2024
LVMH
Year
Sector
Luxe
ACT assessment methodology
Fashion
Performance Score
The short-term scope 1 and 2 emission reduction target (2026) is validated by SBTi, but defined with the market-based approach. The initial medium-term scope 3 target (excluding fixed assets and investments) (2030) is in economic intensity, but transcribed in absolute value as requested by the CSRD. These objectives are accompanied by quantified action plans, which greatly increases their credibility. However, LVMH lacks a long-term strategy that would structure its transition plan.
Some significant decarbonization actions have been put in place: eco-design of products and packaging, certification of strategic supply chains, repair, restoration or refill services, recovery of unsold products in a closed loop, support for suppliers' regenerative agriculture practices, etc. However, LVMH could strengthen efforts to reduce deforestation and the use of virgin petroleum-based plastic, which are struggling to produce results. The same goes for the approach to reducing air transport, which accounts for the vast majority of transport-related emissions.
LVMH has made commitments to 2030 in connection with the reduction and recovery of production losses, via substantial levers of eco-design, recovery of unused products, waste reduction, and improvement of waste recovery. However, these commitments could be consolidated at the group level. LVMH has a traceability system covering strategic supply chains, covering 67% of the quantities of raw materials and based on the mapping of supply chains up to Tier 2 for the main component of the product and on a certification program.
Regarding the commitment of the value chain, LVMH has set up a commitment program representing 80% of the environmental impact of suppliers and including the organization of dialogues, knowledge sharing, and the harmonization of environmental data. However, it could incorporate quantified emission reduction requirements. In addition, despite efforts to promote repair, restoration, charging and take-back services, LVMH could develop and formalize a customer engagement strategy.
Some significant decarbonization actions have been put in place: eco-design of products and packaging, certification of strategic supply chains, repair, restoration or refill services, recovery of unsold products in a closed loop, support for suppliers' regenerative agriculture practices, etc. However, LVMH could strengthen efforts to reduce deforestation and the use of virgin petroleum-based plastic, which are struggling to produce results. The same goes for the approach to reducing air transport, which accounts for the vast majority of transport-related emissions.
LVMH has made commitments to 2030 in connection with the reduction and recovery of production losses, via substantial levers of eco-design, recovery of unused products, waste reduction, and improvement of waste recovery. However, these commitments could be consolidated at the group level. LVMH has a traceability system covering strategic supply chains, covering 67% of the quantities of raw materials and based on the mapping of supply chains up to Tier 2 for the main component of the product and on a certification program.
Regarding the commitment of the value chain, LVMH has set up a commitment program representing 80% of the environmental impact of suppliers and including the organization of dialogues, knowledge sharing, and the harmonization of environmental data. However, it could incorporate quantified emission reduction requirements. In addition, despite efforts to promote repair, restoration, charging and take-back services, LVMH could develop and formalize a customer engagement strategy.
Narrative Score
Business model and strategy: Many initiatives are underway, which will still need to be scaled up, particularly on the reuse and recharging part. LVMH is committed to certifications in its various sectors with a high percentage of certified volume. Past, present and future actions make it possible to say that the company has understood the challenge of a low-carbon economy. It will remain to be projected in the longer term, particularly with the upcoming SBTi targets.
Data quality: The sustainability report is of high quality and provides the necessary information related to the CSRD to complete the study. A further analysis by country and for pre-consumer waste would be a plus.
Reputation: Controversies, particularly on animal welfare, but to which LVMH has responded by its commitment to certified sectors.
Risks: Risks on value chains are present, but taken into account by LVMH in its risk analysis. Sector-by-sector action plans would make it possible to further minimize this upstream risk.
Data quality: The sustainability report is of high quality and provides the necessary information related to the CSRD to complete the study. A further analysis by country and for pre-consumer waste would be a plus.
Reputation: Controversies, particularly on animal welfare, but to which LVMH has responded by its commitment to certified sectors.
Risks: Risks on value chains are present, but taken into account by LVMH in its risk analysis. Sector-by-sector action plans would make it possible to further minimize this upstream risk.
Trend score
Pressures and positive factors:D upcoming targets for 2050 with SBTi. A Group traceability tool that will be implemented in the coming years. A solid transition plan with tangible elements in terms of financing the actions. Transport suppliers committed to the approach with an associated carbon contract.
Pressures and negative factors :P mention of a sector plan (cotton, leather, wool) to reduce the carbon impact, or not clearly mentioned. More details would be needed on the actions on the ground to come. No targets for new business models (the share of reuse and recharging is still limited). No questioning of the economic model by volume.
Conclusion note to determine the direction of the score: "=" despite LVMH's great maturity on environmental issues. Some subjects are still little considered even though they are an integral part of fashion issues (volume and sector action plan).
Pressures and negative factors :P mention of a sector plan (cotton, leather, wool) to reduce the carbon impact, or not clearly mentioned. More details would be needed on the actions on the ground to come. No targets for new business models (the share of reuse and recharging is still limited). No questioning of the economic model by volume.
Conclusion note to determine the direction of the score: "=" despite LVMH's great maturity on environmental issues. Some subjects are still little considered even though they are an integral part of fashion issues (volume and sector action plan).
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
42
Disclosure score (/100)
95
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 : 48%
Material Investment Score : 21%
Intangible Investment Score : N/A%
Sold Product Performance Score : 58%
Management Score : 56%
Supplier Engagement Score : 64%
Client Engagement Score : 21%
Policy Engagement Score : 28%
Business Model Score : 36%
Indicator weight by module