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44 OUR OPERATIONS CLIMATE    At Lidl, we endeavour to address our climate impact by continuously improving our resource efficiency. CHALLENGE: As a leading retailer with over 200 stores across the country, we recognise the influence and impact of our operations. We are consciously aware that we rely on our vast amount of resources to deliver our proposition to our customers across all our stores. Our resource requirements can contribute to global emissions, contributing to our total operational emissions and overall carbon footprint. ACTION: We are committed to diligent resource management and constant review of our progress. This is achieved through a dedicated management processes, initiatives to increase efficiency and innovations across all areas of our operations.  Climate Climate change is one of the biggest societal challenges of our time. Individuals and companies can influence climate change through their actions. The extent of this influence can be calculated with a climate or carbon footprint. Our carbon footprint is the total amount of greenhouse gas (GHG) emissions applicable to our business. The calculated quantity of greenhouse gases provides the foundation for climate management and the analysis for the carbon reduction potential. ACTION: We calculate and monitor our carbon footprint data. This calculation is completed using our comprehensive footprint model which has been verified by our partners, Carbon Trust.3 This analysis highlights our areas of greatest impact and helps inform our resource efficiencies and reduction initiatives. This analysis is conducted for our entire value chain (Scope 1, Scope 2 and Scope 3). We first started collecting this data in 2016, setting our first official baseline year to 2017. Since then we have grown in size and still observed significant reductions across our business operations. Each year we strive to improve our data quality in order to inform our strategy as accurately as possible. We collect all the necessary consumption data, while the necessary emission factors are provided by our external partner, The Carbon Trust, who then calculate and verify our total carbon footprint. Although we have made significant progress, we decided to re-baseline our data and update our targets and ambition to a 1.5 degree reduction commitment in 2019 setting our most ambitious targets year to date. SDG 13 – Climate Action We built our targets and goals for climate to further drive SDG 13.2   This is the carbon footprint of our operational GHG emissions, i.e. direct GHG emissions from Scope 1, such as refrigeration, and indirect GHG emissions from Scope 2, the procurement of generated energy or electricity.   Our Operational Progress 2019 (Scope 1 and Scope 2) Ireland and Northern Ireland Emissions (tCO2e)  Market-based -80%  Location-based -18%   This progress related to our first baseline year, 2017, and is reporting our progress for 2019. The carbon footprint shows the greenhouse gas emissions* (GHG emissions) of Lidl in tons of CO2- equivalent and relates to the stores, warehouses and administrative offices operated by Lidl Ireland and Lidl Northern Ireland. We used the requirements of the Greenhouse Gas (GHG) Protocol** as the basis for the calculation. * For carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), perfluorocarbons (PCFs), and nitrogen trifluoride (NF3) ** GHG Protocol Corporate Accounting and Reporting Standard (Scope 1+2) & Scope 2 Guidance   RESOURCES Protection of Ecosystems Animal Welfare Standards Environmental Protection: Supply Chain SUPPLY CHAIN Employment Related Supplier & Market Human Rights Development Corporate Environmental Management OPERATIONS Employee Responsibility Responsible Products CUSTOMER Transparency Social Value Responsible at Point of Sale Creation Communication       

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