The luxury fashion industry faces mounting pressure to adopt sustainable practices in response to the escalating global emphasis on environmental stewardship. Kering has initiated a pioneering water-positive strategy with significant implications not only for the company but potentially for the entire luxury sector. As the parent company to renowned brands such as Gucci and Alexander McQueen, Kering’s commitment to enhancing freshwater resources is set to influence long-term sustainability measures. The plan introduces ambitious targets for water quality improvement and replenishment, beginning with Italy’s Arno Basin—a critical area due to its proximity to many of Kering’s water-consuming tanneries. The strategy’s objective is not merely a standalone initiative; it aligns with Kering’s broader mission to generate a net positive impact on freshwater resources. By 2050, the company aims to achieve substantial progress in both water quality enhancement and resource replenishment across its prioritized watersheds.
Innovative Approach to Water Resource Management
Kering’s ambitious goals encompass a 21 percent reduction in water withdrawals by 2030 for all its facilities in the Arno Basin, with plans extending to a 35 percent reduction in water usage across its global tanneries by 2035. Tanneries, a cornerstone of Kering’s operations, consume considerable water volumes, approximately 2.5 to 4.75 gallons per animal skin, discharging up to half of that volume. Tackling this environmental footprint is crucial, and Kering’s tannery in Normandy embodies this effort through investments in forward-thinking tanning processes. These processes are organic and metal-free, using 25 percent less water. Additionally, the facility has achieved a 30 percent water recycling rate in its production and aims to reach a 75 percent rate by 2030. Such detailed strategic goals integrate with Kering’s performance metrics, emphasizing the criticality of water stewardship, as acknowledged by Rachel Semhoun, the head of sustainable sourcing initiatives at Kering.
Supplier Involvement as a Key Pillar
Kering’s strategy emphasizes the significance of supplier engagement, highlighting that only a fraction of the company’s water risks—barely 17 percent—fall within its direct control. Consequently, Kering has mandated supplier participation in water stewardship efforts, especially for textile producers and leather tanneries. Suppliers are required to define and adhere to their water management strategies, featuring strict targets for water usage reduction, such as a 21 percent decrease by 2030. Strategic suppliers must eliminate harmful substances, including PFAS, by 2025. Further, by 2035, performance metrics are expected to span Kering’s prioritized watersheds, encompassing ten global hotspots. This approach significantly contrasts with the conventional focus on internal operations prevalent in the industry. It presents an opportunity for stakeholders to acknowledge the importance of comprehensive value chain management in achieving effective water stewardship.
Overcoming Environmental Challenges
Highlighting the importance of a holistic approach to environmental stewardship, Kering adopts an integrated strategy that transcends traditional focuses mainly on greenhouse emissions or carbon impact. As Gareth Davies of consulting firm Tunley Environmental noted, the burgeoning emphasis on understanding and managing all environmental impacts will be immensely vital going forward. Furthermore, Maira Bezerra from Conservation International underscores the significance of setting measurable, actionable objectives to address water-related concerns. Kering’s attempt to curb reliance on water-intensive materials such as cotton and leather aligns with this perspective, enhancing the sourcing of recycled fabrics to reach a target of 40 percent by 2035. The company is also heavily investing in regenerative agriculture, aiming to quadruple its sourcing from this practice, thus contributing to broader sustainability objectives.
Uniting Stakeholders for Effective Implementation
Critical to the success of Kering’s water strategy are ten designated priority watersheds proposed for the establishment of Water Resilience Labs. These labs will facilitate stakeholder collaboration among suppliers, other brands, researchers, local communities, indigenous tribes, regulators, and more, devising improvement metrics informed by regional data on hydrological cycles. Strategies cater to managing both blue water from rivers, lakes, and wetlands and green water from rainfall and soil moisture used by plants. Climatic shifts exacerbate these water systems, accelerating evaporation rates and intensifying weather conditions leading to flooding, erosion, and droughts. According to CDP’s assessment, freshwater risks could estimate damages as high as $392 billion, predominantly uninsurable. Kering’s strategy acknowledges these complexities, transitioning from isolated engagements to resilient watershed management focused on ecosystem services and environmental preservation.
Fostering a Transformative Vision
Kering’s comprehensive plan reflects a commitment to sustainable practices and resilience within the fashion industry. Currently centered on the Arno Basin, the strategy plans expansions across additional watersheds in Italy, southern France, Spain, Turkey, India, Mongolia, South Africa, and Patagonia. This cohesive engagement allows for diverse perspectives and impactful planning, laying the groundwork for collaborative sustainability measures. By integrating efforts across the supply chain and community stakeholders, Kering is positioned as a transformative force within the luxury industry, championing initiatives that align environmental stewardship with business imperatives. Through these innovative and collaborative actions, Kering demonstrates potential to set a precedent for sustainable luxury, advancing responsible resource management and ecological resilience.
