Kering

RATING

SECTOR

Luxury Apparel & Accessories

WEBSITE

CONTACT

40, Rue de Sèvres – Paris 7

France 

T: +33 (0)1 45 64 61 00

STOCK EXCHANGE

LISTING

  • Dow Jones Sustainability Index (DJSI)
  • CDP ‘A-List’ for leading effort against climate change for the 3rd consecutive year
  • Climate Disclosure leadership Indices

EMPLOYEES

34,795

CHIEF SUSTAINABILITY OFFICER

Marie Claire Daveu

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Kering

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The company was founded on June 24, 1881 and is headquartered in Paris, France.

According to the company: “The Luxury segment gathers the portfolio of highly attractive brands including Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Sergio Rossi, Boucheron, Dodo, Girard-Perregaux, JeanRichard, Pomellato, Qeelin, and Ulysse Nardin. The Sports and Lifestyle segment brings iconic brands including Puma, Volcom, Cobra, Electric, and Tretorn. 

This conception of Luxury is at the heart of their business model and organization. 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. They capture these beliefs in their signature: “Empowering Imagination”.

Since its creation in 1963, the Group has continually developed and evolved, ultimately becoming a pure player in Luxury in 2018. Kering is still growing today thanks to the expertise and inspiration of the Houses and the boldly creative and authentic worlds they have fashioned over more than two centuries. Kering’s identity today is the result of this unique history.”

Company Sustainable Activity

To guide the Houses and their suppliers in their efforts to achieve the 2025 Sustainability Strategy targets, Kering has established environmental and social requirements known as the Kering Standards. The outcome of several years of research conducted internally, with the Group’s Houses, external experts and NGOs, the Kering Standards define best practices for traceability, social compliance, environmental protection, animal welfare, and chemical use. 

  • 2012– Kering has developed an innovative tool to quantify and value the environmental impact of its activities: the EP&L (Environmental Profit & Loss). A key advance to enable the implementation of sustainable business models, Kering has shared the methodology with companies in the luxury industry and other sectors.
  • 2013- Kering creates the Materials Innovation Lab (MIL), a library of sustainable fabric and textile samples. Brands’ creative teams can access and choose sustainable and responsible alternatives for their collections. The library’s selection of more than 3,000 samples is based in Italy and continually renewed. Consistent with the Group’s scope, it operates as a genuine platform for materials and processes.
  • 2014- Kering launches an ethics training campaign for the Group’s employees. It highlights Kering’s commitments in key ethical areas: fighting corruption, fraud, conflict of interest, respect for the individual, human rights, environmental protection, business confidentiality, etc. It includes role-playing scenarios that mirror challenges Group employees may have to face. The training program is held every year.
  • 2019 – G7 Summit held in Biarritz, 32 companies in the fashion and textile industry made a pledge to work towards shared and concrete goals in three areas: Climate, Biodiversity and Oceans. The Fashion Pact was presented by Kering Chairman and CEO François-Henri Pinault to the Heads of State who met at the summit in Biarritz on August 26, 2019. 

Innovation is integral to Kering’s sustainability policy. In 2013, for example, Kering founded the Materials Innovation Lab, which provides the Group’s Houses with more than 3,000 sustainable fabric and textile samples. The Group is also partnering with the Fashion for Good – Plug and Play Accelerator for startups to drive disruptive innovation and make materials and processes more sustainable.

KEY ACHIEVEMENTS : 

  • Kering reduced the Group’s overall environmental impacts by 14% in EP&L intensity between 2015 and 2018 and is on a positive trajectory to reach the 40% reduction target by 2025. 
  • Kering reduced the Group’s GHG emissions by 77% in intensity in its own operations 1 (between 2015 and 2018), and reached 100% renewable energy use in over seven countries, 78% in Europe and 67% covered overall for the Group. 
  • Even further, Kering is on track to meet its 50% science-based target2 for GHG emissions, having achieved a 36% intensity reduction between 2015 and 2018. 
  • As of 2018, Kering became entirely carbon neutral as a Group in its operations and across its sourcing and supply chain. With a priority of first avoiding and reducing its GHG emissions, Kering offsets remaining emissions every year through verified REDD+ projects that conserve critical forests, biodiversity and support the livelihoods of local communities. 
  • In January 2018, Kering developed and open-sourced its “Standards for Raw Materials and Manufacturing Processes” covering best practices across environmental protection, social welfare, traceability, chemical use and animal welfare. The Group has already achieved 68% alignment.
  • Kering achieved 100% responsible gold purchase for its Jewelry and Watches and is on track to reach 100% sustainable sourcing for other key raw materials by 2025. 
  • Kering attained 88% traceability for its key raw materials, against a goal to reach 100% by 2025. 
  • In May 2019, Kering created the first animal welfare standards for luxury and fashion to improve industry practices and catalyze collaboration. 
  • Kering became the first private sector company to partner with The Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) and to support biodiversity science. 
  • As another first for the Luxury industry, Kering published an integrated report in 2018 for 2017 results. Furthermore, to share the significance of corporate sustainability with the investment community, Kering embarked on a roadshow in November 2019 specifically geared towards the Group’s Environmental, Social and Governance (ESG) criteria

Certificates

  • Institute of Quality Certification for the Leather Sector (ICEC) and pilots tracing leather in line with the ICEC regulation TS-PM414 as part of the certification process for finished leather products. Also, in collaboration with ICEC, Kering have certification procedures with key tanneries for sourcing leather from 10 certified tanneries. 
  • Kering received the GEEIS label in September 2016.

Sustainable Development Goals

How company covers SDGs

SDG 5

  • The Kering Foundation is proactively combatting violence against women through supporting NGOs and social entrepreneurs, and organizing awareness campaigns. 
  • Kering has programs in place to support refugee and migrant women.
  • Kering is implementing a sponsorship program for training and coaching women managers

SDG 9 

  • Kering is working with tech start-ups to reinvent the traditional, and often unsustainable, systems in the fashion industry. 

SDG 12

  • Kering’s 2025 Sustainability strategy focuses on the supply chain, where Kering is working to contribute a positive social impact across the entire supply chain. 

Progress

TARGETS & PROGRESS : 

  • 100% alignment with Kering Standards by 2025 – Progress: 68% alignment in 2018
  • 40% reduction of environmental impact by 2025 – Progress: 14% reduction in our EP&L intensity (2015 to 2018)
  • On track to reach 100% by 2025 – Progress: 73% sustainable leather
  • 2025 target achieved 100% – Progress: 100% responsible gold
  • On track to reach 100% by 2025 – Progress: 30% organic cotton
  • 100% traceability of key raw materials by 2025 – Progress: 88% traceability score of key raw materials overall
  • 50% reduction of GHG emissions by 2025 – Progress: 77% reduction in intensity of GHG emissions in own operations (Scopes 1, 2 and part of 3 of the GHG Protocol) and on track to meet overall 50% science-based target having already achieved a 36% reduction (between 2015 and 2018)
  • Implement a global Parental Policy – Progress: 14 weeks of baby leave to all parents
  • Implement a sponsorship program for training and coaching women managers and roll out mentoring programs in all countries. Promote the development of innovative career paths and ensure all genders are always considered for new opportunities – Progress: Empowering women is a priority at Kering and aligned with its 2025 sustainability strategy the company has set up a number of initiatives to do so

Becoming more energy efficient in its Group’s operations leading to the reduction of 30% carbon intensity in the Group’s stores since 2015 :

  • Reaching 100% renewable energy in seven countries, 
  • 77% in Europe 
  • 67% covered overall for the Group. 
  • 67% Adopting key manufacturing efficiencies and innovative programs, such as the Clean by Design program for textile mills which translates into 19% CO2 savings per year”

Kering takes pride in its sustainability measures and in constant practise of making its products more and more sustainable. Whilst the fashion industry is struggling to curb the amount of wastage and losses it creates, Kering is proving itself as a leader in taking better decisions for the environment. Therefore, they are rated as B. 

Unfortunately, there are some concerns about potential missing tax payments in different countries like Italy and France, which could lower they rating in our future evaluation. 

Videos

Share this Post