Ensuring traceability

and transparency

LVMH aims to have a dedicated traceability system

covering all sourcing channels by 2030, in order to ensure

full traceability across all the Group’s strategic supply

chains, for every step – from field to final product. The

system will be based on a collaborative approach, to

increase efficiency and facilitate compliance by

suppliers. In 2023, a consortium of 15 cosmetic industry

businesses, brands and suppliers – including Chanel,

Clarins, Dior, Estée Lauder, L’Oréal, Shiseido and Sisley

– announced that they were joining forces to set up

the Traceability Alliance for Sustainable Cosmetics

(TRASCE). This new body will be charged with improving

the traceability of supply chains for key components

of cosmetic formulas and packaging. In 2023, LVMH

accelerated the rollout of systems to provide customers

with product-related information, allowing them to trace

the raw materials used in the Maisons’ exceptional

products. Following the deployment of tools that can

measure environmental impact, information can now

be provided to customers on the Maisons’ websites

via a QR code or directly on product labels. Overall,

30,000 products made by the Group’s Maisons are

now covered by such a system. Loro Piana has

launched a collaboration with the Aura Blockchain

Consortium to ensure the traceability of the extra-fine

wool fibers in its The Gift of Kings® range, offering a

more transparent view of its entire supply chain. Louis

Vuitton also took part in this collaboration, launching

the LV Diamonds certificate: a unique, secure digital

certificate that lists the key features of the central

diamond in a piece of jewelry and tracks its journey,

from mining to setting. Another example of this focus

on implementing an exacting, transparent traceability

policy was Fendi’s inclusion, once again in 2023, among

the highest-scoring businesses listed in the Fashion

Transparency Index.

Supporting partner suppliers

to reduce Scope 3 emissions

In 2023, the proportion of renewable energy in the

Group’s energy mix surged to 63% (up 16 points

from 2022) as a result of the proactive approach to

maximize the use of biogas, as well as a campaign

organized by the Group’s Maisons to sign framework

agreements with renewable energy suppliers.

Combined with the impact of the energy efficiency

plan announced in September 2022, this policy has

helped achieve a reduction of over 28% in energy-

related CO

2

emissions (Scopes 1 and 2) between 2019

and 2023. Bold action to reduce stores’ environmental

footprint also contributed to these outcomes. In

December 2023 – building on a partnership set up

with leading shopping mall developer Hang Lung

Properties to work together on improving the environ-

mental impact of mall stores – LVMH launched two new

partnerships with similar objectives: one with the top

five local lessors in the United Arab Emirates, signed

at the COP28 summit, and the other with the Miami

Design District. To help achieve the target of cutting

Scope 3 emissions (55% reduction in CO

2

emissions

per unit of added value by 2030 relative to 2019, a

target validated by SBTi), which comprise 95% of the

Group’s carbon footprint, LVMH expanded its environ-

mental strategy with a new program: LIFE 360

Business Partners. The program’s goal is to support and

guide suppliers, whose participation is key to achieving

a meaningful change in indirect carbon emissions.

Building on the supplier transition plans implemented

by a number of the Group’s Maisons, this new compo-

nent of the LIFE 360 initiative aims to give suppliers

access to the Group’s training programs, regulatory

watch and all the solutions and expertise that

can unlock reductions in our partners’ carbon foot-

print, as well as their impact on water and biodiversity,

within supply chains.

28

REDUCTION IN ENERGYRELATED

GHG EMISSIONS BASELINE 2019

68140

HOURS OF ENVIRONMENTAL

TRAINING AND AWARENESSRAISING

INITIATIVES UP 118 VS 2022