Chanel S.A. 135, Avenue Charles de Gaulle, Neuilly-sur-Seine, 92521 France
- #119 World’s Best Employers 2020
- #52 World’s Most Valuable Brands 2020
- #445 America’s Best Employers 2019
CHIEF SUSTAINABILITY OFFICER
Report created by Maribel Sabino
Chanel is a private company and a world leader in creating, developing, manufacturing and distributing luxury products. The company focuses on women’s high fashion and ready-to-wear clothes, luxury goods and accessories.
Chanel is dedicated to ultimate luxury and to the highest level of craftsmanship and has acquired a large number of specialized suppliers, collectively known as the Métiers d’Art. It is a brand whose core values remain historically grounded on exceptional creation. As such, Chanel promotes culture, art, creativity and “savoir-faire” throughout the world, and invests significantly in people, R&D and innovation.
Company Sustainability Activity
As a leader in the fashion industry, with a unique position and focused on long-term development, Chanel plans to address this critical issue of climate change with focused dedication.
Chanel aims at designing highly desirable products and experiences for clients while generating a positive impact on the environment and society. As such, sustainability is a strategic priority for Chanel.
The company published CHANEL Mission 1.5°, which outlines their plan to reduce their carbon emissions in the next decade and help accelerate the transition to a more sustainable world.
The company is committed first and foremost to cutting Chanel’s carbon footprint by reducing their own emissions and those generated in their global value chain. To do this, they are transforming their business and will help their partners do the same.
Additionally, Chanel considers it their responsibility to help accelerate the transition to a lower carbon and more resilient future by supporting initiatives beyond their operational footprint. They aim to deliver on their ambition for a low-carbon future through two commitments: reduce and accelerate.
- DECREASE: Chanel aims to decrease their own carbon footprint by 50% by 2030
- SHIFT: Chanel aims to shift to 100% renewable electricity in their own operations by 2025
- BALANCE: Chanel aims to balance their carbon footprint by investing in nature-based solutions to remove and avoid carbon at least equal to their global emissions
- ADAPT: Chanel supports initiatives that preserve and restore the environment and build the resilience of landscapes and communities to adapt to climate change
Reduce impact of operations
- Chanel aims to decrease their own carbon footprint (scopes 1 and 2) by 50% by 2030, which is equivalent to a 66% reduction per unit sold from 2018 baseline
- The company aims to decrease emissions from their value chain (scope 3) by 40% per unit sold from 2018 baseline
- Chanel aims to shift to 100% renewable electricity in their own operations by 2025, with an interim goal of 97% by 2021. The company has joined RE100 as part of this commitment
Accelerate the speed of transition to a lower carbon and more resilient world
- Balance their carbon footprint by investing in nature-based solutions to remove and avoid carbon at least equal to their global emissions, reaching carbon neutrality in 2019
- Chanel supports initiatives that preserve and restore the environment and build the resilience of landscapes and communities to adapt to climate change
- Chanel aims to achieve 97% renewable electricity by 2021, with a target of 100% by 2025
Reduce carbon emissions
- Globally, they already source 41% of their electricity from renewable sources.
- Chanel is part of RE100, a collaborative, global initiative uniting more than 200 influential businesses that are committed to using 100% renewable electricity
- Photovoltaic panels were installed in 2018 generating 40% of the electricity used onsite
- In 2019, 41% of the electricity Chanel used to power their owned and operated facilities across the globe was from renewable sources
- In Chanel’s new distribution centre in Shanghai and their manufacturing site in Châtelain, Switzerland, renewable technologies generate, on average, 15% of each site’s electricity requirements
- Solar panels were recently installed in Vittuone, Italy, and are expected to cover 20% of the site’s electricity use
- Solar panels at Chanel’s UK distribution centre meet around 30% of the site’s needs
- In the US, the company has installed solar panels on the rooftop and parking canopies at their distribution site in Piscataway, New Jersey, which are able to generate over 3 million kWh/yr – equivalent to the site’s total annual energy use
- In 2017, Chanel launched the Gabrielle Chanel fragrance in a glass bottle which has a 40% lower carbon footprint during its life cycle than a typical 50ml perfume bottle
- In 2019, Chanel setup perfume fountains in some of their standalone boutiques where empty perfume bottles can be refilled
- In 2018, Chanel launched a Car and Mobility Policy which includes converting the existing car fleet to 100% hybrid or electric vehicles over three years throughout the French operations; similar initiatives are being implemented in other regions
UN Sustainable Development Goals
UN SDGs Compliance
- Chanel is a signatory to the UN Women Empowerment Principles (WEPs) and, since 2011, their corporate foundation supports the empowerment of women as actors of change in the world. Today, more than 140 projects have been supported.
- In 2018, Foundation Chanel and UN Women started a partnership to accelerate women’s economic empowerment and counter climate change through a multi-year program in Asia. It aims at engaging 42,000 women in initiatives to strengthen resilience to climate change, using environmentally sustainable methods and training on new technologies.
- In 2019, ‘Gender, Climate and Environment’ became one of the key thematic areas of work for the Foundation CHANEL.
- Chanel has maximized their capacity for on-site green power generation by installing renewable energy sources, particularly solar voltaic panels, in all of their new manufacturing and distribution sites, and retrofitting renewable technologies into their existing estates.
- Chanel has partnered with Sunrun in California to expand access to clean energy to nearly 30,000 low-income residents across California, offering families significant monthly savings on their energy bills.
- Under the Solar on Multifamily Affordable Housing (SOMAH) incentive scheme and the federal solar investment tax credit, individual low-income tenants will receive solar energy completely free for the next 20 years.
- CHANEL Mission 1.5° is their commitment to mobilize and transform their business in line with the Paris Climate Agreement, decarbonizing their business and value chain to help limit average global mean temperature increases to 1.5 degrees Celsius above pre-industrial levels. Scientists have made a clear and compelling case that failing to achieve this puts our planet at risk.
- In keeping with the timeframe of the United Nations Sustainable Development Goals (SDGs), CHANEL Mission 1.5° is a plan of action for the next decade, setting out what they aim to achieve by 2030. The ambition builds on existing progress to reduce their impacts on the environment.
- We have been carbon neutral since 2019 and have achieved this by investing in nature-based solutions to balance the emissions across their full footprint (scopes 1, 2 and 3). They already source 41% of their global electricity from renewable sources. They signed up to the Science Based Targets initiative (SBTi) to ensure that the methodology set for their carbon targets, described in this report, is ambitious and externally validated to be in line with the Paris Climate Agreement.
- Between 2019 and 2024, Chanel is investing more than $55m in a collection of carefully selected projects that protect and preserve the natural world. Their investments will enable the protection and restoration of 9,000km2 of land.
- These projects located in Haiti, Ethiopia, Indonesia, Peru, and Kenya, will more than compensate for the carbon emissions of their operations and value chain, meeting their goal to be carbon neutral from 2019 onwards.
- To balance their 2018 scope 1-3 carbon emissions, they chose to support certified projects, such as Verified Carbon Standard (VCS) and the Climate Community and Biodiversity Alliance (CCBA), that protect natural carbon sinks, restore degraded land and help local communities to thrive.
- Chanel has joined multiple commitments and partnerships, such as the Fashion Pact and the Fashion Industry Charter for Climate Action.
- Other partnerships include: BSR, University of Cambridge, EPE, Fashion For Good, G7 France Fashion Pact, Forum for the Future, Global Climate Action, INternational INsetting Program, RE100, Science Based Targets, SPICE, WBCSD
Chanel is committed to incorporating sustainability throughout their business as a way to address climate change.
Their top priorities include cutting their carbon footprint and transitioning to a lower carbon and more resilient future. This is seen through CHANEL Mission 1.5°, which outlines the company’s plan to reduce their carbon emissions in the next decade and help accelerate the transition to a more sustainable world.
In addition to being climate forward, Chanel holds industry specific certificates, such as LEED, BREEAM, HQE, BEPOS and has a few listings.
The company has made significant progress in reducing their carbon emissions and implementing renewable energy. In addition to this progress, Chanel has declared specific targets for the upcoming years to continue their efforts to reduce their carbon emissions and other initiatives. Despite this, Chanel’s sustainability could be improved by creating a more transparent supply chain. For these reasons, Chanel has been given a rating of C.
Analyst Outlook: Positive
Chanel has been extremely climate conscious and has multiple initiatives to become more sustainable. The company would benefit from receiving primary certificates that would substantiate their sustainability initiatives and strategies.
- In addition to publishing CHANEL Mission 1.5°, the company independently assessed their targets in 2019 and were approved by the Science Based Targets initiative which champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low-carbon economy in collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC).
- In 2016, Chanel created a $45m transition budget to kick-start or accelerate sustainability projects over five years, including climate-related activities that can push us faster and further towards their sustainable business transition.
- Beyond setting targets, Chanel has invested over $55 million dollars in nature-based solutions to climate change.
- Chanel is dedicated to supporting research and the advancement of new technologies, start-ups and is dedicated to conserving coastal ecosystems.