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Kering valuates environmental impact of its operations

Luxury retailer Kering which owns like Gucci and Alexander McQueen, has published its latest Environmental Profit and Loss (EP&L) report which attempts to denote a financial value to the impact of its activities on the environment.

As per the report, the most significant impacts are generated in the supply chain (90 per cent) and in particular from the production and processing of raw materials that represent 76 per cent of the total. The brand’s operations represent just 10 per cent of the impacts. Among raw materials it uses, leather continues to be the major driver, followed by other animal fibres.

Supply chain impacts are the challenge for all apparel brands and with this in mind, Kering now plans to focus its efforts in this area. The brand has indicated that it might make small-scale changes in sourcing options, such as replacing materials with recycled alternatives, which can result in tangible EP&L savings.