Harrods’ first ESG report sets bold sustainability targets for the future
Harrods, the world-renowned luxury retailer, has released its first-ever Environmental, Social, and Governance (ESG) report, marking a significant milestone in its 175-year history.
The report, covering the 12 months leading to January 2024, showcases the company’s progress and commitment to sustainability, acknowledging both achievements and the journey ahead.
Progress and Challenges
Harrods’ Managing Director, Michael Ward, stated, “For 175 years, Harrods has stood as a beacon of British luxury, but we recognise that it is only by putting the sustainability of our business, our supply chain, and the planet at the forefront of our business, that we can assure the continuing high standards that our customers expect.”
The report highlights several key achievements, including a 2.4% reduction in Scope 1 and 2 carbon emissions compared to the 2022 baseline year. The retailer aims to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030. However, Ward admits, “We still have much to do on our sustainability journey,” pointing out the unique challenges of operating within a 175-year-old Grade II-listed building.
Key Achievements
Among the notable accomplishments detailed in the report are:
- Energy Efficiency: Harrods has seen a substantial decrease in consumption at its Knightsbridge store, with a 10% reduction in gas consumption and a 2% reduction in electricity consumption. These improvements were driven by initiatives such as upgrading boilers and moving to LED and light-sensor-based lighting systems. Eighty per cent of lights in the main store are now LED.
- Renewable Energy: Solar panels installed at the Thames Valley Distribution Centre now provide 41% of the site’s annual power requirement.
- Sustainable Practices: The retailer has launched a range of sustainable initiatives, including the introduction of electric delivery vehicles and the replacement of PVC shopper bags with sustainable alternatives. By 2027, Harrods aims to eliminate PVC from its own-brand products.
- Community and Inclusion: Harrods has launched a data capture campaign to better understand the demographics of its colleagues and candidates and has introduced initiatives to drive diversity, equity, and inclusion.
Circular Economy and Responsible Sourcing
Harrods is actively promoting circular economy practices. In partnership with MyWardrobeHQ, the retailer has facilitated the rental of 700 designer pieces, including dresses and occasionwear. Additionally, Harrods has implemented a responsible sourcing programme across multiple categories, from fashion to food, and launched the H beauty recycling scheme across all H beauty sites.
Community Engagement
The report also outlines Harrods’ new Community Pillar strategy, which includes partnerships with key charities. Over the past year, Harrods employees raised £72,352 for charity partners and launched initiatives such as the Too Good to Go campaign, which saved 803 meals from being wasted.
Looking Forward
Ward concluded, “This inaugural ESG report marks an important first step in recognising the work that has been done across the business, while acknowledging that we still have much left to do. We believe in doing better and always strive to be transparent about the progress we are making and the commitments we need to uphold.”
As Harrods continues its journey towards sustainability, it aims to report annually on its ESG progress and commitments, reinforcing its dedication to operating as a sustainable and conscientious luxury retailer.
For more information, please visit Harrods ESG Report.
