At THE ICONIC, we are committed to mitigating our climate impacts and contributing to a lower-carbon future by doing our part to reduce emissions in line with our Group’s Science Based Targets.
We’re already working to improve energy efficiency across our operations, and continuing to source renewable energy where possible. We also recognise that product manufacturing, transportation, and product use and disposal account for 99%+ of our total footprint. In response, we’re exploring lower-emissions logistics solutions and actively increasing the use of ‘preferred’ materials in our supply chain.
- Sourcing 100% renewable energy for our fulfilment centres and hubs.
- Increasing our own brands and branded products that are made in line with our Considered Product Criteria, to 50% of our assortment.
- Prioritising the adoption of low emissions delivery methods such as road transportation rather than air for interstate deliveries.
Our Emissions
When we talk about carbon emissions in relation to our business, we are referring to the amount of greenhouse gases (GHG) generated by our organisation and its activities.
Emissions Breakdown
In 2019, we measured our company’s carbon emissions (also known as our carbon footprint) for the first time — including Scope 1 (direct), Scope 2 (indirect) and Scope 3 (indirect from the value chain) emissions. We have continued to measure these annually.
The current impact of our own operations (Scope 1 and 2) represents less than 0.05% of our overall footprint. The majority of our emissions are associated with product manufacturing (~75%), logistics (~3%), and product use and end-of-life (~21%).
Climate Risk Assessment & Transition Plan
Aligned with our Group’s Science-Based Targets, and in preparation for our first mandatory climate-related financial disclosures under AASB S2, we refreshed our climate risk assessment scenario analysis. This involved identifying the most material climate-related physical and transition risks — as well as opportunities — for our business, across various time horizons. These insights have informed the development of our first Climate Transition Plan, which aligns with our core climate strategy and reiterates the immediate strategic climate-related priorities we must address.
Continue sourcing renewable energy for our fulfilment centres and HQ, expand onsite solar at fulfilment centres, improve energy efficiency, and electrify or automate warehouse operations where possible to maintain low Scope 1 and zero Scope 2 (market-based) emissions.
Work with third-party logistics providers that are transitioning to lower-emissions transport, including increased use of EVs, shifting air freight to sea freight where possible, and supporting the adoption of Sustainable Aviation Fuel (SAF) to reduce Scope 3 emissions across Categories 4 and 9.
Strengthen climate risk readiness through a logistics redundancy plan and other BCP investments in order to build resilience to heatwaves, bushfires, storms and floods, while engaging key stakeholders to align on mitigation and adaptation.
Increase resource recovery and reduce waste sent to landfill or incineration with energy recovery. This includes identifying alternative pathways to maximise recycling and reuse, while supporting innovators and start-ups where possible.
Work with suppliers to ensure packaging follows circular design principles, remains compatible with existing recovery systems, and meets incoming Extended Producer Responsibility (EPR) requirements. Where systems are lacking, we will support their development (for example through APCO membership and other member organizations) to help ensure our customers have accessible recycling or reuse options over time.
Improve the availability and accuracy of climate and sustainability-related data to enable assurable climate-related reporting and readiness for evolving regulatory or compliance requirements.
Collaborate with suppliers, brands and other stakeholders to stabilise supply chains, improve energy and waste management, and scale more sustainable product assortments. We also aim to educate and empower customers to extend product life through re-commerce. Through RE-ICONIC, we will continue scaling circular products and solutions that help reduce Scope 3 emissions associated with manufacturing, product use and end-of-life.
Our Assortment
The majority of the fashion industry’s emissions come from the raw material production, preparation and processing required to create products. This means that the products we sell contribute to the largest share (over 75%) of our overall emissions.
Our Sustainable Product Criteria, informed by external frameworks such as the Textile Exchange Preferred Fiber & Materials Matrix, define our Considered assortment as a way of identifying products that hold social, ethical or environmental credentials — certified through third-party standards, certifications, trademarks or programs addressing issues such as climate and greenhouse gas emissions, soil health and land management, chemicals and toxicity, water use and pollution, and animal welfare. We are committed to increasing the share of products that meet these criteria in order to provide a more responsible assortment for our customers.
While we recognise that every product we sell has an impact — whether on the environment, people or animals — we are steadfast in our ethos of “Progress, always”. The Considered program is our pathway to reducing the impact of our overall assortment, in line with our strategy. In 2025, 22% of the units we sold met one or more of these criteria, and we are committed to increasing this to 50% by 2030, by working in collaboration with our own-brand suppliers and third-party brands.
You can learn more about Considered and our Product Criteria here.
We recognise that the science and research into materials and their environmental impacts is always evolving, so our methods for assessing preferred fibres are constantly evolving to ensure we stay aligned with industry standards. Our Considered Product Criteria tool, is informed by external sources including the Textile Exchange’s Preferred Fiber & Materials Matrix.
Our Considered Product Criteria tool will recognise products from both our Own Brands and Third Party Brands that are:
- Made of preferred materials or use a production process certified through a third party Certification, Trademark or Program.
- Products that take social, ethical or environmental impacts into consideration during sourcing or production.
- Products that are made using non-animal alternatives, or those made with natural and organic ingredients.
- Products that are given an extended life by aligning with circular principles.
You can learn more about the Considered Product Criteria here.
Transitioning our assortment to products that meet our Considered Product Criteria is an important part of our carbon reduction strategy, as well as the commitment we hold for our customers to enable them better choices.
We recognise that THE ICONIC has greater accountability for the environmental impacts generated by the factories that produce our Own Brands. We are committed to increasing the visibility and management of the environmental impacts within our direct supply chain (including energy, water and chemicals) in order to reduce our footprint and preserve natural resources.
According to an internal assessment completed in 2022, only two of our active Own Brand factories (55 at the time of the review) used some renewable energy for their processes, and in both cases the renewable energy was generated on-site. In order to achieve our ambitious target of 90% of renewable electricity used across our factories by 2030, we will further investigate the local opportunities for renewable energy transition across our main sourcing countries, and start to engage and educate new and existing suppliers.
In 2021 we were part of a Group-wide Water Footprint Analysis conducted in collaboration with the Water Footprint Implementation (WFI), which mapped the water footprint associated with our Own Brand apparel and footwear, and by further investigating the outcomes we will set ourselves tangible goals and targets. We know this area needs more effort and we will work on deepening our knowledge and improving our performance as part of our continuous improvement and progress.
THE ICONIC seeks to continue to improve chemical management in manufacturing and to promote responsible use of chemicals. As an initial step, we have embedded a Chemical Standard and Restricted Substances List outlining the requirements our suppliers must adhere to. This includes our Manufacturing Restricted Substances List, which is consistent with industry standards and that of many other retailers. THE ICONIC expects all suppliers to undertake due diligence to ensure that these standards are being met, including in their own supply chains.
We are committed to managing the share of products transported to us by air freight through increased stock consolidation, upfront planning, and maximising our hybrid shipping model, which combines air and sea freight.
THE ICONIC’s world-class delivery is a fundamental component of our customer experience. We do not own any delivery vehicles or distribution fleet, which means the emissions of our transport carriers sit within our supply chain and are not directly within our control. However, we remain jointly accountable for reducing their impact.
We are working with our carrier partners to enable lower-emissions last-mile delivery methods (the last stage of delivery from the final distribution centre to your doorstep), such as electric vehicles, bicycles and walking deliveries. In 2025, we also introduced Melbourne and Brisbane line-haul services, transitioning express orders for these cities from air transport to road freight.
Operations Efficiency
We are committed to ensuring that the operational sites we directly manage are as efficient as possible to minimise our energy footprint. Since 2020, we have transitioned to LED lighting across most of our production hub and fulfilment centres. In some areas, motion-sensor lighting has also been installed so that lights are only activated when these spaces are occupied.
In early 2022, we completed the installation of a 350 kW rooftop photovoltaic system, which supplies about 20-25% of the electricity required by our fulfilment centres. The remaining electricity demand across our sites is met through the purchase of GreenPower, which is 100% renewable energy certified under the Australian Government's managed accreditation program.
We remain committed to ensuring that we continue sourcing renewable energy, either produced on-site or from the grid.
