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The luxury world is recognizing that when it comes to sustainability, cooperation is better than competition.
In a groundbreaking tie-up of two of the world’s largest luxury groups, LVMH Moët Hennessy Louis Vuitton on Thursday revealed it will cooperate with Chanel to harmonize corporate and social responsibility reporting and audit schedules at the supplier level. It will also directly support its suppliers through a partnership program titled Life 360 Business Partners, and will launch LVMH Circularity, which will reuse unsold products from across group houses in new projects, among other initiatives.
The initiatives were revealed as LVMH held a full-circle day of sustainability under its Life 360 banner, bringing together brand presidents and creative directors at the UNESCO headquarters in Paris, hosted by the group’s head of image and environment, Antoine Arnault.
LVMH chief Bernard Arnault also acknowledged LVMH and Chanel working together. “The environmental challenge redefines the usual rules of competition,” the chairman and chief executive officer said. Arnault said that competition should be on design and creativity, and businesses can share information.
“I believe it is our duty to know how to rise above the usual patterns. This is why we have chosen to invite certain competitors today,” he added. “Progress of any kind is crucial. We must join forces.”
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During the day, the French luxury group discussed its wins, such as meeting its 10 percent energy reduction target at its stores, and where it is facing challenges such as removing fossil fuel-based plastic from its packaging.
The partnership program with suppliers will include financial support and coinvestment, as well as education and other initiatives to bring the suppliers on board as partners, hopefully making any mandatory changes positive rather than penalizing.
“The name of the game from now on for us is going to be Scope 3,” Arnault told WWD, about extending its sustainability reach further afield. Scope 3 is the supplier level.
“It’s the part of our mission that we control the least by definition; however, we are going to try to help our suppliers and our partners be more active on this topic...