Our approach
Our approach to sustainability is inspired by our history and purpose: ‘We Craft the Future’. In FY23, we continued building on our responsible business values and heritage. As a signatory of the United Nations Global Compact since December 2013 we continue to be committed to its ten Principles, while we are using the United Nations Sustainable Development Goals (SDG) as a compass.
We implemented a shift towards a more structured, compliance-driven approach to ESG. Building on more than a decade of sustainability commitments and actions, we have reinforced the foundations of our reporting and disclosure framework with priorities drawn from our double materiality assessment.
In the ESG Report 2023, we have increased our GRI disclosures significantly compared to last year. We prepared the report in alignment with our ESG framework and included topics of interest to independent ESG rating bodies, such as Sustainalytics and CDP.
Unlocking ESG value-creation across the Group, Richemont delivered an executive sustainability learning event involving 60 business leaders, including all CEOs of Maisons and regions.
Double materiality assessment
Conducting a materiality assessment is a way to proactively engage with internal and external stakeholders and gather insights to determine priority areas for future actions.
In the spirit of continuous improvement, the 2023 Materiality Assessment aimed to strengthen the methodology around the double materiality principle and to significantly increase the involvement of internal and external stakeholders.
The stakeholder perspectives collected provided us with insights that confirmed that ESG topics continue to rise in importance and relevance. Out of the 21 material topics, eleven topics were identified as highly material in terms of impact on business and impact on people and/or environment, while ten topics were identified as of medium materiality, as represented in the Group Materiality Matrix below. Not one ESG topic was identified as non-material to Richemont. The 2023 Materiality Assessment was validated by Richemont’s Senior Executive Committee and the Governance and Sustainability Committee of the Board in March 2023. Comparison of this year’s assessment to the previous year’s reveals that conflict minerals, customer expectations, human rights and labour standards, as well as transparency and traceability remain the most material topics, consistent with overall industry and stakeholder importance. What has gained prominence is governance, ethics and compliance, data privacy and cybersecurity, and social impact, driven by increased pressure from regulators, customers and society at large. Correlation table between material topics and GRI Indicators is available in the Appendix 2.
Out of the 21 material topics, eleven topics were identified as highly material in terms of impact on business and impact on people and/or environment, while ten topics were identified as of medium materiality, as represented in the Group Materiality Matrix below. Not one ESG topic was identified as non-material to Richemont.
Comparison of this year’s assessment to the previous year’s reveals that conflict minerals, customer expectations, human rights and labour standards, as well as transparency and traceability remain the most material topics, consistent with overall industry and stakeholder importance. What has gained prominence is governance, ethics and compliance, data privacy and cybersecurity, and social impact, driven by increased pressure from regulators, customers and society at large.
97%
renewable electricity worldwide, +33% vs. 2019
In 2022, Richemont was recognised by the CDP for its environmental leadership, receiving an A- score for climate change and for its water stewardship, improving from a C score in 2021 to a B score in 2022, marking our second-year reporting on water security.
Richemont remains committed to reducing its greenhouse gas emissions, in line with science-based reduction targets for 2025 and 2030, which were validated by the Science Based Targets Initiative (SBTi) in 2021.
As a member of the RE100 since 2021, a global initiative of the world’s most influential companies committed to 100% renewable power, Richemont operates today with 97% renewable electricity worldwide. The Group is on track to achieve the ambitious goal of 100% renewable electricity across all our sites by 2025.
For more details on how we proactively act on our environmental impact, click here (Pages 23 to 48 of our ESG Report 2023).
Gender balance
females represent
57% of global workforce
29% of Senior Executive Committee
The Group is proud of its gender balance with the percentage of women reaching 57% of the total workforce, 29% of our Senior Executive Committee with the appointments of Patricia Gandji, Chief People Officer and CEO of Regions, and Bérangère Ruchat, Chief Sustainability Officer.
For more details on how we proactively amplify our social impact, click here (Pages 49 to 72 of our 2023 ESG Report)
Improvements were made to the identification and assessment of the Group’s ESG impacts with the strengthening of the double materiality methodology and the consultation of a significantly larger sample of more than 600 stakeholders. Unlocking ESG value-creation across the Group, Richemont delivered an executive sustainability learning event involving 60 business leaders, including all CEOs of Maisons and regions.
Richemont received a Sustainalytics rating of 11.3, highlighting our low ESG risk profile and ranking the Group in the top 4% of companies rated worldwide.
Our ESG Report 2023 has been prepared in accordance with the Global Reporting Initiative’s (GRI) Standards, with a notable 40 quantitative indicators independently assured – as well as incorporating topics of interest to Sustainalytics and CDP assessment methodologies.
For more details on how we proactively refine our governance, click here (Pages 83 to 92 of our ESG Report 2023).
For more information on ESG data collection, please consult the Richemont Basis of Preparation document which outlines the principles and methodologies that guide data collection, restatements of information, analysis and reporting within the Group. This document, together with previous reporting, can be found under "Reports & policies".
11.3
Sustainalytics’ rating
in the top 4% of more than 15 000 companies
Sustainability governance
Sustainability is firmly embedded at the highest governance level of the Group through our Governance and Sustainability Committee, which reports its actions to the overall Board. Established in March 2021, it replaced the Ethics Sub-Committee, which was established in 2019. This committee reviews all management proposals regarding our sustainability roadmap and approves the annual ESG Report.
The Chief Sustainability Officer, member of the Senior Executive Committee, is responsible for our sustainability performance and reporting. Group Sustainability serves as a central hub, connecting a diverse network of approximately 100 Sustainability Leaders from various functions, regions and Maisons. These leaders convene twice a year and maintain regular online communication. Their role includes ensuring their entities meet the Group's new standards and requirements.
To address specific ESG topics, the Group established a range of specialised governance bodies, including Gold Sourcing, Gemstones, Human Rights, Research and Innovation and Safety committees.
In addition to the Governance and Sustainability Committee’s mandate, the Board’s Audit Committee oversees the adequacy and effectiveness of risk management practices in the Group. These include risk management practices for ESG risks. The Audit Committee examines and reviews the adequacy, effectiveness and integrity of the processes to assure the Group’s compliance with all applicable laws and regulations; and ensure compliance with the Group’s Standards of Business Conduct.
For more details on how sustainability is governed, click here (Pages 85 to 87 of our ESG Report 2023)
Influencing our supply chain
Richemont’s creations are almost exclusively produced in Europe and require diligent management systems enabling us to identify and mitigate potential risks. Our management systems are tailored to each supply chain and we strive to continuously improve our practices to remain accountable and pro-actively compliant with regulatory trends. In that context, strategic partnerships and collaboration at all levels are fundamental to drive change.
Our Maisons have autonomy in their procurement process, however they have to apply the Group Supplier Code of Conduct (SCoC), the Raw Materials Sourcing Policy and the Group Procurement Policy.
Certifications such as Responsible Jewellery Council (RJC), Leather Working Group (LWG), ISO 14001/45001, SA8000, as well as supplier audits based on the Sedex Members Ethical Trade Audit (SMETA) methodology lead to a tight control of our suppliers’ environmental and social impact.
An important pillar in our strategy is to promote the RJC Code of Practices (CoP) certification to all our suppliers of gold, diamonds and gemstones. Richemont has joined the CDP Supply Chain Programme to engage with its suppliers on climate action, as part of our SBT action plan. For leather, we engage with tanneries that are LWG certified. The LWG conducts environmental audits and tanneries are expected to demonstrate reputable practices in all business areas, including water usage.
For more details on how we influence our supply chain, click here (Pages 73 to 82 of our ESG Report 2023)
