PARIS— On Thursday, Kering released its first-ever sustainability progress report during the annual ChangeNow summit, which was held this year at the Grand Palais.

The highlights included a 14 per cent reduction in the group’s overall environmental impacts between 2015 to 2018 and a 77 per cent cut in greenhouse gas emissions from its own operations in the same period. (Kering, like many other companies, didn’t provide a figure for emissions from its suppliers, which tend to constitute the majority of such impact.) Emissions intensity was also cut by over a third, putting the company on track to meet its previously declared Science-Based Target.

The parent company of Gucci, Saint Laurent (pictured above) and Alexander McQueen also said that it had achieved 88 per cent traceability for key raw materials, a metric that is important for brands to be able to verify both their impacts and sustainability claims. “The [remaining] 12 per cent is quite challenging for some raw materials,” Kering chief sustainability officer Marie-Claire Daveu said in a post-conference interview. “You have to convince people in the supply chain, so it takes time.”

The French luxury group has made very public promises on sustainability in recent years and said that it would regularly update on its progress. Kering says the data was compiled from its brands and is verified by external auditors. “We are a listed company, and as a listed company you have to pay attention to the information and data you disclose…” she said. “All your credibility - we don't play with that.”

Kering’s Environmental Profit and Loss (EP&L) account, which it uses to track impact throughout all stages of production, featured heavily. As expected, raw material production had the largest impact across the board. The company also announced it’s collecting data in order to extend the EP&L methodology to account for a circular, full life-cycle for products. Currently, it covers raw materials through distribution and retail; the data collection will add consumer use and product end-of-life.

Investing in the future

Luxury fashion’s quest for quality raw materials has significantly impacted the earth’s biodiversity, but Kering offered a silver lining. Géraldine Vallejo, Kering’s sustainability programme director, said the company was investing in restoring degraded lands and promoting animal welfare. Kering last year also released the first-ever animal welfare standards for luxury and fashion to improve industry practices. It is in the process of developing a Science-Based Target for biodiversity.

The Grand Palais, Paris. © Getty Images

There was also a focus on how Kering is investing in technology and innovation to support its sustainability initiatives, which perhaps ended the conference on an optimistic note. Take, for instance, sapphire glass, a transparent material that’s more durable than standard glass and helps keep watch faces and smartphone screens scratch-free.

“It uses an incredible amount of heat and energy to produce it — so what are the alternatives?” said Christine Goulay, Kering’s sustainable innovation senior manager. Kering has gone on to establish a materials innovation lab as well as a lab for sustainable innovation in jewellery and watches to help answer these questions.

Kering has also formed a partnership with Plug and Play, a Silicon Valley-based tech accelerator, to identify and collaborate with game-changing sustainability startups. It also participates in Fashion for Good — an Amsterdam-based startup accelerator dedicated to reducing the social and environmental impact of the fashion industry.

Through this partnership, Kering has gained access to a “pipeline of innovators”, said Goulay. Michael Olmstead, chief revenue officer of Plug and Play Tech Center, pointed to the example of Mango Materials, which transforms methane gas into pellets of polymer. The company had focused on packaging initially but turned its attention to alternative fibre creation after liaising with Kering.

This cross-fertilisation of ideas is perhaps just the kind of approach that companies need to propel their sustainability efforts exponentially. “I’m very happy with the results but I’m very conscious about the work we have to continue to do, the work we have continue to push internally, externally,” Daveu said.

Rachel Cernansky contributed reporting to this story.

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