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An ethical imperative and a driver of both innovation and value creation for the Group, its Houses and its stakeholders, sustainability has always been at the heart of Kering’s strategy and culture. In 2021, a number of significant advances were achieved in three key areas: biodiversity, circularity and sustainable innovation.
caring for the planet
Preserving biodiversity is a decisive factor for the long-term viability of our planet, and for the luxury sector, which relies on nature and its resources. To reflect that, Kering followed up the publication of its biodiversity strategy in 2020 with an increased commitment to natural ecosystems, highlighted by the launch in January 2021 of the Regenerative Fund for Nature in partnership with Conservation International. Seven ambitious projects have been selected around the world, each devoted to one or more of the key raw materials used by the luxury sector (leather, cotton, wool and cashmere). By providing financial support to farmers in their transition to more nature-friendly practices that also help to reduce climate change, the Group aims to convert a million hectares of crop and rangelands to regenerative agriculture over the next five years.
Kering followed up the publication in 2020 of its biodiversity strategy with an increased commitment to natural ecosystems, highlighted by the launch in January 2021 of the Regenerative Fund for Nature.
The circular economy:
acting throughout the product lifecycle
While a circular economy is not new to Kering, the Group took its approach to another level in 2021 with the release of Coming Full Circle, a report on its efforts to rethink the way it produces, deploys and extends operationally the life of its Houses’ creations. From the supply of raw materials to upcycling, along with the optimization of production processes, the strategy taken by Kering and its Houses is based on four pillars: promoting luxury that lasts, adopting a holistic approach, using innovation to better manage resources, and collaborating with the entire industry.
“When it comes to animal welfare, our Group has regularly demonstrated its willingness to lead change within its supply chain and the luxury sector in general. We have just taken a step further by ceasing to use fur in all our collections. The world is changing, and so are our clients. Of course, Luxury must do the same, and Kering will be a pioneer in this.”
Marie-Claire Daveu,
Chief Sustainability and Institutional Affairs Officer.
crafting tomorrow’s Luxury
Innovation has always been a key driver of Kering’s approach to sustainability. In 2017, when the Group defined a roadmap for reducing its environmental footprint, it set very ambitious objectives that could only be achieved through disruptive innovation. Since then, Kering and its Houses have been in constant contact with an ecosystem of startups, as part of an unrelenting search for new partners that can help to drive efficiency and innovation. An example of this was the creation in 2019 of the Kering Generation Award in partnership with the global innovation platform Plug and Play China. In 2021, the second edition of the competition recognized three Chinese startups that are developing promising solutions for protecting biodiversity.

Exploring the use of new business models is also helping to drive innovation, as illustrated in Kering’s stake in Vestiaire Collective, the world’s leading platform for second-hand luxury. Meanwhile, the Group has also multiplied its innovation initiatives in the area of raw materials. Created in 2013, the Material Innovation Lab (MIL) now provides the Group’s Houses with more than 4,000 samples of sustainable samples and textiles. A similar platform, the Sustainable Innovation Lab (SIL), was launched in 2020 for Jewelry activities. A sustainable approach to design is also being taken at House level, with Gucci launching Demetra in 2021. A leather alternative, this material was created after two years of internal R&D and is mainly composed of sustainable, renewable and bio-sourced raw materials, 77% of which are plant-based. In line with the Group’s approach to open innovation, Gucci has decided to make Demetra available to the rest of the fashion industry starting in 2022, making this solution a major advance for the sector as a whole.