On has released the 2023 edition of its Impact Progress Report on ESG, laying out 24 external goals, “multiple” internal goals and 12 “foundational goals.” It says three pillars stand on this foundation: social impact (human rights in labor policy), innovation in materials and processes (to reduce environmental effects) and circularity (designing long-lasting products and programs to prevent them from ending up in landfills).
On says that in 2023, it achieved year-on-year decreases in absolute emissions of 30 percent from owned operations and 17 percent along the entire supply chain – “despite the company’s continued growth.” It also obliged all its existing Tier 1 suppliers to stop using coal as a “direct energy source.” These same suppliers underwent independent audits, whose results were posted to the company website.
The company revised its Responsible Manufacturing Blueprint for the supply chain and its Workplace Standards Monitoring Program for Tier 1 suppliers. The latter includes an “improved social scoring system.”
For its own management, the company held mandatory “Inclusive Leadership Sessions,” covering the conceptualization of diversity, inclusion and equity (DEI), “challenging biases in the workplace, and demonstrating the behaviors of an inclusive leader.”
On runs a program called “Right to Run” that “supports organizations that protect and preserve their community’s fundamental right to run and move” by hosting “their stories” on its platform. It counts 26 “global partners who have received over $1 million in grants and benefited from more than 27,000 product donations.”
As for circularity, On sees the life cycle of its shoes and apparel as having three phases: pre-use, in-use and post-use. It accordingly “pilots new business models” in things like product resale and product subscriptions. On’s existing subscription services are Cyclon (for circularity) and Onward (for “re-commerce”). Since 2022, On has expanded Cyclon and introduced fiber-to-fiber recycling through Cloudeasy Cyclon.
In addition, On says it has several environmental plans, such as water reduction, microplastics, biodiversity, logistics, the downstream supply chain, chemical recycling and waste management. It is also developing a net-zero roadmap to extend past 2030.
