Burberry Group

RATING

SECTOR

Household & Personal Products

WEBSITE

CONTACT

Burberry HQ

Horseferry House,

Horseferry Road,

Westminster, London

SW1P 2AW

United Kingdom

 

T: customer service: 0203 402 1444

STOCK EXCHANGE

LISTING

  • Dow Jones Sustainability Index (DJSI) 2018
  • FTSE4Good Index
  • MSCI world ESG Leaders

EMPLOYEES

10,417

RESPONSIBILITY PROGRAMME DIRECTOR

Jocelyn Wilkinson

AWARDS

  • Bronze Class in RobecoSAM’s 2018 Sustainability Yearbook
  • Carbon Disclosure Project (CDP)
  • Ethical Trading Initiative

CONTENT SOURCE

FURTHER READING

Burberry Group

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Assets

Burberry is a globally recognised luxury brand with a distinctive British attitude and 163 years of heritage. It has an extensive network of both owned and franchised stores which allow it to interact directly with luxury customers around the world and provide a strong sales base. They are digital pioneers, and innovative technology underpins every aspect of their business, from product design to distribution and marketing. Their wide-ranging marketing activities enable them to engage with luxury consumers across channels, from digital media and social platforms to image-driving print media and innovative installations. They leverage their strong financial position to develop and invest in capabilities in line with their capital allocation framework.

Innovation

Their design process begins at their headquarters in London, where their creative teams work across womenswear, menswear, childrenswear and accessories. They collaborate with licensing partners on their Beauty offering. They innovate to bring their designs to life with new materials, techniques and combinations to remain at the forefront of fashion while ensuring their activities have a positive social and environmental impact.

Production

Burberry source materials based on their quality and sustainability, working closely with their network of suppliers to ensure they receive the highest quality materials and goods while supporting their partners to drive social and environmental improvements in their operations. They have fully owned manufacturing facilities in the UK and Italy, which allow them to maintain control of quality and design in key elements of their supply chain. Across their own facilities and those of their partners they are committed to implementing a zero-waste mindset. They are focused on reducing, reusing and recycling any waste the company creates while looking for innovative solutions to move towards a circular business model.

Value Creation

They create beautiful and distinctive products of the highest quality, representing the best of British fashion. They invest in the communities in which they operate to drive social good and support well-being and growth. By growing their core business in a responsible manner, increasing revenues and margins over time, they also drive long-term, sustainable shareholder value and return cash to shareholders.

Company Sustainable Activity

Some of Their Focus Areas, accroding to the company 

Animal Welfare

Their Responsible Sourcing Policy prescribes the sourcing of all raw materials from suppliers that are governed by the highest animal welfare standards. Their animal welfare principles are aligned with the Royal Society for the Prevention of Cruelty to Animals (RSPCA) Five Freedoms. 

Fur – They do not manufacture or procure any real fur. They do not use rabbit, fox, mink, Asiatic racoon and Angora rabbit.

Wool – They work closely with the Textile Exchange, peer brands and the wool industry to support the promotion and adoption of The Responsible Wool Standard, which recognises best practices of wool growers around the globe. The Responsible Wool Standard ensures that wool comes from responsibly treated sheep and from farms with a progressive approach to land management.

Exotic Skins – They are committed to working with key stakeholders, including luxury peers, NGOs and intergovernmental organisations, to promote the conservation of biodiversity and the sustainable use of sensitive raw materials, such as exotic skins, by the fashion industry. Burberry is an active member of the Business for Social Responsibility, Southeast Asia Reptile Conservation Alliance (SARCA).

Down – Down and feathers are used in some of their jackets. Burberry does not permit the use of hair that is plucked from live animals or from farms where there is any concern that there has been unacceptable treatment of animals. Industry concerns around force feeding and live plucking led to the development of a Responsible Down Standard by Textile Exchange in 2014, which sets strict criteria to ensure bird welfare. They source 100% of down from Responsible Down Standard certified suppliers.

Carbon & Energy

One of their goals by 2022 is to become carbon neutral in their own operational energy use, with a focus on driving energy efficiencies and renewable energy procurement. They are now carbon neutral across the Americas region, EMEIA retail stores and our UK operations. They assess their progress towards carbon neutrality by looking at the reduction in their total market-based carbon dioxide equivalent (CO2e) emissions year on year and since the launch of their strategy in 2017, they have reduced their emissions by 43%.

They are also looking beyond 2022, setting ambitious carbon goals for 2030. Their targets have been approved by the Science Based Target Initiative (SBTi) and include a commitment to reduce their Scope 1 and 2 emissions by 95% by 2022 and their Scope 3 emissions by 30% by 2030, both from a 2016 base year. In December 2018, they joined the UN Fashion Industry Charter for Climate Action. One of its aims is to reduce aggregate GHG emissions across the fashion industry by 30% by 2030. Representatives of the Responsibility team actively participate in the working groups and chair one of them.

Sustainable materials

In our continuous pursuit of more sustainable garments, the company worked with company 37.5 to incorporate thermoregulation technology in our men’s quilted jackets. Using volcanic sand and waste coconut shells, this new heat management technology enables customers to feel more comfortable in a range of climates. A further example is a high-quality nylon fabric the company has developed from ECONYL yarn. ECONYL yarn is produced from nylon waste collected from landfill and oceans around the world. the company will be using this fabric in some of our outerwear garments for Autumn/Winter 2019.

Cashmere

Climate change and increased global demand for cashmere pose challenges for the fragile ecosystems the cashmere industry relies on including the Mongolian Steppe, a major production centre of global cashmere supply, and Afghanistan, the third largest producer of cashmere in the world. To address this, the company is a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to improve the impacts of cashmere production by restoring grasslands, promoting animal welfare and supporting a decent living for cashmere goat herders. “

Certificates

N/A

Sustainable Development Goals

How company covers SDGs

According to the company 

“Burberry has been a signatory of the UN Global Compact since 2008, and we continue to use the UN Global Compact’s Ten Principles to guide our business activities. A part of this, we fully support the core values of the initiative across the areas of human rights, labour standards, the environment and anti-corruption.

This year, we launched our new responsibility agenda for 2022. Called “creating Tomorrow’s Heritage”, it sets out ambitious goals to address our most material social and environmental impacts, while supporting the Burberry Foundation (UK registered charity number 1154468) in creating long-term partnerships that fuel innovation and transform communities. The strategy focuses on :

  • Driving positive change through 100% of our products 
  • Becoming carbon neutral and revalving waste
  • Positively impacting 1 million people”

Progress

According to the company

“KPIs year 2018/2019

Product: 

  • 36% of products with more than one positive attribute [Goal: to have 100% of product with more than one positive attribute by 2022, where positive attributes relate to social and/or environmental improvements achieved at either raw material sourcing or product manufacturing stage]
  • 68% of cotton procured through the Better Cotton Initiative (BCI) [Goal: to source 100% of cotton through the BCI]
  • 49% of leather sourced from tanneries with environmental, traceability and social certifications [Goal: to source 100% of leather from certified tanneries by 2022.]

Company:

  • 43% reduction in market-based emissions since base year FY 2016/17 (up from 20% last year) [Goal: to achieve a zero-carbon footprint in their own operational energy use]
  • 68% of electricity procured from renewable sources [Goal: as part of their RE100 membership, they have committed to 100% renewable electricity by 2022]
  • Ended the practices of destroying unsaleable finished products [Goal: reduce and revalue waste. They already reuse, repair, donate or recycle unsaleable products and will continue to expand these efforts.]

Communities: 

  • 125,000 people positively impacted in their communities since base year FY 2016/17 [Goal: they aim to positively impact 1 million people by 2022.]”

Burberry has clear targets and communication on progress regarding sustainability goals. The brand is transparent about the sourcing of their different raw materials. They are no longer selling real fur, and amongst other good initiatives, 68% of their cotton is procured through the Better Cotton Initiative (BCI). They do not hold any sustainable certificate, but many awards. Because of the lack of major certificates, they cannot achieve the best rating. They get the rate B.

Videos

N/A

 

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