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

  • LVMH was included in the CAC 40 ESG when it launched on March 22, 2021.
  • In May 2020, LVMH ranked in the TOP 5 for the Luxury Goods & Cosmetics segment, with a rating of 53/100.
  • LVMH has been included in the Euronext Vigeo Eurozone 120 index, updated on December 2nd, 2020, since it was launched in June 2013.
  • In January 2021, FTSE Russell gave LVMH a rating of 4.4/5.
  • In January 2021, LVMH was confirmed as a member of the FTSE4Good Global 100.
  • In December 2020, LVMH was rated A (on a scale from AAA to CCC) for the Textiles, Apparel & Luxury Goods segment. *
  • At the end of 2020, LVMH was once again included in the MSCI World, Europe, Euro and France indices.
  • In March 2021, Sustainalytics considered LVMH presented the lowest risk of major financial impact from ESG matters and gave the Group a rating of 69/100.
  • In January 2021, LVMH was rated B by the CDP with respect to Climate Change 2020, Forests 2020 and Water Security 2020, respectively.
  • LVMH was confirmed as a member of the Ethibel® Sustainability Index EXCELLENCE Europe, updated on October 1st, 2019.
  • The Ethibel EXCELLENCE Label is awarded to the companies that demonstrate the highest level of commitment to CSR matters and are likely to be listed in the Socially Responsible Investment Register.
  • In December 2020, LVMH ranked 3rd in a list of 568 companies analyzed by Open Corporation, with a score of 83.5/100.
  • For the 16th consecutive year, LVMH topped the Universum France ranking of most attractive employers among students from business schools, published in April 2021.
  • In 2020, for the 2nd consecutive year, LVMH headed the Universum France ranking for experienced managers who graduated from business schools. LVMH also ranked 3rd among experienced managers who graduated from top engineering schools. *
  • The 2021 rankings concerning experienced managers who graduated from business and engineering schools were not published at the time the present report went to print.
  • In 2020, LVMH ranked 2nd for the Textiles & Apparel segment by the Refinitiv Diversity & Inclusion Index that ranks the top 100 organizations with the most diverse and inclusive workplaces.

EMPLOYEES

148,000

CHIEF SUSTAINABILITY OFFICER

Sandrine Sommer

AWARDS

  • In February 2021, S&P Global published the 2021 edition of its Sustainability Yearbook, including for the first time the “S&P Global Sustainability Awards”, which recognized LVMH as Industry Mover 2021.
  • LVMH created the LIFE in Stores Awards to recognize, each year, the solutions implemented by the Group’s Maisons to reduce the environmental footprint of their stores.
 

CONTENT SOURCE

FURTHER READING

Report created by Maribel Sabino

 

Hennessy

SECTIONS :  Sustainability  •  Targets    Evaluation   •  Key Points  •  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 represented in more than 160 countries. Based in the heart of the Charente region, Hennessy is also a steadfast pillar of the regional economy. The Maison is truly committed to the terroir, to sustainable practices, and to offering excellence in every bottle.

In 1987, Hennessy merged with Moet et Chandon and Louis Vuitton to create LVMH Moët Hennessy Louis Vuitton, commonly known as LVMH. The French multinational corporation and conglomerate specialize in luxury goods. 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. 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 is committed to crafting the future by dedicating themselves to the land and to the people who make Hennessy exceptional. Social responsibility and environmental management and protection are deeply rooted in Hennessy’s culture.

The Maison has aligned its actions with the objectives of the LIFE program (LVMH Initiatives for the Environment), to protect biodiversity around the world set the company on the path to a more sustainable future.

LIFE 360, is “an initiative with precise targets and timeframes designed to forge a new alliance between nature and creativity: products in harmony with nature that respect and preserve biodiversity and the climate, engaging and motivating all stakeholders.”

LIFE 360 will act as the Group’s environmental compass for the coming decade, formulating strategic priorities focused around four strategic action plans: creative circularity, traceability, biodiversity, and climate. The initiative builds on this progress, setting new targets for 2023, 2026 and 2030, and engaging all stakeholders.

As a Maison of LVMH, Hennessy has adopted these principles and targets to spur further progress by forging an alliance of equals between nature on the one hand, and creativity and excellent craftsmanship on the other.

Highlights

Human

  • Hennessy values social responsibility by supporting and honoring gender equality and diversity in the workplace; the Maison makes every effort to encourage growth and advancement.

Terroir

  • Hennessy is a pioneer in environmental management and protection. The Maison practices and preaches sustainable viticulture, allowing Hennessy to minimize environmental impacts and ensure economic viability and a safe, healthy workplace.

Circular Economy

  • The Maison has created a ‘vituous circle’, benefiting more than 50,000 people.

Responsible Drinking

  • Hennessy has created and signed a responsible consumption charter that all employees must be familiar with and follow scrupulously.
  • The Maison considers the consumption of its products responsible when intended for pleasure and in moderation, with constant care neither to lose self-control nor endanger the health or safety of oneself or others.

Social Responsibility

  • The Maison supports various causes and organizations through social inclusion, training, sponsoring and partnership programs.

Food Safety

  • Hennessy adheres to strict French food safety regulations, extending the certification process to the 130 the Maison is present.
 

Targets

The following progress is derived from the LVMH 2020 Social and Environmental Responsibility Report.

Making a long-term commitment to biodiversity

  • Hennessy will strive to drastically cut its environmental footprint by 2030
  • As part of its commitment to regenerate forest land, Hennessy set up a sponsorship arrangement with the French National Forests Office in the Braconne forest in western France. Over a five-year period, 27,055 oak trees will be planted over seven different areas that offer considerable potential and span a total of 22.81 hectares.

Low-Carbon Model

  • Hennessy has joined forces with the shipping company Neoline to launch a transatlantic wind-powered cargo ship that consumes 90% less fuel than a conventional ship of the same size. This ship will serve to transport 4 million bottles of Hennessy cognacs between France and the US each year from 2023 onward.

To learn more about the Group’s social and environmental commitments and initiatives, read  LVMH Group’s 2020 Social and Environmental Responsibility Report here.

 

Progress

Circular Economy

  • Hennessy sources almost half of its needs from local suppliers.
  • 85% of purchases are made in France.
  • Hennessy has reduced water consumption by 90% by transforming the distilleries’ cooling systems to closed circuits and implementing recovery tanks to collect and store rainwater.
  • Hennessy waste is recycled on average more than 96% by material or energy recovery
  • Distillation residues have been treated in Cognac since the 1970s, producing biogas, contributing to cogeneration.

Social Responsibility

  • The Maison supports various causes and organizations through social inclusion, training, sponsoring, and partnership programs. Regular contributions to local communities include, for example, mentoring and outreach programs for disadvantaged situations; contracts for partnerships and special needs sponsorships, as well as a cultural program that is open to the general public. Free programming at Les Quais Ici ou Ailleurs in Cognac, offers access to exhibitions and other cultural events.

The following progress is derived from the LVMH 2020 Social and Environmental Responsibility Report.

Diversity and Inclusion

  • The Group and several of its Maisons in the US—including Moët Hennessy, Louis Vuitton, Benefit Cosmetics, Kendo and Sephora—created Diversity and Inclusion departments, emphasizing the strategic importance of these values in driving their creativity and performance.
  • In France, the Moët Hennessy Entreprise adaptée (MHEA)—a sheltered workshop created in 2011 whose employees are all disabled—has enabled over 80 people with disabilities to find work in an appropriate corporate environment. Around 10 of them have obtained permanent contracts with the Group’s champagne Maisons.
  • In the US, Moët Hennessy continues to offer online training to supervisors in New York and California in preventing sexual harassment, and a workplace bullying course to new managers and recruits. In 2020, the company introduced “report it®”, an anonymous and confidential hotline employees can use to report harassment, inappropriate behavior, or other ethical and compliance concerns
  • Some Maisons organize surveys to assess employee satisfaction, engagement and well-being, such as “Listening for Action” at Moët Hennessy Diageo

Supporting Employment, Entrepreneurship and Local Development

  • Hennessy is based in Cognac, Moët & Chandon and Veuve Clicquot in Champagne, Louis Vuitton and its 20 French workshops are spread throughout the country, Parfums Christian Dior is located in Saint-Jean-de-Braye, near Orléans, and Chartres, as is Guerlain. They have developed policies to effectively communicate and collaborate with local authorities, in particular on efforts relating to culture, education and employment.
  • In the US, the Maison Hennessy has made donations to charities that support people looking to get back into work.

Ecodesign to Reduce Environmental Impact

  • Hennessy, for example, now incorporates eco-design principles at every stage of its new product development process.
  • In 2020, the Maison set up an eco-design committee, bringing together the Marketing, Purchasing, Packaging Development and Environmental Development departments, in pursuit of an ambitious roadmap, regarding in particular the weight of glass carafes.
  • The Perfumes and Cosmetics Maisons and Hennessy improved their Environmental Performance Index (EPI) score for their packaging by at least 10% in 2020.

Regenerative Agriculture

  • In 2020, Moët Hennessy formalized its commitment to living soils in a manifesto setting out its ambition: to protect, regenerate and pass on living soils, which are at the heart of the Maisons’ heritage, and to limit the climate impact of activities throughout the value chain.
  • Since the end of 2020, Moët Hennessy has no longer used herbicides in its own vineyards in Champagne; Hennessy will follow in 2021 for its own vineyards and 2028 for those of its winegrowing partners.
  • Hennessy is also limiting the use of insecticides and is using winter cover crops in the inter-rows on 151 hectares. On its sites, the Cognac Maison is reintroducing biodiversity by cultivating bee pastures in areas left to lie fallow and conducting ecological assessments.
  • The Living Soils program involves all partners, including grape suppliers. In 2020, Hennessy organized 25 training days on the Viticulture Durable Cognac environmental certification and trained winegrower partners with the Chamber of Agriculture. In a similar vein, Hennessy created “30,000 Farms: Toward Zero Herbicides”, a group uniting 16 winegrowers to accelerate the transition to wholly natural farming that will ultimately be rolled out to all Hennessy winegrowers.

Making a long-term commitment to biodiversity

  • The Maison launched a number of agroforestry initiatives at its La Bataille site to restore biodiversity corridors. It also signed a partnership with Resforest’Action to regenerate forests locally, nationally and internationally—with one project in particular in Kenya.

Low-Carbon Model

  • At the beginning of 2020, Hennessy and its subsidiaries finished fully calculating their carbon impact.
  • Since October 2020, Hennessy has been sourcing biomethane from local farms for its three distilleries.
  • Hennessy leads the field in such matters, where sustainable transportation accounted for 94.5% of its needs in 2020.
  • in 2020, the Hennessy incentive plan integrated the targets to cut energy consumption and organic waste by 10% each year, which were given the same weighting as operating profit, productivity and occupational safety.

Guaranteeing Accurate Traceability

  • As part of its sustainable procurement policy, Hennessy assessed 26 suppliers of dry materials according to a number of environmental criteria.

Quality Environmental Labeling

  • In early 2020, Moët Hennessy became a founding partner of Note Globale, the first comprehensive rating to reflect the social performance of products that integrate components from the living world.

Climate Action

  • In 2020, Hennessy integrated two new environmental indicators into the way in which it calculates employee incentive payments to encourage them to make minor changes to their behavior.

To learn more about the Group’s social and environmental commitments and initiatives, read  LVMH Group’s 2020 Social and Environmental Responsibility Report here

 

Certificates

  • ISO 14001 environmental certification – Hennessy became the first wine and spirits producer in the world to obtain this certification in 1998
  • The OHSAS 18001 certification
  • ISO 45001 certification
  • Exceptional HQE Standards
 

UN Sustainable Development Goals

UN SDGs Compliance

In keeping with the numerous commitments made by LVMH, the Group supports the SDGs set out by the United Nations in 2015. The following section details the ways in which the LVMH corporate social responsibility strategy helps to achieve the 17 SDGs.

SDG 3: Health and Well-being

  • LVMH’s human resources policy focuses on listening to and communicating with employees so as to ensure their well-being and safety, and create a high-quality working environment.
  • LVMH ensures that all its activities comply with the health and safety laws and regulations of every country in which it operates.
  • In 2020, the Group established a task force bringing together Maisons from all its business groups to assess their health and safety performance and put forward an action plan, which included drafting a health and safety charter—which will be communicated in 2021.
  • In 2020, LVMH invested more than 47.6 million euros in health and safety (up 24% on 2019) to fund occupational health services, protective equipment, and a continuous improvement program for workplace health, safety and hygiene in response to the Covid-19 pandemic. Overall, the total cost of creating a safe working environment came to more than 53 million euros or 0.8% of the Group’s gross payroll worldwide.
  • The Maisons Krug, Moët Hennessy Diageo, Veuve Clicquot, Christian Dior Couture, Parfums Christian Dior, TAG Heuer and Zenith run telephone helplines and psychological support units. At Louis Vuitton, psychosocial risk prevention measures include questionnaires, monitoring systems, and dedicated working groups.

SDG 4: Quality Education

  • LVMH endeavors to ensure all young people can access further education, irrespective of their origin, background or culture. Launched in six European countries in cooperation with 45 schools and universities, the INSIDE LVMH program enables students to enhance their understanding of the professions on offer in the luxury industry.
  • As a long-standing partner of the non-profit “Nos Quartiers ont des Talents”, the Group offers graduates from low-income backgrounds the opportunity to be mentored by one of its managers. In 2020, 150 young people seized the opportunity, and since 2007, 640 of them have found employment as a result. Similarly, LVMH supports 18 students through the priority education program run by the Institut d’Études Politiques, which has been extended for another year, offering student grants and mentoring opportunities.

SDG 5: Gender Equality

SDG 6: Clean Water and Sanitation

  • LVMH pays particular attention to the impact of wastewater discharge released by its leather and textile suppliers. Having signed up to the Zero Discharge of Hazardous Chemicals (ZDHC) commitment, the Group intends to roll the program out to all its strategic suppliers. This is already the case for LWG-certified tanneries, which accounted for 74% of the Group’s supply in 2020, as the standard integrates ZDHC requirements in its certification.

SDG 7: Affordable and Clean Energy

  • Multiple renewable energy projects have been put in place by deploying a variety of technologies depending on the site: cooling and heating by geothermic air, photovoltaic roofs, or even natural air-conditioning.

SDG 8: Decent Work and Economic Growth

  • Playing a major role in the global economy, LVMH and its Maisons promote the social and professional integration of people struggling with long-term unemployment. To support their transition back into work, LVMH runs coaching sessions where recruiters and beauty advisors from the Maisons give jobseekers guidance and help them gain self-confidence.
  • In the US, the Group has pledged its support to students from disadvantaged areas of New York and Miami, through a program in which young people and Group employees come together to discuss career opportunities. In 2020, more than 2,500 young people took part in 20 sessions, five of which were organized in partnership with the non-profits United Way of NYC and Honey Shine, which support students whose families have been badly affected by the crisis.
  • LVMH also partners with the NYC Career Week, during which 40 students were invited to the Marc Jacobs headquarters where they were welcomed by Sidney Toledano, a member of the Executive Committee.

SDG 9: Industry, Innovation and Infrastructure

  • The LVMH Group has long sought to encourage and nurture the entrepreneurial spirit, which is why it launched La Maison des Startups in early 2018 to combine open innovation, business development and new ways of working. This accelerator program for startups in the luxury industry is located within the world’s largest startup incubator, Station F. In just two years, over 160 collaborative initiatives have been formed, including 60 since the start of the pandemic—for example, cooperation was established between Clos19 and Livstick, Bvlgari and Tapbuy, Kenzo and Facil’iti, as well as Sephora and Replika, which gave rise to excellent performance in a very short time.

SDG 10: Reduced Inequalities

  • The Group and several of its Maisons in the US—including Moët Hennessy, Louis Vuitton, Benefit Cosmetics, Kendo and Sephora—created Diversity and Inclusion departments, emphasizing the strategic importance of these values in driving their creativity and performance.
  • In 2020, LVMH organized webinars to educate, raise awareness, and discuss the way in which racial prejudices develop and the impact they can have in order to prevent any form of discrimination, especially in the Group’s recruitment practices.
  • In 2020, the Group introduced several initiatives to foster inclusion, particularly of LGBTI people.

SDG 11: Sustainable Cities and Communities

  • LVMH strives to have a positive influence on the societies and regions in which it operates, preventing any potential damage its business, as well as that of its suppliers and sub-contractors, may have.

SDG 12: Responsible Consumption and Production

  • LVMH intends to stop sourcing raw materials from regions at the greatest risk of deforestation and desertification. Similarly, the Group has joined forces with Canopy to develop responsible sourcing of wood.
  • Therefore, in 2020, after making a determined and concerted effort with their partner suppliers, the Maisons achieved 97% visibility on country of origin with respect to fur, 78% for exotic leather and 72% for wool.

SDG 13: Climate Action

  • LVMH strives to bolster its adaptation strategy and step up its contribution to the fight against climate change by further raising its carbon emissions targets.
  • The Group seeks to reduce its exposure to the effects of climate change, in particular by implementing regenerative agricultural practices and harnessing new biotech materials.

SDG 15: Life on Land

  • Biosphere reserves: LVMH supports UNESCO’s intergovernmental scientific program “Man and the Biosphere” which protects over 700 biosphere reserves around the world.
  • The UNESCO-LVMH Amazon initiative is set up to tackle the root causes of deforestation and water pollution problems in Brazil, Bolivia, Ecuador, and Peru. In another initiative within the partnership, Guerlain has launched Women for Bees, a scheme to train and support women beekeepers.

SDG 17: Partnerships for the Goals

  • For over 10 years, LVMH has been collaborating with a great many partners to preserve biodiversity. It was the first private Group to join the eight public research bodies that make up the Board of Directors of the French Foundation for Biodiversity Research.
  • In 2020, LVMH renewed its commitment to Act4Nature through its involvement with Act4Nature International and also signed up to the Science-Based Targets for Nature program.
  • The United Nations Global Compact, to which the Group signed up in 2003, as well as the Caring for Climate initiative 
  • The Universal Declaration of Human Rights
  • OECD Guidelines
  • The International Labour Organization’s Fundamental Conventions
  • The 17 Sustainable Development Goals drawn up and developed by the United Nations
  • The French Diversity Charter, signed by the Group in 2007
  • The United Nations Women’s Empowerment Principles, signed by the Group in 2013
  • France’s national biodiversity protection strategy
  • The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
  • UNESCO’s intergovernmental scientific program, “Man and the Biosphere” (MAB), aimed at protecting global biodiversity
  • The United Nations’ Standards of Conduct for Business on Tackling Discrimination
  • The International Labour Organization (ILO) Global Business and Disability Network

Secondary SDGs: 1, 2, 14, 16

Hennessy is committed to crafting the future by dedicating themselves to the land and to the people who make Hennessy exceptional. Social responsibility and environmental management and protection are deeply rooted in Hennessy’s culture.

The Maison has aligned its actions with the objectives of the LIFE program to protect biodiversity around the world set the company on the path to a more sustainable future for luxury

As a subsidiary of LVMH, Hennessy aims to incorporate social responsibility, bolster environmental management and protection, and implement a circular economy. Hennessy achieves this by aligning its commitments and initiatives with that of the LVMH social and environmental report. 

Following the vision of LVMH, Hennessy has made specific targets for committing to protecting biodiversity and adopting a low carbon model. These targets are not substantial nor does the company disclose how it will achieve them.

Overall, LVMH Group is a highly transparent and committed company. They dedicate time and resources to initiatives covering a wide range of areas in the environmental, social, and governmental aspects of ESG and sustainable development.

LVMH aligns its work with the UN SDGs. The Group has a fair amount of awards, certifications, and listings relating to sustainability, giving their projects more credibility. 

In the Group’s first and only consolidated report of environmental and social commitments and initiative, LVMH once again demonstrates unfailing resolve, taking action with all the people of the Group to address a multitude of social and environmental challenges, including a clear list of their past progress comparing past years to their current successes. Their targets are ambitious and will be vital in making them a truly sustainable company. 

Hennessy has been rated a C on the Impakter Sustainability Index.

Analyst Outlook: Neutral

Hennessy has made strides in adopting a circular economy, social responsibility, diversity and inclusion, regenerative agriculture, and its commitment to biodiversity and a low-carbon model. The Maison engages in multiple certification processes for environment management.

In addition, Hennessy demonstrates the Group’s Maisons’ commitment to providing the healthiest and safest working environment for all employees. Hennessy, which created an Environment, Safety and Quality Department precisely so it could implement a health and safety management and certification process.

Hennessy is neither a leader nor a straggler in incorporated sustainability into its business model and would benefit from disclosing more specific and measurable targets. The Maison would also benefit from disclosing its compliance with the UN Sustainable Development Goals separate from LVMH.

 

Key Points

  • 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.
  • Having adopted the validation protocol of the Science-Based Targets initiative, LVMH is implementing a carbon-reduction pathway in line with the Paris Agreement and working toward the EU target of carbon neutrality by 2050.
 
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