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Gap signs new renewable energy agreement to slash carbon emissions

By Huw Hughes


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Gap has announced a new renewable energy agreement that the retailer says will help it meet its 2020 emissions-reduction target, as well as a new goal to use only 100 percent clean energy by 2030.

The global retailer, which operates brands Banana Republic, Old Navy, Intermix, Hill City, and Athleta, has signed a 90 megawatt virtual power purchase agreement for the Aurora Wind Project with owner and operator of renewable energy plants Enel Green Power North America. Gap said the agreement is one of the largest off-site renewable energy contracts by an apparel retailer.

The 12-year agreement aims to enable the company to reach its 2020 goal of reducing absolute Scope 1 and 2 greenhouse gas emissions for its owned and operated facilities by 50 percent compared to 2015.

According to Gap, the wind electricity output purchased in the deal will see a carbon reduction comparable to if 60,000 passenger cars were removed from the road annually.

The company also announced a new goal to reach 100 percent renewable energy across its global owned and operated facilities by 2030.

“We have a responsibility to reduce our climate impact. For Gap Inc., being a part of the climate solution means making strategic investments in clean energy generation. Today we have secured a path to achieving our 2020 goal, but we must do more. I’m proud to commit to renewable energy for 100 percent of our stores, headquarters and distribution centres globally by 2030,” president and chief executive officer of Gap Inc., Art Peck, said in a statement.

This latest agreement is the third renewable energy contract signed by Gap Inc. Earlier this year, the company joined with Bloomberg, Cox Enterprises, Salesforce and Workday to sign a joint 42.5-megawatt renewable energy deal, with Gap Inc.’s share of the project addressing the energy footprint of all Athleta stores and operations. Prior to that, Gap Inc. signed a 20-year power purchase agreement with SunPower for 3 megawatts of onsite solar at its distribution centre in Fresno, California.

Photo credit: Gap, Facebook

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