90 MW Wind Deal Marks One of The Largest
Offsite Renewable Energy Contracts by an Apparel Retailer
Global apparel retailer Gap Inc. (NYSE: GPS) today announced
that it has signed a 90 Megawatt (MW) virtual power purchase
agreement (VPPA) for the Aurora Wind Project with Enel Green Power
North America, marking one of the largest offsite renewable energy
contracts by an apparel retailer. The 12-year agreement is Gap
Inc.’s latest renewable energy deal and will enable the company to
reach its 2020 goal to reduce absolute Scope 1 and 2 greenhouse gas
(GHG) emissions for its owned and operated facilities by 50 percent
compared to 2015. The company also announced it has set a goal to
reach 100 percent renewable energy across its global owned and
operated facilities by 2030.
“We have a responsibility to reduce our climate impact. For Gap
Inc., being a part of the climate solution means making strategic
investments in clean energy generation. Today we have secured a
path to achieving our 2020 goal, but we must do more. I’m proud to
commit to renewable energy for 100 percent of our stores,
headquarters and distribution centers globally by 2030,” said Art
Peck, president and chief executive officer, Gap Inc.
Gap Inc. operates more than 3,300 stores worldwide, however the
vast majority of its distributed store fleet are leased sites
located in buildings and malls owned by landlords, limiting the
company’s ability to implement onsite renewable energy assets. The
agreement with Enel Green Power allows Gap Inc. to meet its
renewable energy goal by aggregating its distributed electricity
load in the U.S. and purchasing wind energy equivalent to the
energy needs of over 1,500 retail stores in its global real estate
portfolio. The agreement provides benefits both to the local grid
by adding new clean generation, while also stabilizing operating
costs for Gap Inc. in the face of fluctuating energy prices.
The wind electricity output purchased by Gap Inc. from the 90 MW
portion of Enel Green Power’s 299 MW Aurora project is expected to
total approximately 374 gigawatt hours (GWh) each year. It will
reduce GHG emissions equivalent to the carbon reduction of removing
60,000 passenger cars from the road annually.
Gap Inc. was advised on this VPPA by Schneider Electric Energy
& Sustainability Services, who assisted the company in its
project selection and negotiations. “Gap Inc. has shown tremendous
and ongoing sustainability leadership in the apparel industry,”
said John Powers, VP of Strategic Renewables for Schneider
Electric. “Pursuing an offsite VPPA was an ideal solution to
address the company’s unique real estate footprint, which lacks
owned rooftop space, and achieve its carbon reduction targets while
creating both business and environmental value. We want to
congratulate Gap Inc. on this important project that will
contribute to a clean energy future for all.”
Enel Green Power North America—a leading owner and operator of
renewable energy plants with a managed capacity of over 5 GW—will
build, own, and operate the Aurora Wind Project located in Williams
and Mountrail counties in North Dakota. Once completed, the total
project will be able to generate approximately 1.3 terawatt-hour
(TWh) annually, while avoiding the emissions of around 880,000 tons
of CO2 per year. The project is expected to enter operation by the
end of 2020.
“This partnership with Gap Inc. demonstrates how global brands
are increasingly turning to us for our extensive expertise in
creating flexible and customized solutions that address unique
renewable energy needs,” said Antonio Cammisecra, Global Head of
Enel Green Power. “With partnerships like this one, which create
immediate returns while furthering emission reduction strategies,
Enel Green Power once again reaffirms the strong bond between
sustainability and value creation.”
In addition to meeting its 2020 Scope 1 and 2 GHG
emissions-reduction goal, Gap Inc. is also establishing a Scope 3
goal to reduce upstream and downstream emissions, including in its
supply chain. The company has committed to setting a Science Based
Target, including addressing Scope 3 emissions, which will be
announced later this year. In 2018, Gap Inc. was one of 43 founding
signatories of the UN’s Fashion Industry Charter for Climate Action
to step up the industry’s collaboration towards a cleaner,
low-carbon future, including a commitment to reduce aggregate Scope
1, 2 and 3 greenhouse gas emissions 30 percent by 2030 compared to
a 2015 baseline.
Today’s announcement is the third renewable energy contract
signed by Gap Inc. Earlier this year, the company joined with
Bloomberg, Cox Enterprises, Salesforce and Workday to sign a joint
42.5-megawatt renewable energy deal, with Gap Inc.’s share of the
project addressing the energy footprint of all Athleta stores and
operations. Previously, Gap Inc. signed a 20-year power purchase
agreement with SunPower for 3 megawatts of onsite solar at its
distribution center in Fresno, California.
As part of Gap Inc.’s corporate sustainability strategy, the
company collaborates throughout its value chain and across
government, business and civil society to address systemic
challenges. The company was among the first to implement the
Sustainable Apparel Coalition’s Higg Index with its supply chain
and, in 2017, committed to a science-based carbon reduction target
to align its climate goals with the scientific consensus and core
commitment of the Paris Agreement to limit global warming below 2
degrees Celsius. The company is also a member of the Ceres BICEP
policy network (Business for Innovative Climate and Energy Policy)
to address urgent climate and clean energy risks for global
businesses, and also joined with other businesses to form the We
Mean Business coalition to improve resiliency in its operations and
supply chains.
For more information on Gap Inc.’s global sustainability
initiatives, please visit www.gapincsustainability.com.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing,
accessories, and personal care products for men, women, and
children under the Old Navy, Gap, Banana Republic, Athleta,
Intermix, Janie and Jack, and Hill City brands. Fiscal year 2018
net sales were $16.6 billion. Gap Inc. products are available for
purchase in more than 90 countries worldwide through
company-operated stores, franchise stores, and e-commerce sites.
For more information, please visit www.gapinc.com.
About Enel Green Power North America
Enel Green Power North America, part of the Enel Group’s global
Enel Green Power business line, is a leading owner and operator of
renewable energy plants in North America with projects operating
and under development in 24 US states and two Canadian provinces.
The company operates around 100 plants with a managed capacity of
over 5 GW powered by renewable hydropower, wind, geothermal and
solar energy. In North Dakota, it currently operates the 150 MW
Lindahl wind farm in Williams County.
About Schneider Electric
At Schneider, we believe access to energy and digital is a basic
human right. We empower all to do more with less, ensuring Life Is
On everywhere, for everyone, at every moment. We provide energy and
automation digital solutions for efficiency and sustainability. We
combine world-leading energy technologies, real-time automation,
software and services into integrated solutions for Homes,
Buildings, Data Centers, Infrastructure and Industries. We are
committed to unleash the infinite possibilities of an open, global,
innovative community that is passionate with our Meaningful
Purpose, Inclusive and Empowered values.
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version on businesswire.com: https://www.businesswire.com/news/home/20190809005058/en/
Debbie Felix, Gap Inc. press@gap.com Krista Barnaby,
Enel Green Power Krista.Barnaby@enel.com Bridget Cameron,
Schneider Electric Bridget.Cameron@se.com
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