Operations

Reducing And Reporting Our Carbon Emissions

Reducing And Reporting Our Carbon Emissions

We work to create a healthier environment for employees and communities throughout our operations and supply chain by measuring our greenhouse gas emissions and focusing on continuous improvement. We have been submitting a Climate Change questionnaire to CDP since 2008, collecting annual emissions data across our business and calculating carbon inventories for the CDP’s public rating system.

This year, we had an independent auditor verify all 2018 emissions calculations for Scope 1 (direct energy usage), Scope 2 (purchased energy) and Scope 3 (transportation emissions) activities.

Energy & Greenhouse Gas Reductions Through LED Lighting

Energy & Greenhouse Gas Reductions Through LED Lighting

Over the past nine years, Macy’s, Inc. has reduced our energy consumption by 14%, with another 3% reduction projected for 2019, through the installation of LED lighting. In addition to being more energy  and cost-efficient, LED lights run much cooler and provide better merchandise visibility, keeping the  store environment comfortable and enhancing the customer experience. We plan to continue to expand our LED initiative at key locations across our portfolio.

Product Packaging

Developing responsible products also includes reducing the environmental impact of product packaging. Macy’s, Inc. has adopted a number of best practices, which include standardizing the size of packing cartons and minimizing packaging materials. Increasingly, we incorporate recycled content into our packaging, especially in corrugated cardboard. We also use auto boxer and auto bagger machines that can build a package that perfectly fits odd or oversized items. This fit-to-size auto-boxing technology reduces box volume up to 50% by creating the smallest parcel needed at the lowest expense, which also helps reduce shipping costs.

Recycling In Our Stores

Recycling is a core element of a circular economy in which materials are not regarded as waste but are redirected for other uses. In our stores, corporate offices and other facilities, our policy is to recycle as much material as possible, including cardboard, plastic film, hangers, metal fixtures and wooden pallets. We also have an internal program to reuse, refurbish or recycle store fixtures. Some  of our facilities have additional waste reduction programs, such as our Cincinnati corporate office’s composting program, which diverts food waste. To improve our recycling rate, we are developing a waste diversion plan that will incorporate better reporting of in-store recycling efforts, identify barriers and increase awareness.

Lighting the Way to Energy & Greenhouse Gas Reductions

Lighting the Way to Energy & Greenhouse Gas Reductions

Over the past nine years, Macy’s, Inc. has reduced our energy consumption by 14%, with another 3% reduction projected for 2019, through the installation of LED lighting. In addition to being more energy and cost-efficient, LED lights run much cooler and provide better merchandise visibility, keeping the store environment comfortable and enhancing the customer experience. We plan to continue to expand our LED initiative at key locations across our portfolio.

Transportation

Our efforts to improve the efficiency of our logistics network are yielding results, as we reduced our inbound (distribution center to store) shipments, which lowered our greenhouse gas emissions by approximately 7% and avoided approximately 84 million pounds of CO2 in just one year.  We achieved this by using:

  • Vendor-to-store direct shipments which bypass our distribution centers for fewer miles traveled
  • Intermodal travel in which more shipments are consolidated or sent by rail rather than individual truck.

Sustainable Apparel Coalition

While we participate in a number of industry coalitions and initiatives, one of our most productive partnerships is with the Sustainable Apparel Coalition, the leading global alliance working to reduce the environmental and social impact of apparel and footwear products. The power of the SAC lies in the widespread use of its self-assessment tools by 230 international members, including leading apparel, footwear and textile brands, retailers, suppliers, service providers, trade associations, nonprofits, non-governmental organizations and academic institutions.

As a member of this coalition, Macy’s Private Brands uses the SAC’s Higg Index Facility Environmental Module and Facility Social and Labor Module to gauge the environmental and social performance of our manufacturing facilities. We first asked our suppliers to use the Higg Index in 2014 and are pleased to report that by 2018 more than 400 facilities participated, including all of our trim suppliers, representing 56% of our manufacturing volume. This progress positions us well to direct 100% of our Tier 1 factories to use SAC Higg Index tools by 2025. With the information from these self-assessments, we can better reduce our environmental impact and improve labor conditions for factory workers throughout our supply chain.

Renewable Energy

Renewable Energy

With 100 active on-site solar power installations at our facilities nationwide, we are a leading source of clean, renewable energy. Each year these solar installations produce approximately 60 million kilowatt hours, which offsets approximately 43,000 metric tons of carbon emissions annually. Of the energy generated in 2018, all but approximately 6,509 megawatt hours were sold to others. We plan to add more solar projects until we reach our goal of 110 installations by 2025.