UA Go Green

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I WILL REUSE. GO GREEN



CONTENTS. 6 Letter from the President

12 Product Development

18 Waste Reduction

24 Green Building


Letter from the President. Under Armour’s success as a company is tied directly

set of challenges and opportunities. As we continue to

to our culture of innovation. For over a decade, we’ve

raise the bar on our approach, we see new opportunities.

provided the world with technically advanced products

The three that stand out as I reflect on our progress are:

engineered with our superior fabric construction, exclusive moisture transport, and proven innovation. Every Under Armour product is doing something for you: It’s making you better. Today we believe that sustainable innovation that benefits the athlete, the company and the planet will play a key role in the future of our business. This principle shapes how Under Armour does business.

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PRODUCT DEVELOPMENT. At Under Armour, everything we do begins with the athlete. We know that climate-related issues, like pollution and extreme weather conditions, impact an athlete’s ability to perform and the changing environment presents a unique set of innovation challenges. Similarly, as a business with diverse global operations, Under Armour’s

The results that we see continue to motivate us. We are

supply chain is exposed to a range of changing risk

pushing the boundaries to decouple our growth from

factors. This means that our products, as well as how and

constrained resources in order to leave the lightest

where they are made, are fundamental considerations

possible footprint ever , while driving uncompromising

in the long term success of our business. Under

performance for athletes everywhere. We are constantly

Armour’s approach to meta-trend analysis, future casting

integrating more sustainable ways of working across

and innovating for long-term growth, will help drive

our business – from design to production, to logistics

performance in the short term, while also positioning

and retail. While this work propels us forward we also

us to continue to turn risks into innovation opportunities

recognize that Under Armour is positioned to leverage

over the long term. The Catalyst line of Under Armour

the power of our brand to drive positive change across

Green products helps to keep an estimated 2,000,000

our entire value chain, within our industry and beyond.

plastic bottles out of the landfills, since each Catalyst

Under Armour stands by its mission to make all athletes

item makes use of up to four plastic bottles. Under

better throughpassion, design and the relentless pursuit

Armour is also exploring how to green every aspect of

of innovation. Since 1996, Under Armour’s sustainability

the company’s operations, from the manufacturing to the

journey has been dynamic, marked by an ever evolving

dyes to the packaging.



REDUCING WASTE.

Big Belly Solar and Habitat for Humanity. Big Belly

Sustainability and business growth are complementary.

is the City of Baltimore’s effort to reduce waste collection

Our strategy to create value while pursuing innovation

costs by installing solar powered trash compactors.

that reduces our impact on the environment is delivering

Habitat for Humanity has built two UA Habitat homes

measurable results. For example, the natural assumption

in West Baltimore that feature some of the newest and

is that as revenue goes up so does a company’s

best green innovations in the building industry.

greenhouse gas emissions as more sales translates to increased product manufacturing and freight activity. However through a variety of initiatives we have been able to change the results of that equation, reducing absolute greenhouse gas emissions by close to 3 percent while simultaneously increasing revenues by 26 percent over the time period covered by this report. This motivates us to push even harder for sustainable innovation across the business.

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GREEN BUILDING. Years ago we identified that nearly 60 percent of the environmental impact of a pair of Under Armour shoes was in materials used to make it. That insight, along with our commitment to design with purpose, has helped sharpen our focus on the need for disruptive innovation in the world of materials. Arguably, the last major breakthrough in materials that reshaped the industry at scale was the introduction of polyester about 50

Under Armour is purchasing wind power for every kWh

years ago. We believe there are significant innovation

of electricity they use, building stores to their Green

opportunities ahead and are working to unlock the

Standard with energy efficiency and recycled materials

barriers to developing and scaling a new palette of more

a priority, and monitoring their waste and supply chain

sustainable materials. Along with creating a recycling

for areas of improvement. Each step they take is one that

program that reuses the shoes to create a wide variety

lessens their overall environmental footprint and creates

of products. These product range from playground

lasting sustainability for the future of the company. They

surfaces to indoor flooring to zipper pulls to help reduce

also support two organizations’ environmental efforts,

our carbon footprint.


With all the technology Under Armour employs, you might think the company has a lock on new, innovative ideas. However, we know that great ideas can come from many places, including the customers who have experience wearing Under Armour’s items. Under Armour now features an idea submission tool, called My39, which allows people from anywhere to send in their ideas for better technologies, products, and improvements. It’s another way Under Armour shows that we always seeking to improve and enhance our products, in order to better serve the athletes who wear them and the planet that supports them. Our vision is to build green technology into the best performance gear in the world. We’ll get there with science, passion and innovation and we’ll never sacrifice performance, committing to help create a better environment while maintaining their high quality standards.

Kevin A. Plank Chairman of the Board of Directors & Chief Executive Officer

MAKE ALL ATHLETES BETTER THROUGH PASSION DESIGN AND THE RELENTLESS PURSUIT OF INNOVATION.


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I WILL REDUCE. GO GREEN


Product Development. Today, our UA Green products are made from recycled

the gear very soft yet extremely durable. Plus, the

plastic bottles. Products made from recycled materials

whole process ensures these items of performance

reduce waste to landfills and reduce the need for raw

apparel have a very small impact on the environment.

materials derived from fossil fuels. In 2015, we estimate

Other important Under Armour technologies are also

that we will convert over 2,000,000 one liter plastic

incorporated into the Catalyst items: from their Moisture

bottles into performance products.

Transport System that takes sweat away from the body, to the Anti-Odor technology that prohibits microbe

Our UA Catalyst collection features men’s and women’s

growth, to UPF sun protection of 30+ to 50+ for the

caps and t-shirts, and men’s shorts. Is made from recycled

t-shirts. All of the items are very lightweight so they

plastic bottles, blurs the line between science and nature.

won’t weigh down your workout.

But it wasn’t made in a lab. It was born on the field. Which means it’s seriously lightweight, designed to respond to

In development today, is the creation of a revolutionary

quick moves, and engineered to increase stamina, even

footwear manufacturing method that enables designers

during your most intense cross training sessions. It has

to precisely micro-engineer every stitch to create

a slick, almost-shiny exterior that dries fast. And it’s also

a featherweight, formfitting and virtually seamless upper,

got 50+ UPF sun protection, so you can stay outside

while reducing manufacturing waste and the mount

longer. Sure, it feels soft. But it performs tough, wicking

of materials used. The technology applies more than

away sweat to keep you cooler. In fact, it’s our fastest

40 years of knowledge from working with runners to

drying athletic T-shirt ever. Look to UA to give you green

inform the precise placement of support, flexibility and

performance that will leave your competition seeing red.

breathability where athletes need them most. Under Amour hopes that this new technology will help to

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The Catalyst items are made of fabric created with

reduce waste by 2,000,000 pounds or a whole lot of

Under Armour’s green technology. The company takes

plastic water bottles. This technology will produce

plastic bottles and melts them down, then stretches

a shoes the is 19% lighter and have 80% less waste

the substance into very fine fibers. The fibers make

than a traditional running shoe.


PERFORMANCE FROM PLASTIC RECYCLED POLYESTER TRANSFORMS PLASTIC BOTTLES INTO SUPERIOR PERFORMANCE GEAR. SO FAR, OVER 2 BILLION BOTTLES HAVE BEEN DIVERTED FROM LANDFILLS.

= 6 RECYCLED WATER BOTTLES

1 SUPERIOR SHIRT


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PROTECT WHAT MATTERS MOST.


POLYESTER Better options include creating and using more recycled polyester. 20% of polyester used today in Under Armour apparel is recycled, which is up from 16% in 2013.

RUBBER Better options include creating new rubber formulations. Under Armour developed two new such formulations and is now used in more than 30 finished rubber compounds.

LEATHER Better options include using leather processed at facilities rated by the Leather Working Group. 100% of the leather used by Under Armour is LWG certified.

COTTON Better options include using cotton sourced from the Better Cotton Initiative and organic cotton. In 2013, we used more than 14 million pounds of organic cotton.

EVA FOAM EVA already scores very well on sustainability criteria.

SYNTHETIC LEATHER Better options include using those products that reduce or eliminate the use of solvents.

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WE HAVE WORKED HARD TO DEVELOP ENVIRONMENTALLY PREFERRED VERSIONS OF THESE COMMONLY USED MATERIALS.


Waste Reduction. Anything we or our contract manufacturers buy that

end of life. Under Armour Catalyst, introduced in 2012,

does not end up in our product represents waste and

represents a small portion of our production line today,

related resources whether it’s excess materials that result

but we believe it holds great potential in helping us

in unnecessary handling and shipping, excess corrugated

advance toward our goal of reducing waste, especially

cardboard in boxes, or shopping bags not needed with

at scale. The technology uses knit construction that

consumer purchases.

allows for a lightweight upper that reduces footwear waste. The Catalyst running shoe reduces footwear waste

Our products themselves eventually become waste, as

by 80% on average when compared to typical Under

was made clear in our foot printing effort. The disposal

Armour running footwear.

phase that is, when our products reach the end of their useful lives and are thrown away - makes up 59% of

Our progress toward our waste-related targets has

the total waste in our value chain. To help our shoes

been mixed. We are working toward 10% reductions

“play on” in the form of new products. Since then, we

in waste from finished goods manufacturing across

have collected and reground 28 million pairs into Under

Under Armour, and in shoebox weight per unit, from our

Armour Grind for use in more than 450,000 locations

2011 baseline through 2015. These targets build on the

around the world - in applications ranging from running

35% reduction we had already achieved in footwear

tracks and playgrounds to carpet backing and soles for

manufacturing waste from 2001 to 2011.

new footwear. We have made good progress toward our total

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At the same time, we are working to reduce waste by

manufacturing waste reduction target, having achieved

focusing on what goes into our products and packaging.

an 8.6% reduction in this waste from 2011 to 2013, through

We aim to design our products to limit the creation of

consultation between our field teams and contract

waste in manufacturing, rather than figuring out how to

factories on the application of our index, including data

re-purpose waste after the fact. This ultimately helps

management, identification of opportunities and setting

to reduce waste all along our value chain, including at

targets, developing action plans and implementing


WASTE RESULTS IN A LOSS OF NATURAL RESOURCES.


process changes. While overall waste has declined, the

achieved through a design overhaul that enabled the

contract factory-level diversion rates have improved.

use of less material and lighter weight corrugate

Our shoebox target will be more difficult to meet. Our

fiber. One of the primary ways we help to drive waste

boxes need to be lightweight and waste efficient, but

reductions in our supply chain is via our Under Armour

they still must retain their integrity and structure from the

Materials Sustainability Index and our footwear and

factory to the consumer. Starting in 1995, our shoebox

apparel indices. By measuring the environmental impact

has been made of 100% recycled content. Since that

of chosen materials and the waste efficiency of designs,

time, we have worked to reduce the weight of the box,

our designers can make better choices. In Under Armour

developing different alternatives with varying degrees

Brand apparel, our average pattern efficiency rates at

of success. The new Under Armour Brand box is a 3%

the end of 2013 were more than 80%. In Under Armour

weight reduction against our 2011 baseline, building

Brand footwear, this rate improved to 71% average

on a 6% savings from a previous box redesign. We are

efficiency — resulting in a nearly 13% reduction in waste

in Phase 3 of rollout and will be at full implementation

compared to 2008.

of the new box design by the end of 2015. That’s good progress but not enough to meet our 10% reduction

For manufacturing waste that we cannot yet eliminate,

target by 2015. We are exploring additional options,

what we do with it matters. We make every attempt to

including changes to the master carton — so that the

drive waste as high up the value chain as possible —

smaller and lighter shoeboxes can be shipped in a leaner

ideally back into our own product through closed-loop

outer box. Additionally, we have other shoebox initiatives

innovation. Examples include material vendor take-back

in various stages of implementation that will reduce

programs and grinding rubber outsoles back into new

overall shoebox weight.

outsoles, including testing and exploring new ways to increase the level of scrap content that can be mixed

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Under Armour launched its redesigned box in 2012,

back into new outsole rubber. The next best options

achieving a 13% reduction in average weight per box

are Under Armour Grind applications, basic recycling

compared to the previous design. This reduction was

solutions, and then energy recovery.


MADE FOR PLAYERS AND THE PLANET AFTER THE CHAMPIONSHIPS ARE WON AND THE CONFETTI HAS FALLEN, THE SHOES ARE USUALLY THROWN OUT AND FORGOTTEN. THEY DESERVE BETTER THAN THAT. SO FAR 28 MILLION PAIRS OF SHOES HAVE BEEN RECYCLED.

SEVERAL PAIRS OF SHOES

=

ONE AMAZING PLAYGROUND


Our corporate offices also produce waste, though the

Under Armour includes three types of raw materials

amount is minimal compared to that from manufacturing

made from recycled athletic shoes and manufacturing

and packaging. At our World Headquarters campus,

byproducts: rubber from the outsole, foam from the

our waste has grown 4% compared to 14% growth in our

midsole and fabric from the upper. These materials are

campus square footage since 2011. We are monitoring

ground up and used by select companies in sport and

the increased amount of waste we produce and are

playground surfaces, as well as in numerous Under

including waste assessments and reductions in our

Armour apparel, footwear and equipment products.

long term planning. Both sports and playground surfacing companies utilize We are also focusing on the diversion of waste to

Under Armour Grind to manufacture sustainable athletic

compost and recycling, away from landfill. Our WHQ

surfaces such as tennis and basketball courts, running

diversion rate in 2013 was 69% — our best on record

tracks, athletic fields and playgrounds. Additionally,

despite dropping to 57% in 2012 from previous rates

Under Armour utilizes the material in various products

above 60%. Our ability to maintain or improve these

such as footwear and apparel.

diversion rates in the future depends in part on external factors such as the efforts of our food service suppliers,

Innovation has been at the heart of Under Armour’s

and proposed regulatory changes regarding acceptable

philosophy since the start. It’s what has allowed us

materials for composting and recycling.

to create iconic, game changing products — time and again. But today, Under Armour innovation is about

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Whether it’s a worn-out shoe or manufacturing surplus,

more than product performance. It’s about focusing

Under Armour Grind is used in the design, build,

our corporate responsibility efforts in the areas which

and install of synthetic and hardwood courts, gym and

we can have the greatest impact and create the most

weight room flooring, synthetic turf fields, running tracks,

value, including the materials we design into our

playgrounds and more. In fact, surfaces containing Under

products and through the process of making those

Armour Grind can be found at every level of play.

materials and products.


THE OVERALL WASTE FOOTPRINT

1%

2%

11%

6%

9%

13%

59%

PLAN

DESIGN

MAKE

MOVE

SELL

USE

REUSE


Green Building. Our foot printing confirms that the greatest sources

CO2 emissions for our assessed footprint fell 2.8% in

of CO2 and energy use in our value chain lie outside

absolute terms (to 1.67 million tCO2) and energy use fell

our direct control, both upstream (in growing materials,

5% (to 14,924 TJ) compared to our 2011 baseline, while

raw materials manufacturing and finished goods

company revenue grew by 26% over the same period.

manufacturing) and downstream (in consumer use, including washing and drying clothes). Fortunately,

The greatest single contributor to our assessed footprint

our indexing tools provide us with means to influence

is finished goods footwear manufacturing, which

emissions and energy use in at least the key upstream

accounts for more than 57% of our assessed CO2

phases of our value chain.

emissions. From 2011 to 2013 alone, footwear manufacturing realized a per unit emissions reduction

In 2013, our targeted reductions — which include the

of 17%, and down 33% from FY08. This reduction was

aggregate of efforts in the built environment, logistics

accomplished by reducing process heat loss, improving

and footwear manufacturing — achieved a 13% CO2

energy management systems and fostering better

emissions reduction since 2011 on a per-unit basis

engagement between factories and Under Armour’s

against Under Armour Brand footwear units. That means

energy field team.

we believe we are on track to reach our CO2 reduction target. It also means we believe we are making progress

We have also seen progress in inbound transportation

toward the aim of decoupling growth from constrained

within the Under Armour Brand, with our shipping

resources, as our revenue growth from continuing

providers helping us to deliver a 29% reduction in CO2

operations has significantly outpaced the growth in

emissions in 2013 as compared to 2011. We achieved

energy use and emissions in our assessed footprint.

this in part by shipping more product by ocean than air, thus reducing fuel consumption and cost. The roll out

We also reduced both energy use and our GHG footprint

of a new, more accurate emissions-tracking system

in absolute terms when considering our assessed

also contributed about 6% of the reduction.

footprint. Through 2013, the total energy use and related

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In our Under Armour Brand retail stores, we decreased energy use per square foot by 8% from 2011 to 2013, largely due to better energy management systems. About 77% of our North America stores now have these systems, up from 70% in 2012. Overall, in our corporate headquarters facilities, energy use per square foot decreased by 16% from 2011 through 2013, largely due to system and control upgrades. We anticipate that adding several new buildings to the portfolio late in 2013 will increase energy use per square foot as building occupancy increases in future years. We continue to make progress in additional areas not factored into our target, including apparel and equipment manufacturing, where we are working hard to develop comprehensive baselines so we can track progress year over year. We are also working more closely with material vendors, to help them reduce their emissions and energy use. We advocate for progressive climate policies through ongoing work with organizations such as the Business for Innovative Climate and Energy Policy (BICEP), which was founded in 2008 together with other major brands.

YOU MUST HAVE THE PASSION, STRENGTH AND BELIEF THAT YOU CAN BECOME AND DO ANYTHING.


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29%

REDUCTION for CO2 emissions per unit in inbound and out bound transportation

50%

REDUCTION in water used in apparel materials dyeing and finishing, and in footwear manufacturing

75%

INCREASE on reducing energy use in retail stores, manufacturing plants and corporate offices



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I WILL RECYCLE. GO GREEN


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It all comes back to our vision of a closed loop business— where waste at different stages, from product manufacturing to transportation and products at the end of their life, can be recycled and reused—back into new products.


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BECOMING STRONGER INSIDE AND OUT.





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