Operating in the Luxury market means our supply chains are structured in a very specific way. 87.8% of our sourcing is located in Italy, meaning 87.8% of our suppliers are covered by collective bargaining agreements, which is considered the ultimate approach to ensuring social and environmental workforce dialogue and protection. For the 12.2% remaining, mainly in Europe (7.5% excluding Italy), Kering is piloting internal studies on living wages and is collaborating across industry with the Fair Wage Network and BSR, among others, to create a real-time living wage database to measure the gap between living wages and current wages. The goal is to deliver an industry-wide operational tool enabling organizations to measure living wages on a frequent and comparable basis.
We’re active in the “platform living wage” coalition composed of a dozen of financial institutions aiming to encourage and oversee the implementation by companies of a living wage in their supply chain.
Overall, Kering is committed to supporting living wage transparency deep in the supply chain. To drive this, we are supporting the need for broader transparency in the industry beyond direct production, to raw material sourcing and transformation.