One luxury fashion house has taken a leap forward for sustainability.
LVMH Moët Hennessy Louis Vuitton announced Thursday that its internal carbon fund, a company-wide pool set up a year ago and financed by contributions from its subsidiaries, had accumulated more than 6 million euros ($6.6 million). Its initial goal was 5 million euros ($5.5 million).
From the time the carbon fund launched and going forward, each subsidiary pays 15 euros ($17) per ton of CO2 emitted and the money collected will be used to finance emissions-reducing projects aimed at lowering the greenhouse gas emissions of the group and its brands by 25 percent by 2020.
That means that in 2016, LVMH and its subsidiaries generated roughly 400,000 tons of CO2.
The internal carbon fund is part of the LIFE (LVMH Initiatives for the Environment) program, driving the group’s approach to eco-design, biodiversity, traceability, supply chain management, GHG emissions, environmental excellence of production sites, the sustainability of its products and customer care.
As such, the projects focus on reducing energy consumption with LEDs and roof insulation, using renewable energy or implementing energy consumption monitoring worldwide to prevent thousands of tons of GHG emissions from being released. Seventy percent of the projects relate to LVMH stores.
“This first year of the fund has provided an opportunity to establish the way it will function going forwards,” LVMH said in a press release, noting that the initiative will be repeated in 2017. Perhaps this time next year some of the emissions-reducing projects will have begun to bear fruit and the fund will be smaller.
The Parisian group’s portfolio of fashion brands includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana.