Marie-Claire Daveu with Elodie Brunstein of ecological engineers Solicaz in French Guiana. Image by Magneto.

The Kering group, owner of Gucci and Bottega Veneta, led the luxury industry by pioneering a sustainability strategy years ago. Marie-Claire Daveu, who spearheaded this move, explains how environmental accounting and the blue economy are good for business, consumers and the planet

DEUTSCHE BANK WEALTH MANAGEMENT x LUX

Marie-Claire Daveu. © Benoît Peverelli

The fashion industry is dependent upon nature’s resources to manufacture. It is also a vast industry and, unfortunately, one of the most polluting. This means we have a specific responsibility to act now and transform our business model to mitigate the diminution of resources, loss of biodiversity and climate change that we already see affecting our industry and our planet. Sustainability is not an option; it is a necessity. And it demands definitive action from the fashion industry and beyond.

The blue economy in particular has to be a huge focus for everyone. The oceans are the lungs of the Earth, producing more than half the world’s oxygen and helping regulate our weather. But in the past few hundred years they have absorbed vast amounts of carbon dioxide and greenhouse gas emissions, raising their temperature and changing their chemistry and ecosystems. Marine animals and humans rely on the oceans to live, and the only way to mitigate the harm being done is to change the way we operate here on land – from reducing plastic and chemical waste to choosing renewable energy sources where possible.

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Kering has already implemented a series of measures specifically in recognition of the rapidly degrading ocean environment. We have been working for years to preserve ocean biodiversity via programmes and partnerships with recognised associations – most recently, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). And in 2017, our chairman and CEO, François-Henri Pinault, presented the Fashion Pact to the G7, incorporating ocean protection as one of its main environmental goals. It proposes a set of concrete actions, such as the adoption of pollution controls to safeguard the rivers and oceans from chemicals released through the fashion production processes; and compels companies to develop innovations that will eliminate microfibre pollution from the washing of synthetic materials.

Such innovation is vital to growing a sustainable blue economy. In 2017, we committed to reducing our environmental footprint by 40 per cent by 2025, and half of that reduction will come from innovation, which is crucial if we want to bring new solutions into our business model.

Today, we are looking for and investing in innovations that can address blue economy challenges, including closed-loop recycling, alternative materials and sustainable sourcing. But there is still a long way to go. One of the main challenges the blue economy is facing is plastic, used to pack, transport and store garments. The fashion industry needs to urgently tackle polybag-packaging waste. One possible innovation has been developed by the Plastics Packaging Project – a Fashion for Good initiative supported by a coalition of companies, including Kering. The project aims to reduce the impact and use of plastic packaging, and recently launched a pilot for the collection and recycling of garment polybags. They will be transformed into new plastic film products, closing the loop and dramatically reducing the amount of plastic waste that often ends up in our waterways.

Kering’s Materials Innovation Lab. Image by Jean-Luc Perreard

Transparency will be vital to the longevity of such initiatives. Studies show that millennials and Generation Z are very sensitive to sustainability – with a keen focus on traceability. They also have very high expectations. Generation Z entering the workforce, together with increasing sustainability questions from consumers, will drive further efforts in the fashion industry and increased transparency around a product’s origins.

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Corporate sustainability agendas must take into account a product’s entire impact, from the raw materials to products reaching clients. At Kering, this has become an essential part of our products’ excellence, and we have made that process transparent through the creation of our Environmental Profit and Loss (EP&L) system, which measures, monetises and monitors the full environmental impact of a company’s operations across the entire supply chain, including greenhouse gas emissions, water use, water and air pollution, waste production and land use change. When you think about what is behind luxury, sustainability is often already built in: we use the highest quality raw materials; our products are made by skilled craftspeople; and some of them are passed down from generation to generation. They have to be perfect; even their sustainability must be perfect.

Building a sustainability strategy is about taking your whole supply chain and its impacts into account, and activating programmes to mitigate these impacts. The blue economy can be fully part of an environmental policy, and sustainability as a whole should be very much integrated in a company’s strategy. As an example, we know that the high-quality raw materials in luxury goods are ‘pre-designed’ for circularity, because of their value and versatility. But brands can extend product life cycles even further by employing recycled and upcycled materials. One blue-economy example within our supply chain is our collaboration with Econyl, makers of regenerated nylon yarn made of recycled fishnets, textile and industrial nylon waste. It has the same high quality as less sustainable alternatives, but can be endlessly regenerated.

Innovative collaborations such as these are the answer to accelerating sustainability. Our collaboration with IPBES is helping to strengthen the evidence base for better informed decisions about nature. And our EP&L hackathon in October 2019 brought developers and sustainability experts together to create digital tools that provide greater transparency around fashion’s footprint.

The message is clear: we want to play a pivotal role in leading the shift towards a sustainable future, but we can’t do it alone. Our action must be science-based and results-oriented. The private sector, governments and international organisations need to collaborate to protect nature and build a globally sustainable economy.

I am a very optimistic person, and I can see that a real shift has happened recently. Sustainability is at the heart of every conversation, both from companies and media, and this is a very good sign. Now it’s time for implementation, with unwavering determination. Fashion’s influence holds the key to accelerating those sustainable practices, both within our industry and beyond.

Marie-Claire Daveu is Kering’s chief sustainability officer.

Find out more: kering.com/en/sustainability

This article originally appeared in the LUX x Deutsche Bank Wealth Management Blue Economy Special in the Summer 2020 Issue.

Actress, campaigner, wife of Kering owner François-Henri Pinault, Salma Hayek and CHIME FOR CHANGE co-founder, joined UNICEF to meet Syrian refugees in Lebanon in 2015

Gucci is the biggest Kering brand and, as a producer of leather and fashion garments, the one with the biggest sustainability challenges. In a candid exchange, Robert Triefus, Gucci’s EVP and Chief Marketing Officer, tells LUX how the label is tackling them.

LUX: Is there an awareness among all your staff of the broad Kering vision?
Robert Triefus: We are in luxury fashion. For some individuals, they will feel there is a contradiction in terms between sustainability and luxury fashion. But I think that you have to start from the premise that we are a business, a for-profit (not a not-for-profit) one that believes in its responsibility to lower its impact in terms of carbon footprint, waste management and social issues – how we can be responsible in our community. As the big picture, I think that this is the framework that we, as a group, work within.

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LUX: That big picture means not just reducing environmental impact but doing good in areas such as gender equality. Is this on the rise?
RT: It’s interesting because one of the impacts of the inauguration of Donald Trump as president of the United States and his rather nationalistic approach has been that brands generally are looking at how they can contribute towards the debate on the promotion of certain rights. Equality as a whole is a significant topic in America and beyond because it has that kind of reach.

Going back to the mission of Kering, one of the key issues has always been the idea of gender equality, so when we launched CHIME FOR CHANGE [co-founded by François-Henri Pinault’s wife Salma Hayek, a leading campaigner on gender equality issues] three years ago, it was something we believed in both as a brand and as something that makes very good sense given the number of female clients we have. But also within the framework of Kering’s overall mission, it resided very well under that overall umbrella.

Today, I think the issue of gender equality is widely seen because it has built momentum and it has acquired much more engagement in the media for a lot of different reasons. So, I think that over the past three years we’ve been engaging in this campaign because we believed it was the right thing to do as a campaign, and as a topic.

LUX: In the Dining Issue of LUX we have an interview with Marc Glimcher of Pace Gallery who says that they are doing public art because the public sector doesn’t have the money. Likewise, is no one stepping in to do what you are doing?
RT: I think over the past 10 to 20 years, the private sector in its different manifestations has become much more active partly in the growth of understanding of the role that corporations, brands and wealthy, successful entrepreneurs can play. If you look at the Bill Gates and the Warren Buffets of this world and what they are doing today, you can see that they feel they have responsibilities and the capacity of a small country to carry them out.

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LUX: How does the responsibility element, the CHIME FOR CHANGE, link with the sustain-ability element of Kering’s strategy?
RT: Within Kering’s ten-year strategy there are pillars. One of them is focused on the environment, and all what we do goes with that. When you use the word sustainability, it’s immediately associated with the environment. But the second pillar is about social good with campaigns such as CHIME FOR CHANGE on gender equality and other philanthropic activities. The third pillar is more in the area of innovation. Kering looks at sustainability in a broad sense under the notion of responsibility to the environment and to humanity. This innovation is driving ways of doing business differently across the area of sustainability.

Gucci’s pre-Fall 2017 collection

LUX: Gucci and CHIME FOR CHANGE support women’s and girls’ causes and you partner with the action group Global Citizen. It’s a good ex-ample of a corporation taking responsibility for social campaigning. Is this continuing?
RT: Yes, the fact that equality is more under question than it was a year ago, certainly in the most developed country in the world [the US], means that we as a campaign movement are going to be busier than before, probably. We are always looking for ways we can be more effective in getting our message out there. Music as a convening force will be part of what we do. We will be having festivals in New York and Berlin. There will be another CHIME FOR CHANGE hackathon supported by Facebook. We are looking for something in the art community, and will continue to be active as we have in the past, and what we could do in the future.

LUX: Will consumers start to demand that luxury brands are responsible? Are you seeing this now or do they just not care?
RT: No, I think they assume that we are responsible and sustainable so I think it would become punitive if it becomes apparent that we have not been acting in that way. At the same time I think – and it’s a bit of a cliché now – the millennials and generation Z are definitely growing up much more aware because they are living in an environment that is more in question. Therefore, they are increasingly aware of the negative impact that companies can have. So, let’s say that the expectation that you are responsible is put at an even greater premium.

LUX: As we go forward, will you push Kering’s sustainability message forward more in Gucci?
RT: I think the point is that we are a for-profit, not not-for-profit, so we are de facto never going to be perfect. Now, we are not going to make this the unique selling point of our brand, maybe it’s different in the case of Stella McCartney as it is part of her DNA, but by and large it is something we believe companies and ourselves should be doing. We are not going to shout from the rooftops because frankly someone could justifiably say, “hang on a minute, you should be that way, so why are you shouting about it?”

gucci.com