environment

Our Commitment

To reduce Richemont’s environmental impact in three key areas:

  • Climate change
  • Packaging
  • Logistics

 

Context

In 2013, we set five-year targets to minimise our impact on the natural environment by reducing our carbon footprint.

  • Reduce CO2 intensity from buildings by 10% (kg per m2 and kg per FTE) by March 2018
  • Reduce CO2 intensity from business travel by 20% (kg per FTE) by March 2018

We can now conclude that we did not achieve those targets and have analysed the reasons. The lessons learned have been incorporated into our 2020 CSR Plan regarding carbon targets and initiatives.

We recognise national and international standards of environmental performance and provide relevant guidance both to our Maisons and to our suppliers.

 

Our approach

Our Environmental Code of Conduct (the ‘Code’) is built on national and international norms and standards for environmental management. As well as universal environmental issues, the Code addresses industry-specific issues, such as the environmental impacts of using gold, gemstones and leather. The Code sets a minimum applicable operating standard for all of the Group’s businesses. Each business is expected to implement its own Environmental Management System, tailored to suit its size and type of activity. Improving the quality and scope of our environmental data remains an area of focus. As detailed in the Policies section of this report, the Code is being reviewed and will be published during the 2018-19 financial year.

The Group CSR Committee reviews environmental performance, determines new initiatives and reports progress to the Board.

Richemont’s Internal Audit function includes environmental considerations within its systematic risk analysis and monitors compliance with the Code. With a view to improving the overall management of risks, Richemont has established an Environment, Health and Safety audit programme for significant manufacturing, operational and administrative sites: more than 20 site-audits are conducted each year by a specialised independent auditor. The results from those audits are used to drive continuous improvement plans.

The process to achieve certification with the RJC’s Code of Practices, which includes a review of environment matters, has also helped our Maisons improve their international environmental management practices. Examples include the sourcing of packaging materials and efforts to recycle a wide range of manufacturing waste products..

Environmental data are consolidated annually, including the energy we use in our buildings, the fuel consumed as we travel, the impact of major logistics streams, and other elements necessary to calculate our carbon footprint. The results are disclosed in this CSR report and are communicated internally to employees via the CSR representatives. The independent assurance report may be found on the Climate Change section here.

Whilst no manufacturing sites are currently registered to ISO 14001, Richemont’s Environmental Management Systems are based on the principles of that standard. Similarly while no manufacturing sites are currently registered to ISO 50001, energy efficiency is a guiding principle in the construction of new buildings and the refurbishment of existing buildings and interiors.

 

Engaging stakeholders

Our Maisons engage their employees directly on environment themes in a variety of ways. These range from communications on environmental good practices at work, to financially incentivising employees to use public transport. The latter is commonplace within the Group.

The Group’s CSR Committee has noted the ever-growing number of environmental initiatives reported by local CSR representatives in markets such as Japan, the USA, China and Switzerland. The initiatives range from reducing the consumption of electricity in offices and boutiques to improving the thermal insulation of buildings. Initiatives and best practices are communicated through the Richemont intranet, through management feedback on the consolidated results of the annual CSR Survey, and through case studies in the annual CSR Report. An example is Panerai’s Shanghai Plaza 66 boutique, which received GOLD LEED certification in July 2017 and was featured in the 2017 CSR report. LEED stands for Leadership in Energy and Environmental Design.

Through its Supplier Code, the Group’s operations encourage environmentally friendly practices among its direct suppliers and their suppliers. Separately, through the RJC, the Maisons participate in industry-wide efforts to reduce the long-term environmental impact of both large-scale and artisanal mining.