TAKING THE HUT GROUP (THG) FROM NET-ZERO TO HERO
The Hut Group (THG), a global online retailer and technology company committed to achieving a net zero future, faced the challenge of delivering a net zero strategy while expanding and diversifying its business.
Scroll to see their journey
Two common goals. One sustainable vision.
THG (PLC) selected MyCarbon for their comprehensive and practical approach to sustainability. Through their collaboration, MyCarbon developed a clear roadmap for THG’s long-term sustainability goals.
This included short-term reductions in Scope 1 and 2 emissions, projecting a reduction of over 300,000 tons of CO₂e, and a long-term net-zero forecast model, anticipating a 93% reduction in absolute Scope 3 emissions by 2040. MyCarbon also created supplier engagement roadmaps to help THG establish a sustainable supply chain.
Overall, MyCarbon’s work on a net-zero strategy for THG was highly successful, as THG have had their science-based targets for near-term and long-term net-zero emissions reductions validated by the Science-Based Targets Initiative (SBTi). Through the developed net-zero strategy, THG have in place a tangible and attainable path towards long-term sustainability and have identified significant opportunities for reduction.
Our client
THG is a global online retailer and technology company, founded in 2004 by Matthew Moulding and John Gallemore. The company started as an online retailer of hair and beauty products but has since diversified into a wide range of categories, including nutrition, skincare, and luxury fashion.
THG has experienced rapid expansion in recent years, both organically and through a series of high-profile acquisitions. The company’s portfolio of businesses includes: Lookfantastic, Myprotein, ESPA, Illamasqua, and Glossybox, among many others. THG’s continued expansion has led to significant growth in revenue and market share. They have a strong commitment to sustainability, and have made significant investments in renewable energy, electric vehicle fleets, and sustainable packaging.
The challenge
THG faced the challenge of developing and implementing a net-zero strategy while expanding and diversifying their business. THG had committed to submit emissions reductions targets to the SBTi for near-term and long-term net-zero targets.
As an e-commerce company, a significant portion of their goods come from external manufacturers, limiting their control over Scope 3 emissions. This presented a challenge for emissions reductions. THG sought a partner who could understand and engage with their diverse supply chain to identify risks and opportunities.
THG chose MyCarbon for their comprehensive and practical approach to sustainability, tailored to THG’s unique needs. MyCarbon’s scientific and engineering expertise played a crucial role in THG’s decision to collaborate with them.
MyCarbon takes a tailored approach to engaging with each client, recognising the uniqueness of each business case. For THG, this approach allowed MyCarbon to adapt their process to the complex and diverse portfolio of THG’s businesses across various industries.
The next steps
In response to the THG net-zero project, MyCarbon began by analysing previous carbon footprint reports and baselines, identifying weaknesses, and areas for improvement.
MyCarbon updated the carbon footprint report to meet the requirements of the SBTi, focusing on hotspots in the beauty and nutrition divisions.
MyCarbon then conducted kick-off meetings with ten key departments and stakeholders, including beauty and nutrition divisions, with two objectives: engaging the divisions in the process and gathering high-quality information to develop a comprehensive net-zero strategy. The data collected to identify key product emission hotspots for targeted reductions was analysed. Additionally, MyCarbon assessed the net-zero commitments of the current supply chain and identified top suppliers without such commitments.
Final stages
Finally, MyCarbon developed site-specific reduction strategies for the six key manufacturing and fulfilment centres, tailored to the availability of sustainability options within those regions.
To ensure that the net-zero plan was comprehensive and scientifically sound, MyCarbon also assessed, modelled, and targeted Scope 3 emissions using a custom carbon model that explored how emissions would change depending on different reduction strategies. This allowed for short- and long-term reduction projections to be made, ensuring that the net-zero plan was achievable and effective.
The strategies developed by MyCarbon for emissions reductions were used to build science-based emissions reduction targets. Three targets were submitted to the SBTi for validation in December 2022, and approved in September 2023. The validated targets were:
- THG commits to reduce absolute Scope 1 & 2 GHG emissions 42% by 2030 from a 2020 base year.
- THG PLC also commits that 85% of its suppliers by spend covering purchased goods and services and upstream transportation and distribution will have science-based targets by 2027.
- THG PLC commits to reduce absolute Scope 1 and 2 GHG emissions 97.7% by 2040 from a 2020 base year. THG PLC also commits to reduce absolute Scope 3 emissions 90% within the same timeframe.
The figures speak for themselves
Projected reduction of over 300,000 tons of CO₂e over the net zero timeline.
The long-term forecast model projected a 93% absolute reduction in Scope 3 emissions by 2040.
Achieved 97.7% absolute reduction in scope 1 and 2 emissions versus the baseline year by implementing heat pumps, biogas/mass, on-site solar, and renewable electricity.
The result
MyCarbon’s net-zero strategy for THG was a resounding success, providing a clear roadmap for long-term sustainability and identifying significant reduction opportunities. THG were predicted to achieve a 97.7% absolute reduction in Scope 1 and 2 emissions by implementing heat pumps, installing on-site solar, and procuring renewable electricity.
A long-term forecast model projected a 93% absolute reduction in Scope 3 emissions by 2040, supporting THG’s net-zero target. Supplier engagement roadmaps were developed for short-term strategies, ensuring alignment with net-zero ambitions, and building a sustainable supply chain. MyCarbon’s approach was thorough, data-driven, and science-based, resulting in a comprehensive and effective net-zero plan. MyCarbon’s support resulted in THG achieving a validated science-based target, demonstrating a global commitment to sustainability.
----------
"MyCarbon's bespoke approach to sustainability consulting is second to none. From the first consultation, their team of experts were hands-on, engaging with us at every step of the way. Their deep passion for sustainability shone through in every interaction we had, making the whole experience feel more than just another project. Thanks to their flexibility, diligent support, and willingness to quickly upskill on the inner workings of our business, we were able to create a high-quality net-zero strategy (and SBTi submission) which was realistic, ambitious, and (importantly!) approved by the Science-Based Targets Initiative.
We are proud and pleased to have partnered with MyCarbon and are continuing to work with them as we continue on our decarbonisation journey." (Mark Jones, CSO at THG)
Partner with MyCarbon
Trust MyCarbon to help you achieve your net zero ambitions and build a sustainable supply chain to support your long-term goals. Book a call now to go from net-zero to hero!