Louis Vuitton

RATING

SECTOR

Luxury

WEBSITE

CONTACT

22, avenue Montaigne,
Paris, 75008
France

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

Hélène Valade

 

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

 

Louis Vuitton

SECTIONS :  Sustainability  •  Targets    Evaluation   •  Key Points  •  Overview

 

Company Activity

Louis Vuitton is a luxury fashion company founded in Paris, France, in 1854. Louis Vuitton originally started by crafting leather goods. Over the past 166 years, the brand has developed into a multi-billion dollar company that ranges from accessories, to shoes, and to clothing. Operating in 62 countries, the company is known for its luxury leather goods, specifically bags and luggage. The monogram label, LV, is one of the most famous brands in the world, which appears on most of the Louis Vuitton products.

In 1987, Louis Vuitton merged with Moet et Chandon and Hennessy 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

Louis Vuitton is committed to the journey towards achieving sustainability. 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 for luxury.

Louis Vuitton aims to positively impact society, foster diversity and inclusion, support communities, and develop savoir-faire. To achieve this, Louis Vuitton has adopted LIFE 360, “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.

LIFE 360 builds on this progress, setting new targets for 2023, 2026 and 2030, and engaging all stakeholders.

As a Maison of LVMH, Louis Vuitton 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

This section is derived from the LVMH Group’s 2020 Social and Environmental Responsibility Report.
 
Combatting the Pandemic
 
  • From early March 2020, LVMH actively supported public authorities by producing and donating hand sanitizer, masks and scrubs, as well as arranging to import over 40 million surgical masks, ventilators and test kits

Sustaining Activities

  • All necessary measures have been taken to guarantee the health and safety of LVMH employees and all its stakeholders, customers and partners.

Contributing to an Inclusive Society

  • Diversity: In support of the Black Lives Matter movement, the LVMH Group condemned all forms of racism and implemented several initiatives, appointing Diversity and Inclusion managers in several Maisons in the US, organizing webinars on prejudice and its impact, and more. 

Supporting Young People

  • Facilitating access to employment: LVMH has a long history of helping young people to build their careers and has developed a system to help young generations by organizing 110 student events in 2020.

Facing Climate Change Together

  • LVMH Climate Week: Five years after the Paris Agreement, the Group organized the LVMH Climate Week — a week of dialogue with its 150,000 employees to present the key priorities of the LIFE 360 program — which will guide the Group’s environmental initiatives over the next three, six and 10 years — and to encourage everyone to take up the call for action and be a changemaker.

Preserving Territories

  • LVMH Maisons and their workshops are located in exceptional places, and the Group does everything it can to preserve them.

Protecting Life

  • Biosphere reserves: LVMH supports UNESCO’s intergovernmental scientific program “Man and the Biosphere” which protects over 700 biosphere reserves around the world.

Targets

Sourcing Responsibly

  • 100% responsibly sourced raw materials by 2025
  • 0% single-use plastic by 2030

Responsible Packaging

  • Louis Vuitton furthers its commitment to responsible protection by developing sustainable packaging throughout its entire value chain through three main actions: reducing the volume of materials used, prioritizing recycled and recyclable materials, eliminating single-use plastic by 2030.

Acting on Climate Change

  • 100% renewable energy in LV production & logistics sites by 2025
  • 100% LED lighting in stores by 2025

Alternative Energies for Transporation

  • 100% of energy used for local ground transport is to come from non-diesel sources by 2030

Committing to Circular Creativity

  • 100% of products to comply with an eco-design process by 2025
  • 100% of event & window materials reused or recycled by 2025

Fostering Diversity and Inclusion

  • Training 100% of employees in the prevention of unconscious bias and stereotypes by 2022
  • Publishing 100% inclusive and non-discriminating job descriptions

Supporting Communities

  • Pursuing Louis Vuitton’s long-term partnership with UNICEF
  • Developing LV’s partnerships with local associations worldwide 

Developing Savior-Faire

  • Transmitting LV’s Savior-Faire
  • Inventing the Future of Luxury

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

SOURCING RESPONSIBLY

Sustainable Raw Materials

  • 70% of LV materials are, as of 2020, already engaged in a certification process.
  • 78% of LV leathers are Leather Working Group-certified (LWG), which is the highest environmental standard in terms of leather tanning. 
  • 80% of LV crocodilian leathers come from farms audited or certified by the LVMH Crocodilians Standard, the world’s very first crocodilian certification.
  • 78% of LV furs come from Furmark®-certified farms, the highest traceability and animal welfare standard in the world.
  • 100% of wool used by Louis Vuitton will be traced and examined by the end of 2020. Furthermore, the Men’s Fall-Winter 2020 collection saw the first use of a special 100% Responsible Wool Standard-certified yarn.
  • 80% of LV supplies of feather and down come from a fully integrated supply chain in France, guaranteeing traceability from the breeding farm to the feather processing.
  • 100% of LV feather and down are either DownPass or Responsible Down Standard-certified.
  • 90% of the wood used in the manufacture of LV trunks comes from sustainably managed forests under the Forest Stewardship Council® (FSC®) and Program for the Endorsement of Forest CertificationTM (PEFCTM) labels.
  • 50% of LV cotton has been certified by the Better Cotton Initiative (BCI) or Global Organic Textile Standard (GOTS) since 2019.
  • 85% of LV polyester volumes are currently transitioning to become Global Recycled Standard-certified by 2021.
  • 82% of LV viscose supplies are European Ecolabel-certified as of 2020, a major European label recognized around the world. Louis Vuitton also created a 100% sustainable gown made of TencelTM Luxe, a new viscose certified by the European Ecolabel, as part of the Red Carpet Green Dress challenge for the 2020 Oscars Ceremony.
  • 100% of the gold used in the LV Watchmaking and Jewellery collections has been Responsible Jewelry Council-certified since 2012.
  • 100% of LV diamonds used in its Watchmaking and Jewellery collections are Responsible Jewellery Council-certified and Kimberley Process-certified, thus guaranteeing a “zero conflict” provenance.
  • 75% of LV-colored gemstone suppliers have participated in its audit program launched in 2019 complying with the standards of the Colored Gemstones Working Group (CGWG).

Responsible Packaging

  • Louis Vuitton’s current packaging serves as a reminder of the Maison’s original mission: to protect one’s most valuable and precious goods.
  • LV shopping bags and boxes are 100% recyclable and made from 100% Forest Stewardship Council® (FSC®) fibers, of which 40% are recycled fibers. The company’s boxes are collapsible in order to lower their volume during transport to LV stores, which in turn reduces CO2 emissions from transportation.
  • LV dust bags are made from 100% Better Cotton Initiative (BCI)-sourced cotton, an organization that supports the development of ethical, social, and environmental farming practices.
  • The plastic used to pack LV products for e-commerce deliveries is gradually being replaced by sustainable alternatives such as adjustable shipping boxes made from recycled cardboard.

Committed Value Chain

  • 100% of LV partners have signed the LVMH Suppliers Code of Conduct: this code defines the ethical, environmental, and social principles for both Louis Vuitton and its suppliers. Roughly 250 audits are carried out per year and, since 2018, the Maison extended its audit scope to include animal welfare and raw material traceability.
  • LV is firmly committed to eliminating all hazardous substances from the LV supply chain through a stringent Inoculation Plan that was first launched in 2014. All suppliers have imposed a Restricted Substances List (RSL) that goes above and beyond regulations such as the REACH and Prop65 targets and we continually verify compliance by testing both raw materials and final products.

ACTING ON CLIMATE CHANGE

Carbon Footprint

  • Tracking LV Carbon Footprint since 2004: the Maison pioneered the measuring of its annual carbon footprint using a standardized method (Bilan Carbone®) in order to account for the greenhouse gas emissions caused by all our activities around the world. 
  • Based on 2019 findings, LV has identified that the main contributions of greenhouse gases come from three sources: raw materials, energy, and transport.

Improving Energy Efficiency

  • LVMH Low Carbon Fund: 45 different projects have been financed since the launch of the LVMH Carbon Fund in 2016 based on the idea that putting a monetary value on its greenhouse gas emissions will incentivize all to take more responsibility in reducing gas emissions. These actions have already enabled LV to reduce greenhouse gases emissions from energy consumption by –29% between 2013 and 2019 (on a comparable basis), exceeding LVMH’s target of -25% for 2020.
  • Stores: 100% of new and renovated LV stores around the world are equipped with LED lighting, which includes store windows and façades. Lighting is one of the most energy-consuming store elements, but it is also one of the most adjustable: by switching to LED lighting, LV has been able to decrease its total energy consumption due to lighting by -30% since 2013.
  • Warehouses and Workshops: -12% drop in energy consumption has been recorded on the Group’s production sites between 2013 and 2019, despite a marked increase in production over that same period. This is explained by the integration of an environmental approach at both the workshops’ construction phase as well as in the way they are operated on a day-to-day basis.
  • Green IT: 2020 marks the launch year of Green IT, LV’s proactive program to understand, measure and reduce emissions associated with digital technologies such as hardware waste and data center or computer energy consumption. Louis Vuitton, as a digital pioneer for the luxury industry, is prioritizing these efforts for the coming years.
  • Renewable Energies: 33% of the energy that Louis Vuitton consumes comes from renewable sources. 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. These installations allow the Maison’s buildings to supply anywhere from 30% to 100% of the site’s annual electricity needs for heating and air-conditioning, which is the case for the Florence and Paris Vendôme stores.

Green Architecture

  • Since 2017, LV’s approach to a sustainable architecture concept has been one of continuous improvement, targeting the most demanding environmental certifications in the world since 2007 such as HQETM (High-Quality Environmental), LEED® (Leadership in Energy and Environmental Design), and BREEAM® (Building Research Establishment Environmental Assessment Method).
  • In addition to its sustainable architecture projects, all Louis Vuitton sites are under an ISO 14001 certification process, a standard that guarantees the environmental management system of its activities with a continuous drive for improvement. As of 2019, 78% of the company’s sites have been certified ISO 14001.

Reducing Carbon-Dependant Transporation

  • In 2013, Louis Vuitton became the first luxury house with an ISO 14001 certified supply chain. This certification allows the company to enact continuous environmental improvement objectives with its partners, involving monitoring the store’s needs, optimizing routes, as well as looking at energy-efficient vehicles and alternative fuels.

COMMITTING TO CIRCULAR CREATIVITY

Re-using materials

  • In 2018, Louis Vuitton established the Cuirs Patrimoine (Heritage Leathers) project in order to highlight unused leathers.
  • In 2020, LV set up a showroom to internally raise awareness of these existing leathers: the event resulted in doubling the rate of leathers reused as well as establishing their systematic use by their creative teams. As a concrete example, 9,000 square meters of unused Heritage Leathers were selected by the Visual Image Studio to make the Summer 2019 store windows. For these windows, 7,500 pieces were produced from repurposed leather, which represents about 130,000 thin strips of leather.

Up-cycling products

  • Launched in 2019, Louis Vuitton’s Be Mindful collection is its first upcycled collection.

Recycling Materials

  • Leather scraps are recycled into reinforcements for LV bags or mixed with paper to create new materials as is the case with the Papier Cuir of special events shopping bags.

Eco-designing Events and Windows

  • In the Summer of 2020, windows featuring a shoal of fish were made of recycled plastic, including recycled marine debris.
  • The Louis Vuitton Men’s Spring-Summer 2020 fashion show took place in Place Dauphine, Paris, requiring no additional structural construction. As a result, the show generated no structural waste. The few set elements such as tables and chairs were either rented or, if purchased, were subsequently donated to artistic or cultural partners in Paris.

Optimizing the ed-use of materials

  • Overall performance: 96% of materials used for LV’s main events and installations in 2019 were either reused or recycled.
  • Re-use: 85% of elements from the Women’s Spring-Summer 2019 Fashion Show set in Paris were donated to various cultural institutions to be reused including the structure, seats, lighting, and plexiglass.
  • Donations: 100% of the set of the LV 2019 Time Capsule exhibition in Mexico was given to two local charities, an orphanage of 60 girls, and an organization that helps the development of indigenous communities in Oaxaca, Mexico.
  • Recycling: 99% of the materials such as wood, metal, carpet, or glass, used in the construction of the 2018-2019 “Volez, Voguez, Voyagez” exhibition in Shanghai were ultimately recycled thanks to partners and local teams.

FOSTERING DIVERSITY AND INCLUSION

Guaranteeing Equal Opportunities

  • 60% of the executive mobility observed in 2020 went to women, who represent 62% of Louis Vuitton’s executive workforce.
  • In 2013, LVMH and Louis Vuitton signed the UN Women’s Empowerment Principles, reinforcing its commitment to support women’s rights and development throughout the world.
  • In 2019, LVMH signed the UN Standards of Conduct for Tackling Discrimination against LGBTQI+ people. This pledge extends and strengthens the commitment to building an inclusive company culture for LGBTQI+ employees, initiated in 2018 with the creation of the LVMH Inclusion Index. LVMH Inclusion Index. 
  • +100 different nationalities are represented in Louis Vuitton’s teams worldwide. As of 2020, the Maison operates in 62 countries, leading to a rich social and cultural diversity, both among employees and suppliers.
  • +400 employees with disabilities work at Louis Vuitton throughout the world as of 2020. The Maison has always been committed to hiring people with disabilities and LV continues to foster disability inclusion through many concrete actions.

Ensuring an Inclusive Environment

  • Preventing “Unconscious Biases and Stereotypes”:  In 2018, this dedicated training program aims to increase the teams’ awareness of the impact of biases and stereotypes on decision-making processes and the value of workplace diversity.

  • Promoting women development through “EllesVMH” program: Launched in 2007 by LVMH, EllesVMH aims to support women’s professional development in all positions or levels of experience through initiatives such as coaching, mentoring, training, or highlighting women’s career paths. In 2018, EllesVMH launched SHERO, an internal digital platform, and community to empower women and men working in the LVMH group through articles, videos, podcasts, and more.

SUPPORTING COMMUNITIES

Louis Vuitton for UNICEF Partnership

  • In 2016, Louis Vuitton and the United Nations Children’s Fund (UNICEF) signed a global partnership to support the most vulnerable children around the world. The partnership aims to raise funds for UNICEF to provide the essential interventions required to protect, save lives, and ensure the rights of all children, around the world.
  • Raising funds with the Silver Lockit Bracelet
    Launched in 2016 along with the partnership, the Silver Lockit is a bracelet specially designed by Louis Vuitton to raise funds for UNICEF. Following the success of the first Silver Lockit collection in 2016, a new collection has been released each year with varying colors and detailing. Since 2016, this project has raised over $10 million for UNICEF.
  • Raising awareness via the “LVforUNICEF Reporters” program
    Each year since the partnership launched, volunteer Louis Vuitton staff members, called “LVforUNICEF Reporters”, have been invited to visit UNICEF-supported programs on the field, to witness how the funds raised are helping vulnerable children in places such as refugee camps.
  • Fundraising with the “LV World Run”
    In 2019, Louis Vuitton employees from all over the world were invited to participate in the “LV World Run for UNICEF” to raise money for UNICEF.

Promoting Professional Integration 

  • Louis Vuitton’s teams around the world support their local communities by contributing to improving access to education and job opportunities for young people.

Increasing Access for Professional Opportunities

  • Making a national commitment with PAQTE: To ensure that LV is as close as possible to the active players on the ground in France, in 2020 Louis Vuitton strengthened its commitment to underprivileged areas by signing the “Pacte Avec les Quartiers pour Toutes les Entreprises” (PAQTE).
  • Establishing partnerships with local organizations: +400 young job seekers have been mentored by 93 Louis Vuitton managers since 2007 through the partnership with the French organisation “Nos Quartiers ont des Talents” (NQT), of which 207 were able to subsequently find employment that matched their qualifications.
  • Developing Skills Sponsorship: 250 days of skills sponsorship were offered to employees in the United States in 2019 to give them the opportunity to support causes that are dear to them. In the space of 48 hours, more than 500 of them expressed their interest in this first session in order to volunteer for a day with a charity of their choice.

DEVELOPING SAVIOR-FAIRE

Sharing Craftsmanship

  • The Entreprise du Patrimoine Vivant (EPV) label is a state-recognized certification, established to distinguish French companies with excellent craftsmanship. To obtain this label, Louis Vuitton had to meet three criteria: the ownership of a specific economic asset, the implementation of rare savoir-faire based on the mastery of traditional techniques of high technicality in the implementation of know-how, and the attachment to a specific region or territory.
  • Louis Vuitton is an active participant in the Journées Particulières, an event launched in 2011 by LVMH to allow the public to discover the diversity of the professions and savoir-faire at LVMH Maisons.
  • The LVMH Institut des Métiers d’Excellence (IME) is a tuition-free apprenticeship program in partnership with prestigious vocational schools – Louis Vuitton promotes, transmits, and develops savoir-faire in both the artisanal crafts, as well as the sales and creative professions. Since 2014, LV has welcomed 161 IME apprentices among Louis Vuitton teams.
  • Created in 2010, the Ecole des Savoir-Faire identifies, formalises, and facilitates the transmission of Louis Vuitton’s unique savoir-faire, from traditional techniques to technological innovations.

Entering Strategic Partnerships

  • Partnership with Central Saint Martins: in 2017, LVMH and Central Saint Martins, launched the second phase of an official partnership to address the many social and environmental challenges facing the luxury industry and to identify cutting-edge solutions to drive sustainability and innovation in the sector. Since its launch, Louis Vuitton has offered students the opportunity to work on pioneering projects with either a strong environmental dimension, such as in 2018, or a more social angle in 2020.
  • Louis Vuitton-ENS Chair: the Louis Vuitton – École Normale Supérieure scientific Chair in Artificial Intelligence was inaugurated in 2018 in order to share respective resources in this field and specifically in data processing using statistical learning and computer vision methods. The Maison’s aim is to continue to offer clients exceptional services and maintain its position as a leader and pioneer in the luxury industry.
  • Louis Vuitton-Comité Colbert Chair partnership: since 2017, Louis Vuitton’s partnership with the Comité Colbert Chair has enabled us to welcome and support ENSAAMA students (Ecole Nationale Supérieure des Arts Appliqués et des Métiers d’Art) in their second year of Masters, in creative challenges to invent the luxury of tomorrow. These projects are an opportunity for the Maison to detect new talents and to help mold future creations.

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

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

Evaluation

Louis Vuitton is committed to the journey towards achieving sustainability. 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 for luxury

As a subsidiary of LVMH, Louis Vuitton aims to positively impact society, foster diversity and inclusion, support communities, and develop savoir-faire. Louis Vuitton achieves this by aligning its commitments and initiatives with that of the LVMH social and environmental report. 

Following the vision of LVMH, Louis Vuitton has made specific targets for responsible sourcing and packaging, addressing climate change, incorporating alternative energies for transportation, adopting a circular supply chain, and fostering diversity and inclusion. While these targets are measurable, they are few.

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 but they align them with specific targets within the broader goals. 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. 

Louis Vuitton has been rated a B on the Impakter Sustainability Index.

Analyst Outlook: Neutral

Louis Vuitton has made strides in responsible sourcing, acting on climate change, committing to circular creativity, fostering diversity and inclusion and developing savior-faire by engaging in multiple certification processes to incorporate sustainable raw materials and responsible packaging, improving energy efficiency, reporting on its carbon footprint, and much more.

In addition, Louis Vuitton has partnered with numerous outside organizations to support community development and have outlined targets to improve their sustainability practices. 

Louis Vuitton has successfully incorporated sustainability into its business model but 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

  • 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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