2020-2023 Progress Report
Kering publishes its second Progress Report and the latest results of its sustainability roadmap for 2025.
Sustainability is at the heart of Kering’s strategy as much as its creative and modern vision of Luxury. By the same token, it is an ethical necessity and a driver of innovation and value creation for the Group, its Houses, and its stakeholders.
In 2017, Kering unveiled its sustainability strategy, with a target to reduce its environmental footprint by 40%. This strategy is underpinned by three pillars.
- CARE: taking steps to reduce its environmental footprint and preserve the planet and its natural resources by using innovative tools.
- COLLABORATE: contributing to high environmental, ethical and social performance by promoting parity and diversity and becoming an employer of choice.
- CREATE: imagining innovative alternatives through an open source approach.
2023 sees Kering publish the second Progress Report as part of its 2025 sustainability strategy. This report outlines the Group’s ambitious commitments and the concrete actions implemented throughout its value chain. It also highlights the progress made for each of the strategy’s three pillars and the challenges that still need addressing.
-40%
Target to reduce the Group’s environmental impact by 40% achieved in 2021, four years early
+225
Number of startups in collaboration with Kering since 2016
-52%
Reduction in intensity of greenhouse gas emissions in the Group’s scope 3 emissions since 2015
-71%
Reduction in intensity of greenhouse gas emissions in the Group’s scope 1 and 2 emissions since 2015
100%
Renewable electricity, in accordance with the RE100’s guidelines
95%
Traceability for Kering’s key raw materials
71%
Alignment of raw material production with the Kering Standards
1
CARE for our planet
In 2021, Kering updated the Group’s target set in 2016 to strengthen its climate ambitions, in accordance with the Fashion Pact’s mandate. Verified and approved by the Science Based Targets initiative (SBTi), the Group is committed to aligning itself with the 1.5°C trajectory.
Using a 2015 baseline, Kering reduced the intensity of its EP&L footprint by 50% in 2022.
Publication of Biodiversity Strategy
In 2020, the Group unveiled its Biodiversity Strategy and pledged to achieve net-zero carbon impact by transitioning to regenerative agriculture practices on a million hectares of land as well as protecting one million hectares of critical, irreplaceable habitat by 2025.
Since 2019, Kering has practiced Standards for Raw Materials and Manufacturing Processes to ensure that suppliers comply with the Group’s and its Houses’ environmental and social requirements which apply to synthetics, silk, packaging and visual marketing. In 2022, Kering added two new chapters to the document with a focus on circularity, innovation and sustainability claims.
Establishment of a Sustainable Finance Department
In 2022, Kering established a Sustainable Finance Department to address extra-financial issues and new regulations with the convergence of financial and non-financial reporting. The Sustainable Finance team will report to the Sustainability and Finance Departments and is tasked with managing extra-financial performance and ensuring the Group’s constant compliance with the new recent and future requirements.
In January 2021, Kering and Conservation International launched the Regenerative Fund for Nature. The initiative aims to transform a million hectares of crop and rangelands into regenerative agricultural spaces over the next five years. In its inaugural year, the Fund selected seven ambitious projects.
Learn more about the Fund
Creation of the Climate Fund for Nature
At the 15th Conference of Parties (COP) to the Convention on Biological Diversity (CBD) held in Montreal, Kering and L’Occitane announced that they were joining forces to create the Climate Fund for Nature. This ambitious fund will mobilize resources from the luxury fashion and beauty sectors to protect and restore biodiversity with a focus on women’s empowerment.
2
COLLABORATE with people
In 2022, women accounted for 63% of the total workforce, representing 57% of managers, 33% of Executive Committee members and 45% of Board members (excluding Directors representing employees). As such, Kering is one of the CAC 40 companies with the highest proportion of women in senior management positions. As a recognition of its commitments to champion diversity, equity and inclusion, the Group was also included in the 2023 Bloomberg Gender-Equality Index for the sixth consecutive year.
In December 2019, Kering and some of its Houses teamed up with the Camera Nazionale della Moda Italiana (CNMI) to conduct the first-ever study into the role of women in the supply chains of the Italian luxury industry. As a result, the Group and CNMI developed an e-learning course that covers multiple topics including leadership and gender, career advancement, assertiveness, networking and support groups. Between 2020 and 2022, a total of 313 women completed these sessions.
The Kering Foundation was created in 2009 to combat violence against women. It lends its support to innovative initiatives, including La Maison des femmes de Saint-Denis and the Re#Start collective, which aims to replicate its successful model elsewhere in France. The creation of the collective led to the opening of La Maison des femmes Marseille Provence in January 2022 and planning work on La Maison des femmes de Rennes, which should open its doors in 2023.
Kick-started in 2020, the Fashion Pact is a first-of-its-kind initiative that unites CEOs of 60+ global leading companies from the fashion and textile industry. Together, the members of the Pact have committed to a set of ambitious environmental targets on climate change, biodiversity and protecting the oceans. The coalition has made its first strides which include implementing an operational structure, developing a digital dashboard of Key Performance Indicators (KPIs) to measure joint impacts, and launching collaborative activity on biodiversity, supported by the technical expertise of industry experts.
In 2021, Kering was made a founding partner of La Caserne . The hub aspires to become Europe’s leading accelerator for ecological transition in fashion and luxury. Then, in 2022, Kering and Marie Claire magazine introduced a global initiative on women and responsible fashion called Fashion Our Future.
That same year, Kering and Cartier launched the Watch and Jewellery Initiative 2030 , which aims to build climate resilience, preserve resources and foster inclusivity.
3
CREATE new business models
To lead the way in sustainable Luxury, the Group imagines innovative alternatives that will drive change and influence the industry as a whole. To this end, in 2021, Kering invested a 5% stake in Vestiaire Collective, the world leader in online resale of second-hand luxury goods.
In an endeavor to meet the standards of the circular economy and deliver more sustainable growth, Kering unveiled its circularity ambition in 2021. The Group’s ambition focuses on four priorities: promoting luxury that lasts, adopting a holistic approach, making production processes more efficient and collaborating with the entire industry. Shaping the future of fashion with new materials.
In early 2020, Kering launched the Sustainability Innovation Lab platform for Watches and Jewelry (SIL), created for the Watches and Jewelry Houses. The SIL, which is based at the Group’s watchmaking sites in Switzerland, focuses on materials used by the Jewelry and Watches brands such as precious stones and gold.
In 2022, Kering invested in the startup VitroLabs, which leverages applied biotechnology to grow leather in laboratories. The American company is pursuing the goal of developing a material that can recreate the “look, feel and performance of traditional leather” for use by the luxury industry.
The Kering Generation Award helps to identify a new generation of Chinese talent and supports their pioneering, nature-based solutions. The second Kering Generation Award Ceremony proved a great success, recognizing the efforts of three Chinese startups: Peelsphere, OTEX and Zeno Technology.
2017-2025 roadmap
Care, Collaborate, Create. Three pillars to develop a more sustainable and responsible Luxury. Three pillars that shape Kering’s 2025 Sustainability Strategy in a world where reducing resource consumption and respecting people are absolute necessities. Three pillars that embody and drive our ambition: to Craft Tomorrow’s Luxury.
Kering is debuting a podcast dedicated to sustainability. Over five episodes, listeners will deep dive into how Kering is moving towards a more sustainable Luxury that is crafted both for today and tomorrow. Hosted by the journalist Laurianne Melierre, the podcast takes us behind the scenes of sustainability, spotlighting issues such as biodiversity protection, raw materials, new materials, eco-design and circularity. Happy listening!