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

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ADAPTING WINE-GROWING TECHNIQUES

The work of the Intergovernmental Panel on Climate Change

(IPCC) presents scenarios indicating that the rise in the

average global temperature in the 21st century is likely to

be between 1.5 and 1.8 °C, in addition to substantial falls in annual levels of precipitation. The LVMH climate strategy

seeks to mitigate its greenhouse gas emissions to limit the

rise in temperature, while also focusing on adaptation. The

efforts undertaken indicate that the production of wine and

spirits represents the stage of the value chain that has the

most impact on climate change.

In Europe, the annual growth cycle of grapevines will take

place in an environment that is both warmer and drier.

Further to modeling work, adaptation strategies spark trials

of new techniques, such as changing the dates of the grape

harvest, adapting the ways of vine training (widening rows,

increasing the size of the rootstock, etc.) and experimenting

with new varieties of grape.

In Argentina in 2019, the Chandon vineyard reused over 300,000 liters of water to clean the floors of its cellar during the harvest season. This approach has led to strong results,

with the volume of water used by the Champagne Maisons

to produce one bottle falling from 4.5 to 3 liters between 2013 and 2018. Hennessy alone has decreased its water

consumption by an impressive 48% since 1998. Vineyards in Argentina and California are more concerned with the availability of water, which is why the Group s Maisons seek

to rise to the challenge through controlled and disciplined

irrigation. In 2019, by rolling out the most advanced technol-

ogy, including soil and weather analysis and drip irrigation,

the Maison Terrazas de Los Andes was able to reduce its water consumption by 44%.

SAVING AND PRESERVING WATER

Preserving water does concern other Maisons beyond the

Wines & Spirits business group. The main focus across the

board is to save water, whether it is the water used during

the manufacturing process or to produce the raw materials

themselves. By measuring the impact of activities on local

water resources and deploying best practice to reduce

consumption, over half the water used at Loro Piana s

production sites in Italy is recycled.

For many years now, Bvlgari has been pursuing a proactive

policy in this area. In 2019, the Maison installed a system in

its Swiss manufacturing facility to recover the water used

to clean the plaster off semi-finished gold during the manu- facturing process. Water is filtered and stored before it is reused. The Maison hopes this system will reduce its annual

water consumption by 5,000 m3, which represents 20% of the site s total demand.

Climate change has led to greater scarcity of water resources, which is why the Maisons have adapted their wine-growing techniques and prioritized the need to limit their water consumption.

A DA P T I N G T O R I S I N G T E M P E R AT U R E S