2024
Kering
Year
Sector
Luxe
ACT assessment methodology
Fashion
Performance Score
Highlights of the climate strategy: Kering has set new targets for 2024 on scopes 1 & 2 and scope 3 following a change in methodology and the integration of new elements. A significant decrease in scope 3 emissions (-24% since 2022) is observed. In addition, a strong commitment of "0" destruction of scraps is mentioned in the DEU. Actions are already in place to reduce the quantities of production material scraps. The company demonstrates that the results of the scenario tests have enabled it to structure its transition plan by identifying its main risks and implementing concrete adaptation and decarbonisation actions. In addition, Kering is strongly committed to its value chain, through the implementation of a number of actions to influence the reduction of its suppliers' and customers' emissions. Indeed, the company supports its suppliers with awareness-raising actions (information gathering, training, etc.), technical actions (Clean By Design for example), or through awards (Supplier Award Scheme). Kering raises awareness among its customers by integrating information on the sustainability of products, training its in-store teams and sometimes giving an environmental performance score for their products (Bottega Veneta's Green Atelier app).
Areas for improvement: Kering could provide details on scope 1 & 2 GHG emissions by site, by entities and by country to accurately track changes over time. The company has not yet quantified its action plan (work in progress), so no emissions and investment roadmap (CAPEX) is available. The group could clarify the commitments regarding material scraps during manufacturing. In the same way, the group could formalize a strategy on interventions on raw materials purchased and on the durability/repairability of products (no or little information on public data). Regarding the structuring of its transition plan, Kering could include a financial dimension. The DEU 2024 confirms that this work is in progress, but not available to date. The commitment to the players in its value chain could be more ambitious: setting quantified emission reduction targets, reporting obligations on GHG emissions, methods of selecting suppliers from an environmental point of view, qualitative and quantitative monitoring grid for the actions implemented, etc. Finally, regarding the evolution of its business model, the Group could formulate precise objectives for the deployment of low-carbon solutions by integrating monitoring indicators, and structure a real strategy on its business model to transform the company.
Areas for improvement: Kering could provide details on scope 1 & 2 GHG emissions by site, by entities and by country to accurately track changes over time. The company has not yet quantified its action plan (work in progress), so no emissions and investment roadmap (CAPEX) is available. The group could clarify the commitments regarding material scraps during manufacturing. In the same way, the group could formalize a strategy on interventions on raw materials purchased and on the durability/repairability of products (no or little information on public data). Regarding the structuring of its transition plan, Kering could include a financial dimension. The DEU 2024 confirms that this work is in progress, but not available to date. The commitment to the players in its value chain could be more ambitious: setting quantified emission reduction targets, reporting obligations on GHG emissions, methods of selecting suppliers from an environmental point of view, qualitative and quantitative monitoring grid for the actions implemented, etc. Finally, regarding the evolution of its business model, the Group could formulate precise objectives for the deployment of low-carbon solutions by integrating monitoring indicators, and structure a real strategy on its business model to transform the company.
Narrative Score
Business model and strategy: The GHG emissions reduction target by 2033 is certified by SBTi and is broadly consistent with the actions envisaged to reduce its emissions and the climate governance implemented by Kering. However, the transition plan is not quantified, either in terms of emissions or financially, which could jeopardize the achievement of the objectives. Kering says the work is ongoing.
Data quality: Kering is constantly making progress in achieving its carbon footprint, as evidenced by a new methodology applied in 2024 integrating FLAG emissions into its value chain. Nevertheless, these methodological developments make it difficult to analyse GHG developments. Kering must succeed in finding a robust and consistent methodology over time to be able to monitor the evolution of its emissions and ensure the performance of its action plan. In addition, breaking down information by entities and assets would improve analysis.
Reputation: Kering has not been the subject of any major controversy to date on environmental issues. Rather, the company enjoys an overall positive reputation for its commitments to environmental issues in the luxury sector.
Risks: Kering has clearly identified its major risks, in particular its dependence on emissive raw materials and its suppliers, and regulatory changes in the various countries in which it operates on energy and environmental issues. Nevertheless, due to its continued growth and marginal investment in the transformation of its business model, Kering maintains a certain vulnerability in the medium and long term.
Data quality: Kering is constantly making progress in achieving its carbon footprint, as evidenced by a new methodology applied in 2024 integrating FLAG emissions into its value chain. Nevertheless, these methodological developments make it difficult to analyse GHG developments. Kering must succeed in finding a robust and consistent methodology over time to be able to monitor the evolution of its emissions and ensure the performance of its action plan. In addition, breaking down information by entities and assets would improve analysis.
Reputation: Kering has not been the subject of any major controversy to date on environmental issues. Rather, the company enjoys an overall positive reputation for its commitments to environmental issues in the luxury sector.
Risks: Kering has clearly identified its major risks, in particular its dependence on emissive raw materials and its suppliers, and regulatory changes in the various countries in which it operates on energy and environmental issues. Nevertheless, due to its continued growth and marginal investment in the transformation of its business model, Kering maintains a certain vulnerability in the medium and long term.
Trend score
Kering is structuring its transition plan with ambitious commitments and actions to decarbonize its historical business model, in particular by improving the traceability and sourcing of raw materials. A negative score would not be justified because the company is not regressing and continues to adopt more sustainable practices. Neither is a "=" sign, because Kering is initiating transformations and is constantly improving its impact on its value chain and making its data more reliable. Maintaining a positive score thus reflects a positive transition with tangible and concrete signals.
Source
ACT Eval 2
Evaluator
Ekodev
GLOBAL SCORE
Performance score (/100)
46
Disclosure score (/100)
92
ℹ️
Narrative Score (A > E)
B
Trend Score (- = +)
+
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 66%
Material Investment Score : 5%
Intangible Investment Score : N/A%
Sold Product Performance Score : 60%
Management Score : 62%
Supplier Engagement Score : 78%
Client Engagement Score : 41%
Policy Engagement Score : 65%
Business Model Score : 17%
Indicator weight by module