After net-zero emissions ambitions were announced in September, Tapestry Inc. has been on a commitment kick.
In its latest corporate social responsibility report, the company (which helms Kate Spade, Coach, Stuart Weitzman) announced progress on a range of environmental, social and governance topics spanning climate, community, workforce, diversity and more.
“As we continued to navigate the ongoing effects of COVID-19, we remained focused on executing our Acceleration Program [or turnaround approach], transforming into a more agile and responsive organization, empowering our teams, and using consumer insights to better meet our customers’ needs. Through it all, we remained steadfast in our commitment to operate as a purpose-led, people-centered business,” Joanne Crevoiserat, chief executive officer of Tapestry Inc., said in the report’s opener.
The report highlighted the company’s alignment on standards like the Science Based Target Initiative’s Business Ambition for 1.5 (where the company aims to reach net-zero global emissions by 2050 at the latest), Task Force on Climate Related Financial Disclosures, Sustainability Accounting Board Standards and United Nations Sustainable Development Goals.
“We have undergone a radical transformation at Tapestry, and our focus was really to be more customer-focused and be more agile in the way we work as an organization…and that had to include a understanding of all our stakeholders,” said Crevoiserat, in a phone conversation with WWD.
Taking over as of 2020, Crevoiserat’s take on growth is of the all-stakeholders mindset. “How do we have to show up in the context of all that? Driving our brands forward has to be in the context of all stakeholders. The impact of climate change is increasingly evident. It’s undeniable…and certainly the need for social reform has become evident. Not that it hasn’t always been there. The more success we have the bigger the impact we can have.”
Established last year, the Tapestry Foundation leans into social impact, or the “Social Fabric,” of the company, with a $50 million fund to commit to “advance access and equity initiatives and to combat climate change,” per the report.
While many diversity, equity and inclusion goals follow empty shells, Crevoiserat affirmed racially diverse teams “unlock the innovation and the creativity we need to succeed as a business.”
Tapestry tangibly ties metrics to executive performance with 10 percent of the leadership’s incentive compensation tied to DEI goals (which loosely span hiring practices, career development and training). Along with that came celebration of a $15 minimum wage across its U.S. division.
There are, however, a few omissions in the report of interest to stakeholders.
One is around Scope 3 (indirect) targets, which the company is in the process of further developing in line with the Greenhouse Gas Protocol. Only a sliver of the Scope 3 interim targets are reported under “freight shipping.” Areas like transportation, purchased goods and services other criteria are in progress.
The report even celebrated donations, including excess new retail inventory and samples. Damaged goods, which are unable to be donated, are not included in the $152 million in donated product, which means misgivings of its prized horse (Coach’s bag-slashing, namely) are disguised.