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Monday, September 30, 2019

Luxury makeover: Kering to go 'carbon neutral' by offsetting 2018 emissions


gucci shop kering
Credit: Sardaka

On Tuesday, Kering announced that the luxury group, which includes brands such as Gucci, Bottega Veneta, Saint Laurent and Balenciaga, will become carbon neutral across its operations and supply chain by offsetting its greenhouse gas emissions from 2018. The announcement follows Gucci’s own carbon neutrality pledge earlier this month and comes a day after Swedish activist Greta Thunberg’s emotional speech at the UN Climate Action Summit in New York.
"We are going a step ahead in the implementation of our sustainability strategy," says Marie-Claire Daveu, Kering’s chief sustainability officer. Kering’s sustainability initiatives to date have included work to reduce energy consumption and greenhouse gas emissions, as well as a push for the use of reusable energy, says Daveu. “Where we won't be able to have zero impact it's important to offset.”
Fashion companies are increasingly pledging to offset their carbon footprint as it shows a commitment to sustainability, but the benefits of these initiatives are not guaranteed. “There is nothing logical or innovative around carbon offsetting unless it comes with a very serious commitment to prevent and reduce the company's carbon footprint,” says Orsola de Castro, founder and creative director of Fashion Revolution.
Kering, which also led the formation of the Fashion Pact to combat climate change at the 45th G7 Summit in August, has pledged to reduce all of its operations and supply chain greenhouse gas emissions by 50 per cent by 2025. The ambitious goal sets the industry in the right direction, but de Castro points out that without an external policing body, there is no guarantee of accountability.
Gucci Spring/Summer 2020.

Since 2011, Kering has measured the group’s greenhouse gas emissions through environmental profit and loss accounting (EP&L) to implement changes in its supply chain and promote efficiency initiatives across the board. These efforts have focused on offsetting two of the three types of emissions as defined by the Greenhouse Gas Protocol, by operating on direct emissions from owned or controlled sources and emissions from the generation of purchased energy.
With its latest pledge, the group will offset all remaining emissions in the protocol, meaning upstream and downstream emissions in the value chain. For 2018, these remaining emissions will account for approximately 2.4 million tons of carbon dioxide equivalent. The group’s offsetting practices rely on Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, which include a partnership with the Wildlife Friendly Enterprise Network (WFEN) to promote the conservation of biodiversity in farming practices, and collaborating with the Savory Institute’s Frontier Founder initiative to encourage regenerative grazing practices. The company’s 2018 offset will equal around 2 million hectares of forests around the world.
Kering’s announcement pushes it ahead of other luxury conglomerates in its commitment to full carbon neutrality, but other groups have their own initiatives in place. Richemont has been purchasing carbon offsets since 2008, while LVMH introduced a carbon fund across its brands in 2015 to calculate and offset greenhouse gas emissions generated by its businesses. “Such an approach reaffirms how Kering is one of the companies leading the way in sustainability, and I hope other brands and retailers will follow,” writes Eva Kruse, CEO and president of the Global Fashion Agenda, via email.

But an overreliance on offsetting can be seen as sidestepping a larger issue.
“With this level of urgency [we need] a commitment policy on reduction, not just of carbon and fumes, but also of production,” says de Castro. “We need to disinvest from growth to invest in social and environmental supply chain prosperity and compliance.”
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