Kering Reports on Sustainability Progress and Shows Very Pro
PARIS, Jan. 31, 2020 /PRNewswire/ -- Three years after announcing its next-generation sustainability strategy, 'Crafting Tomorrow's Luxury', Kering has published its Sustainability Progress Report today. Kering has made serious progress and is on track to meet its 2025 targets, while setting the foundation to align with a 1.5° pathway for the Group.
In January 2017, Kering's long-term commitment to embed social and environmental sustainability at the heart of its business was translated into a new strategy defined by a series of ambitious targets to attain by 2025, comprising environmental stewardship, social welfare inside and outside the Group, and a focus on innovation to drive lasting change. Over the last three years, Kering has tracked its sustainability progress through its pioneering Environmental Profit and Loss (EP&L) account in recognition that companies must be accountable and transparent about their entire impacts, including those generated upstream in the supply chain.
"We have long been committed to transparently reporting on the impacts generated by all of Kering's business activities, including those outside of our legal boundaries. Setting ambitious targets that incorporate our entire supply chain and documenting our sustainability progress to ensure we are truly moving the needle forward on climate action and social good is also an imperative" said François-Henri Pinault, Chairman and CEO of Kering. "Our industry needs bold action at the start of this new decade, and transparency and open collaboration are critical if we are to effectively address our challenges to decarbonize our companies."
Kering's sustainability strategy incorporates the Group's Luxury Houses, and the measurement of the Group's progress is against 73 Environmental Key Performance Indicators (eKPIs) and across its own operations and supply chain. This includes stores, offices and warehouses; transportation; manufacturing and processing; and all the way upstream to the impacts associated with the production and extraction of raw materials (Scopes 1, 2 and 3 upstream of the GHG Protocol).
The targets are underpinned by three key pillars: CARE, COLLABORATE and CREATE. Some highlight achievements towards Kering's 2025 sustainability targets include:
CARE, for the planet
COLLABORATE, with people
CREATE, new business models and innovations
"While our progress report reflects the very encouraging achievements Kering has made towards our 2025 sustainability targets, there is still work to do to reach our sustainability ambitions and go far beyond in the coming years. However, we are determined and confident in our ability to accelerate our efforts and implement solutions – many of them innovative - we have already identified," said Marie-Claire Daveu, Chief Sustainability Officer and Head of international institutional affairs, Kering. "We are constantly looking ahead and developing science-based targets compatible with the planetary boundaries, including biodiversity, as well as supporting the people across our spheres of operations to promote a thriving, regenerative and equitable future. We will continue to transparently report on our progress and hurdles on a regular basis."
 Pioneered by Kering, the EP&L measures carbon emissions, water consumption, air and water pollution, land use,
and waste production within a company's own operations and across the entire supply chain and then calculates the social cost in relation to these impacts.
 The EP&L data and measurements, as well as other initiative stats, are from a 2015 baseline and in line with Kering's 2018 reporting year, while some of the initiatives are until the end of 2019.
 The GHG Protocol is a standardized international framework for Greenhouse Gas (GHG) emissions. As defined by the GHG Protocol, Scope 1 emissions are direct emissions from owned or controlled sources; Scope 2 emissions are indirect emissions from the generation of purchased energy; and Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
 Kering reduced the Group's GHG emissions by 77% in intensity in its own operations (offices, stores, warehouses, owned industrial sites) between 2015 and 2018.
 Kering has a Science-Based Target (approved by the Science-Based Target initiative) to reduce all its GHG emissions from a 2015 baseline by 50% by 2025 related to Scope 1 and 2 and controlled Scope 3 (upstream transportation and distribution, business air travel, and all fuel and energy associated emissions). Kering commits to reduce scope 1, scope 2 and scope 3 emissions from upstream transportation and distribution, business air travel and fuel and energy related emissions 50% per unit of value added by 2025 from a 2015 base-year. In addition, the company commits to reduce scope 3 emissions from purchased goods and services 40% per unit of value added within the same timeframe.
 Kering's Chairman and CEO, François-Henri Pinault, was given a mission from French President Emmanuel Macron to bring together the leading players in fashion and textile, with the aim of setting – and committing to achieve together –practical objectives for reducing the environmental impact of their industry in three key areas: climate, biodiversity and oceans. The Fashion Pact was developed as a result of this mission and in a historic move, 32 global fashion and textile companies signed on and currently it is at 63 signatories. It was presented during the Group of Seven meeting in Biarritz, France, on August 26, 2019.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. We capture these beliefs in our signature: "Empowering Imagination". In 2018, Kering had nearly 35,000 employees and revenue of EUR13.7 billion.