Tapestry, parent company of Coach and Kate Spade, has signed a 10-year partnership with Swiss startup Climeworks to offset its Scope 1 emissions. The move comes amid US political backlash against ESG initiatives. Logan Duran, Tapestry's global head of ESG and sustainability, emphasized the need for long-term carbon removal solutions.
Last month, Tapestry announced a decade-long partnership with Climeworks, a Swiss carbon removal startup. This agreement aims to address emissions that Tapestry cannot eliminate through other means, focusing on Scope 1 emissions from its operations. Logan Duran stated, “This was an opportunity for us to establish a long-term partnership and send market signals that this type of innovation is needed.” He added, “There are going to be emissions that we’re unable to address, and we need credible, long-term, durable carbon removal solutions to address them.” While carbon offsetting remains controversial and primarily targets Scope 1, Tapestry positions sustainability as key to business resilience amid US policy shifts under the Trump administration, which is cracking down on climate action. Tapestry's approach includes climate risk scenario analyses. The first was completed in 2022, with a second iteration at the end of 2025 assessing physical risks at 250 sites—including offices, stores, fulfillment centers, and Tier 1 and Tier 2 suppliers—for threats like flooding, droughts, and extreme heat. Transition risks model impacts in low- versus high-carbon economies, highlighting regulatory compliance costs and weather disruptions to supply chains. Duran noted, “There is a significant cost of inaction, and we will continue to see that play out.” These findings are integrated into enterprise risk management, informing board decisions and long-term supply chain strategies. The company has embedded sustainability deeper by moving its ESG team into the supply chain function three years ago, under chief supply chain officer Peter Charles. It funds supplier initiatives, such as a decarbonization program for top 40 Tier 1 and Tier 2 suppliers. Examples include Pungkook Ben Tre installing a rooftop solar system in Vietnam for 1,200 MWh annually (30% of energy use) and Simone adding rainwater recycling for over 20% of water usage in 2025. Sustainability metrics now factor into supplier scorecards alongside delivery, cost, and quality. Influences include TCFD recommendations and California's SB261, requiring climate risk disclosures for large firms.
