Quick Facts
- Burberry delayed its net zero emissions target from 2040 to 2050, citing supply chain challenges and industry trends
- CEO Joshua Schulman could earn up to £12.2 million under a new compensation package while the company cuts 1,700 jobs
- The company returned to profitability with £49 million in pre-tax profit after a £66 million loss the previous year
Burberry pushed back its net zero emissions target by a decade to 2050, joining a growing number of companies scaling back climate commitments amid financial pressures and political shifts.
The British luxury brand announced the delay in its annual report Thursday, extending its original 2040 target. The company cited a “more detailed understanding of its supply chain” and the plans of industry rivals as reasons for the change.
The new timeline aligns Burberry with peers including Kering and LVMH, which maintain 2050 targets. The company originally set the 2040 goal in 2021 under previous management.
“We believe our revised targets reflect a pragmatic response to external factors, while allowing us to maintain a level of ambition,” Burberry stated in the report.
The climate target revision coincides with a proposed executive pay overhaul that could see CEO Joshua Schulman earn up to £12.2 million. His base salary will rise 3% to £1.236 million, with maximum performance targets potentially reaching 300% of his salary.
Burberry returned to profitability with £49 million in pre-tax profit compared to a £66 million loss the previous year. Revenue remained flat at £2.42 billion, but comparable store sales grew 2% after declining 12% the prior year.
The turnaround came through aggressive cost-cutting. Schulman eliminated approximately 1,700 jobs, representing one-fifth of the workforce. The restructuring generated £80 million in immediate savings but cost £45 million in charges.
The company maintains its plan for a 95% reduction in direct emissions by 2027. For supply chain emissions, it targets a 46.2% reduction by 2030 and 90% by 2050.
Burberry joins other major corporations retreating from climate goals. Unilever reduced several environmental targets in 2024, while Nestlé withdrew from dairy methane reduction efforts. Oil companies BP and Shell have similarly revised emissions targets.
The trend accelerated after President Trump’s return to the White House. Trump has criticized climate policies and referred to environmental measures as the “Green New Scam.”
For Burberry’s suppliers, the delayed timeline reduces immediate pressure to decarbonize. However, new UK Sustainability Reporting Standards taking effect this year may create additional compliance requirements.
Read more: Burberry Delays Net Zero Emissions Target by 10 Years to 2050
