In April 2022, TJX was pleased to announce new environment sustainability goals, as shown above.
SASB: CG-MR-130a.1
UN SDGs: 7;13
TJX has made certain commitments to reduce the climate impacts of our own operations – meaning our stores, home offices, distribution (or processing) centers, and certain vehicles. To support these commitments, we work across our global business operations to measure, manage, and address these impacts.
Our global climate and energy targets include:
We intend to source 100% renewable energy1 in our operations
These commitments were developed using industry guidance, research, and science-based 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 contributing to the process for measuring and reporting key climate and energy data and metrics. The GCEG led the development of the Company’s net zero roadmap, which outlines our high-level plans and strategic approach to achieving our global climate and energy targets. Through this roadmap, we have identified strategies and tactics that aim to decrease 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 and feasibility of utilizing available electric vehicle and alternative fuel technologies in order to reduce fleet emissions. Following reasonable efforts to reduce operational emissions in pursuit of our net zero GHG emissions goal, we may assess an approach to source carbon offsets2 in the event there are remaining emissions to neutralize by 2040. In this case, we would intend to source carbon offsets from projects that we determine to be consistent with credible, publicly available guidance on the attainment of net-zero GHG emissions targets.
As a result of our energy management and renewable and low-carbon energy sourcing efforts in Fiscal 2024 alone, we estimate that our reported Scope 1 and Scope 2 (market-based) emissions were reduced by approximately 272,000 metric tons of CO2e.3
We have achieved a 32% reduction in absolute, market-based GHG emissions since our Fiscal 2017 baseline.4 This represents approximately 58% of our 2030 target achieved. We are progressing along our modeled emissions reduction pathway.
We reduced our absolute, market-based GHG emissions by 4.9% relative to Fiscal 2023. We continued to grow our business and operational footprint over the same period.
31% of energy sourced for our own operations globally came from renewable sources.
In Fiscal 2024 alone, we sourced more than 553 million kilowatt hours of renewable and low-carbon energy.
Reducing energy consumption, where feasible, is one of our first considerations for decreasing 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:
Where we are able, we intend to upgrade our stores globally to LED lighting. In Fiscal 2024, we again conducted more store retrofits than we conducted the year previously. The majority of our stores and distribution centers globally are now equipped with LED lighting technology.
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 demand-control ventilation for HVAC, which may be applicable across certain facility types.
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 goal of 100% renewable energy in our operations, we have developed a variety of renewable energy sourcing strategies across our global operations. Some examples of our current sourcing strategies include:
We have deployed on-site solar at some of our U.S. distribution centers, including in Arizona, Connecticut, Massachusetts, Nevada, and Texas, as well as at our processing center in Australia. 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 Fiscal 2024,
31% of energy sourced for our own operations globally came from renewable sources and was generated from a variety of technologies, such as solar, wind, and hydropower.
Our renewable and low-carbon energy sourcing strategy enabled us to reduce our Scope 2 market-based GHG inventory by more than 262,000 metric tons of CO2e.3
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. This includes 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:
In the U.K. and Ireland, certain vehicles fall within our operational (Scope 1) footprint. In these countries, TJX Europe has:
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.
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.
* In some cases, TJX chooses not to retain ownership to the energy attribute certificates associated with the installation.
* In some cases, TJX chooses not to retain ownership to the energy attribute certificates associated with the installation.
Addressing Scope 3 emissions is a priority for TJX, and in recent years, 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. Our internal teams have been constructing and executing on a multi-year feasibility assessment, and we have made strides in addressing Scope 3 emissions.
As an off-price retailer, assessing and calculating Scope 3 emissions from certain categories is challenging. Our opportunistic and flexible buying strategy is to acquire a rapidly changing assortment of merchandise in a variety of ways on an ongoing basis and close to need from an expansive universe of merchandise vendors. This means that the volume we buy from any single vendor can vary greatly from time to time. Unlike more traditional retailers, we do not own, operate, or control the facilities that manufacture products sold in our stores. In addition, we do not replenish specific branded products purchased from a small or generally very consistent vendor base on a regular basis and our product mix changes frequently based on a variety of factors.
Despite the complexities of Scope 3, we are taking action in this area. As part of our feasibility assessment, we evaluated all 15 categories of Scope 3 GHG emissions, both upstream and downstream, and developed order of magnitude estimates of relevant categories using a variety of methodologies, including economic input-output lifecycle assessment (EIO-LCA). This provided us with a better understanding of emissions hotspots in our value chain and identified that our largest category of Scope 3 emissions is purchased goods and services (category 1). Other relevant categories of Scope 3 emissions include upstream transportation and distribution (category 4) and use of sold products (category 11).
We also looked at what data were available across the organization that could support calculation of relevant Scope 3 categories. We have access to activity data related to business travel (category 6) and waste generated in our operations (category 5) and have reported on our Scope 3 GHG emissions for these two categories for several years. Following collaboration with our e-commerce fulfillment providers, we recently expanded our disclosure to include downstream transportation and distribution (category 9).
We are now taking preliminary steps to establish processes designed to more precisely estimate relevant Scope 3 categories. We expect that these processes will continue to rely on EIO-LCA and other methodologies that rely on economy/industry-wide emissions intensities in the estimation of some of our largest emissions categories. Given the limitations of these methodologies and the limitations in our access to supplier-specific data, developing precise Scope 3 emissions targets aligned to actionable emissions reduction pathways continues to be a challenge for our business, particularly for categories, such as purchased goods and services (category 1), that are made even more complicated by our opportunistic buying strategy and off-price business model.
Some of these steps we have begun to take include:
Education. TJX has conducted peer benchmarking in this space. We also joined the Textile Exchange and have begun to have conversations with partners, such as certain of our transportation providers. We hope that these efforts will provide new ideas about how we might approach certain Scope 3 data.
Mining our data. Given the challenges of our business model as it relates to Scope 3, we have begun to mine our own product data to determine what information we have that could support our work in this space. We have started this work by focusing where we have access to the most data, including products for which we have more control in bringing to market. While this is very early stage, an initial test with one product category provided us with insight that we believe may help us better estimate emissions across the entirety of that product category, regardless of how we source it.
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 the utilization of trailer space, and testing new alternative fuel vehicles.
Where feasible and when aligned with our business, we use rail and intermodal6 for moving merchandise throughout our network. This is generally more fuel efficient and produces fewer emissions than trucking alone. We estimate that in Fiscal 2024, rail and intermodal shipping resulted in 260,000 fewer metric tons of CO2e emissions than shipping the same volume by truck only.
In the U.S., where practicable, we utilize intermodal, centrally located service centers, and strategic partnerships to help increase the efficiency of our distribution network.
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 & Recycling Centers (ARRCs). ARRCs enable us to maximize our delivery trucks’ utilization by backhauling re-usable and recyclable materials. Learn more about the value our ARRC network brings to our business in the Waste Management section of our website.
Additionally, we are beginning to consider ways we can support home office and certain distribution center Associates who wish to arrive to work in a more emissions-friendly manner. For example, TJX Canada has had EV charging stations at its home office for a number of years, and in Fiscal 2024 they doubled the number of charging stations installed to make room for increased demand. TJX Europe offers EV charging at its Home Office in the U.K. and has also installed EV charging stations at one of its processing centers. In the U.S., we have begun installing EV charging stations at certain home office locations. We also organize carpool programs and provide regular shuttles between our Massachusetts home office locations and the local commuter train station.
In recent years, teams around the business have undertaken various environmental sustainability initiatives that also contribute to helping support local ecosystems around the world. Some examples include:
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 some outdoor furniture sold at our HomeGoods stores and FSC-certified paper stock for certain stationery, gift wrap, and gift card styles sold across our stores globally. Learn more about our FSC sourcing on the Sustainable Sourcing page of our website.
We continue to work on initiatives related to sourcing and/or developing certain products with sustainable attributes and reducing the environmental impact of certain product packaging.
Learn moreWe continue to work on initiatives related to sourcing and/or developing certain products with sustainable attributes and reducing the environmental impact of certain product packaging.
Learn moreTJX has engaged an independent third party to provide verification at the limited assurance level on a portion of our GHG emissions data since Fiscal 2015:
To learn more about our environmental sustainability data and reporting, and to access our response to the latest CDP Climate Change Questionnaire, visit our Reporting & Disclosures page.
In the U.S., TJX’s Sierra business aims to help everyone access the outdoors. As part of this endeavor, Sierra, alongside donations from its generous customers, has been providing financial support to outdoor-oriented nonprofits, such as the National Park Foundation. Sierra has also been implementing operational initiatives to reduce its environmental footprint and support TJX’s global operational environmental sustainability goals. As of the end of In Fiscal 2024, all Sierra stores have been fitted with energy-efficient LED lighting.
1Electricity only.
2Carbon 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.
3TJX calculates the reduction in Scope 2, market-based emissions due to renewable and low carbon energy sourcing as follows: renewable and low carbon energy purchases (MWh) multiplied by the relevant market-based emissions factors (MT CO2e/MWh) that would have been applied in the absence of renewable energy purchases.
4Excludes GHG emissions from certain heating sources used by certain locations where TJX was not billed directly for our usage.
5Fiscal 2021 and 2022 reductions were impacted by store closures due to the COVID-19 global pandemic.
6Transportation involving more than one form of carrier during a single journey.
Updated October 2024