Ralph Lauren Sets New Sustainability Goals, Delays Climate Neutrality Target

Ralph Lauren revises its sustainability strategy. The American company is leaving behind its goal of becoming a zero-carbon company by 2040. Instead, the company has now drawn for more achievable, short- and medium-term goals, and plans to reduce its emissions by 30% by 2030, compared to 2020, when it emitted 1.66 million tons of greenhouse gases.

As published in its latest sustainability report, this year Ralph Lauren has achieved a 34% reduction in absolute emissions compared to 2020, and 98% of its products meet at least one sustainability criterion.

“Our sustainability work is about supporting the longevity of our business and the resilience of the people and resources that make it possible,“ said Katie Loanilli, Ralph Lauren’s director of global impact and communications. “We have sharpened our focus, deepened our partnerships and evolved the way we work,“ she added.

“Ralph Lauren is setting progressive goals that keep the company focused on science-based methods of decarbonization, while considering the maturity of the broader ecosystem and regulatory environment,“ explained Lewis Perkins, president and CEO of Apparel Impact Institute.

Ralph Lauren bases its sustainability strategy on “business longevity”

The company says it follows “a methodology aligned with the Paris Agreement,“ and will take actions such as broadening approaches to raw material sourcing or direct supplier engagement to phase out emissions generated in the process.

In September, Ralph Lauren announced a new roadmap for its development over the next three years. The company opted for continuity, with the same growth drivers and anticipating mid-single-digit growth at constant exchange rates over the next three fiscal years.

The U.S. company ended fiscal 2024 with sales up nearly 7% and net income up nearly 15% after a strong fourth quarter. At the close of fiscal 2024 (ended last March), sales stood at $7.08 billion, up 6.76% from the previous year.

The company’s operating income, meanwhile, rose by 23.23% to $932 million, while net income increased to $743 million, up 14.95% on 2023.

The company, which in 2024 closed the third and final year of its Next Great Chapter: Accelerate strategic plan, anticipated for 2025 a reduction in the growth rate for the year.