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ranging from the installation of guidance systems with heat recovery on cutting machines to the installation of LED lighting in boutiques and a green energy supply for the corporate headquarters. Overall, these projects represent a reduction of 892 metric tons of CO2 equivalent emitted, repre- senting 10.5% of Louis Vuitton s emissions. The new projects financed in 2018 by the internal carbon fund will give the Group the means to continue to combat climate change. During their entire life cycle, the equipment installed in 2018 will, in fact, prevent the emission into the atmosphere of nearly 3,000 metric tons of CO2 equivalent. The installa- tion by Chandon India of 150 kW of photovoltaic panels for cooling sparkling wines alone represents a saving of 190 metric tons of CO2 equivalent per year, a decrease of 19% in emissions.

Strengthening the assessment and monitoring of CO2 emissions A study conducted in 2016 on the environmental impact of the production of the raw materials nec- essary in the manufacture of the Houses products was updated in 2018. The study stresses that more than 70% of the emissions are generated by leather, grapes and the glass used in packaging. With the assistance of its partners, the Group continues its efforts to quantify these emissions, and is also work- ing to refine the assessment of the impact of raw materials such as leather, gold or cotton. The prin- cipal sources of greenhouse gas emissions are the production of leathers (432,000 metric tons of CO2

equivalent), viticulture (172,000 metric tons of CO2 equivalent, which includes the wines owned by Group Houses as well as the grape suppliers) and glass packaging (158,000 metric tons of CO2 equiv- alent). Transport, another key item in the scope 3 of LVMH, is discussed in the following paragraphs; downstream transport represents 617,000 metric tons of CO2 equivalent and upstream transport 76,000 metric tons of CO2 equivalent.

The Group s ability to measure its greenhouse gas emissions precisely and monitor changes over time is one of the keys to the success of its approach; it knows where and how to act first in order to be as effective as possible. This is the reason for the con- stant reinforcement of reporting. LVMH assesses its carbon footprint each year by consolidating the emissions associated with the energy consumption of the sites (scopes 1 and 2). In 2018, its emissions reached 295,759 metric tons of CO2 equivalent, plus the 88,364 tons estimated and generated by 30% of the sales floor areas not included in the account- ing consolidation.

Improve energy efficiency In 2018, the total energy consumption of LVMH was 1,096,760 MWh, plus 180,323 MWh consumed by the 30% of sales floor areas not included in the scope of the reporting. Reducing this consumption has always been a crucial challenge for the Group, which again raised its goals with LIFE 2020. In order to achieve its objective, the Group is improv-


In 2018, LVMH continued to boost the LVMH Lighting program. To optimize the quality of facilities and cut costs, the Group has reduced the number of its LED equipment suppliers to 15. It now wants to develop contracts to gov- ern relations between its suppliers and its Houses. Some of them have begun this process. DFS, for exam- ple, signed a two-year contract with its supplier. LVMH also con- tributes to the emergence of high-

tech facilities. LVMH is heavily involved in the LED End-Customers Club and in Certiled, a forum for discussions with manufacturers, and opened, during an LED Expo in May 2018, a LAB designed to present innovative solutions to its suppliers. The LVMH Store Lighting Working Group, a space for dialog with the Houses about green light- ing in the boutiques, has gener- ated discussions on new trends such as the white laser. Its desire

for excellence also pushes LVMH to work for the consideration of envi- ronmental challenges in the design of eco-lighting solutions. This is why it participated in the creation of a think tank of manufacturers in May 2018. The objective is to encourage the marketing of LED equipment with a longer life cycle, and that is repairable, reusable and completely recyclable through the establishment of an eco-design label.