What: LVMH and Chanel are teaming up to tackle the Scope 3 emissions topic.

Why it is important: While retailers are still reluctant to create alliances and share information, largeluxury brands are already doing it.

LVMH Moët Hennessy Louis Vuitton and Chanel, two of the world's largest luxury groups, have initiated a groundbreaking partnership to enhance sustainability in the luxury industry. They aim to standardize corporate and social responsibility reporting and audit processes at the supplier level and support suppliers through the Life 360 Business Partners program. This collaboration includes initiatives like LVMH Circularity for reusing unsold products.

The partnership reflects a growing recognition in the luxury sector that tackling environmental challenges requires cooperation over competition. Bernard Arnault of LVMH emphasized that while competition in design and creativity is essential, sharing information on sustainability is beneficial for the industry.

LVMH's focus on sustainability extends to its malls, including energy reduction achievements and challenges in eliminating fossil fuel-based plastics. Financial support and co-investment in supplier transitions are part of their strategy, acknowledging that suppliers often face significant financial hurdles in sustainable overhauls.

The alliance with Chanel, still in early stages, explores collective audit systems to ease supplier burdens. The collaboration is a response to the urgency of the climate crisis, aiming to establish best practices, particularly in leather sourcing, and set higher standards for suppliers.

LVMH's commitment to sustainability is evident in its business practices, from product packaging to transportation methods, recognizing the need for comprehensive and realistic strategies for ecological responsibility while continuing to grow as a company.

LVMH, Chanel link on sustainability