Environment
As a fast-growing company, we not only leave an environmental footprint, but as an international retailer linked into global supply chains, we can also be directly affected by climate change. Therefore, it is a priority and responsibility for Boozt to measure and reduce our impact on the environment.
Reducing GHG Emissions
Boozt reports GHG emissions in accordance with the Greenhouse Gas Protocol. Boozt completed the Scope 3 screening for 2022 emissions data with an extended boundary of our GHG Accounting and it will be used as our base year. Boozt identified and measured all relevant Scope 3 categories (2021: 4 of 9 relevant categories were calculated). As a result, Scope 3 emissions account for 99.9% of the total CO₂e footprint of Boozt.
Boozt has reviewed its climate-neutral target based on its commitment to the Science Based Targets initiative (SBTi) in 2022. In 2022, Boozt committed to setting near-term company wide emission reductions in line with climate science and the Science Based Targets initiative.
The GHG emissions in the table above have been verified by Deloitte through a limited assurance process in accordance with ISAE 3000. The limited assurance process includes Greenhouse Gas emissions in Scope 1, 2, and Scope 3 categories purchased goods and services, capital goods, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting, use of sold products, and end-of-life treatment for the year 2022.
Closed Loop Distribution
As a Nordic company with a leading position in the market, we believe that much of our success lies in keeping our operations local, allowing for optimised deliveries to customers, strong brand networks and engagement with our local community. Our investments to handle all shipments and returns in our local fulfilment centre in Ängelholm, Sweden has also contributed to more environmentally-friendly delivery patterns. It enables us to keep the carbon emissions per distributed order at the low level of 0.49 kg CO2e.
Reducing Returns Impact
Fair Use Policy
Boozt has taken a stand against unnecessary returns and by that avoiding unnecessary GHG emissions. In 2019, Boozt introduced the Fair Use Policy to its Terms & Conditions as a way to eliminate unnecessary returns and establish more sustainable business practices. Fair Use supports Boozt in having a transparent and honest dialogue with, and possibly pause, customers that repeatedly exploit the high service levels of free shipping and returns at the expense of our business, other customers and the environment.
Around 40,000 customers, or 1.58% of the active customer base, have been paused through the Fair Use Policy. This is a small part of the more than 2.5 million active customers on Boozt, yet represents around 25% of the total return volume. By pausing these accounts and reducing unnecessary returns, Boozt saved approximately 791 tonnes CO₂e in 2022 which has eliminated the need for approximately 538 delivery trucks during one year.
Renewable energy operations
We rely on clean energy sources to power our services to our customers. The fulfilment centre is located in a green building-certified facility and is driven by energy-efficient and modern technology. The fulfilment centre runs on 100% renewable energy, consisting of purchased energy from hydropower and own generated solar energy. Solar panels are installed on the roof of our warehouse, bringing us a step closer to being completely energy self-sufficient. With 462,000 kWh of produced solar energy, the solar panels contributed to 16% of the total energy consumption at the fulfilment centre in 2022.
Boozt's headquarter is located in a building certified by WELL. The International WELL Building Institute (IWBI) is a globally recognised building standard focused on human health and wellness in workplaces. The building is also environmentally certified with Miljöbyggnad Gold level, a Swedish environmental certification for sustainable buildings by the Sweden Green Building Council. This certification guarantees a reduction of energy consumption by 25% compared to conventional buildings.
Minimising Waste
Boozt is persistent in its effort to reduce waste across our operations. The waste from its operations is mainly related to packaging materials that are received from customer returns. Boozt is collaborating with a third-party company that collects the waste generated from Boozt’s operations to ensure waste is properly handled according to local regulations.
Our packaging
Our shipping bags are made from 100% recycled plastic, Blue Angel certified, and the shipping boxes are made from 100% certified paper to ensure full traceability and recyclability.
For some time customers have had the option to choose between using the printed version of the return form that comes with the package or returning their items using a digital version. In response to this, Boozt removed the physical return form and in extension simplify the process at the Pick & Pack stations and as a result, we will approximately save the need for 6.9 million sheets of paper per year. Boozt works to reduce the amount of plastic filling in its shipments by introducing recycled corrugated paper in its distributed orders which has resulted in a reduction of plastic filling by 35%.
Find out more about the breakdown of our packaging in terms of types and quantities in our Annual and Sustainability Report 2022 on page 60.
