Our sustainability progress is in part underlined by the criteria outlined in the Kering Standards for Raw Materials and Manufacturing Processes and the improvements we have made against our annual Environmental Profit and Loss (EP&L) account.
Through our EP&L accounting we go far beyond standard environmental reporting and account for every tier of the supply chain, from Kering’s own operations and stores all the way upstream to the production of raw materials.
At each tier, indicators are measured covering greenhouse gas emissions, water consumption, waste production, water pollution, air pollution and land use. In our progress report, these measurements are taken from 2018 in order to align with the 2018 reporting year.
Kering’s reporting scope and sustainability progress is measured across all tiers:
Kering’s reporting scope and sustainability progress encompasses 73 eKPIs
across 6 environmental impacts groups:
Kering’s reporting scope and sustainability progress takes into account all Scopes 1, 2 and 3 upstream of the Greenhouse Gas Protocol: CO2 emissions related to freight transport, passenger transport and upstream energy, but also the Group’s carbon impact on all its supply chains (from Tier 4 to 0).
The sites covered in the reporting consolidation scope are brands and business units over which the Group holds operational control (i.e. more than 50% stake), and with operational control takeover since July 1st 2019 at the latest.
To ensure reliable monitoring of trends over the years, several Group indicators are presented on a pro forma basis in this report. This method eliminates any bias due to changes in scope, by taking into account only the sites that were open during three consecutive years (in this case 2015, 2016, 2017 and 2018).
This means that the pro forma excludes: The 2018 sites that were not present in the 2015, 2016 or 2017 reporting & The 2015, 2016 or 2017 sites that have been closed in 2018.
The GHG emissions from the environmental reporting can be sorted into two main categories : transport and energy.
The transportation flows included in the environmental reporting correspond exclusively to all transport carried out under the brands’ control (i.e. paid by them). Transportation flows paid by customers, especially for jewellery and watches brands, are not part of the reporting scope because they are outside Kering’s operational control. In order to make things clearer, transportation was split in two categories for data collection.
deliveries from suppliers when paid by Kering brands, regardless of the type of site delivered (store, warehouse, industrial site, etc.)
flows of supply to stores by the warehouses or between warehouses
deliveries to customers
In some instances, carriers are able to provide precise annual reporting of CO₂ emissions and activity data (tons.km) linked to the shipments they handled, with any kind of transportation. These CO₂ emissions are calculated according to the EN-16258 standard and are automatically communicated to the logistics managers in charge.
For the other carriers, emission factors are used to calculate and transcribe a physical flow into its environmental impact (i.e. the amount of CO₂ released in the atmosphere). In the case of transport indicators, the purpose is to estimate the CO₂ emissions related to logistical flows.
The emission factors considered by Kering include CO₂ emissions originating from the “upstream” fuel phase (i.e. during extraction, production and transport of fuels), even if the Group doesn’t have direct control over such emissions, in order to be consistent with the EP&L methodology.
The emission factors used to calculate the emissions of greenhouse gases linked to the production of the electricity consumed by Kering are specific to the countries where the sites of Kering are located. In an effort to match numbers with the reality of the different types of energy mix in the various countries and regions of Group operations, Kering used emission factors specific to each of its countries and regions of operation. Energy mixes used by Kering come from the International Energy Agency (IEA) databases, which are regularly updated.
Emission factors related to Scope 2 (i.e. emissions linked to combustion during the electricity production) and Scope 3 (i.e. emissions linked to extraction, refinery and transportation of fuel as well as emissions linked to the construction of energy generation units for renewable energy and nuclear energy) are evaluated based on an LCA approach (Life Cycle Analysis).
The CO₂ emission factors related to the consumption of energy come from the Base Carbone® v11.4 of Ademe (updated on August 5th 2016). The emission factors for liquid, gaseous and solid fuels are composed of a combustion phase and an upstream phase.