Kering has announced a commitment to make the entire group carbon neutral within its own operations and across the entire supply chain. The group said that it will offset its annual greenhouse-gas (GHG) emissions from 2018, while also making efforts to first avoid and then reduce these emissions.
The new commitment is an extension of the annual offsetting approach that has been established since 2011, which initially incorporated Scopes 1 and 2 of the Greenhouse Gas Protocol. Since then, Kering has been leveraging its Environmental Profit and Loss accounting to analyze the group's GHG emissions up to the base of the supply chain, where raw materials are created. These data have enabled the group to implement customized supply chain initiatives and efficiency programs to avoid and reduce its emissions. Furthermore, Kering set a Science-Based Target – approved by the SBT initiative – to reduce all the GHG emissions related to its own operations and supply chain by 50 percent by 2025, from a 2015 baseline.
In addition to the various sustainability initiatives that have already supported the group's SBT so far, Kering is now offsetting all the remaining annual emissions in Scope 3 of the GHG Protocol as well. For 2018, the total remaining GHG emissions offset for the group will be around 2.4 million tons of CO2, Kering said. Offsetting will continue to be accomplished through REDD+ (Reducing Emissions from Deforestation and Forest Degradation) projects that conserve critical forests and biodiversity, and support local communities. The 2018 offsets will equal nearly 2 million hectares of forests around the world.
Scope 1 of the GHG Protocol relates to direct greenhouse gas emissions that occur from sources that are owned or controlled by a given company. The Scope 2 standardizes how the company measures emissions from purchased or acquired electricity, steam, heat, and cooling – called “scope 2 emissions.” The Scope 3 standard, which relates to the corporate value chain, allows a company to assess its entire value-chain emissions impact and decide where to focus its efforts to reduce them.