Canadian Tire

Climate Change

Our Commitment

We are committed to integrating climate change considerations into our decision-making processes to support the reduction of greenhouse gas emissions in our operations.

Climate change is caused by both natural processes and human influences. However, since the Industrial Revolution, the impact of human activity on our climate – through land use and activities that increase greenhouse gas (GHG) concentration in the atmosphere – has been the predominant driver of climate change. As a large Canadian retailer, we understand the need to consider the effects of climate change in how we operate, and work to reduce our GHG emissions.

Did you know?

We quantify and report our GHG emissions in accordance with the GHG Protocol. Our GHG emissions are reported in CO2e or carbon dioxide equivalent, which expresses all such emissions in a common unit, describing their global warming impact relative to that of CO2. For a full description of our reporting boundaries, and methodology, please refer to our 2021 Climate Data Supplement.

Mountainous landscape with lake

We want to play our part in protecting our planet for today and for future generations. We recognize that we need to continue to invest in reducing our operational emissions and find new ways to work with our value chain partners to enable reductions across our entire footprint, including the emissions associated with the wide assortment of products we sell. By understanding the business risks of climate change, we are better positioned to adjust to the future, mitigate those risks and assess the opportunities that will arise as new technologies and products emerge.

Understanding the business risks of climate change

Following the release of the recommendations provided by the Task Force on Climate-Related Financial Disclosures, in 2018 and 2021, CTC worked with third parties to better understand the potential implications of climate risk on CTC’s assets and locations through climate risk and opportunity assessments. These exercises included scenario analyses which continue to inform our decision-making regarding climate strategy and investments.

We Are Here to Make Life in Canada Better by reducing our contribution to Canada’s greenhouse gas emissions footprint, championing innovation and products that will support emissions reductions for our customers, and facilitating collaborative action with our suppliers and other stakeholders.

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.

Canadian Tire retail store in Grand Prairie, AB.

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?

Canadian Tire Corporation's emissions efforts by 2030

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.

Hydrogen fuel production tank

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.

Canadian Tire retail store, Welland, ON.

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.

Enhancing our HVAC systems
LED lighting for Mark’s

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 Annual Information Form.

Canadian Tire retail store in Grand Prairie, AB.

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.

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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.

Canadian Tire container

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).

Percentage of plug in hybrid vehicles (PHEV) used by Canadian Tire Corporation

In 2021, we accomplished our goal of transitioning 18% of our PartSource operational fleet to PHEVs for a total of 76 PHEVs.

Percentage of plug in hybrid vehicles (PHEV) used by Canadian Tire Corporation

The switch has resulted in a 40% reduction in fuel consumption for those vehicles.

Percentage of plug in hybrid vehicles (PHEV) used by Canadian Tire Corporation

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.

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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:

Various eco friendly products found at various Canadian Tire retail stores

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.

Using data and analytics to drive value

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.

1 Our GHG emissions reduction target is based on a 2020 baseline of approximately 200,000 tonnes of CO2e.

2 Our buildings GHG emissions reduction target did not include Helly Hansen or Party City retail stores or office sites as those locations were acquired after we set this target.

Unless otherwise indicated, information in this ESG Report is provided for the 2021 fiscal year. For further information on our approach to ESG reporting, including our Glossary, which sets out definitions of capitalized terms and acronyms that are not otherwise defined in this page, and our forward-looking information disclaimer, please click here.