September 21, 2017
LMVH's Life 2020 program is a roadmap for its environmental policies. Image credit: LVMH
After the success of its already implemented environmental initiatives, French luxury goods group LVMH has set new goals for itself and the 70 brands under its umbrella.
In 1992, LVMH established its Environmental Department, an entity that supports the development of the conglomerate’s brands through environmental sustainability methods. LVMH has been dedicated to environmental sustainability as a core pillar of its growth strategy, and on Sept, 20 the conglomerate held a summit attended by brand CEOs and environmental experts to discuss the future (see story).
Going greener
LVMH’s “Future Life” event shined a light on the conglomerate’s environmental achievements over the course of 25 years, but focus was also placed on sustainability efforts going forward.
“By embedding ecological imperatives as a source of innovation, we have long made environmental responsibility a pillar of our growth strategy for 25 years,” said Bernard Arnault, chairman and CEO of LVMH, in a statement.
“The LVMH group is proud of its pioneering role and we aim to remain trailblazers,” he said.
In 2012, LVMH established the LVMH Initiatives for the Environment or LIFE program that would guide its brands through production, procurement and retail operations. The program must be included in all LVMH maison’s strategic plans.
LIFE now has set new objectives through “LIFE 2020,” a roadmap centered on the four pillars of products, sourcing, supply chain and CO2 sites.
Le groupe LVMH va doubler son Fonds carbone interne dès 2018.https://t.co/0K1cUy7Jxa#FUTURELIFE #RSE #DeveloppementDurable pic.twitter.com/hinuhLxGM8
— LVMH (@LVMH) September 21, 2017
To create the roadmap for LVMH’s future, the conglomerate established the objectives with input from staff from 30 of its brands. The goals are not designed to be simply met, but exceeded.
For example, LVMH’s initial target of using 10 percent renewable energy has already been achieved and increased to 30 percent by 2020. The conglomerate hopes to reduce its CO2 emissions by 25 percent when compared to 2013.
LVMH has also announced that it will double its internal carbon funds (see story) as of next year to be based on 30 euros, or $35 at current exchange rates, per ton of CO2. Since 2016, LVMH has invested 6.7 million euros, or $7.9 million at current exchange rates, into its internal carbon funds.
“We aim to go even further in achieving the environmental excellence,” said Sylvie Benard, environmental director at LVMH, in a statement. “For this reason, we plan to double our internal carbon funds as of next year and thus reduce even more rapidly out greenhouse gas emissions.”
“The environment is an imperative within the Group and its Houses.” Sylvie Benard, Environmental Department Director since 1992#FUTURELIFE pic.twitter.com/APcOa7kSlg
— LVMH (@LVMH) September 20, 2017
Other Life 2020 objectives include a 10 percent improvement in Environmental Performance Index (EPI) of the group’s projects.
LVMH also plans to have 70 percent of its leather sourced from tanneries that are certified by the Leather Working Group (LWG).
The group will improve its environmental performance, meaning water and energy waste, at all sites and stores by 10 percent as well.
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