LVMH Carbon Fund reaches 2018 objective two years after its creation with 112 projects funded
The LVMH Carbon Fund has achieved its objective for 2018, raising 11.3 million euros in financing for 112 projects designed to control and reduce the Group’s greenhouse gas emissions. This result, which reflects the strong engagement of LVMH Maisons, is all the more noteworthy given that LVMH doubled the price per metric ton of CO2 generated from 15 to 30 euros in 2018, in line with the commitment announced by Bernard Arnault in September 2017. By mechanically increasing the carbon contributions of each Maison, LVMH signals its intent to accelerate initiatives to reduce CO2 emissions.
LVMH salutes the active engagement of its Maisons and their teams in the fight against climate change. The 112 projects deployed in 2018 – up from 64 in 2017 – have eliminated nearly 2,500 CO2 equivalent metric tons of emissions annually (over the lifecycle of equipment installed this year). This is equivalent to the annual emissions of 1,600 European households. *
Created in 2016, the LVMH Carbon Fund is a pillar in the Group’s LIFE** 2020 environmental policy, which has announced a 25% reduction in CO2emissions by 2020 as one of its main objectives. This aligns the Group with the 2°C trajectory defined by the COP21 climate conference in Paris to fight climate change. The annual contribution of each LVMH Maison is calculated by multiplying the greenhouse gas emissions from its activities by the carbon price set by the Group. The amount must then be invested the following year in eligible projects designed to reduce these emissions.
* Source: 2016 CO2 key figures
**LIFE: LVMH Initiatives For the Environment
“The success of our Carbon Fund once again underlines the major and decisive commitment of LVMH management and all our teams to help protect the environment and fight climate change. The LIFE environmental program is a top priority for all our employees. We thank them for their engagement and we continue to count on them to help us achieve all our environmental targets for 2020,” said Antonio Belloni, LVMH Group Managing Director.
112 projects sponsored in 2018 (up from 64 in 2017) representing 11.3 million euros:
55% of the projects involve our stores;
43% of the projects involve our production sites and logistics;
2% of the projects involve headquarters buildings.
Investments span all geographies where LVMH is present:
29% in France
34% in Europe (excluding France)
15% in Asia
6% in Japan
16% in the United States
80% of the projects concern energy efficiency: LED relamping, building insulation, upgrading to install more efficient air-conditioning and heating systems, energy consumption monitoring systems;
13% of the projects enable production of renewable energy;
6% of the projects concern other areas (purchasing of electric tractors, for example);
1% of the projects concerns recruitment of an energy manager (a new category in 2018) tasked with tracking and reducing energy consumption.
28 Maisons are actively engaged in this program: Acqua di Parma, Belvedere, Benefit, Berluti, Bulgari, Celine, Chandon India, Christian Dior Couture, DFS, Fendi, Fred, Fresh, Givenchy, Glenmorangie, Guerlain, Hennessy, Hublot, Le Bon Marché, Loewe, Loro Piana, Louis Vuitton, LVMH Fragrance Brand, MHCS, Parfums Christian Dior, Royal Van Lent, Sephora, TAG Heuer, Zenith.