LVMH publishes annual responsibility update
Paris-based luxury group LVMH has issued an updated on the progress it made last year in the realm of social and environmental responsibility.
The company, which notably opened the doors to a new Fendi footwear workshop in the town of Fermo in Italy’s Marche region in 2022, told stakeholders that 91% of its leather supply chain had achieved some form of certification as of the year’s end, an increase of 10% compared to 2021. Its target is for 100% of all strategic raw materials to be certified by 2026.
LVMH added that it now has country of origin records for 86% of the leather it buys, again representing year-on-year growth of 10%, as it moves to roll out "a dedicated sustainability system" for 100% of its strategic supply chains by 2030.
“This is about acting for the common good and ensuring that our success has positive impact beyond our immediate sphere,” commented chairman and chief executive, Bernard Arnault.
Flagship brand, Louis Vuitton, sailed past €20 billion ($22 billion) in revenue for the first time ever last year, effectively doubling the revenues it reported only five years previous. Two new Louis Vuitton workshops inaugurated over the 12-month period are expected to employ 400 leatherworkers in time, the group said.
According to financial news outlet Bloomberg, LVMH became the first European business to surpass $500 billion in market value on April 24.
The new Fendi footwear factory in Fermo, Italy. Image credit: Silvia Rivoltella.
