Kering has developed an innovative tool for measuring and quantifying the environmental impact of its activities. The Environmental Profit & Loss (EP&L) account is a key enabler of a sustainable business model, and one that Kering wishes to share with its peers in the Luxury industry and other sectors.
The EP&L measures carbon emissions, water consumption, air and water pollution, land use, and waste production along the entire supply chain, thereby making the various environmental impacts of the Group’s activities visible, quantifiable, and comparable. These impacts are then converted into monetary values to quantify the use of natural resources. Kering can thus use the EP&L to guide its sustainability strategy, improve its processes and supply sources, and choose the best-adapted technologies.
Because the EP&L is a tool for the greater good, Kering is sharing its methodology with other companies, in its own industry and beyond, to encourage a general movement toward greater sustainability. The methodology is continually evolving to take into account the lessons of previous years. The EP&L features a “scenario” modeling tool with dynamic visualization of results so that the impact of a potential decision or future project on the EP&L footprint is immediately known, in real-time. Adding to the efficiency of the EP&L methodology are lifecycle inventories and the inclusion of the Kering Standards, which were first published in 2018.