 100% of our electricity use with renewable sources in Fiscal 2023.

Offsetting

In certain geographies, we have leveraged carbon offsets3 to offset emissions resulting from our own operations and certain reported Scope 3 emissions. For example, TJX Canada has now been carbon neutral for its Scope 1 and 2 and reported Scope 3 (business travel and operational waste) emissions for five consecutive years. The team reduced energy usage and purchased renewable energy credits as well as carbon offsets to support this strategy. In Fiscal 2023, from a combination of projects including peatland restoration in Indonesia and a low-impact hydroelectric project in Turkey, TJX Canada offset a total of 20,200 metric tons of CO2e.

As part of our longer-term approach for achieving our 2040 global net zero emissions goal, we are exploring ways to source carbon offsets only in the event that there are remaining emissions that need to be neutralized following our efforts to reduce emissions through energy efficiency and switching to renewable and low-carbon sources of energy through 2040. In this case, we would intend to source carbon offsets from neutralization projects that we determine to be consistent with publicly available guidance on the attainment of net-zero GHG emissions targets.

Transportation and Fuel

To help reduce our Scope 1 emissions (which include emissions from the use of natural gas and diesel in our own operations), we are monitoring the development and deployment of alternative fuel/electric vehicles.

Although TJX does not generally own or lease the vehicles that transport our merchandise, some vehicles do fall within our operational footprint (Scope 1) in limited instances, including where we directly manage our logistics and distribution for long-haul and outbound store deliveries, such as in the U.K. and Ireland, as well as some fleet vehicles. Together with our partners, we work to simultaneously increase fuel efficiency, reduce costs, and decrease the impact of our vehicles on the environment. Our key strategies for reducing these emissions include:

In the U.S. we:

  • Utilize hybrid cars for a small portion of our fleet vehicles.

In the U.K. and Ireland, we:

  • Have begun to switch to hydrotreated vegetable oil (HVO) in our shunt vehicles, which we plan to implement across our three U.K. processing centers.
  • Continue to increase the use of both longer-semi trailers and Liquified Natural Gas (LNG) tractor units. Using longer trailers improves efficiency by increasing average payload.
  • Support ongoing initiatives including the implementation of fleet analytics and tire pressure monitoring to deliver incremental fuel efficiency as well as regularly reviewing our delivery schedules to reduce miles traveled and empty miles.

We are also monitoring the development and deployment of technologies that could help us reduce Scope 1 emissions in our owned and leased buildings, including new HVAC technologies such as heat pumps.

Building Green

Where feasible when we construct new buildings, we have worked to incorporate environmentally sustainable features. For example, our newly constructed distribution centers and processing centers are built to include the addition of on-site solar arrays wherever feasible. Furthermore, when we move into existing properties, as part of the renovation process, our design teams typically consider ways to improve energy efficiency and water conservation and to develop recycling infrastructure.

Intergrating sustainability into operations
Intergrating sustainability into operations

LEED- or BREEAM-Certified Buildings

  • Phoenix, Arizona, US
  • Jefferson, Georgia, U.S.
  • Marlborough, Massachusetts, U.S.
  • Las Vegas, Nevada, U.S.
  • New Albany, Ohio, U.S.
  • Mississauga, Ontario, Canada
  • Balham, U.K.
  • Didcot, U.K.
  • Hackney, U.K.
  • Hereford, U.K.
  • Wakefield, U.K.
  • Watford, U.K
  • Sulechów, Poland

On-Site Solar Installations*:

  • Phoenix, AZ, , U.S.
  • Tucson, AZ, U.S.
  • Clovis, CA, U.S.
  • Dublin, CA, U.S.
  • El Segondo, CA, U.S.
  • Paso Robles, CA, U.S.
  • Petaluma, CA, U.S.
  • San Diego, CA, U.S. (x2)
  • Torrance, CA, U.S.
  • San Dimas, CA, U.S.
  • Palmdale, CA, U.S.
  • Oxnard, CA, U.S.
  • Vallejo, CA, U.S.
  • Rowland Heights, CA, U.S.
  • Bloomfield, CT, U.S.
  • Bristol, CT, U.S.
  • Norwell, MA, U.S.
  • Worcester, MA, U.S.
  • Brick, NJ, U.S.
  • Bridgewater, NJ, U.S.
  • Edgewater, NJ, U.S.
  • Holmdel, NJ, U.S.
  • North Brunswick, NJ
  • Secaucus, NJ, U.S. (x2)
  • N Las Vegas, NV, U.S.
  • Westbury, NY, U.S. (x2)
  • Barnsley, U.K.
  • Altringcham, U.K.
  • Bergheim, Germany

Off-Site Renewable or Carbon-Free Product:

  • Phoenix, Arizona, US
  • Jefferson, Georgia, U.S.
  • Marlborough, Massachusetts, U.S.
  • Las Vegas, Nevada, U.S.
  • New Albany, Ohio, U.S.
  • Mississauga, Ontario, Canada
  • Balham, U.K.
  • Didcot, U.K.
  • Hackney, U.K.
  • Hereford, U.K.
  • Wakefield, U.K.
  • Watford, U.K
  • Sulechów, Poland

*In some cases TJX chooses not to retain ownership to the renewable energy certificates associated with the installation.

Reducing Emissions: In Our Value Chain

Estimating Scope 3 Emissions

We have begun to evaluate how our commitment to reduce our Scope 1 and 2 emissions might be extended to certain Scope 3 emissions sources as well. As an early step in this feasibility assessment, we have conducted a high-level estimate of both our upstream and downstream GHG emissions (Scope 3), which is helping us better understand the potential significant sources of emissions associated with certain activities in our value chain.

We have also taken preliminary steps to establish a process to improve the measurement of certain Scope 3 emissions categories beyond those which we are already reporting. We aim to model potential science-based reduction target pathways and develop a roadmap with potential mitigation strategies. While we have made strides in recent years to understand the feasibility of establishing a more accurate baseline and a more accurate accounting of certain relevant Scope 3 categories, factors including our universe of over 21,000 vendors, diverse set of product categories, and flexible business model magnify the complexities of developing a Scope 3 strategy.

Transportation and Fuel (Scope 3)

Our logistics teams worldwide seek out strategies and solutions that can help us increase the efficiency of our logistics and transportation operations and reduce fuel used to transport our merchandise throughout our distribution network. We strive to conserve fuel, reduce travel time, and decrease the number of trucks on the road. We use a variety of tactics and technologies to support our efficiency and fuel conservation initiatives—for example, using modeling software to improve the efficiency of our store delivery network, increasing utilization of trailer space, and testing new alternative fuel vehicles.

In the U.S., where practicable, we utilize intermodal4 as well as centrally located service centers to reduce our transportation-related emissions. Our service centers, which are smaller than distribution centers, are located closer to store clusters and are designed to improve the efficiency of our store delivery process. We also utilize these service centers to co-locate our Asset Recovery and Recycling Centers (ARRCs) and maximize our delivery trucks’ utilization by backhauling re-usable and recyclable materials. Learn more about the environmental benefits of our ARRCs on the Waste Management page.

Additionally:

  • We engage directly with our logistics partners and indirectly through third parties (such as the U.S. Environmental Protection Agency’s (EPA) SmartWay Transport Partnership) to identify potential opportunities that may result in reducing fuel consumption and increasing fuel efficiencies.
  • TJX requires that all new U.S. carriers are SmartWay-certified and has collaborated with existing carriers to encourage their participation in the program. In Calendar Year 2022, 99% of TJX's U.S. freight and logistics ton-mileage was with SmartWay-certified carriers.

  • Where feasible, we use rail and intermodal for moving merchandise throughout our network, which is generally more fuel efficient and produces fewer emissions than trucking alone. We estimate that in Fiscal 2023, rail and intermodal shipping resulted in 280,000 fewer metric tons of CO2e emissions than shipping the same volume by truck only.

Third-Party Verification and Assurance of Emissions Data

  • In Fiscal 2023, 100% of our global Scope 1 and 98% of our global Scope 2, location-based emissions data are third-party verified.
  • Our Scope 1 (onsite fuels, refrigerants, and transport fuels) and Scope 2 (electricity and steam calculated using location-based emissions factors) GHG inventory data for the U.S, Canada, and Europe has been third-party verified for our Fiscal 2023 reporting period, using AICPA (AT105) standards.
  • In Europe, our carbon footprint has been assessed by the Carbon Trust since 2006, and we achieved the Carbon Trust Standard accreditation for the Fiscal 2022-Fiscal 2023 reporting period.
  • Additionally, we also third-party verify about 62% of our global Scope 3 reported business travel emissions data.

Efforts That Help Support Ecosystems

Various environmental sustainability initiatives across our global divisions contribute to helping to support ecosystems around the world. Some examples of these initiatives in Fiscal 2023 include:

  • For the past two years, a portion of the carbon offsets we’ve purchased to offset our operational and reported Scope 3 emissions in Canada have helped support the Katingan-Mentaya Peatland Restoration and Conservation Project. The project seeks to restore valuable ecosystems and habitat for endangered wildlife in Central Kalimantan, Indonesia. Before the project intervened, the area was destined to be developed into an industrial timber plantation.
  • In Fiscal 2023, we worked with local companies to install beehives at our office locations in both Framingham, Massachusetts and Watford, England. Through these programs, TJX aims to support plant health and biodiversity in the surrounding areas.
  • In Fiscal 2023, TJX Europe provided Associates an opportunity to vote for local environmental organizations to have the opportunity to receive donations from the previous years’ sale of reusable carrier bags across Europe. All of the selected organizations seek to make a positive impact on the environment by supporting biodiversity, reducing waste, and/or addressing climate change. For example, our donation to Natuur & Milieu in the Netherlands supports their effort to build reefs on North Sea wind farms to bring cold water coral and other wildlife back to the area.
  • Through charitable donations, TJX Europe has supported a variety of organizations that aim to preserve ecosystems and biodiversity. In Fiscal 2023, this included the Woodland Trust’s Emergency Tree Fund, which aims to plant 50 million trees in the U.K. by 2025, and the Native Woodland Trust, which works to preserve Ireland’s remaining ancient woodlands and to restore and recreate woodlands using only native seed.
  • Where feasible and available in the marketplace, we have sourced certain products that contain paper, paperboard, and wood materials that have undergone Forest Stewardship Council (FSC) certification, such as FSC-certified wood for outdoor furniture sold at our HomeGoods stores and FSC-certified paper stock for certain stationary, gift wrap, and gift card styles sold in the U.S.

1Electricity only.

2Fiscal 2022 reduction was impacted by store closures in Canada and Europe due to the COVID-19 global pandemic.

3Carbon offsets are certificates that can be traded. The certificate represents a reduction in GHG emissions created by a project, for example, planting acres of trees. Companies can purchase these certificates to “offset” GHG emissions in their operations.

4Transportation involving more than one form of carrier during a single journey.

Updated September 2023