LVMH Annual Report

LVMH 2018 . E n v i r o n m e n t

E N V I RON M E N T : LV MH I S ON T R AC K T O M E E T I T S TA RG E T S FOR 2 0 2 0

BY ENGAGING ITS 156,000 EMPLOYEES AROUND THE LIFE 2020 SUSTAINABILITY GOALS SHARED BY ALL ITS MAISONS, LVMH IS CONTINUING TO ROLL OUT ITS MEASURES TO HELP PROTECT THE ENVIRONMENT. NEW ACHIEVEMENTS IN 2018 HIGHLIGHT THE PROGRESS MADE IN THIS AREA.

Focusing on shared goals to achieve environmental excellence

standards and ensuring that its Maisons’ products are truly timeless. Staff are trained by the Environment Acad- emy, set up in 2016, and the Group has introduced various decision-making tools such as Edibox, which calculates the Environmental Performance Index (EPI) of packaging. The Group’s Wines & Spirits and Perfumes & Cosmetics companies, for example, calculate the EPI of all their prod- ucts andare aiming to improve their results by 10%by 2020. In2018, Hennessyhadalready achieveda 12% improvement, while the champagne houses improved their results by 5%, and Perfumes & Cosmetics by 4%. The progress made by LVMH is also rooted in education and innovation. By part- nering with the prestigious Central Saint Martins art and design school, LVMH is promoting the development of new design methods and materials that are aligned with its environmental performance goals. In 2018, one of the initiatives that grewout of this partnershipwas Green Trail, which recognized the most sustainable student projects.

Since very early on, LVMH has been committed to setting the benchmark for environmental stewardship. Using sustainability to drive innovation and propel its growth strategy, the Group has often led the field in this area, such as in 1992, when it set up an Environment Department reporting directly to the Group’s Executive Management. The launch of LIFE (LVMH Initiatives for the Environment) in 2012 was another pivotal step. This global program unites the Group’s staff and structures its initiatives around a shared vision and nine key priorities for its envi- ronmental performance. In 2016, LVMH reached a new milestone with LIFE 2020. Its Maisons now include LIFE in their strategic planning processes, and the updated programhas set several highly ambitious shared goals for 2020 – relating to products, supply chains, sites and stores – and is also aimed at helping to combat climate change. TheGroup’s environmental approach is organized around the four goals presented below:

SUPPLY

Achieving the highest environmental standards in 70% – and soon 100% – of the Group’s supply chains

PRODUCTS

Improving the environmental performance of all products

The sustainable procurement policy pursued by LVMH aims to protect an essential resource: the often rare and precious natural raw materials from which its products originate. It has nowbeengiven fresh impetuswith twonew targets: achieving the highest environmental standards in 70%of supplychainsby2020, and in 100%of themby2025. LVMH is focusing in particular on the certification of raw

With LIFE 2020, LVMH will be expanding the use of sustainable design techniques, which aim to reduce a product’s environmental footprint over its entire life cycle. For the Group, this approach is a catalyst for innovation and creativity, reinforcing its extremely high quality

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