American Eagle Jeans store has committed to achieving several sustainability goals, including a long-term net-zero target by 2024, a 50% reduction in water use per jean by 2025, 100% renewable energy procurement for all owned and operated facilities by 2030, and more sustainably sourced cotton, 50% polyester, and 100% man-made cellulosic fibers.
The announcement follows a $42 million quarterly loss last month, which was ascribed to excess inventory, price hikes across the supply chain, and shifting consumer purchasing habits.
Ninety-five percent of jeans and over half of American Eagle Jeans and Aerie styles are under the Real Good label, which prioritizes sustainability in all aspects of design and manufacture. Chief operations officer Michael Rempell stated, “We’ll continue to elevate our requirements as we increase our Real Good product styles.” “Real Good was designed to be dynamic, changing as we strive to reduce our environmental effect and in response to our customers’ top priorities.”
Starting with the 2023 back-to-school season, American Eagle Jeans manufactured under the AE brand must contain a majority of sustainable fibers, such as recycled or sustainably sourced cotton. Not only that, but jeans are also produced in facilities that adhere to AEO’s water regulations.
According to executive chairman and CEO Jay Schottenstein, “building a better world for future generations is an extremely important component of how AEO does business.” “We’ve always guided with purpose, optimism, and a dedication to doing morally for our communities, consumers, and associates. We’re still making audacious decisions in our operations and utilizing our power to push for significant changes in the retail sector as well as in our own company.
One of the worst sectors of the economy in terms of pollution and harm to the environment is the apparel producing sector. According American Eagle Jeans to the UN, the global fashion sector produces more greenhouse gas emissions and 20% of all wastewater annually than all international travel and maritime shipping combined.
In 2019, after taking environmental action for several years, AEO set forward comprehensive climate targets. The corporation launched a cross-functional ESG working group and steering committee headed by the board of directors in 2021, and it formalized its ESG strategy at that time.
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American Eagle Jeans set ambitious targets for reducing greenhouse gas emissions and water use a number of years ago. Two years ahead of schedule, the shop met its water targets. Schottenstein expressed his satisfaction with the work made thus far, saying, “We’re exceeding our water goals ahead of schedule.”
The firm established the Water Leadership Program in 2017 to establish water use guidelines for its mills and factories that produce jeans, and it produced the AEO Wastewater Management Standard in 2013 to give producers direction on how to manage water properly.
AEO is committed to achieving its continuous improvement goals and is proud of its accomplishments thus far, such as its 36% reduction in water usage per jean. Additionally, it has saved 3.5 billion gallons of water in jeans manufacturing since 2017 and 5 billion gallons of water by sourcing Better Cotton. Denim factories recycle 45 percent of their water usage.
Much of AEO sustainable cotton comes from organizations like the Better Cotton Initiative, a non-profit that assists cotton growers in adopting more environmentally friendly growing practices. AEO joined the alliance in 2015, contributing to the betterment of cotton growers’ livelihoods.
For many years, AEO has woven environmental preservation, employee welfare, and upholding ethical business practices into its core values, according to Schottenstein. “In order to generate shareholder returns with a purpose, our ESG strategy is intentionally connected to the growth of our industry-leading brands, corporate strategy, and culture,” he stated.
The final stage of production that gives American Eagle Jeans their distinctive appearance is sustainable denim washing, which is the focus of the company’s current efforts. The new washers in the company’s laundries utilize a quarter of the water compared to standard washers. In order to evaluate how the garment finishing process affects the environment in terms of water use, energy consumption, chemical use, and worker health, many laundries utilize environmental impact monitoring software.
As part of the Ellen MacArthur Foundation’s American Eagle Jeans Redesign initiative, AEO also created a limited-edition denim line, the AE x Jeans Redesign collection, by following certain parameters. The foundation’s Make Fashion Circular team collaborated with over 80 denim specialists to produce the criteria. It incorporates the ideas of a circular economy, in which clothing is produced with little environmental impact, is recyclable, and lasts a long time.
For two decades, a series of programs known as Planet, People, and Practices have impacted various facets of the company. “Our business success depends on building on them,” stated Schottenstein. “Several years ago, we set climate goals. We keep making significant progress toward operating more sustainably and protecting the environment. To successfully accomplish our present and future objectives, we have increased our environmental targets and will keep improving our ESG initiatives.
Almost half of the AEO board of directors are women, and their backgrounds are varied. One of the main components of the company’s goal has been to achieve nearly gender parity in the executive leadership ranks. Currently, women make up 47% of the board of directors.
Chief human resources officer Marisa Baldwin stated, “Key priorities for AEO are empowering women, investing in women through health, life skills, and gender equality training, and increasing women’s access to leadership opportunities.” We place a great deal of importance on maintaining gender balance in order to guarantee diversity in backgrounds, experiences, and viewpoints.
Baldwin also mentioned the vibrant AEO community and the involvement of associates in organizations like Women @AEO, which aims to uplift and motivate associates to help them realize their full potential and to give back to support underprivileged women and girls in their communities.
The $5 million Real Change Scholarship for Social Justice, established by AEO in 2020, will now go by a new name. The scholarship provides funding for AEO workers to participate in educational programs centered around social justice, equality, and anti-racism. The scholarship’s new name was disclosed in the ESG report. The late AEO board member Steven Davis, who passed away suddenly in July, will be honored with the Steven A. Davis Scholarship for Social Justice.
The store has also given 40 million meals to Feeding American Eagle Jeans in the last two years, and since 2012, it has given more than $46 million to groups that support the environment, education, mental health, and youth empowerment.
