French luxury goods conglomerate Kering published Friday its final report on the progress and results of a set of sustainability goals it first committed to in 2012.
Going well beyond the conventional approach of companies to only measure and report on their own operations, Kering’s targets also focused on the entire supply chain, and in particular on raw material sourcing.
“The Targets we committed to in 2012 guided us to build robust and responsible approaches to address challenges within our business, and beyond, such as climate change. These approaches are now integrated into our business and I am convinced that this has built the strong foundation necessary across our group in order to go even further in the future,” said François-Henri Pinault, chairman and CEO of Kering, whose brands include Gucci, Saint Laurent and Stella McCartney, to name a few.
Kering highlighted several key points in the report, including leather, where it found increased traceability and sourcing from EU-based production systems enabled a high quality of leather with a lower environmental footprint, resulting in the company meeting 91 percent of its target for luxury bovine leather.
For paper and packaging, meanwhile, Kering met 81 percent of its target goal, while for PVC it reached 99 percent achievement, finding that more sustainable alternatives to plastic materials could be integrated into the business.
When it came to efficiency targets, Kering focused across the entire supply chain—where 93 percent of its environmental footprint is found—and achieved an 11 percent carbon emissions reduction, a 16 percent decrease in waste, and a 19 percent drop in water use.
The environmental profit and loss analysis (EP&L) highlighted that in order to become a more sustainable business, there was a clear need to go beyond the original targets and include a broader range of raw materials including cashmere, wool, silk and cotton. Kering said it plans to announce new sustainability targets by the end of 2016.
“Our sustainability targets were audacious and ambitious in our industry, and efforts to meet them have not been without challenges,” said Marie-Claire Daveu, chief sustainability officer and head of international institutional affairs at Kering. “We have been building and scaling initiatives from our raw materials sourcing through to our stores. In doing so, we have been catalyzing innovative processes and business models to ensure that sustainability is embedded across our supply chains. I am excited for the next phase of our strategy that will build on what we have achieved, including the redefinition of our targets.”