12.17.23
Two of the world's biggest luxury goods houses struck a big deal on corporate social responsibilty (CSR). LVMH and Chanel will harmonize CSR reporting and audit schedules at the supplier level. Furthermore, LVMH will support its suppliers through a new partnership program titled Life 360 Business Partners and will launch LVMH Circularity, which will reuse unsold products from across group houses in new projects, among other new initiatives.
To assuage concerns about competition, the agreement is limited to suppliers. Specifically, LVMH and Chanel will coordinate on issues such as sourcing and supplier vetting. All the details of the agreement have yet to be worked out, but both companies expect to create a collective audit system so that suppliers do not have to repeat their work multiple times. The Chanell/LVMH program will include financial support and co-investment, as well as education and other initiatives to bring suppliers to the table as partners.
LVMH Head of Image and Environment Antoine Arnault said the two groups have the same vision of luxury and “strongly believe that we will need to work together to move faster.”
During the LVMH 360 event this week, Chairman Bernard Arnault took to the stage to reiterate the company’s conviction that climate can be a business decision.
“Action for climate and biodiversity will only be effective if it is seen as a real industrial strategy. The reduction in greenhouse gas emissions cannot be improvised. The protection of biodiversity cannot be improvised. The shift in the agricultural model means that regenerative agriculture cannot be improvised. All these objectives can only be achieved through thoughtful, documented strategies,” he said.
Bernard Arnault said that competition should be on design and creativity, and businesses can share information.
“I believe it is our duty to know how to rise above the usual patterns. This is why we have chosen to invite certain competitors today,” he explained. “Progress of any kind is crucial. We must join forces.”
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To assuage concerns about competition, the agreement is limited to suppliers. Specifically, LVMH and Chanel will coordinate on issues such as sourcing and supplier vetting. All the details of the agreement have yet to be worked out, but both companies expect to create a collective audit system so that suppliers do not have to repeat their work multiple times. The Chanell/LVMH program will include financial support and co-investment, as well as education and other initiatives to bring suppliers to the table as partners.
LVMH Head of Image and Environment Antoine Arnault said the two groups have the same vision of luxury and “strongly believe that we will need to work together to move faster.”
During the LVMH 360 event this week, Chairman Bernard Arnault took to the stage to reiterate the company’s conviction that climate can be a business decision.
“Action for climate and biodiversity will only be effective if it is seen as a real industrial strategy. The reduction in greenhouse gas emissions cannot be improvised. The protection of biodiversity cannot be improvised. The shift in the agricultural model means that regenerative agriculture cannot be improvised. All these objectives can only be achieved through thoughtful, documented strategies,” he said.
Bernard Arnault said that competition should be on design and creativity, and businesses can share information.
“I believe it is our duty to know how to rise above the usual patterns. This is why we have chosen to invite certain competitors today,” he explained. “Progress of any kind is crucial. We must join forces.”
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