Climate-related risks and opportunities are part of Pandora’s Enterprise Risk Management system reporting to the Executive Leadership Team and the Board of Directors. Pandora’s climate and renewable energy targets are governed by the Sustainability Board, which has five members from the Executive Leadership Team.
Pandora’s strategy is to meet stakeholder expectations by becoming a low-carbon business. We will affect the transition of our own operations to carbon neutral by 2025 by focusing on increasing our use of renewable energy and increasing the energy efficiency of our crafting facilities and stores. Furthermore, it is a key part of our strategy to engage with our supply chain to find opportunities to use less carbon intensive materials and to support their transition to a low-carbon future. We aim to elaborate further on our Scope 3 strategy once we have finalised our Science Based Target in 2021.
Pandora intends to conduct a scenario analysis in support of the TCFD recommendations within two years. For more information on our approach, see our Low-carbon business section.
Pandora closely monitors both physical and transitional-related climate risk. In 2020, an overall analysis of climate risks and opportunities was performed as detailed in our publicly available CDP report. Specific risks that were identified include reputation, emerging regulation, changing consumer preferences and an increase in extreme weather events disrupting production or our supply chain. Based on the likelihood and magnitude of occurrence, certain risks are brought to the attention of and discussed with the Board of Directors. This new lens will give Pandora an additional perspective on climate-related risks, how they could evolve in the future and how we can best prepare for them.
Metrics and targets
Pandora measures its carbon footprint across all three greenhouse gas scopes. Approximately 1% of CO₂ emissions are related to Scope 1, 8% to Scope 2 and 91% to Scope 3. We focus on reducing all three scopes through our climate targets: 1) become carbon neutral in our own operations by 2025, and 2) set a Science Based Target by the end of 2021.