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Sustainability

Sustainability is at the heart of Kering’s strategy. Indeed, it is integral to the Group’s vision of creative, modern and responsible Luxury. As a source of innovation and value creation, sustainability is the driving force behind numerous projects that span Kering’s activities and departments. In 2022, important new initiatives were launched to further reduce the Group’s environmental footprint and encourage sustainable finance.
Innovating for tomorrow
Innovation continues to be an essential part of the Group’s sustainability strategy via several structures that encourage the invention of solutions and processes conducive to building more sustainable practices. In an effort to accelerate the development of new and increasingly efficient materials and processes, Kering leverages the expertise of the MIL (Material Innovation Lab), which is dedicated to sustainable textiles and fabrics; the SIL (Sustainable Innovation Lab) for Watches and Jewelry activities; and the TIL (Test & Innovation Lab), a lab for inspecting and verifying product compliance.

In addition, thanks to close collaborations with start-ups the world over, Kering has developed a significant network of partners and built an ecosystem in which exchange and co-development let new solutions emerge. One notable example is Kering’s investment in VitroLabs, a start-up specializing in the production of lab-grown leather. Another is Balenciaga’s Winter 2022 collection, which featured a coat made from EPHEA®, a bio-based material made of mycelium from mushrooms.

2022 saw the Group outperform its targets for reducing its environmental footprint, registering a 52% reduction in scope 3 in intensity versus 2015 on a comparable basis. Such progress would be impossible without the Environmental Profit & Loss (EP&L), a pioneering tool Kering created in 2012 to measure its activities’ environmental impact, including greenhouse gas emissions, water consumption, air and water pollution, land use, and waste production. These impacts are then assigned a monetary value to quantify the use of natural resources and guide Kering’s strategy in order to improve processes, choose the best-adapted technologies and reconsider supply channels.
Environmental challenges can only be overcome by taking collective action. This is the premise behind the Climate Fund for Nature initiative, jointly created by Kering and L’Occitane Group. This ambitious fund will mobilize numerous players from the luxury fashion and beauty sectors to protect and restore biodiversity, with a focus on women’s empowerment.
Championing sustainable finance
At a time when Environment, Social and Governance (ESG) criteria are gaining momentum in the financial community, Kering, which has long integrated those issues into its business model, in 2022 created a Sustainable Finance Department. It reports to the Sustainability and Finance Departments and its mission is to manage extra-financial performance and guide Kering’s strategy and actions in the face of current and future challenges. This newly-created department also ensures constant compliance with the regulatory framework for extra-financial reporting and green finance. Moreover, it guarantees the integration of social and environmental issues into management and decision-making processes, particularly with respect to investments.

During the 15th Conference of the Parties at the Convention on Biological Diversity in Montreal, Kering announced the creation of the Climate Fund for Nature in partnership with the L’Occitane Group. This ambitious fund will mobilize resources in the luxury and beauty sectors to protect and restore biodiversity while promoting women’s empowerment.

Together, the two groups have already committed €140 million, with a long-term target of €300 million.
Lastly, Kering’s focus on collective action is reflected in the progress of the Fashion Pact, a global coalition of fashion and textile companies established in 2019 to reduce the sector’s environmental impact. In 2022, the coalition launched the Collective Virtual Power Purchase Agreement, a project that aims to accelerate the use of renewable energy through investment in new, clean energy infrastructures, starting in Europe.