Monday, July 5, 2021
Kering shares 2020 EP&L results and includes end-of-life
Today, Kering published its Group Environmental Profit and Loss (EP&L) results for 2020, revealing that the Group is more than on track to reach its reduction targets by 2025.
Since 2012, Kering has measured the environmental impacts associated with the Group’s direct operations and the entire supply chain to help inform its product design, sourcing decisions, and manufacturing research and development. Starting from 2020, Kering has further enhanced its EP&L methodology and included product use and end-of-life to the analysis to capture the environmental impacts from consumer product care, and their disposal behaviours for luxury products.
The extended scope of Kering’s EP&L now enables the Group to understand and quantify the full lifecycle of its products from cradle to grave. These first results showed that consumer product use and end-of-life represent 12% of the total environmental impact. The majority of these impacts occur during the use phase (99%), with the largest environmental impact being greenhouse gas emissions (49%).
Overall, Kering’s 2020 Group EP&L decreased by -23.7% in absolute terms compared to 2019. This was partly related to the consequences of the COVID-19 pandemic, which led to temporary and/or partial closure of production facilities, logistics platforms and store networks in 2020. However, despite the pandemic, the EP&L analysis shows that Kering’s sustainability efforts are still driving its footprint reduction: on a pro forma basis, the EP&L intensity decreased by -7% between 2019 and 2020. This reflects the efficacy of the Group’s sustainability efforts, which are especially focused on the sustainable sourcing of its raw materials and improving the efficiency of its manufacturing and industrial processes. When analyzing the bigger picture of the 2020 Group EP&L results, Kering’s reduction pathway towards its - 40% 2025 target is on track, achieving a -33% reduction in its EP&L intensity in its own operation and across the supply chain between 2015 and 2020.