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LVMH 2018  .  Environmental Report


ing energy efficiency, targeting in particular its 4,370 boutiques, the principal sources of its car- bon footprint (70% of the scopes 1 and 2 CO2 emissions of LVMH is related to their energy con- sumption). In this context, LED (light-emitting diode) technology is of great interest to the Group because lighting is one of its main items of energy consumption at the sites (representing half the consumption of the stores). An LED light reduces electricity consumption by 30% compared with traditional lighting, while eliminating much of the maintenance and supplying quality, reliable light- ing. Thus, LVMH wants to have equipped 90% of its stores and production sites with LED lighting by 2020. The progressive use of LED lighting alone should reduce the electricity consumption of the boutiques by 15% by 2020. The Group is dissemi- nating an LED culture in its Houses, offering them support to install it through the LVMH Lighting program. The program has also allowed LVMH to develop its own equipment, like the LVMH Light Engine, a miniaturized lighting module that did not exist on the market: it provides a light volume identical to that of a 40 watt bulb but uses only 12 watts.

The Group is gradually decreasing the amount of LED equipment without losing power or lighting quality. The long-term challenge is to fall below the threshold of 30 watts consumed per m2. The emphasis is placed not only on the choice of better solutions, but also on their correct use in the luxury goods industry. Architects are key participants in this area and LVMH offers them specific training sessions. These sessions continued in 2018, taking the form, for instance, of visits to museums, exhibi- tions and conferences given by lighting designers. These initiatives are beginning to yield concrete results in the sales floor areas. In 2018, Guerlain worked with a lighting designer to optimize the light and reduce electricity consumption in its Passy boutique. The work conducted led to the installa- tion of a system of smart drivers which can create lighting scenarios without a wired system.

Over the years, the number of m2 illuminated entirely with LED lighting within the Group has continued to increase. Between the end of 2016 and the end of 2018, it rose from 80,000 to 300,000, with and this is key a significant reduction in CO2 emissions. The mobilization of the Houses continues to keep pace. Sephora proved it in 2016 when it announced the three-year deployment of LED installations to replace the traditional lighting in the sales floor areas of more than 280 boutiques located in 12 countries. Two years after it was launched, this project (financed by

the Group s internal carbon fund) has already saved 2,460 metric tons of CO2 equivalent (i.e. 14% of the carbon emissions). The Houses are also developing tools to monitor their consumption in real time and manage it better. Between 2007 and 2018, for exam- ple, Sephora deployed an energy management sys- tem in all its sales floor areas in the United States. The House is now going to optimize energy manage- ment in each store using smart technologies such as smart thermostats.

A site that respects the environment is an energy- efficient site. With this in mind, the Houses use all the resources at their disposal to limit their consump- tion. In all the Group s business sectors, they are installing metering systems, and then completing and refining them. They record and regularly analyze indicators, initiate energy audits and track waste. They are centralizing the control and management of consumption, naming energy managers, and training their teams in good practices. They are improving the lighting, heating and air conditioning, and are repairing and modernizing their equipment and processes to gain energy efficiency, replacing


At Cloudy Bay, the installation of a hot water supply system that runs only on green electricity, to replace the old system half powered by diesel, will result in a substantial reduction in the carbon impact of hot water production: emissions are expected to decline from 54.4 metric tons of CO2 equivalent to 1.5 tons. Several Louis Vuitton workshops have worked to reduce their energy consumption as a result of tech- nical improvements made in 2018, which included the repair of air conditioning units (in the workshops at Asnières), the replacement of compressors (includ- ing those in the Ducey workshop), or the replace- ment of two 405 kW boilers dating from 1990 with two 370 kW condensation boilers (in the Saint- Pourçain workshop). The year 2018 was also marked by preparations for very promising projects. The first project, launched in 2019, will allow the boutiques of 12 Houses (Acqua di Parma, Berluti, Bvlgari, Celine, Christian Dior, Cova, Emilio Pucci, Fendi, Givenchy, Loewe, Loro Piana and Louis Vuitton) located on Montenapoleone and Sant Andrea streets in Milan, Italy, to use geothermy as an energy source, particularly for their production of sanitary hot water. The resulting energy saving in each boutique is esti- mated at nearly 50%.