Chanel
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
Environmental Achievements
- Scope 1 and 2 carbon emissions are less than 5% of total footprint in 2023.
- Progress towards 100% renewable electricity in operations by 2025.
Social Achievements
- Chanel Sustainability Academy to upskill employees on sustainability.
- Embedding sustainability performance into company bonus criteria.
Governance Achievements
- External reporting, internal tracking at Leadership and Board levels, and embedding sustainability as a key performance driver impacting bonus metrics.
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2040.
Short-term Goals:
- Transition to 100% renewable electricity in own operations by 2025.
Environmental Challenges
- Decarbonizing scope 3 emissions (raw materials, capital goods, freight, packaging, events, media, and business travel).
Mitigation Strategies
- Roadmaps to decarbonize at the product, supply chain, business unit, or regional level.
- Expanding regenerative agricultural practices.
- Decarbonizing transportation and supply chain manufacturing.
- Investing in circularity.
- Investing in start-ups focused on alternative materials and technologies.
- Supplier engagement transformation programs.
Supply Chain Management
Responsible Procurement
- Partnering with suppliers on technology switches, including renewable electricity.
- Implementing regenerative agricultural practices (e.g., leather, cashmere, and Open Sky Labs for cosmetic ingredients).
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Science Based Targets initiative (SBTi) Corporate Net-Zero Standard