Luxury goods giant LVMH Moët Hennessy Louis Vuitton on Monday announced the creation of an internal carbon fund valued at five million euros, or roughly $5.4 million, that’s financed by each of its 70 houses.
The French conglomerate said that its brands will each contribute 15 euro ($16.13) for every ton of carbon dioxide that they emit. Starting in 2016, according to the LVMH website, the funds will be used toward “financing projects whose sole objective is to reduce our greenhouse gas emissions,” like LED and cooling equipment or renewable energy production.
In 2014 alone, LVMH was responsible for roughly 370 metric tons of greenhouse gas emission. The company has worked for 20 years to counter the damage and help the environment, most notably in 2013 when it implemented Life (LVMH Initiatives For the Environment) to integrate the environment into the management processes of each houses.
The program is based on nine factors to improve environmental performance, including eco-design, responsibly sourced raw materials and supply chains and environmentally-friendly manufacturing processes.
Bernard Arnault, CEO and chairman of LVMH, expressed the company’s commitment to helping the environment: “The most beautiful materials used in viticulture and oenology, the creation of perfumes and cosmetics, fashion and leather goods and jewelry which are the heart of our business, are all provided by nature. Environmental performance has been integrated into the growth strategy of all our maisons in the same way as quality, innovation and creativity. Today respect for the environment is not only an imperative; it is also a lever that drives progress.”