To build on longstanding efforts to reduce environmental impacts and drive positive change, Gucci announced today that it is offsetting all remain- ing Greenhouse Gas (GHG) emissions annually from its own operations and the entire supply chain through four critically important REDD+1 projects that support forest conservation around the world. As an unprecedented commitment to sustainability leadership in luxury and fashion, Gucci’s supply chain has become carbon neutral.
Gucci has been operationally embedding its long-term sustainability strategy into the business over the last years and has taken this next ambitious step to become entirely carbon neutral in recognition that additional measures are required in the immediate given the urgent need for climate action. As part of a comprehensive approach to all its GHG emissions associated with its business activities, Gucci has implemented account for hierarchy of actions to avoid, reduce, restore and offset its GHG emissions. In so doing, Gucci is establishing a new pathway to carbon neutrality highlighting the necessity for businesses to be responsible and accountable for all the emissions across their supply chains.
Transparency underpins Gucci’s approach and the company will continue to measure and monitor its full environmental impacts through its annual Environmental Profit and Loss (EP&L)2 account. Gucci was one of the first luxury brands to adopt the EP&L, which acts as a benchmark to measure progress during the implementation of Gucci’s 10-year sustainability strategy (2015-2025). A series of 2025 targets were created as a driver of this strategy against a 2015 EP&L baseline, including an objective to reduce GHG emissions by 50%. Gucci’s most recent EP&L for 2018 shows that the company is on track to attain its targets, having already achieved a 16% reduction of its overall footprint across its supply chain since 2015, relative to growth. Within this context, GHG emissions were also reduced by 16% and currently account for 35% of Gucci’s total footprint. Significantly, the supply chain is responsible for the bulk of these emissions (around 90%) as is generally the case with all luxury fashion companies. Gucci has made significant inroads in line with its targets over the last years and with its new carbon neutral approach, the company will continue to focus on avoiding and reducing its GHG emissions as a priority to reach its target by 2025, while also recognising that there are unavoidable emissions beyond this scope of action that must be proactively addressed.
“A new era of corporate accountability is upon us and we need to be diligent in taking all steps to mitigate our impacts, including being transparent and responsible for our GHG emissions across our supply chains,” said Marco Bizzarri, President & CEO of Gucci. “Gucci will continue to work in a smart and strategic way to avoid and reduce our impacts, while simultaneously investing in innovation as a driver for sustainability. However, in my view, this is just not enough, nor will it happen fast enough given the sustainability challenges we are up against in our industry and the reality of our global climate and biodiversity crises. To address the need for urgent solutions, Gucci is setting an ambitious new precedent through our carbon neutral commitment. This is based on a clear strategy to ensure we account for all of our GHG emissions across our supply chain, act to first avoid, reduce and restore, and then offset the unavoidable emissions through important REDD+ projects.”
As the first priority in its carbon neutral approach, Gucci has implemented a series of initiatives around low-impact alternative and sustainable materials, sustainable sourcing, and manufacturing efficiencies to avoid and reduce its impacts across the supply chain. These initiatives have already shown promising results by avoiding around 440,125 tons of CO2 in 20183 and they will be continuously amplified. Then, on an annual basis as a final measure to enhance these efforts, Gucci will offset the remaining GHG emissions across the entire supply chain supporting the conservation and restoration of vital ecosystems around the world.
AVOID + REDUCE
Retail Operations to Manufacturing, examples:
- Increase the use of renewable energy in Gucci’s operations, stores, offices and ware- houses from 70% currently to 100% by 2020. This transition has already achieved a reduction of around 45,800 tons of CO2 in 2018.
- Build and optimize efficiencies during production and manufacturing by implement- ing creative approaches. This includes the Gucci Scrap-less program, which uses far less water and chemicals to treat leather and reduces the GHG emissions related to transport. As an example, eight tanneries participated in 2018 and reductions were achieved in energy consumption (843,000 kW); water use and water effluents enter- ing the waste stream (10 million litres); chemical consumption (145 tons including 28 tons of chrome), leather scraps (66 tons). During this period, approximately 3,400 tons of CO2 were avoided overall by implementing this program.
- Scale up approaches around circularity, including the Gucci-Up program which up- cycles leather and textile waste generated during manufacturing. As an example, in 2018 the program reused around 11 tons of leather scraps and saved approximately 4,500 tons of CO2. The program also partners with NGOs and women-based projects for the regeneration of these offcuts, as well as with social cooperatives in Italy to support the training of people from marginalised groups and their re-integration into their communities.
- Continue to establish a clear reduction pathway across the supply chain and drive true transparency through natural capital accounting. Gucci was one of the first fashion brands to publish an EP&L in 2017 and openly shares its full impacts and de- pendencies on nature annually. As another first, Gucci introduced a customized Digital EP&L earlier this year providing its underlying EP&L data online.