LVMH implements €5 million+ internal carbon fund in environmental drive
The fund will be financed by contributions from each of the French firm’s sectors, or ‘Maisons’, calculated using the greenhouse gas emissions generated by their activities, specifically in terms of energy consumption in their production sites and stores.
According to Bernard Arnault, Chairman and CEO of LVMH, many of the materials used in the company’s perfumes and cosmetics, as well as other houses such as fashion, and leather goods and jewellery, are all provided by nature and the topic is of central importance to LVMH.
“Environmental performance has been integrated into the growth strategy of all our Maisons in the same way as quality, innovation and creativity,” he says.
“Today respect for the environment is not only an imperative, it is also a lever that drives progress.”
Examples of the projects that will be financed by the fund are investments in energy consumption reduction equipment (LED and cooling equipment) and the production of renewable energy on an international scale.
Each of LVMH’s Maisons, comprising of Perfume & Cosmetics, Wines & Spirits, Fashion & Leather Goods, Watches & Jewelry, and Selective Retailing, will each contribute €15 per tonne which is standard current practice.
The carbon fund will take effect in 2016, and this price will be reviewed each year.
The company says that this initiative is an additional step in the implementation of the LVMH Initiatives For the Environment (LIFE) programme which the Group created in 2013 in order to integrate the environment into the management processes of each Maison.
It also states that it fits within all of the Group’s activities in relation to COP21, with which LVMH is one of the partners.