Fashion and luxury goods marketer Kering released the results of its pioneering Environmental Profit and Loss Account (E P&L).
“E P&L measures environmental footprint in our own operations and across the Group’s supply chains and values it in monetary terms,” Kering informed in a press release.
Further, Kering has published its E P&L methodology in order to provide an open-source tool to encourage other corporations to understand their entire impact on natural capital.
To put Kering’s results in a larger context; if Kering operated and sourced as a typical company of its sector, its E P&L would have been 40 per cent higher.
Kering said it is out-performing its sector in reducing its footprint and further its environmental impacts are less than 45 per cent of the global average business based on comparative turnover.
“The E P&L analysis provides us with critical insights, highlighting where we can implement solutions to mitigate our environmental impact,” said Marie-Claire Daveu, chief sustainability officer.
The 2013 Group E P&L account reveals that of the total environmental impact, 93 per cent falls within the supply chain, with over 50 per cent of the impact associated with raw material production.
Within the supply chain, 26 per cent of the impact is associated with raw material processing and manufacturing and product assembly and accounts for 17 per cent of the total impact.
7 per cent of the impacts are associated with Kering’s operations including retail and of the total impact, 35 per cent comes from GHG emissions and 27 per cent from land use.
And finally, 25 per cent comes from leather, while 17 per cent is linked to cotton.
Through the E P&L, Kering said, it has analysed the impact on natural capital from raw materials to the delivery of products to its customers, including logistics and stores.
“This assessment deepens the understanding of activities, providing visibility so as to enable better decision-making,” it added.
“In doing so, a company increases its ability to reduce its impact, and also to respond to drivers of change in the supply chain, including fluctuations in raw material quality and availability,” Kering informed.
By empowering imagination in the fullest sense, Kering encourages its brands to reach their potential, in the most sustainable manner.
Present in more than 120 countries, the Group generated revenues of €10 billion in 2014 and had more than 37,000 employees at year end. (AR)
Fibre2fashion News Desk - India