Kering is focused on minimizing its greenhouse gas and business-critical emissions. To achieve this, the Group has set science-based reduction targets and carried out specific programs.
Setting ambitious targets
In 2016, Kering was the first luxury group and French company to join the Science Based Targets initiative (SBTi). The Group laid out science-based targets to reduce its carbon footprint.
Formed by the Carbon Disclosure Project (CDP), the UN Global Compact, the World Resources Institute and the WWF, the SBTi supports companies in establishing GHG emissions reduction targets based on a scientific approach. SBTi promotes the transition to a low-carbon economy, in line with the goal of the Paris Agreement to limit global warming to 1.5°C by 2050. It also encourages all industry players to join the movement.
In 2020, Kering revised its climate targets in line with the SBTi. The Group committed to reducing its emissions in three categories:
- 90% absolute reduction in scopes 1 and 2 by 2030 in absolute terms (baseline year: 2015);
- 70% reduction in Group supply chain intensity by 2030 (baseline year: 2015);
- 100% sourcing of renewable electricity by 2022 (baseline year: 2015).
In 2019, the Group also announced full carbon neutrality within its own operations and across the entire supply chain (learn more).
Deploying sustainable raw material sourcing
The quality of Kering’s products guarantees a long lifespan and inherent sustainability. The Group has extended its focus on reducing waste, the use of virgin raw material and carbon emissions by introducing a circular approach, prioritizing reuse and recycling in the supply chain and reducing its reliance on virgin materials.
A further goal is to see that by 2025, 100% of Kering’s suppliers meet the standards set by the Group for environmental stewardship, traceability, animal welfare, the use of chemical products and working conditions. In addition, the Group established Standards for Store to promote energy efficiency and renewable energies in a bid to reduce the carbon footprint of its supply chain.
Promoting energy efficiency
Kering strives to select the lowest-impact solutions through its EP&L results. One example of that is the Group’s gradual phase-out of fossil fuels. The Group is working to cut its energy costs and has achieved a 30% reduction in carbon emission intensity at its Houses’ stores since 2015. Lastly, Kering is committed to 100% renewable energy use for its own activities by 2022. The Group has partnered up with RE100, the initiative spearheaded by the CDP that aims to unite and support companies engaged in such an approach.
Leading by example with Clean by Design
The Group promotes new sustainable practices related to energy and water consumption, air and water pollution, waste, and land use throughout its supply chain. To this end, Kering has rolled out several innovative programs to improve its production sites.
Against this backdrop, Kering opted to apply Clean by Design, a program initially developed by the Natural Resources Defense Council (NRDC). Clean by Design offers an effective method to reduce energy intensity and water usage on production sites. The project, launched in 2013, involved the audit of 36 textile plants that work with the Group mostly in Italy. This program allowed the involved Italian mills to reduce their own footprint of 19% through energy efficiency, self-production of clean energy and shift to cleaner fuels, annually saving several thousand tons of CO2. At end-2020, Kering launched a partnership in Italy with the Apparel Impact Institute and two other global fashion players to scale up Clean by Design and further tackle the environmental footprint of the supply chain in Italy. The initiative seeks to establish a platform to coordinate, fund and scale environmental programs with measurable outcomes.
Adopted in 2015, the Paris Agreement called on governments and businesses to ramp up their efforts on global warming, with a minimum goal of limiting worldwide temperature increase to below 2°C. To meet this historic challenge, Kering’s climate strategy uses a science-based framework to set specific targets within its supply chain.