Energy consumption is directly linked to greenhouse gas emissions and climate change. Gildan’s main sources of energy include biomass, bunker fuel and electricity. Bunker fuel and biomass are used primarily to heat water necessary for our dyeing and compacting process and are classified as “direct energy”. The balance of required energy comes from purchased electricity, which is classified as “indirect energy”. Our textile and hosiery facilities as well as our yarn spinning facilities in the United States account for a large part of the electricity we use. Gildan established an energy intensity reduction target for our owned facilities of 20% by 2015, when compared to our 2010 baseline.
In 2015, our energy intensity decreased by 14% when compared to our 2010 baseline. Although we did not meet our 20% energy reduction goal in 2015, during the course of the past year we continued to observe a decreasing trend in the energy intensity of our operations. We remain committed to continuing to reduce our energy intensity and meet a revised target by 2020. We anticipate we can do so by continuing the implementation of new energy efficiency projects throughout all of our facilities.
The main project that was identified by Gildan in order to reach this target was the installation of high efficiency steam absorption chillers which run on steam that is produced by our biomass steam generation expansion. As the absorption chillers are still not fully ramped up at our Honduras Rio Nance complex, we did not reduce our energy consumption to the level planned for 2015. We expect the project to be fully ramped up during the course of 2016, and thus, expect to see a significant reduction in energy use, allowing Gildan to use 100% of the supply demand of steam from the biomass to chill water, which was previously done by using purchased electricity.
At Gildan, we continually strive to establish more efficient processes in our operations and we have recently set a new 5-year target: reduce our energy intensity by 10% by 2020 based on our 2015 baseline.
In 2015, energy intensity (GJ per kg of products) decreased by 6% across all Gildan facilities when compared to 2014.
In 2015, the global energy consumption for all our facilities and offices, including direct and indirect energy, was approximately, 6,033,248 gigajoules, compared to 6,270,237 gigajoules in 2014:
70.8% of the energy consumption was from direct sources, distributed as follows
29.2% of the energy consumption was from indirect purchased electricity sources
(please refer to the chart energy consumption by type for more details)
In 2015, we saw an increase in bunker fuel consumption of 6% when compared to consumption from 2014. This is largely attributed to the decrease in use of biomass as a replacement for bunker fuel due to the quality biomass mix. This was a one-time event and we do not expect recurrence in the future. However, since 2010, our bunker fuel consumption has decreased by 75%.
Gildan’s numbers have been normalized according to an adjusted baseline to include mergers, acquisitions and divestitures since 2010. For more details on the methodology used for the baseline adjustment, please refer to our reporting section.