Here at Teva, energy consumption is not something we take lightly. We're hyper-vigilant about integrating climate change measures into our policies and planning. We're also big on metrics. We routinely measure energy consumption at our corporate HQ, Moreno Valley distribution center, and most of our US retail store locations. More so, we monitor and set reduction targets for key supply chain partners' global energy usage because we've found that our most significant emissions result from the production level
Carbon and Greenhouse Gas Emissions
The fashion industry is the largest contributor of carbon emissions outside of the fossil-fuel industry. We're hoping to lessen our impact with a laser-focus on our manufacturers. Given that China relies heavily on coal, we transitioned the majority of our production to hydroelectricity-savvy Vietnam to minimize our environmental footprint.
In an effort to continually make improvements, we plan to embark on a lifecycle assessment of our materials to determine where our carbon/greenhouse gas emissions are most prevalent. We also recognize the opportunity to reduce other significant air emissions. Our restricted substances policy outlines our expectations of supply chain partners when using substances that are known to have an environmental impact. We make it a habit of regularly reviewing the policy to ensure we're current on legal restrictions, not to mention, we provide ongoing training and monitoring, so our partners are aware of our stringent requirements.
Given our river roots, we appreciate that water is a sparse commodity and do everything in our power to conserve this precious resource. Our Corporate HQ has been outfitted with low-flow fixtures that save approximately 350,000 gallons of water annually. We're making strides outside our buildings as well, planting drought-resistant native plants and rerouting rainfall into a culvert system that feeds the neighboring wetland restoration area.
We're well aware that our largest footprint comes at the production level, which is why we also monitor our supply chain partners' environmental footprint – including water usage. In looking at our materials, all of our leathers are sourced through Leather Working Group certified tanneries which maintain protocols that promote sustainable and appropriate environmental business practices within the leather industry. It's our goal to not only team up with partners who take environmental impact as seriously as we do, but continually drive our partners do to better.
Zero-waste is the goal at our distribution center. And while we're not there (quite yet!), our Moreno Valley Distribution Center is well on its way to becoming a zero-waste facility. We're striving to significantly reduce waste generation at our headquarters, distribution center locations, and key factory partners. How? 3D printing and design either reduces or altogether eliminates samples. The ability to design and print on campus allows our teams to visualize design intent before finalizing samples, effectively reducing samples, errors, and shipping. We also measure waste output among key supply chain partners. We've learned the importance of educating and encouraging our factory partners divert waste. Many partners are eager to do the right thing but lack the tools to achieve their goals. We're doing our part to reduce our waste generation through various channels of our business.