Our Approach
In order to understand how our business contributes to global emissions, we utilize industry models and company-specific data to estimate our energy consumption and resulting greenhouse gas emissions. This includes everything from the energy used to extract raw materials that make up the products we sell, to driving the last kilometres to complete deliveries to our customers’ homes.
Our values in action: outcomes drive us
We have been measuring the emissions of our business since 2010 with an increasing scope of measurement
over time. This undertaking helps us understand the level of control or influence we have over those
emissions. Measuring our emissions also enables us to set emissions reduction targets for specific areas
of our footprint, as outlined further below. For more information on our GHG emissions footprint, please
see our 2021 Climate Data Supplement. An archive of all our
past reports that speak to our historical emissions are also available online.
In 2017, we set five-year GHG emissions reduction targets related to our buildings, operations, and product transportation activities. These targets pushed our company to find innovative ways to reduce emissions. This included making investments to improve the energy efficiency in our buildings, partnering with others in our supply chain, and investing in new technology. Setting targets to the end of 2022, CTC’s 100th anniversary year, drove us to take actions that would otherwise not have been made and enabled us to understand and articulate new risks and assumptions that have informed future actions.
An update on our progress against these 2022 targets can be found in the buildings and transportation sections
below. In 2022 we set a new target to be reached by the end of 2030. Our pathway to the 2030 target includes new
investments and builds on our learnings to date as we continue to support Canadian and global efforts to fight
climate change.
Our commitment to climate change includes our ongoing efforts to reduce our GHG emissions. We are retiring our previous GHG emissions reduction targets and taking a new approach for the future. Starting in 2022, we are setting a new target to reduce Scope 1 and 2 GHG emissions, which will include our Dealer-operated Canadian Tire stores, by 40% by 2030 relative to a 2020 baseline1.
What are "Scope 1", "Scope 2", and "Scope 3" emissions?
Scope 1
Scope 1 emissions are direct emissions from the combustion of on-site and mobile fuels that occur at, or are associated with, buildings and operations under CTC’s operational control.
Scope 2
Scope 2 emissions are indirect emissions that occur off-site from the production of energy, such as electricity, which is then purchased for use at buildings and operations under CTC’s operational control.
Scope 3
Scope 3 emissions are other indirect emissions from CTC’s value chain that are not under our operational
control (e.g., CT REIT properties with non-CTC tenants, and the manufacture and transportation of our products by third parties).
Our plans to meet this goal focus on two key areas: switching sources for heating and cooling our buildings
and switching to vehicles that operate on alternative fuels. Our pathway to reducing our heating and cooling
emissions relies largely on proven technologies, with any gaps to be filled through the implementation of
new technologies and, as necessary, investments in third-party efforts to reduce emissions (for example,
power purchase agreements). In our transportation network, we will continue decarbonizing our PartSource
fleet by purchasing lower carbon alternatives to replace our internal combustion vehicles, where feasible.
Our values in action: we are innovators and entrepreneurs at
our core
One example of innovating to reduce our GHG emissions is the new use case for our hydrogen fuel
production. We generate hydrogen through electrolysis at our Bolton distribution centre, and in 2020
we trialed hydrogen fuel cell-powered autonomous guided vehicles. These test and evaluation
exercises have the potential to greatly improve our operational energy efficiency and materials
handling productivity. Moving forward, we will continue to explore other ways that hydrogen fuel can
be integrated into our operations, including with respect to hydrogen-fueled trucks which we are
planning to evaluate later this year.
We have started to analyze our supply chain for opportunities to reduce the environmental impact of the
manufacturing of our products, with the intention to focus on areas where we have greater influence or can
work collaboratively with others to create the scale needed to influence larger change. This will allow us
to provide customers with options to purchase products that are manufactured with fewer emissions, enabling
greater participation in global efforts to fight climate change.
2
We are reducing the GHG intensity of our buildings
We are decarbonizing buildings that we own or lease, including our offices, stores and distribution centres
within Canada, and planning to build new net-zero-ready stores as part of our store expansion program.
We have achieved our previous GHG emissions reduction target
In 2017, we set a goal to reduce GHG emissions from our buildings and operations by 22% by 2022, compared to our 2011 baseline. This target covered our corporate and non-corporate buildings: distribution centres, offices, stores2, and Dealer- and franchise-operated stores. As of the end of 2021, our investments in reducing GHG emissions from our buildings and operations, together with the purchase of renewable energy certificates, enabled us to achieve our goal.
Our building-related GHG reduction activities have been particularly focused on energy-reducing initiatives such as lighting and building upgrades. For example, we have been investing in LED lighting, retrofitting our HVAC systems, and improving the thermal resistance of our building envelope. We also purchased a quantity of renewable energy from wind farms in Saskatchewan and British Columbia.
Enhancing our HVAC systems
In 2021, we started a retrofit of “smart” HVAC fan motors that increase efficiency and reduce motor
energy consumption by 67% compared to conventional motors.
LED lighting for Mark’s
In 2021, we completed our LED lighting retrofit at our corporate-operated Mark’s stores. Over the life of the project to date, we reduced energy consumption in these stores, saving $1.39 million in energy cost avoidance, and avoided 2,590 tonnes of CO2e GHG emissions, which contributed to meeting our previous emissions reduction target. Strategic investments like this will continue to save energy and reduce our GHG emissions over the useful life of the asset.
Working together with CT REIT
CT REIT is an unincorporated, closed-end real estate investment trust formed in 2013 which owns,
develops and leases income-producing commercial properties across Canada, primarily occupied or
anchored by Canadian Tire stores. As of December 31, 2021, CTC held a 69.0% effective interest in CT
REIT. Learn more about CT REIT here.
CT REIT, working in collaboration with CTC, is committed to environmental sustainability. In 2021,
CT REIT conducted a climate risk assessment for its entire real estate portfolio and participated in
its first GRESB assessment. For more information on CT REIT’s ESG activities and practices, please
see their 2021 ESG Report.
In 2018, CTC received LEED Gold certification by the Canada Green Building Council for our Bolton
distribution centre. The environmentally sustainable and energy-efficient building contains green features
such as on-site hydrogen generation to fuel mobile equipment and material handling vehicles using hydrogen
fuel cells; an automated system that controls air flow and circulation while moderating temperatures; and
the use of sustainable materials throughout construction, with over 25% of materials, by cost, containing
recycled content, and 72% of materials, by cost, being locally sourced. Effective waste management practices
were also used during construction, resulting in over 92% of construction waste being recycled or reused.
We are also using our buildings to generate low-carbon energy. A total of 36,951 GJ of renewable electricity
was generated and fed back to the Ontario grid from rooftop solar installations at our stores in 2021. Learn
more about the results of our sustainability initiatives on our Sustainability Performance
Report.
3
We are reducing transportation emissions
Building on previous efforts, we continue to use both proven and new tactics to curb emissions of our
transportation fleet, engage in strategic partnerships to optimize our operations, and explore innovative
solutions to bring to scale.
Update on our previous GHG emissions reduction target
In 2017, we set a goal to keep GHG emissions across our entire product transportation footprint flat by the end of 2022, compared to our 2011 baseline. In 2021, emissions from product transportation were 10% higher than the baseline, but 6.4% lower than emissions in the prior year. Our overall increase in emissions compared to the baseline year of 2011 reflects the significant growth in our e-commerce business, which was unanticipated when we originally set our target. While we will continue to invest in the decarbonization of our product transportation network, we are retiring this 2022 stand-alone target. We are focusing on decarbonizing our buildings as this is where we believe we will have the greatest impact, and have set a new target to reduce our Scope 1 and 2 emissions by 40% by 2030 relative to a 2020 baseline.
For example, in 2021, we acquired a 25% equity interest in Ashcroft Terminal, a transload facility in
British Columbia. This investment reduces our GHG emissions around the Greater Vancouver Area by enabling
our products to be shipped directly by rail from the port without the need for an intermediate trucking
stop. In 2021, we also announced a partnership with NuPort Robotics, a Toronto-based autonomous trucking
technology developer. The partnership will see our diesel-powered and electric semi-tractor trailers
retrofitted with features such as automated driving capabilities, high-tech sensors, obstacle and collision
avoidance technology, and touchscreen navigation. These capabilities will help drivers be safer and more
fuel efficient, further reducing our GHG emissions.
We also continue to ramp up our long combination vehicle operations, growing the fleet that can haul our
larger 60-foot containers to nearly 1,000 vehicles, operating in four provinces. In addition, we are
actively testing and preparing for a transition off diesel in our owned fleet as more options become
available. For example, the transportation team has trialed the use of compressed natural gas, and is
investing in electric tractors and setting up the infrastructure at our Bolton distribution centre to
support the use of alternative fuels for our transport trucks.
DECARBONIZATION OF OUR TRANSPORTATION FLEET
We are also working on reducing our reliance on fossil fuels in our fleet. For example, our PartSource delivery team has been investing in plug-in hybrid electric vehicles (PHEVs).
In 2021, we accomplished our goal of transitioning 18% of our PartSource operational fleet to PHEVs for a total of 76 PHEVs.
The switch has resulted in a 40% reduction in fuel consumption for those vehicles.
As part of our decarbonization plans, PartSource will continue to source and switch our remaining internal combustion
engine fleet vehicles to lower carbon alternatives like PHEVs as they become available.
4
We are making it easier for customers to reduce their own GHG emissions
As a retailer, we know that we play a crucial role in supporting and enabling our customers to reduce their environmental impact. We are committed to helping customers meet their growing interest in more sustainable products and lifestyles. Through seeking out innovative and energy- and emissions-saving products, we can both strengthen our product assortment and enable our customers and others to play their part in reducing their own GHG emissions.
In particular, we are focused on expanding our assortment of energy-saving products to help our customers
reduce their energy costs and impact on the environment. One example of this is our Yardworks 48V
battery-powered outdoor equipment line, which eliminates the need for gas or oil to power landscaping tools.
Another is our “smart home” products, which help customers regulate and reduce power usage around their
homes with minimal effort, as well as ENERGY STAR and WaterSense certified products.
We are also expanding our assortment of products that support more climate-friendly lifestyles. This includes products such as solar panel kits, electric scooters, composters, LED lighting, and more. We offer environmentally-friendly products across many of our banners, and are beginning to group these products in a centralized location in their respective online stores to make it easier for our customers to find and access.
Find some of our environmentally-friendly products here:
In partnership with provincial utility companies and the Government of Canada, we offer rebate incentives to
our customers on hundreds of energy- and water-efficient household products. Through these rebate programs,
customers contributed to 24,494 GJ of energy avoidance in 2021; that is equivalent to providing energy to
240 homes for one year. In addition, customers have been able to save $421 million in energy bills since
2011 by using these efficient household products.
Electric Vehicle (EV) Charging
Near the “Horse and Buggy Parking Only” parking spots at the Mount Forest Canadian Tire, you will find a new EV charging station. As of 2021, we have installed nearly 300 EV charging stations in 83 locations across the country with assistance from our various partners, and are on track to add 300 more EV charging stations across over 60 locations by the end of 2022.