LVMH - 2019 Environmental Responsibility Report

LVMH

2 0 1 9 E n v i r o n m e n t a l R e s p o n s i b i l i t y R e p o r t

COLLABORATING WITH SUPPLIERS

Of all the raw materials and components purchased by LVMH

to produce its products, leather, grapes and glass packaging

represent the largest contributors of greenhouse gases. That

is why the carbon factor plays such an important role in the

Group s responsible sourcing policy and gives rise to special

collaborations with suppliers. For example, LVMH works to

improve the diets fed to animals, which has a considerable

impact on the environment, through closer collaboration with

local partners and farmers supplying animal-based materials.

Wines & Spirits Maisons strive to reduce the carbon footprint

of grapes, primarily by encouraging its wine-growing part-

ners to limit the use of chemical substances, the production

of which generates high levels of emissions. In addition, the

Group is keen to harness ecodesign to reduce the weight

of its glass bottles. The new bottle for Chandon s grand cru

Cheval des Andes produced in Argentina weighs 80g less than the previous design. By contributing to the fight against climate change, LVMH is rewriting the conventions of the

luxury industry, where packaging is becoming increasingly

lightweight.

Furthermore, the Environment Department is taking action with its partners to gain a deeper understanding of all factors

that contribute to the carbon impact of using the Group s

products by updating the way in which it measures its

scope 3 emissions to be able to set an objective for reduction.

DEVELOPING SUSTAINABLE TRANSPORTATION

The Group is working to reduce its carbon emissions gener-

ated by the transportation of goods by taking action on

several fronts, such as prioritizing local sourcing, more read-

ily using trains and boats, optimizing logistics channels and

using electric vehicles to transport goods short distances. For

example, Acqua di Parma delivers on bicycles or cargo bikes, while Sephora makes its last mile city center deliveries via

electric trucks in France, China, Italy and Spain. The Group is

working as part of alliances to promote sustainable transport.

In 2019, it joined the Sustainable Air Freight Alliance (SAFA), created to track and reduce carbon dioxide emissions

from air freight and promote responsible freight transport.

LVMH also contributes to expanding sustainable mobility.

For example in 2019, the Champagne Maisons signed a trial

agreement with Enedis on its innovative Smart Charging

(SMAC) project, which aims to support the energy transition by developing the use of electric vehicles in rural areas by

using locally generated wind power.

PREPARING LIFE 2030

In order to work toward achieving the future CO 2 objective

for post-LIFE 2020, a study was conducted to assess the

extent to which the Group s practices comply with the

recommendations of the Task Force on Climate-related

Financial Disclosure (TCFD). It drew conclusions concerning the strength of the objectives set and the distance still to travel to factor climate concerns into the Group s gover-

nance, corporate strategy and approach to risk management.

The Group brought together a variety of stakeholders to

discuss these results and determine its position in regards

to carbon offsetting.

Across the Group s entire value chain, 60% of emissions are generated by the production of raw materials, and 25% by upstream and downstream transportation two scope 3 items the Group is working to reduce.

R E D U C I N G T H E C A R B O N F O O T P R I N T O F T R A N S P O R TAT I O N A N D R AW M AT E R I A L S