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European Climate Pact

Overview

Location

France

Sector

Manufacturing

Organisation type
Business

Company Information

The LVMH group is based in Paris, France and focuses on luxury brands. With a global revenue of 64.2 billion EUR in 2021, the LVMH group comprises 175,647 employees worldwide.

Our progress towards decarbonization

 

GHG Emissions

North Star

  • LVMH has a target to reduce absolute scopes 1 and 2 CO2e emissions 50% by 2026 from a base year of 2019

Pledge: Have an officially validated short-medium term science-based GHG emissions reduction targets aligned with a 1.5°C scenario (scope 1+2) in line with the SBTi Criteria and Recommendations

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

How we want to achieve this – our roadmap

  • Join the Business Ambition for 1.5°C and publicly commit to have a long-term science-based target to reach net-zero value chain GHGs emissions by no later than 2050 in line with the SBTi Net-Zero Standard
  • Have an internal price on carbon 
  • Have an initiative in place to drive GHG emissions reduction through energy efficiency in production processes
  • Have an initiative in place to drive GHG emissions reduction through low-carbon energy generation
  • Have scope 1+2+3 GHG emissions verified through a third party verification or assurance process

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

 

Energy

Our actions – the Pathway

  • LVMH has a target to consume 100% of electricity from renewable sources by 2026 from a baseline of 36% renewable electricity consumption in 2019
  • Have a target to improve energy efficiency

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

 

Forests

North Star

  • LVMH has a public no deforestation (forests-related) commitment that is set to be completed within the timeframe 2026-2030 with a cut-off date of 2008. The commitment covers 100% of Palm oil production and consumption and applies to their direct operations and supply chain. It is FPIC-based (Free, Prior and Informed Consent of indigenous people)

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Forests 2022

How we want to achieve this – our roadmap

  • Commit to zero gross deforestation
  • LVMH has a target to increase sustainable production and/or consumption of Palm oil to 100% by 2026 starting in 2016
  • LVMH has a target to increase sustainable production and/or consumption of Timber products to 100% by 2026 starting in 2020
  • LVMH has a target to increase sustainable production and/or consumption of Timber products to 100% by 2023 starting in 2020
  • LVMH has a target to increase sustainable production and/or consumption of Palm oil to 100% by 2023 starting in 2020
  • LVMH has a target to increase sustainable production and/or consumption of Cattle products to 100% by 2023 starting in 2020
  • LVMH has a target to increase sustainable production and/or consumption of Cattle products to 100% by 2026 starting in 2020
  • Participate in jurisdictional approaches to promote the implementation of forests-related policies and commitments
  • Support or implement projects focused on ecosystem restoration and protection beyond no deforestation
  • Work with direct suppliers to support and improve their capacity to comply with our forests-related commitments, policies, and other requirements
  • Work with smallholders along the company's value chain to support good agricultural practices and reduce deforestation or conversion of natural ecosystems through financial or technical assistance
  • Publicly disclose data on forest-related impact to investors through a public platform
  • Have a publicly available forest policy, with well-defined goals and targets, that is used to inform internal decision-making
  • Have board-level oversight of forests-related issues
  • Have forests issues be fully integrated in all parts of long-term strategic business plans
  • Make a comprehensive forests-related risk assessment, that checks the following criteria: full coverage of relevant operations, considers risks beyond six years and availability of forest risk commodities, quality of forest risk commodities, impact of activity on the status of ecosystems and habitats, social impacts, and includes local communities; Stakeholders considered is local communities
  • Assess company and suppliers' compliance with forests regulations and/or mandatory standards when sourcing commodities from regions with high deforestation risk 
  • Have a no-deforestation policy that checks the following criteria: general or commodity-specific, publicly available, and company-wide
  • Have a system to control, monitor, and verify compliance with no-deforestation policies/commitments that covers all relevant operations and supply chains and shows more than 90% of total volume in compliance

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Forests 2022

 

Water

Our actions – the Pathway

  • Work towards the yearly reduction of % of water withdrawn from areas with water stress 
  • LVMH has a target to increase water withdrawal efficiency (i.e. revenue generation per water withdrawal volume) by 2030 from a base year of 2019 starting in 2020
  • Engage our suppliers to improve their water management and stewardship through onboarding and compliance measures
  • Publicly disclose data on water-related impact to investors through a public platform
  • Have board-level oversight of water issues
  • Integrate water-related issues into the company's financial planning
  • Integrate water-related issues into the company's long-term business objectives
  • Integrate water-related issues into the company's strategy to achieve long-term business objectives
  • Provide C-suite incentives for the management of water related issues
  • Regularly monitor and measure key water security metrics at least for 75% of the company's facilities

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Water 2022

 

Governance & Strategy

Our actions – the Pathway

  • Publicly disclose climate and environmental data to investors and customers through a public platform
  • Have board-level oversight of climate-related issues
  • Have a process for identifying, assessing, and responding to climate-related risks and opportunities
  • Have an employee engagement strategy to support and contribute to achieving the company's climate and environmental goals

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

 

Buildings

Our actions – the Pathway

  • Have an initiative in place to drive GHG emissions reduction through energy efficiency in buildings

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

 

Value chain engagement

North Star

  • LVMH has a supplier engagement target to get 30.0% of its suppliers by procurement spend to set a science-based emission reduction target

Pledge: Have a supplier engagement target in order to reduce scope 3 GHG emissions, to get a share of our suppliers by procurement spend set science-based GHG emissions reduction targets in line with the SBTi Criteria and Recommendations

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022

How we want to achieve this – our roadmap

  • Have a supplier/customer engagement strategy designed to offer financial incentives for suppliers who reduce downstream GHG emissions (Scope 3)
  • Have a supplier/customer engagement strategy designed to offer financial incentives for suppliers who reduce operational GHG emissions (Scope 1+2)
  • Have an ongoing and transparent dialogue with our value chain around climate-related issues
  • Have a supplier/customer engagement strategy to drive best practices in tackling environmental and climate-related issues

MRV: Pact MRV in place

Status date: Submitted (28/07/2022)

Data source: CDP Climate Change 2022