2024
EssilorLuxottica
Year
Sector
Production biens de consommation
ACT assessment methodology
Generic
Performance Score
EssilorLuxottica is the result of a merger of 2 groups in 2018, and was only able to make a first GHG assessment at the group level in 2022. The company has an SBTi target of 2030 for scopes 1&2 as well as for part of upstream scope 3. The scope of its SBTi target takes into account an incomplete scope 3 (70% authorised by the SBTi) which only covers a share of goods and services (excluding the equipment, instruments and wearables subcategories) and does not provide the emissions of this sub-category. It was also not possible to find any mention of a third-party audit of the company's GHG balance. EssilorLuxottica would benefit from completing the scope of its target by integrating all scope 3, as well as adding milestones before but especially after 2030. A lot of data is missing from the company's valuation: the share of its low-carbon patents, the share of low-carbon R&D investments, the share of its products sold low-carbon, the carbon performance of the products sold, etc.
The transition plan put in place is still immature: no long-term target, few quantified indicators and an incomplete action plan. However, there are signs of good ambition in its favour: an SBTi target that has just been validated, a list of actions already implemented or in the process of being implemented, a strong commitment to reduce the share of air transport that weighs heavily in the carbon footprint, an LCA taken into account in the production of new products and the creation of a 2050 scenario. The group is still very young and has just had its SBTi target validated, its decarbonisation action plan is still not very developed but covers the main aspects of its carbon footprint. However, relatively few details are available on the purchase of goods and services, which represent the first category of emissions. At the same time, the company is investing in AI-related technologies (acquisition of start-ups, launch of projects with Meta) that are potentially very expensive in terms of energy and resources.
EssilorLuxottica is the result of a merger of 2 groups in 2018, and was only able to make a first GHG assessment at the group level in 2022. The company has an SBTi target of 2030 for scopes 1&2 as well as for part of upstream scope 3. The scope of its SBTi target takes into account an incomplete scope 3 (70% authorised by the SBTi) which only covers a share of goods and services (excluding the equipment, instruments and wearables subcategories) and does not provide the emissions of this sub-category. It was also not possible to find any mention of a third-party audit of the company's GHG balance. EssilorLuxottica would benefit from completing the scope of its target by integrating all scope 3, as well as adding milestones before but especially after 2030. A lot of data is missing from the company's valuation: the share of its low-carbon patents, the share of low-carbon R&D investments, the share of its products sold low-carbon, the carbon performance of the products sold, etc.
The transition plan put in place is still immature: no long-term target, few quantified indicators and an incomplete action plan. However, there are signs of good ambition in its favour: an SBTi target that has just been validated, a list of actions already implemented or in the process of being implemented, a strong commitment to reduce the share of air transport that weighs heavily in the carbon footprint, an LCA taken into account in the production of new products and the creation of a 2050 scenario. The group is still very young and has just had its SBTi target validated, its decarbonisation action plan is still not very developed but covers the main aspects of its carbon footprint. However, relatively few details are available on the purchase of goods and services, which represent the first category of emissions. At the same time, the company is investing in AI-related technologies (acquisition of start-ups, launch of projects with Meta) that are potentially very expensive in terms of energy and resources.
EssilorLuxottica is the result of a merger of 2 groups in 2018, and was only able to make a first GHG assessment at the group level in 2022. The company has an SBTi target of 2030 for scopes 1&2 as well as for part of upstream scope 3. The scope of its SBTi target takes into account an incomplete scope 3 (70% authorised by the SBTi) which only covers a share of goods and services (excluding the equipment, instruments and wearables subcategories) and does not provide the emissions of this sub-category. It was also not possible to find any mention of a third-party audit of the company's GHG balance. EssilorLuxottica would benefit from completing the scope of its target by integrating all scope 3, as well as adding milestones before but especially after 2030. A lot of data is missing from the company's valuation: the share of its low-carbon patents, the share of low-carbon R&D investments, the share of its products sold low-carbon, the carbon performance of the products sold, etc.
Narrative Score
EssilorLuxottica is still largely immature because the merger took place recently. The company presents series of decarbonization actions but does not seem to articulate them together, some aspects are missing. In addition, the company only provides a complete GHG assessment for the years 2022 and 2024.
EssilorLuxottica still has a strong dependence on fossil fuels (consumption of 215 GWh of gas and ~500 GWh of electricity from coal and gas in 2024), non-renewable raw materials (plastics and metals in particular) and air freight. 46% of the company's GHG emissions come from the purchase of goods and services. There is a significant risk that the supply of carbon-free materials will be under pressure in the coming years due to demand from many companies and too little production at the same time. However, the company has put in place actions to reduce its dependence and impact related to these issues, in particular through an analysis of risks (economic, technological, market, political and legal).
Finally, the company does not seem to have been the center of scandals, controversies or other incidents on the subject of climate.
EssilorLuxottica still has a strong dependence on fossil fuels (consumption of 215 GWh of gas and ~500 GWh of electricity from coal and gas in 2024), non-renewable raw materials (plastics and metals in particular) and air freight. 46% of the company's GHG emissions come from the purchase of goods and services. There is a significant risk that the supply of carbon-free materials will be under pressure in the coming years due to demand from many companies and too little production at the same time. However, the company has put in place actions to reduce its dependence and impact related to these issues, in particular through an analysis of risks (economic, technological, market, political and legal).
Finally, the company does not seem to have been the center of scandals, controversies or other incidents on the subject of climate.
Trend score
Pressures and negative factors: There are still a lot of elements missing from the company's strategy. It has no long-term target, its short-term target does not cover the downstream, it has few indicators, has not projected its emissions, and its decarbonisation plan is still rudimentary. The business model does not yet seem to be questioned to align it towards a low-carbon world. Worse, the company is investing in technological projects that are likely to be highly carbon-intensive.
Pressures and positive factors: The company has set an SBTi target for 2030 as early as 2024 and already has an action plan addressing its main issues, it remains to be seen whether the actions will bear fruit. In this regard, in 2 years, it has already achieved a significant reduction in its scopes 1 & 2 (-13%). Finally, it has already planned to set ESG objectives for its suppliers within 2 years.
It is still too early to assess whether or not the company is able to improve its management of the climate issue. Its level of maturity is still low, but if it continues its recent efforts, it could become more integrated into a low-carbon world.
Pressures and positive factors: The company has set an SBTi target for 2030 as early as 2024 and already has an action plan addressing its main issues, it remains to be seen whether the actions will bear fruit. In this regard, in 2 years, it has already achieved a significant reduction in its scopes 1 & 2 (-13%). Finally, it has already planned to set ESG objectives for its suppliers within 2 years.
It is still too early to assess whether or not the company is able to improve its management of the climate issue. Its level of maturity is still low, but if it continues its recent efforts, it could become more integrated into a low-carbon world.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
31
Disclosure score (/100)
97
ℹ️
Narrative Score (A > E)
C
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 30%
Material Investment Score : 38%
Intangible Investment Score : 0%
Sold Product Performance Score : 26%
Management Score : 56%
Supplier Engagement Score : 39%
Client Engagement Score : 20%
Policy Engagement Score : 31%
Business Model Score : 18%
Indicator weight by module