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Emissions

GHG Emissions

The relationship between energy consumption and climate change has been widely recognized. This new reality poses a number of legislative, physical and financial risks to our operations.

Gildan is committed to reducing its greenhouse gas emissions (GHG) through energy conservation efforts. We also aim to reduce our reliance on fossil fuels by finding alternate sustainable energy sources and production processes. This will not only reduce our environmental footprint, it will also lower costs and improve our operational efficiencies.

While production volume increased by 17%, greenhouse gas emissions intensity (tons of CO₂eq per kg of product) across all Gildan facilities decreased by 13% from 2010 to 2011. This improvement was achieved via a greater focus on energy efficiency throughout the Company, as well as our increased use of renewable energy.

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  Measuring greenhouse gas emissions

  We have been measuring greenhouse gas emissions since 2006 at Gildan-owned facilities and offices, as well as at our Haitian contractors’ facilities. Gildan has been participating in the Carbon Disclosure Project since 2008. Concurrently, we have concentrated our efforts on the implementation of energy efficiency projects as well as renewable energy initiatives, such as the biomass project, in order to reduce our greenhouse gas emissions.

  In 2011, the global greenhouse gas emissions from all facilities and offices (including Haitian contractors, but excluding our Bangladesh facility), including direct and indirect emissions, were reduced from those of 2010. Specifically, in 2011, our absolute greenhouse gas emissions were measured at approximately 346,663 tCO₂eq, compared to 338,810 tCO₂eq in 2010.

  • 53 % of these emissions were direct emissions
  • 47% were indirect emissions from purchased electricity

  
  Direct greenhouse gas emissions originate primarily from:

  • Combustion of fossil fuel to generate electricity; heat and steam; works in progress and finished products; transportation of raw materials and transport for employees using Gildan-owned vehicles;
  • Fugitive emissions, mainly from handling and use of refrigerants

  Each activity has a specific source of greenhouse gas emissions. Electricity represents the main source of emissions for all our operations, with the exception of dyeing operations, for which bunker fuel combustion remains the main source of emissions.

  Absolute indirect greenhouse gas emissions are generated at sources owned or controlled by other organizations with the use of purchased electricity. Indirect emissions increased in 2011 as the result of the ramp-up of a new hosiery facility and the expansion of our sewing operations in Honduras. Operations for these facilities consume a significant quantity of electricity, specifically for the knitting and sewing machines. In addition, as we completed the ramp-up of our new distribution center in Charleston (United States), we increased our air conditioning use and consequently the electricity consumption at this facility.

  In 2011, Gildan decreased greenhouse gas emissions intensity by 13% compared to 2010, which represents the greatest single year reduction achievement since the Company has been tracking such data. 

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  Transition to natural gas

  In 2011, we started using liquid natural gas at our Dominican Republic textile facility. Liquefied natural gas, or LNG, is natural gas (predominantly methane, CH4) that has been converted temporarily to liquid form for ease of storage or transport. The advantages of LNG include the following: 

  • Liquefied natural gas takes up roughly 1/600^th the volume of natural gas in the gaseous state.
  • It is odorless, colorless, non-toxic, and non-corrosive.
  • This reduction in volume makes LNG much more cost efficient to transport over long distances where pipelines do not exist. Where moving natural gas by pipelines is not possible or economical, it can be transported by specially designed cryogenic sea vessels (LNG carriers) or cryogenic road tankers.

  Gildan’s transition to natural gas is primarily attributed to the following: 

  • Natural gas is the cleanest of all the fossil fuels: its combustion emits fewer pollutants into the atmosphere than other fossil fuels.
  • The use of natural gas does not contribute significantly to smog formation as its combustion releases very small amounts of sulfur dioxide and nitrogen oxides, virtually no ash or particulate matter, and lower levels of carbon dioxide, carbon monoxide, and other reactive hydrocarbons (bunker or coal) than other fossil fuels.
  • As illustrated in the graph entitled Comparison of CO₂ emissions levels between coal, oil and natural gas, the combustion of natural gas emits almost 30% less carbon dioxide than oil, and just under 45% less carbon dioxide than coal.
  • For this reason, it can be used to help combat smog formation in those areas where ground level air quality is poor.

• Risks related to greenhouse gas emissions

  Our manufacturing plants generate air emissions, which are controlled by the installation of specific chimneys and filters. For the years 2010 and 2011, the environmental protection requirements did not have a significant financial or operational impact on the Company's capital expenditures, earnings and competitive position. To manage Gildan’s exposure to regulatory changes, the Company works with its local management teams, who are regularly informed of potential changes to regulations that might be instituted by local governments. It allows Gildan to be proactive and to continue improving its processes and technologies.

  Physical impacts related to climate change can affect individual facilities. Most of our facilities are located in geographic regions that are exposed to the risk of, and have experienced in the past, hurricanes, floods and earthquakes. Naturally, such events could have a material adverse impact on our business. To manage the physical risks mentioned above, Gildan has built its facilities to withstand difficult climate conditions and are above the 100 years flood lines.

  Our facilities have been constructed on raised land, using structural design and materials capable of resisting hurricanes. In addition, the Company is protected by an insurance policy that covers loss of assets and business interruption in the event of natural disasters such as earthquakes, hurricanes and floods. Our local management teams monitor climate conditions on a regular basis and adequate emergency response plans are implemented at all sites, in order to protect employees and assets in case such natural disasters occur.