Jas Hennessy & Co

RATING

SECTOR

Beverage

WEBSITE

CONTACT

22, Avenue Montaigne,
Paris, 75008
France
Tel: +33 (0)1 44 13 22 22
Fax: +33 (0)1 44 13 22 23

STOCK EXCHANGE

LISTING

  • Restricted Substance List (RSL)

EMPLOYEES

148,000

CHIEF SUSTAINABILITY OFFICER

Hélène Valade

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Sagarika Deshmukh

Jas Hennessy & Co

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The leader in Cognac, the Maison Hennessy has shined around the world with its exceptional know-how for more than 250 years.

Built on founder Richard Hennessy’s spirit of conquest, the brand is present in more than 160 countries. Based in the heart of the Charente region, Hennessy is also a steadfast pillar of the regional economy.

Founded in 1765, the cognac was acquired in 1987 by LVMH, which now owns around two thirds of the brand while the other third is owned by Diageo. Louis Vutitton merged with Moet et Chandon and Hennessy which is a champagne and cognac manufacturer.

The LVMH merger is the largest luxury conglomerate to date with 75 brands in total. Louis Vuitton was one of the first acquisitions in the merger which happened in the 1980s.

Some other notable brands include Dom Perignon, Hennessy, Givenchy, Sephora, Marc Jacobs, and Fendi which are just a fraction of all the brands under LVMH. 

Company Sustainability Activity

Hennessy, a subsidiary company of LVMH, has followed LVMH in their sustainability practices.

Louis Vuitton began tracking their carbon footprint in 2004. As identified during an evaluation, their three main sources contributing to greenhouse gases has come from raw materials, energy, and transportation.

Louis Vuitton decided to focus their sustainability efforts in those sectors. More specifically their buildings, equipment, and transportation accounts for about half of the emissions produced.

LVMH started 45 projects regarding greenhouse gases which has helped the company reduce energy consumption by 29% between the years 2013 and 2019.

Also recently announced the parent company LVMH will be joining the Man and Biosphere program which works towards resolving biodiversity sourcing methods.

As for the subsidiary brand, Hennessy has made a commitment to sustainable viticulture. In addition Hennessy claims to be a pioneer in environmental management and protection. Hennessy has little to no information regarding sustainability, reports, or initiatives.

Highlights

  • Hennessy’s winegrowers are committed to ensuring high quality growing practices and production are aligned with sustainability

Targets

As a subsidiary to LVMH, Hennessy’s stance on incorporating sustainability into their business model is that of their parent company.

REDUCING ENVIRONMENTAL FOOTPRINT 

  • 100% renewable energy in production & logistics sites by 2025
  • 100% LED lighting in stores by 2025
  • 70% certified cotton (GOTS or Better Cotton) by 2020
  • 70% palm oil derivatives certified by 2020
  • 78% of leathers are Leather Group-certified (LWG) by 2020
  • 100% fur certified by 2025

MINIMIZING WASTE AND LITTERING 

  • 100% responsibly sourced raw material by 2025
  • Reduce volume of materials used
  • Prioritize recycling and recyclable materials 
  • Eliminate single-use plastic by 2030

MANAGING WATER 

    • Reduce water site consumption by 10% in 2020

Progress

REDUCING ENVIRONMENTAL FOOTPRINT  

  • 85% of polyester volumes are currently transitioning to become Global Recycled Standard-certified by 2021
  • 82% of viscose supplies are European Ecolabel-certified
  • Architecture sites are under ISO 14001 certification process, 78% have been certified
  • Water free process for some of leather goods

Certificates

This section is based on LVMH’s sustainability initiatives.

  • HQE
  • LEED
  • BREEAM

UN Sustainable Development Goals

UN SDGs Compliance

The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, LVMH has attempted to be compliant with the following SDGs.

SDG 5

  • In 2013, Signed UN Women’s Empowerment Principles 
  • “EllesVMH” program which supports women’s professional developments in all positions or levels of experience

SDG 8

  • 250 audits per year and extended audit scope to include animal welfare and raw material traceability

SGD 12

  • Regulate the use of chemical, comply with regulations such as REACH and Prop65
  • Shopping bags and boxes are 100% recyclable
  • 96% of materials used for main events and installations in 2019 were either reused or recycled

SDG 16

  • Work with ESAT (Etablissements et Services d’Aide par le Travail) and EAs (Entreprises Adaptees) to support people with disabilities 
  • In 2016, signed partnership with UNICEF (United Nations Children’s Fund)
  • In 2020 signed PAQTE which helps underinvested neighborhoods in France
  • Signed UN Standards of Conducts for Tackling Discriminations against LGBTQ+

Hennessy is not transparent in regards to sustainability.

Hennessy briefly addresses their commitment to environmental management and protection in their commitments section of their website, but the information is not substantial.

The company has not produced any reports that touch on corporate social responsibility, environmental, health and safety, or sustainability. Hennessy holds no awards.

LVMH, Hennessy’s parent company, has made minimal progress; they’re insufficient in terms of sustainability practices. 

LVMH has outlined plans to incorporate sustainability within their business. However, these endeavors are not drastic and do not specify if they will be applied to Hennessy.

For these reasons, Hennessy has been given a rating of F.

Analyst Outlook: Positive

The team behind Hennessy is committed to sustainable future and is engaging in sustainable practices, such as sustainable vivaculture.

Key Points

  • The liaison between the Maison and their winemaker and bouilleurs de cru – independent licensed distillers – partners. Knowledge of agriculture, viticulture and oenology is rounded out by finely tuned listening skills.
  • Hennessy’s employers are committed to ensuring high quality growing practices and production are aligned with sustainability. Conserving the health of the soil and guaranteeing the longevity of their vineyards is as imperative to their winegrowers as protecting the environment at every step.
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