Inside Kering’s “Crafting Tomorrow’s Luxury” strategy
French luxury giant Kering has made headlines throughout 2017 for its approach to sustainability. The company’s efforts have seen it crowned the world’s greenest luxury company, and Kering has taken its ethical approach to luxury even further, entering into partnership with its biggest rival (also French, also a giant) LVMH to protect models in the industry. But the company’s plans go further than the public might think – by 2025, Kering hopes to have revolutionized itself and, in doing so, the industry. These plans are known, collectively, as the “Crafting Tomorrow’s Luxury” strategy.
Kering’s share price has risen by 70% so far this year
SOURCE: Yahoo Finance
The company has partnered with “disruptive” new minds to help it create the innovations it will need to attain the ambitious, science-based, goals it has in mind for 2025. These goals include a 50% reduction in emissions, 100% traceability of key raw materials, the development of “an industry leading performance metric system that will measure achievement of the Sustainable Development Goals” and a platform to advise others in the space of best practice.
Kering has little more than a loose plan for achieving these lofty goals. Using big brains from universities and elsewhere, the company hopes to flesh them out. It’s building the roadmap it needs over two “key platforms”: “capturing new technologies and building the business case for sustainability through an innovative environmental profit and loss (EP&L) system.”
The company’s chief sustainability officer, Marie-Claire Daveu, says that this innovative, open-source, accounting method is getting a lot of interest:
“We’ve had very good feedback. More and more companies come to see us to ask questions about implementing EP&L in their company. I can’t disclose names, but more people and institutions are really interested in understanding the methodology and understanding how they can apply it to their own needs.
“We don’t say that our methodology is perfect but it’s a good solution and our new strategy adds EP&L into the supply chain and it is helping with our science-based targets. If you want to make these targets, you need to understand where your emissions are coming from, the EP&L is really useful here. If you don’t put sustainability at the core of your strategy you’ll have a problem. It’s no longer an option, it’s a necessity.”
Dominion holds Kering in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.