A roadmap was launched in mid August by fifteen luxury companies including Kering, Harvey Nichols, Chanel and Louis Vuitton to address sustainability challenges faced by the sector.
The report, entitled “Disrupting Luxury: Creating Resilient Businesses in Times of Rapid Change”, saw major luxury companies work together to develop sustainable pathways for the luxury industry. Three disruptive global trends were identified: climate change and biodiversity loss, new technologies and automation, and rising economic inequality, all of which will have specific consequences for luxury brands.
Responsible and resilient businesses
The report provides a perspective on how luxury businesses can create responsible and resilient brands in a time of rapid change, while acknowledging and leveraging the sector’s unique strengths. It recommends that the industry engages in the circular economy by adopting regenerative sourcing products to ensure the availability of precious raw material such as wool, leather, exotic wood, cashmere and rare essential oils, and argues that luxury companies should assess how products affect society and the planet, helping to ensure that supply chain workers receive quality training a fair wage. It argues that investors and consumers should be better engaged on environmental and social progress through heightened transparency, and highlights the need for businesses to engage consumers more deeply on a new value proposition for luxury that fully integrates sustainability.
“Luxury companies have the added responsibility as trendsetters to create value for the good of the environment and society, which can then influence the entire fashion industry to act," said Marie-Claire Daveu, chief sustainability officer and head of international institutional affairs, Kering. “In prioritising sustainability and embedding proactive strategies into our business models now, the luxury sector will become more adaptive to future challenges and ultimately this will provide us with critical business advantages."