Climate Change Data

LVMH

Climate Impact & Sustainability Data (2019)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:363,963 metric tons of CO2 equivalent (scopes 1 & 2)
Scope 3 Emissions:2,791,000 metric tons of CO2 equivalent (estimated based on 2016 data)
Renewable Energy Share:36%
Total Energy Consumption:1,278,600 MWh
Water Consumption:5,119,110 m3
Waste Generated:95,620 metric tons

ESG Focus Areas

  • Biodiversity
  • Climate Change
  • Sustainable Products
  • Environmental Information and Transparency

Environmental Achievements

  • Reduced CO2 emissions by 25% vs 2013 levels
  • Increased renewable energy share in energy mix to over 36%
  • Improved EPI of packaging: Perfumes & Cosmetics by 12%, Champagne by 5%, Hennessy by 19%
  • Reduced water consumption by 48% since 1998 (Hennessy)
  • Reduced water consumption by 44% (Terrazas de Los Andes)

Social Achievements

  • Launched Animal-Based Raw Materials Sourcing Charter
  • Partnership with UNESCO to support its “Man and the Biosphere” program
  • Partnership with Solar Impulse Foundation to accelerate environmental transition
  • Launched two projects on the economic impact of marketing exotic skins and free-range Orylag rabbit farming

Governance Achievements

  • Incorporated LIFE objectives into Maisons' strategic plans
  • Established a network of environment correspondents in each Maison
  • Set up the Environment Academy for environmental training
  • Published progress report on LIFE program

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050 (implied)
Medium-term Goals:
  • Apply the highest standards in 100% of sourcing channels by 2025
  • Achieve 60% renewable energy in energy mix by 2020
Short-term Goals:
  • Improve sites’ key environmental efficiency indicators (water, energy, waste) by at least 10%

Environmental Challenges

  • Reducing the carbon footprint of raw materials and transportation (Scope 3 emissions)
  • Ensuring full traceability of sourcing channels
  • Adapting wine-growing techniques to rising temperatures and water scarcity
Mitigation Strategies
  • Prioritizing local sourcing, using trains and boats for transport, using electric vehicles for short-distance deliveries
  • Developing sustainable sourcing standards and certifications (e.g., crocodile standard)
  • Implementing advanced technology for water management (e.g., drip irrigation, soil analysis)
  • Adapting grape harvest dates, vine training techniques, and experimenting with new grape varieties

Supply Chain Management

Supplier Audits: 1,589 social and/or environmental audits of 1,261 suppliers

Responsible Procurement
  • Code of Conduct for suppliers
  • Environmental audit checklists
  • Sustainable sourcing initiatives for various materials (e.g., cotton, leather, gold, diamonds)

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts towards sustainability
Opportunities
  • Development of energy-efficient products and processes
  • New business models based on circular economy

Reporting Standards

Frameworks Used: UN Global Compact, TCFD

Certifications: ISO 14001

Third-party Assurance: EY & Associés

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 15 (Life on land)

LVMH's CSR strategy contributes to these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

  • Eye/Loewe/Nature collection
  • Be Mindful collection
  • Dior's responsible denim
  • Sephora's Good for Skin.you.all line

Awards & Recognition

  • Butterfly Mark (Louis Vuitton)