At THE ICONIC, we are committed to mitigating our climate impacts and contributing to a lower-carbon future by doing our part to reduce emissions in line with our Group’s Science Based Targets.

We’re already working to improve energy efficiency across our operations, and continuing to source renewable energy where possible. We also recognise that product manufacturing, transportation, and product use and disposal account for 99%+ of our total footprint. In response, we’re exploring lower-emissions logistics solutions and actively increasing the use of ‘preferred’ materials in our supply chain.

Our areas of action - ahead of 2030

  • Source 100% renewable energy for our fulfilment centres and hubs
  • 2025 Progress: 100%
  • Increase the share of own-brand and branded products aligned with our Considered Sustainable Product Criteria to 50% of our assortment
  • 2025 Progress: 22% of all units sold
  • Prioritise the adoption of low-emissions delivery methods, such as road transport rather than air for interstate deliveries
  • 2025 Progress: 8.6% of downstream (mid-mile) logistics were transported by air

When we talk about carbon emissions in relation to our business, we are referring to the amount of greenhouse gases (GHG) generated by our organisation and its activities.

Emissions Breakdown

In 2019, we measured our company’s carbon emissions (also known as our carbon footprint) for the first time — including Scope 1 (direct), Scope 2 (indirect) and Scope 3 (indirect from the value chain) emissions. We have continued to measure these annually. 

The current impact of our own operations (Scope 1 and 2) represents less than 0.03% of our overall footprint. The majority of our emissions are associated with product manufacturing (~68%), purchased goods and services (~10%), and product use and end-of-life (~13%).

Emissions BreakdownEmissions Breakdown

Climate Risk Assessment & Transition Plan

Aligned with our Group’s Science-Based Targets, and in preparation for our first mandatory climate-related financial disclosures under AASB S2, we refreshed our climate risk assessment scenario analysis. This involved identifying the most material climate-related physical and transition risks — as well as opportunities — for our business, across various time horizons. These insights have informed the development of our first Climate Transition Plan, which aligns with our core climate strategy and reiterates the immediate strategic climate-related priorities we must address.

Climate Risk Assessment & Transition PlanClimate Risk Assessment & Transition Plan

As the economy shifts to lower emissions in the short, medium, or long term, THE ICONIC may face higher costs and operational complexity from changing climate laws, reporting requirements, carbon pricing, packaging rules, technology changes and increasing customer expectations. These factors could affect product costs, logistics, margins, investment needs and brand trust.

Physical climate risks are expected to affect THE ICONIC, with greater potential impacts over the medium and long term. More frequent or severe heatwaves, bushfires, storms, floods, drought and water scarcity could disrupt our sites, people, suppliers, transport routes and product availability, potentially increasing operating, logistics, insurance or recovery costs.

Climate-related opportunities exist for THE ICONIC where demand for lower-carbon products, circular services and lower-emission logistics is expected to grow over time. By improving energy efficiency, using renewable energy, reducing packaging and logistics emissions, and working with brands and suppliers, we may reduce costs, support compliance, meet customer expectations and strengthen long-term resilience.

Climate Transition Plan & Strategy

Continue sourcing renewable energy for our fulfilment centres and HQ, expand onsite solar at fulfilment centres, improve energy efficiency, and electrify or automate warehouse operations where possible to maintain low Scope 1 and zero Scope 2 (market-based) emissions.

Work with third-party logistics providers that are transitioning to lower-emissions transport, including increased use of EVs, shifting air freight to sea freight where possible, and supporting the adoption of Sustainable Aviation Fuel (SAF) to reduce Scope 3 emissions across Categories 4 and 9.

Strengthen climate risk readiness through a logistics redundancy plan and other BCP investments in order to build resilience to heatwaves, bushfires, storms and floods, while engaging key stakeholders to align on mitigation and adaptation.

Increase resource recovery and reduce waste sent to landfill or incineration with energy recovery. This includes identifying alternative pathways to maximise recycling and reuse, while supporting innovators and start-ups where possible.

Work with suppliers to ensure packaging follows circular design principles, remains compatible with existing recovery systems, and meets incoming Extended Producer Responsibility (EPR) requirements. Where systems are lacking, we will support their development (for example through APCO membership and other member organizations) to help ensure our customers have accessible recycling or reuse options over time.

Improve the availability and accuracy of climate and sustainability-related data to enable assurable climate-related reporting and readiness for evolving regulatory or compliance requirements.

Collaborate with suppliers, brands and other stakeholders to stabilise supply chains, improve energy and waste management, and scale more sustainable product assortments. We also aim to educate and empower customers to extend product life through re-commerce. Through RE-ICONIC, we will continue scaling circular products and solutions that help reduce Scope 3 emissions associated with manufacturing, product use and end-of-life.


The majority of the fashion industry’s emissions come from the raw material production, preparation and processing required to create products. This means that the products we sell contribute to the largest share (over 68%) of our overall emissions. 

Our Sustainable Product Criteria, informed by external frameworks such as the Textile Exchange Preferred Fiber & Materials Matrix, define our Considered assortment as a way of identifying products that hold social, ethical or environmental credentials — certified through third-party standards, certifications, trademarks or programs addressing issues such as climate and greenhouse gas emissions, soil health and land management, chemicals and toxicity, water use and pollution, and animal welfare. We are committed to increasing the share of products that meet these criteria in order to provide a more responsible assortment for our customers.

While we recognise that every product we sell has an impact — whether on the environment, people or animals — we are steadfast in our ethos of “Progress, always”. The Considered program is our pathway to reducing the impact of our overall assortment, in line with our strategy. In 2025, 22% of the units we sold met one or more of these criteria, and we are committed to increasing this to 50% by 2030, by working in collaboration with our own-brand suppliers and third-party brands.

You can learn more about Considered and our Product Criteria here.

Low-Carbon Logistics

As a pure-play online retailer, logistics and product transportation across our supply chain, as well as delivery to our customers, accounts for approximately 6% of THE ICONIC's overall emissions.

Inbound Logistics

We are committed to managing the share of products transported to us by air freight through increased stock consolidation, upfront planning, and maximising our hybrid shipping model, which combines air and sea freight.

Deliveries & Returns

THE ICONIC’s world-class delivery is a fundamental component of our customer experience. We do not own any delivery vehicles or distribution fleet, which means the emissions of our transport carriers sit within our supply chain and are not directly within our control. However, we remain jointly accountable for reducing their impact. 

We are working with our carrier partners to enable lower-emissions last-mile delivery methods (the last stage of delivery from the final distribution centre to your doorstep), such as electric vehicles, bicycles and walking deliveries. In 2025, we also introduced Melbourne and Brisbane line-haul services, transitioning express orders for these cities from air transport to road freight. 

Operations Efficiency 

We are committed to ensuring that the operational sites we directly manage are as efficient as possible to minimise our energy footprint. Since 2020, we have transitioned to LED lighting across most of our production hub and fulfilment centres. In some areas, motion-sensor lighting has also been installed so that lights are only activated when these spaces are occupied.

In early 2022, we completed the installation of a 350 kW rooftop photovoltaic system, which supplies about 20-25% of the electricity required by our fulfilment centres. The remaining electricity demand across our sites is met through the purchase of GreenPower, which is 100% renewable energy certified under the Australian Government's managed accreditation program. 

We remain committed to ensuring that we continue sourcing renewable energy, either produced on-site or from the grid.

Explore our other sustainability pillars

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Responsible Workplace

Foster a safe, supportive workplace environment where everyone can thrive — free from harm and empowered to do their best work.

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Diversity, Inclusion & Belonging

Empower true self-expression by building a culture grounded in respect, dignity and belonging for all.

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Fair & Ethical Sourcing

Protect the dignity and empowerment of the people behind our products through responsible and transparent sourcing.

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Climate Action

Mitigate our climate impact, conserve natural resources, and help shape a lower-carbon future.

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