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