Chapters
Annual Report 2018

Focus area 4: Minimizing our environmental footprint

GrandVision is aware of the environmental impact it has along the value chain, and looks to minimize its environmental footprint through its suppliers, production centers, logistics and stores. We undertake activities in such a way as to seek a balance between economic initiatives and environmental needs, while respecting legal requirements and applicable regulations.

4.1. By enforcing environmental management in our value chain

We rely on our suppliers for the production and transportation of our spectacles. This makes us strongly dependent on them to respect the environment and minimize our environmental footprint. To balance economic initiatives with our environmental needs and comply with the law and applicable regulations, GrandVision cooperates as much as possible with authorities that carry out environmental reviews and monitor our suppliers.

Transportation

Transportation is an important part of our value chain. We rely on our transportation partners when we bring our products from production facilities to our central warehouse (inbound transportation by ocean or air) and

from our central warehouses to our local distribution centers (outbound transportation by road or to Latin America and Asia by air).

Factors that influence our transportation policy and respective performances include the demand for our spectacles in all the countries where we are active, the consumer demand for short lead times and product availability, and our ambition to reduce our CO2 footprint. In general, transport by air has the largest effect on climate change, followed by road and ocean transport.

On the other hand, transport by ocean has a longer lead time than air freight. We had the ambition to increase our transport by rail, which has lower climate impacts, but this has proven not to be cost-effective mainly due to the long lead times.

In 2018, GrandVision transported more spectacles by road compared to 2017. Our air transport has reduced significantly, from 24% to 14% of our total freight. The number of frames transported by ocean remained stable with 34% of all transport movements. In 2018, the inbound transportation by air, measured in kilometers travelled, decreased significantly from 37.8% in 2017 to 24.3% in 2018. The decrease in explained by the increased amount of spectacles per air shipment, resulting in less air mileage.

Inbound/outbound transportation / % of total shipments

Inbound transportation - production to warehouse

2015

2016

2017

2018

Ocean (% of total shipments)

53.9%

73.2%

62.2%

75.3%

Air (% of total shipments)

46.1%

26.8%

37.8%

24.3%

Outbound transportation - warehouse to local distribution centers

2015

2016

2017

2018

Road (% of total shipments)

100%

98%

92%

95%

Air (% of total shipments)

0%

2%

8%

5%

Transportation / % of total transport movements

Transportation

2015

2016

2017

2018

Ocean

33%

40%

33%

34%

Road

39%

44%

44%

52%

Air

28%

16%

24%

14%

4.2. By centralizing production volume in TechCenters

We process our spectacles at our dedicated TechCenters where we cut, edge and fit the lenses. By moving these processes from stores to industrialized facilities, GrandVision is able to better control its environmental footprint by driving efficiency gains in areas of energy use, transportation, water and waste management. The expected results from centralizing these activities include:

  • Increased efficiency in electricity and water usage due to more sophisticated equipment in the TechCenters
  • Higher precision and a reduction in material scrap, and therefore a reduction in waste volumes and environmental impact
  • Increased activity control executed by dedicated staff
  • A significant reduction in occupied space, leading to savings in supply and management resources

Currently, we have a network of 17 state-of-the-art TechCenters for industrial processes.

In 2018, the percentage of spectacles processed in TechCenters as part of total spectacles sold increased from 67% to 70%.

This increase was in line with the growth of our retail network, our centralization planning and our 2025 target to have at least 85% of our spectacles processed at our TechCenters.

2015

2016

2017

2018

2025 Target

Spectacles processed in TechCenters (as % of total spectacles)

64.8%

73.3%

67.1%

70%

85%

Environmental pressure of our TechCenters

With the centralization of our cut, edge and fit facilities to GrandVision TechCenters, we are continuously reducing the environmental footprint of our production activities through efficiency gains in the areas of energy, water and waste management.

The table below provides insights into the environmental metrics for our TechCenters, measured per spectacle processed. Compared to 2017, we have reduced the environmental pressure of our production processes.

Energy efficiency rates improved from 4.2 MJ to 3.9 MJ per pair of spectacles.

The CO2 efficiency rate is reduced with 18% from 282 to 231 grams of CO2 per pair of glasses. Our target for 2025 is 205 grams CO2 per spectacle. Water efficiency improved with nearly 10% compared to 2017. In the process of cutting, edging and fitting of a pair of lenses into a frame, GrandVision now uses less than two liters of water. Our 2025 target is to reduce water consumption per spectacle to 1.87, which is a 15% reduction compared to base year 2015.

Total

Per Spectacle

Total energy consumption (GJ)

Total CO2 emissions (Ktons)

Total water consumption (1,000m3)

Off cuts offered for recycling (tons)*

Energy efficiency (MJ per spectacle processed)

CO2 efficiency (grams of CO2 per spectacle processed)**

Water efficiency (liters of water per spectacle processed)

2015

41,169

3.49

20.0

438

4.6

391

2.24

2016

43,728

2.98

23.2

596

4.2

284

2.21

2017

42,393

2.97

22.8

534

4.0

282

2.16

2018

45,151

2.68

22.91

516

3.9

231

1.98

2025 target

-

-

-

-

-

205

1.87

*The scope of TechCentres of 2017 has been updated and excludes our TC in Switzerland, as this was only acquired in December 2017. The TC in Switzerland is included in the 2018 data.

The total gas and electricity consumption in our TechCenters increased with 7% to over 45,000 GJ. As the amount of spectacles processed increased more sharply, the energy efficiency rate improved. Our total CO2 emissions due to energy consumption in TechCenters decreased because we have been using more electricity and less gas.

In 2018, we started increasing our insights into the waste management practices of our TechCentres. We are tracking different waste streams, including plastic packaging waste, paper and cardboard, residual waste that comes from cutting and edging lenses and scrapped stock (unused products). We aim for more efficient processes and as little waste as possible. In 2018, the waste we offered for recycling purposes increased from over 700 to 844 tons.

The chart on the right shows the split per waste stream offered for recycling in tons.

Waste streams in TechCenters in tons (recycled)

4.3. By managing our store utilities efficiently

As a global retailer with over 7,000 stores worldwide, we understand that a large part of our environmental impact comes from the electricity we use in our stores.

To be better able to monitor our impact, we have started to measure the annual resource consumption of our store network. Apart from furniture, paper and stationery, the most important resources our stores use are electricity and gas, and to a lesser extent, water. In 2018, our 7,095 stores used a total of 147 GWh electricity, over 6 million m³ natural gas for heating purposes and 325,500 m³ water. On average, a store use 20 GWh electricity, 860 m³ gas and 50 m³ water per year.

Average utilities consuption of a GrandVision store vs an average household in the Netherlands

Average 3-person Dutch household

Average GrandVision store

GrandVision store compared to Dutch household

Electricity (kWh)

3,605

21,229

5.7 times more

Gas (m³)

1,470

860

58% of a household

Water (m³)

135

34

25% of a household

Overall, the energy use of our store network is equivalent of the emission of 58,453 ton CO2 (or 8.2 ton CO2 per store).

It is our ambition to reduce our environmental footprint and improve our energy efficiency. One way of doing it is by deploying a standardized GrandVision store concept. This store design and technical specifications include guidelines for efficient technical installations, such as LED lighting and efficient air conditioning systems, as well as a more optimized store layout, leading to up to average of 15 m² of floor space reduction per store. Currently, ca. 40% of our worldwide store portfolio follows this concept. While in total, almost 3,000 stores (>40%) are equipped with LED lights. By 2025, all our stores should be equipped with LED lighting.

Our CO2 footprint

We measure the overall CO2 emissions of our operations on an organizational level and per spectacle. Included in our CO2 calculations is the energy usage of our TechCenters and the emissions related to transportation.

In 2018, we added energy use to the scope of our CO2 footprint calculations.

The carbon emissions of processing and transportation decreased from a total of 9.01 to 6.52 kilotons CO2. Per

processed spectacle that is a reduction from 848 to 564 grams of CO2. Compared to our baseyear 2016, this is a reduction of 11%.

Our target for 2025 is to have reduced process emissions per spectacle by 20%. The emissions related to processing in our TechCenters decreased by 18%, mainly due to the high amount of stock that did not need processing. Compared to 2017, the CO2 emissions of transportation decreased by 36% to 3.85 kilotons CO2. This reduction is explained by less use of air transport (see table on the following page).

Carbon footprint – total processed spectacles

2015

2016

2017

2018

CO2 emissions (Ktons)

7.18

6.72

9.01

6.52

Processing*

3.49

2.98

2.97

2.68

Transport

3.68

3.73

6.04

3.85

Carbon footprint – per processed spectacle

2015

2016

2017

2018

CO2 efficiency (grams CO2 per spectacle)

803

639

848

564

Processing*

391

284

280

231

Transport

412

355

568

332

* The carbon footprint of processing of 2015 and 2016 are restated due to a retrospective update of the IEA carbon emission factors for electricity and gas.

Currently, our CO2 calculations include the transportation from the sourced production facilities via our central warehouse to local distribution centers and the energy use of our TechCenters and store network. Excluded are, for example, material use, transport to local stores and waste management.

In 2019 and beyond, we will work to improve our insights into our environmental footprint.

In addition to the processes in our TechCenters and transport, we have started to measure the CO2 emissions of our store network. The energy used by our stores represents a total of 44 kilotons CO2 emissions. In total, the CO2 emissions related to our core processes (TechCenter processes, transportation and store network) are 50.7 kilotons. Per sold spectacle that equals 3.0 kg CO2.

CO2 footprint in kiloton - GrandVision operations (total)

CO2 footprint put into perspective

As a responsible global retailer, we put effort in reducing the environmental footprint of our products and processes.

One way to assess the environmental impacts of products is through a life cycle analysis (LCA). An LCA shows, for example, the climate impact (CO2 and other greenhouse gas emissions) of a product from the production phase and the use phase to the and ‘end of life’ (recycling and waste management).

Below you can see the relative impact of common retail products with a use phase of three years:

  • Mobile phone: 95kg CO2
  • T-shirt: 22.5kg CO2
  • Contact lens (daily): 16.5kg CO2
  • Spectacle (industry average): 3.7kg CO2
  • Paperback book: 2.46kg CO2