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In 2012, LVMH decided to strengthen its approach to protect the environment by deploying a com- prehensive program: LIFE (LVMH Initiatives For the Environment). This program is based on nine chal- lenges that are key to the environmental per- formance of the company, including product design, the shipment of raw materials, manufac- turing and marketing, and after-sales services. These key challenges were reinforced in 2016 with the definition of four LIFE 2020 strategic objec- tives: a reduction in the environmental footprint of the products; the establishment of a sustainable supply stream; a decrease in greenhouse gas emis- sions to contribute to the fight against climate change; and improvement in the environmental impact of the sites. Since 2015, with the support of the Environment Department, all the Houses have incorporated LIFE into the strategic plan that

they present every year to the Group Executive Committee. This is their opportunity to present their action plan to achieve the four LIFE 2020 goals. Progress is monitored based on a set of indicators. Some indicators are shared, such as the Environmental Performance Index (EPI), which cal- culates the environmental performance of packag- ing. Other indicators are specific, enabling the Houses to take their businesses particular operat- ing methods into account.

LIFE is the backbone of the LVMH environmental policy. The program has structured the actions taken around a unified vision, a collective commit- ment and priorities shared by the Houses with a long-term perspective. It has enhanced the integra- tion of the environment into the Houses strategy and managerial processes.