PARIS — An internal carbon fund implemented one year ago, involving tactics like LED lighting and energy-efficient cooling equipment, has reaped benefits, according to LVMH Moët Hennessy Louis Vuitton.
The French luxury group estimated in November 2015 that the fund would involve each of its brands contributing 15 euros, or $16.65 at current exchange, per ton of carbon emitted, creating a kitty of more than 5 million euros, or $5.6 million. The projects involved were chosen based on five criteria: the carbon impact, the carbon efficiency of the investment, the trigger effect, performance and innovation. Over the 12-month period, the sum raised for the selected projects amounted, in fact, to more than 6 million euros, or $6.7 million, reflecting a higher level of investment by the brands than previously expected, according to a company spokeswoman.
The fund finances energy-saving equipment and the production of renewable energy. This includes projects related to diminishing the consumption of energy with the likes of roof insulation and more energy-efficient distilleries, renewable energy usage or the establishment of energy consumption monitoring worldwide. There are tens of thousands of tons of preventable greenhouse gas emissions during the lifetime of the equipment the company uses, LVMH said.
Seventy percent of the carbon projects are linked to its stores.
The carbon fund initiative, which is to be repeated next year, has as an overall aim to decrease greenhouse gas emissions of the group and its brands by one-quarter by 2020.
The initiative is considered an extra step in an internal program called LIFE — an acronym for LVMH Initiatives For The Environment — which was created in 2013. The program underlies the company’s approach to everything from eco-design to biodiversity, traceability, supply-chain management, product sustainability and customer care.
LVMH’s environmental department has been working with the company’s houses for more than 20 years. Bernard Arnault, chairman and chief executive officer of LVMH, signed the group’s environmental charter in 2001, whose goals involve aiming for a high level of environmental performance, fostering a collective commitment, controlling environmental risks, designing high-quality products by integrating environmental innovation and creativity and pursuing commitments beyond the company.