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fossil energy with green energy sources, investing in innovative installations and processes, such as geothermy, heat recovery, recovery of biomass, and more. At the sites, for example, more energy-effi- cient forced air burners are replacing atmospheric burners. Condensation furnaces and solar water heaters are installed. All lighting is moving to LED, including in the plants and workshops, program- ming clocks are installed, adjustments are made to optimize natural light and nocturnal lighting is lim- ited. New insulation materials and air curtains are being installed to conserve heat inside buildings. Some Houses are even transferring the manage- ment of their data to the cloud to reduce the use of their local servers.

Use increasing levels of green energy sources To reduce its carbon footprint, LVMH is also replac- ing fossil fuel energy with green energy sources. From representing barely 1% in 2013, the portion of renewable energy sources in its energy mix reached 27% at the end of 2018. Here again, so much pro- gress has been made that the Group tripled its goals for 2020, raising the target rate from 10% to 30%. One of the main drivers for action in this area is the signature of framework contracts with energy suppliers. Agreements are signed at Group level.

Since 2015, 450 French sites of LVMH, owned by 27 Houses, have been supplied exclusively with green energy for example. A similar framework agreement was signed in 2016 to supply several Italian Houses and the approach is soon expected to be rolled out to the supply for its Spanish and American sites. In addition to these contracts, the Houses are being equipped to produce renewable energy. For example, for four years all the electricity consumed at the Tag Heuer site in La Chaux-de- Fonds, Switzerland, comes from renewable sources. The distributor Viteos also markets electricity pro- duced from 777 m2 of photovoltaic panels installed on the roof of the La Chaux-de-Fonds site with the agreement of Tag Heuer. Financed in part by the House, the panels supply 108,000 kWh of electricity per year. In 2019, TAG Heuer is planning to use a portion of this solar electricity for itself and has initi- ated discussions with Viteos to supply biogas.

Reduce the carbon impact of transport and mobility Transport Transport is a major source of greenhouse gas emis- sions for LVMH. In order to reduce its carbon foot- print, the Group also acts in this area. The Houses do not directly manage the transport of their products over long distances. They are, however, adopting practices that will allow them to combine operational performance and environmental per- formance. Some equip and organize themselves to limit the volumes to be shipped, making each volume count to the maximum. The Houses are also opting for transport methods that generate less CO2, preferring trains to trucks and ships to planes. Since 2010, Hennessy has conducted a voluntary process to develop rail transport of its products leaving the Cognac railway station. At the end of September 2018, 34% of the shipments from Cognac to European ports were carried by train. In addition, during the year, the House established a sustainable solution for its shipments to China: the silk route , a 10,700 km journey by rail through six countries. Twice as fast as ships, this solution also has a carbon impact 100 times lower than air trans- port. In recent years, Houses have been exploring a new path: make respect for the environment one of the selection criteria used for their transport pro- viders. The lead was taken by Louis Vuitton in 2016, with the launch of a World Transport bid tender for the distribution of its products leaving France to all its warehouses. The bid process included a preliminary environmental component to allow preselection of candidates. In 2017, the House


Energy consumption

Of which estimated







2016 2017 2018

1, 14

8, 56


1, 18

9, 27


1, 27

7, 0