The TJX Companies, Inc. (TJX) is an off-price apparel and home fashions retailer in the United States and across the world. The company operates through four segments: Marmaxx, HomeGoods, TJX Canada and TJX International. The company operates approximately 3,600 stores in various countries. Notable stores include TJ Maxx, Marshalls, and Homegoods.
TJX has implemented a number of initiatives to reduce its environmental impact and to ensure the efficacy of its supply chain. By incorporating energy efficiency measures and other programmatic changes, the company has been able to pace itself toward meeting its carbon reduction goal, which is a 30% reduction per dollar of revenue by 2020 (2010 baseline). TJX has also made significant improvements in its transportation and logistics efficiency, as well as its waste diversion rates. Additionally, the company cites an interest in renewable energy development; it even builds all new facilities with roofs that can accommodate rooftop solar should the company choose to invest in renewables down the road. Regarding its supply chain, TJX has developed a Social Compliance Program that includes a Vendor Code of Conduct, which all of its business partners must adhere to. The company conducts audits of its direct suppliers and offers corrective action plans when issues of non-compliance arise. Moreover, TJX remains transparent about its policies and provisions, and even offers regular trainings to educate its suppliers on implementation strategies.
Although the company states a commitment to issues such as worker safety in Bangladesh, conflict mineral sourcing, and cotton from Uzbekistan, it fails to lay out explicit measures that will address these issues. The company also does not perform lifecycle assessments of its products; this is a considerable pitfall given the total environmental impact of apparel when considered throughout its entire lifecycle.
Industry: Consumer Discretionary
Country: United States
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.