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Decarbonizing our operations
We recognize that climate change requires urgent action. To do our part to mitigate climate change, we have developed a decarbonization strategy that prioritizes our own operations first. The key elements of our strategy include the following:
Energy Efficiency
We will prioritize energy efficiency innovations in the design of future store prototypes, including the installation of LED lighting and a more efficient building envelope. Our next store prototype for our corporately built Canadian Tire stores will be designed as net zero ready1 to maximize energy efficiency.
Renewable Energy
As we transition to a lower-carbon economy, we will do our part to support the development of clean, renewable energy sources in Canada. We will seek to supply renewable energy for our stores, offices and distribution centres through long-term energy purchase agreements as well as on-site solar.
Electrification
We are working to phase out the use of fossil fuels and transition to electric alternatives in our stores and transportation fleet, such as electric air-source heat pumps in our stores as an alternative to natural gas and propane heating. By 2030, we plan to have heat pumps installed at over 30% of our Canadian Tire retail stores.
In 2022, we set a new target to reduce our Scope 1 and 2 GHG emissions by 40% by 2030 relative to our 2020 baseline, including those of our Dealer-operated Canadian Tire stores. To achieve this target, we have built a robust plan that includes investing in the electrification of our assets and expanding our use of renewable energy.
Our 2030 emissions reduction goal is the starting point of our decarbonization journey. The Scope 1, Scope 2 and Dealer store emissions included in our target represent a smaller fraction of our overall footprint than our Scope 3 emissions. While we have more direct control over decarbonizing our Scope 1 and 2 emissions, we must also address our Scope 3 emissions – those that arise primarily from the manufacture and use of our products. In 2022, our Scope 3 emissions equated to approximately 2,959,683 tonnes of CO2e.
We are assessing decarbonization pathways in our supply chain to reduce the environmental impact of the manufacture of our products, focusing 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 products that are manufactured with fewer emissions, and support global efforts to fight climate change.
We are also conscious of the Scope 3 emissions that come from the combustion of gasoline sold at our gas bars. We continue to expand our electric vehicle charging network to contribute to the global shift towards lower-carbon forms of transportation, while still supporting owners of combustion vehicles through this transition.
GHG emissions from our stores, distribution centres and offices represent more than 80% of the scope 1 and scope 2 emissions covered by our 2030 target. To achieve our emissions reduction target, we are focusing on retrofitting our stores and incorporating energy-efficient designs into our store prototypes.
Starting in 2024, we aim to build new Canadian Tire stores to our net zero ready prototype. These net zero ready stores will be significantly more energy efficient than previous prototypes and will have the capacity to become fully net zero with the addition of on-site solar panels. The net zero ready stores will feature enhanced construction details as well as thicker insulation that will improve building envelope tightness, reducing the need for heating and cooling. Air-source heat pumps will also be installed, which will further reduce carbon emissions as they are more efficient and rely on electricity to generate heat instead of natural gas.
Investing in air-source heat pumps
In 2022, we began planning a 2023 pilot to transition a PartSource store in Hamilton, Ontario, and a Mark’s store in Oshawa, Ontario, to air-source heat pumps for their heating needs. Air-source heat pumps are electric, and they work by extracting heat from the outside air to heat indoor spaces. This requires less energy than a traditional gas-fired rooftop unit heating system. As most of our Scope 1 and 2 emissions result from the use of natural gas to heat our stores, focusing on the electrification of our store heating will significantly reduce our carbon footprint and contribute to a more sustainable future.
We will also continue reducing emissions from existing buildings that we own or lease, including our offices, stores and distribution centres within Canada, primarily through continued investment into HVAC system retrofits, improvements to the thermal performance of our building envelope and other energy efficiency initiatives.
Building a net zero distribution centre
In February 2022, CT REIT announced the development of its first net zero energy and carbon project, a 350,000-square-foot distribution centre in Calgary, Alberta. Construction began in 2022 and is estimated to be completed by 2024. Once completed, it is expected that this building will produce as much energy as it consumes on an annual basis. The Canadian Green Building Council has also certified the building as meeting its Zero Carbon Building – Design Standard.
As one of Canada’s largest retailers, we recognize the part we can play in supporting renewable energy development in Canada. This will be done, in part, by supporting electrification and partnering with organizations that support the growth of renewable energy generation. Our plans include developing a strategy and target for incorporating renewable energy into our ongoing consumption. In the meantime, with continued reliance on grid electricity, we look to governments to meet increased electricity demands in a clean and renewable manner as the economy transitions to a lower-carbon future.
Procuring renewable energy
In 2022, we joined Business Renewables Centre Canada, an organization that promotes the growth of non-utility renewable energy procurement in Canada. As a member, we support their work to generate awareness and help grow renewable energy development in Canada.
We are also exploring the potential of hydrogen fuel for transportation and material handling equipment, building on the technology we have at our LEED-Gold certified distribution centre in Bolton, Ontario.
As a retailer, we know that we play a crucial role in supporting and enabling our customers to reduce their environmental impact. We offer sustainable alternatives to help customers make eco-conscious decisions, and we are determined to expand our assortment of these products. This includes products such as solar panel kits, electric bicycles, composters, LED lighting and more. Our Canadian Tire online store has been redesigned to help customers navigate our sustainable alternatives across various product categories and in support of different sustainable initiatives. To learn more, click here.
Building our electric vehicle charging network
In 2022, we installed 194 electric vehicle charging stations at 40 Canadian Tire stores and Canadian Tire Gas+ gas bars (including ONroute locations), falling short of our goal to install 300 new charging stations. Despite the supply shortages that caused our shortfall, our electric vehicle charging network expanded to almost 500 stations at more than 120 locations. This expansion enabled customers to charge their vehicles at our stations over 300,000 times in 2022. Even in the face of continued supply shortages, we remain committed to expanding our electric vehicle charging network.
Planting 1 million trees and kelp plants with veritree
In 2022, SportChek and Atmosphere pledged to plant one million trees and kelp to help restore Canada’s forests and oceans by the end of 2023. In partnership with veritree, a technology platform that connects nature-based solutions with sustainably minded companies, we have access to ground-level data to track and verify the project’s regenerative impact over time. Our in-store SportChek and Atmosphere customers are also able to contribute to our goal through donations at check-out. Learn more here.