Sustainability progress report 2017 - 2020

Measuring Our Footprint

Reducing our entire footprint

Target Achieved
40% reduction of environmental impacts by 2025
14% reduction in our EP&L intensity / 2015 - 2018

We’re reducing it but we won’t be happy until we reach our goal.

Target Achieved
100% alignment with our Kering Standards by 2025
68% alignment

They take a holistic and responsible approach in the making of Kering’s Houses’ products – accounting for each step in the supply chain from farm, field or mine to finishing. We then updated the Kering Standards to encompass all our raw materials and new key areas.

These reflect growing concerns and interests in the industry around topics like regenerative agriculture and ‘faux fur’, as examples. Our standards act as a guide for our suppliers to ensure compliance with Kering’s environmental and social requirements. They are embedded in our supplier contracts and we work closely with our partners to ensure adherence to them. Since 2016, we’ve been rapidly increasing alignment with the Kering Standards. We’re proud we’re making progress.

Raw materials highlights

100% ethical gold 2025 target achieved

We increased our ethical gold as a Group totaling 100% of the Group’s gold purchase for jewelry and watches in 2019. Beyond Jewelry and Watches we’re also focused on galvanized gold for all the hardware in our House’s collections.

While fashion tends to overlook gold in hardware (and consequently does not tend to address galvanized gold for the gold-plated elements in hardware) because it’s a very complex supply chain, we’re prioritizing this. And overall for all ethical gold (which includes hardware) we are at 49% having purchased 5.5T of ethical gold for the Group since the creation of the Kering Ethical Gold Framework in 2015.

73% sustainable leather on track to reach 100% by 2025

Overall for the Group’s leather we are 73% aligned with the Kering Standards and on track to reach 100% by 2025. When we dive deeper we can see we are 79% aligned  for bovine leather and this accounts for 75% of all the Group’s leather.

30% organic cotton means we’re on the way to our 100% goal by 2025

As a Group we have been focused on sourcing more organic cotton and we have achieved 30% in our collections with the goal of 100% by 2025.

Manufacturing highlights

The Kering Animal Welfare Standards

“Improving the welfare of animals must be an imperative for our industry and Kering wants to amplify the focus of attention from a few species to all of the animals, including livestock, within fashion’s global supply chains.” Marie-Claire Daveu, Kering’s Chief Sustainability Officer

Traceability keeps us on track

Traceability is one of the crucial challenges to overcome in fashion’s complex global supply chains. Even if we’ve already managed an 88% traceability of our overall key raw materials towards our 2025 100% target, significant issues remain for the Luxury and fashion industry as a whole.

The routine practice of indirect sourcing is a big culprit as complex supply chains often stem from traditional business model set-ups, making it difficult to follow the traceability to verify best practices in the supply chain. We want to change that. 100% traceability is our end-goal to ensure Kering’s high standards around environmental protection, social welfare, chemical use and animal welfare are adhered to.

100% traceability of our key raw materials by 2025
88% traceability of our key raw materials overall

Traceability is one of the crucial challenges to overcome in fashion’s complex global supply chains. Even if we’ve already managed an 88% traceability of our overall key raw materials towards our 2025 100% target, significant issues remain for the Luxury and fashion industry as a whole.

The routine practice of indirect sourcing is a big culprit as complex supply chains often stem from traditional business model set-ups, making it difficult to follow the traceability to verify best practices in the supply chain.

We want to change that. 100% traceability is our end-goal to ensure Kering’s high standards around environmental protection, social welfare, chemical use and animal welfare are adhered to.

Leather
90%

overall

92%

for bovine leather

75% of all Group leather
87%

sheep and goat all way up to the location of abattoirs

25% all Group leather
Silk
87%

for the group

Cotton
76%

for the group

We also set up a number of pilot projects around traceability: we have Institute of Quality Certification for the Leather Sector (ICEC) to the farms for leather and pilots tracing leather in line with the ICEC regulation TS-PM414 as part of the certification process for finished leather products. Also, in collaboration with ICEC, we have certification procedures with key tanneries for sourcing leather from 10 certified tanneries. We also have GIA traceable and certified diamonds.

Offsetting And Insetting As Strategic Levers

An Essential Part Of Our 360 Degree Climate Strategy

Rubbing Shoulders With Academics And The Experts

While focusing on reducing our impacts as a priority and becoming more resilient in the face of climate change, we’re also collaborating with academics, scientists and experts in order to help us reach our ambitions. Our aim is to continue to contribute to science to help drive the sustainability agenda forward in our industry.

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