Page 06 Accounting for Environmental Profit and Loss Page 08 a New Luxury Status Quo?

_ 04.06. JJuly.uly. 22011011

_PAGE 04 DO OPPOSITES REALLY ATTRACT? _PAGE 06 ACCOUNTING FOR ENVIRONMENTAL PROFIT AND LOSS _PAGE 08 A NEW LUXURY STATUS QUO?

TWITTERTWITTER.COM/RACONTEURMEDIA.COM/RACONTEURMEDIA RACONTEUR 0CLIPBOARDRACONTEURPAGENUMBER 01

Sustainable luxury

Distributed in CONTRIBUTORS

SIMON BROOKE DAX LOVEGROVE MIKE SCOTT Published in Specialist writer on the luxury sector Head of business & industry at Specialist writer in sustainability, association with and men’s styling, Simon contributes WWF-UK, Dax works with major business, family wealth and environ- to national and international companies within key sectors, ment issues, Mike contributes to na- publications, including The Sunday including oil and gas, power, finance, tional newspapers, including the Fi- Publisher Editor Design Times and The Wall Street Journal. food and drink, transport, media, nancial Times, The Daily Telegraph and Nadine Namer Peter Archer The Surgery He is also a regular contributor to ICT and retail, to apply systems- The Guardian, and is a regular contrib- Raconteur supplements. thinking around sustainability. utor to Raconteur reports. Cover image: © THE SURGERY \ thedesignsurgery.co.uk ANTHONY KLEANTHOUS FELICIA JACKSON JOSH SIMS Your feedback is valued by us. The information contained in this Co-author of Deeper Luxury: Quali- Author and freelance journalist spe- Freelance writer and editor of View- Please send in your opinions to publication has been obtained from ty and Style When the World Matters cialising in economic, technology, pol- point magazine, Josh’s latest book is [email protected] sources the proprietors believe to be and Let Them Eat Cake: Satisfying the icy and social issues surrounding the Icons of Men’s Style. He is a contributor For information about partnering correct. However, no legal liability can New Consumer Appetite for Sustainable transition to a low-carbon economy, to national newspapers, including the with Raconteur Media please contact be accepted for any errors. No part of Brands, Anthony is WWF-UK senior Felicia is editor at large of Cleantech Financial Times, The Independent and Freddie Ossberg: 020 7033 2100, this publication may be reproduced [email protected], withoutthe prior consent of the Publisher. policy adviser on sustainable business magazine and a regular contributor to The Guardian, and magazines, such as www.raconteurmedia.co.uk © RACONTEUR MEDIA and economics. Raconteur supplements. Esquire and Wallpaper.

Consumption is a key challenge to maintaining global environmental balance etty images do images / G

tren reconnection more than to tradi- Al

© tional luxury items. We are gradu- ally relearning the importance of buying fewer, better things and taking pride in them for longer. In short, luxury is becoming less exclusive, less wasteful and more about helping people to express their deepest values. Those values now include a heavy dose of environmental and social responsibility. The great luxury houses were initially slow to respond to these changes and even slower to lead them. However, the industry has now launched or signed up to a number of initiatives to clean up its supply chains, including the Council for Responsible Jewellery Practice, the Kimberley Initiative (to eliminate the trade in conflict diamonds), and the United Nation’s Global Compact. Many are working with designers to develop sustainable fabrics SIMPLY THE BEST and materials, and a few have just begun to embed sustainability in management practices across core IS NO LONGER SIMPLE business functions. For example, French house PPR, (home to Gucci, Puma, Bottega Ven- MARKETING Luxury brands exist mainly to confer on their owners a feeling and an image of success. eta, Yves Saint Laurent and a string of Anthony Kleanthous other luxury marques), now rewards As the definition of success changes, so do our expectations of luxury, writes its top executives for meeting environmental and social goals. It recent- ȖȖIncreasingly, successful people and rejuvenated by a new trend for been scandals over poor labour stand- Row suits. We have fallen out of love ly launched a new sustainability initi- want to show that they understand authenticity and sustainability. ards, blood diamonds, dangerous and with conspicuous consumption and in ative called PPR Home – named after and care about the environment and The luxury industry has been glo- dirty gold-mining practices, the trade love with luxurious experiences, such Jean Yves Bertrand’s 2009 documen- other people. Luxury products are balising at a furious rate. Small, inde- in endangered species, corruption, as spa treatments and luxury holidays. tary, Home, which PPR financed – to expected not only to work beautifully pendent, niche western brands have inappropriate advertising messages, promote “a new business paradigm, and look fabulous, but also to be envi- been snapped up by multinational and anorexic models. whereby the attainment of sustaina- ronmentally and socially responsible. corporations, such as LVMH (Moët Luxury brands have been accused We aspire to elegance, bility is driving creativity and inno- Luxury may be defined as the best Hennessy - Louis Vuitton) and PPR, of fuelling fast fashion, driving con- vation, and vice versa, to build busi- of any given product or service cate- and turned into huge global brands spicuous consumption and tighten- simplicity and spiritual nesses that deliver financial, social gory. Whatever you might look for in in their own right. ing tensions between rich and poor. and environmental returns”. a car, a watch, a bar of chocolate or a Last year, global sales of luxury In Beijing, the authorities have gone reconnection more than The rise of sustainability has been holiday, the luxury versions give you products reached £140 billion. as far as to ban the use of billboards the first, and perhaps greatest, cul- more. They are the best-designed, Sales are growing fastest in econo- to advertise luxury products and ser- to traditional luxury items tural shift of this millennium, and best-made, highest quality and most mies with rapidly expanding middle vices, because such advertising is, it poses huge challenges and oppor- expensive options available. They classes, particularly China, which is according to Beijing’s mayor, “not tunities to brand owners. The long- deliver the highest possible amount about to become the world’s larg- conducive to harmony”. India’s Wastefulness is frowned upon, so term success or failure of the luxury of customer satisfaction. est luxury market. Already-wealthy prime minister has called on the rich Range Rovers are out and hybrids industry will depend largely on the What satisfies luxury consumers – Asian countries have long had a love to “eschew conspicuous consump- are in. The roofs of the nation’s ability of initiatives like PPR Home their perceptions of good quality and affair with luxury. tion” and slapped a 114 per cent rate rich bristle with photovoltaic pan- to foster deep and radical change, good design – varies greatly across With this growth have come grow- of tax on luxury goods. els and wind turbines. In a world both in the nature of products and the world, and has been evolving ing pains. Counterfeiters have learned In mature western markets, baby of overwhelming clutter and rush, services being offered, and the will- over time. The global luxury indus- to make astonishingly convincing boomers and young consumers have space and time have become luxu- ingness of middle-class consumers try has sometimes struggled to keep fakes, remarkably cheaply, and to sell driven a growth in “casual luxury”, ries in their own right; we aspire to to embrace them with their hearts up, but has recently been challenged them all over the world. There have preferring designer T-shirts to Savile elegance, simplicity and spiritual and their wallets.

TWITTER.COM/RACONTEURMEDIA RACONTEUR 03 Sustainable luxury

At first glance, luxury and sustainability may not sit comfortably together THE SURGERY THE

BUT OPPOSITES CASE STUDY Fragrance specialist Givaudan has CAN ATTRACT taken steps to secure supplies of the ingredients that are vital for its business, as Mike Scott discovers

Givaudan, the fragrances and flavours company, is a key player in the perfume industry with many of its raw materials rooted in the natural world. “If we want to have a long-term business model that is sustainable, we need to safeguard our crops,” says Rémi Pulverail, head of natural materials at the company, which launched its Innovative Naturals Programme in 2007, at a time when sustainability was not very fashionable. With a history spanning two centuries, Givaudan sources more than BUSINESS Focusing on more than the bottom line makes sense for luxury brands and an increasing 200 pure and natural raw materials from around the world. It is not a huge number are taking account of a growing demand for sustainable products. But the business case for company, but in the esoteric world of sustainability is only slowly rising up the corporate agenda as companies face sometimes conflicting, fragrances and flavours it is one of the biggest buyers of crops, such as san- short-term demands in a testing economic climate at home and abroad. Mike Scott reports dalwood, tonka beans and benzoin. These are often concentrated in un- derdeveloped communities in coun- ȖȖLuxury and sustainability are luxury brands, particularly in cos- High-end brands used to feel insu- Lynne Franks, who now focuses on tries such as Madagascar, Haiti, Vene- not concepts that seem to belong metics, wine and spirits, and jewel- lated from the rest of the economy to encouraging companies to imple- zuela and Laos. together. Luxury is all about con- lery, rely on the natural world for a certain extent because of the nature ment sustainable business practices The viability of many of the compa- spicuous consumption, while sus- their raw materials and are becoming of their customers, but social media aimed at empowering women. “How- ny’s crops is under threat from factors tainability is about modifying more aware that to thrive they need has turned the conventional rules ever, you have to be really careful ranging from a shift to the cultiva- behaviour to reduce our impact on to look after the ecosystems which on their head. that it is not all greenwash. If you tion of food crops, the spread of tour- the planet. While luxury is more, are home to their supplies. Issues such as blood diamonds, ani- are going to bring sustainability into ism and the difficulty of getting farm sustainability is less. Furthermore, luxury brands have mal rights in the fur trade, animal your marketing, you really have to workers to stay on the land. Many luxury brands – by their not been immune to the pressures testing in cosmetics and sweatshop be able to substantiate it,” she says. In the most recent additions nature exclusive and relatively small of globalisation and many have out- labour for the fashion industry have to its programme, Givaudan has companies – have seen environmen- sourced their production to lower- the potential to propel a luxury brand launched ethical sourcing initiatives tal issues as someone else’s problem. cost countries where they do not on to the front page for all the wrong Sustainability is not yet to strengthen the sustainable sup- In addition, many make great play on have the same oversight of working reasons. “And that is something no ply of ylang ylang from the Comores their history and the fact that they conditions compared to when pro- luxury CEO wants,” Mr Gillen says. at the top of the agenda for Islands and vanilla from Madagas- have created their products in the duction is closer to home. “No one can assume they are unac- car. The company is investing in new same way for decades, if not centu- countable any more.” most luxury CEOs stills and technical support on Mohe- ries. As a result, they can be reluctant REPUTATION This concern has led to the estab- li, the smallest of the Comores Islands, to change the way they operate. All of these developments create lishment of initiatives such as the to improve the growing of the essen- “Sustainability is not yet at the potential pitfalls for brands. “Repu- Responsible Jewellery Council, tial oil, the distillation process and the top of the agenda for most luxury tation is very important for luxury which is “committed to promoting But the sustainability agenda is energy efficiency of production. It CEOs,” says Christopher H Cordey, brands,” says Seamus Gillen, a senior responsible ethical, human rights, also a real business opportunity. is also investing in supplies for local chief executive of WholeBeauty and adviser at the Reputation Institute. social and environmental practices “Being a luxury business and trying schools to help expand the provision founding director of the Sustainable “Intangible factors constitute a far in a transparent and accountable to be sustainable attracts attention of education on the island. Luxury Forum. “However, things have bigger proportion of the total value manner throughout the industry because it moves away from the ste- An earlier project that helps grow- changed in the last few years.” Luxury of luxury goods than other products. from mine to retail”. reotype of what green is and also of ers of benzoin in Laos also financed brands are coming round to the idea Some companies are in denial, but According to Mr Cordey this focus what luxury is,” says Debra Patter- the building of a secondary school, that their products are “not of prime most businesses realise their success on all aspects of the luxury value son, the green ambassador for Lon- which meant that families no longer necessity” and that they therefore depends on stakeholder support.” chain is crucial and the luxury sector don’s Savoy Hotel, which introduced have to move or send their children to have an extra responsibility to con- The rise of social media has has a responsibility to try to lead the a host of green measures when it the cities to get secondary education. tribute something more to society, increased consumer awareness and way because of the totemic nature of underwent a three-year refit. “You “This rural exodus not only threat- and this beyond mere philanthropy. pressure on brands. “This new radi- its products. might ask why those who can afford ens the fabric of social cohesion, but They are also subject to the same cal transparency has forced brands “Luxury brands have very large luxury products would be interested eventually the future of benzoin pro- increasingly strict regulations that to tackle the issue in a more proac- advertising budgets. If they can in sustainability – but they are,” she duction,” the company points out. other parts of the economy face in tive way,” Mr Cordey adds. “Luxury incorporate sustainability messages says. “There is often money to be “This is not charity,” Mr Pulverail relation to issues such as climate customers have the same concerns into their advertising it is very pow- saved from introducing sustainabil- adds. “If we want to keep our key change and use of resources. Many as everyone else.” erful,” says public relations guru ity issues, too.” crops alive, we have to get involved.”

04 RACONTEUR TWITTER.COM/RACONTEURMEDIA COMMERCIAL FEATURE

Sustainable hotels are staying the course

Left: Radisson Blu Resort & Thalasso, Djerba, Tunisia, is located directly on the beach

Below: Radisson Blu 1835 Hotel & Thalasso, Cannes, France, is situated by the elegant harbour

all staff introduced to the new regime. Their commitment and enthusi- asm has meant that the hotel and spa has won a gold certification from the Green Hospitality Award scheme in Ireland for their efforts, as well as sev- eral other environmental award nomi- nations from organisations, including the Sustainable Energy Authority Ireland, the Irish Hospitality Insti- tute, Chambers Ireland, 2010 Green Awards, and Greenme.ie. Many of the ingenious green innovations introduced by Rezidor go unno- ticed by their guests, but not neces- sarily by those living near the hotels. The Missoni in Edinburgh, for instance, has teamed up with the nearby Radis- son Blu to co-operate on an organic waste recycling scheme which sees compostable food waste used in farms

Check in at the stunning new Missoni Hotel in Kuwait and you’ll find the experience rather unusual, but certainly quicker and easier than the familiar arrival ceremony of waiting at the reception desk to sign your name and write your address on a card

As you relax in the lounge, the check- considered by many to be mutually- “Water is very scarce in Malta, in staff come to you. They’ll ask you to exclusive, has required imagination and because of the density of the popula- sign in with a wifi-enabled tablet PC a commitment by the whole company. tion, so we have various water treat- and moments later you’ll be shown up To take another example, which is ment technologies in place: a sea water to your room. It’s a procedure that isn’t less obvious to guests but has an even reverse osmosis installation which pro- just better for guests, it’s better for the greater impact than paperless check in duces top-quality drinking water, a environment too. and out, at the Radisson Blu Resort & sewage treatment plant and a water “It means that we we’re not print- Spa, Malta Golden Sands, balcony doors catchment area on site,” she says. “The ing any check-in cards which saves are double-glazed with tinted glass to water from the sewage treatment and paper and, in the near future, we might limit heat from entering the rooms. Hol- the catchment area go to irrigation. not even be printing any check-out low bricks and roofing slabs minimise invoices either,” says Inge Huijbrechts, heat loss during the winter and, more director of responsible business, at the importantly, greatly reduce heat pene- “All our employees are specially outside the city. Organic waste collec- Rezidor Hotel Group, which manages tration during the summer months. Are five-star service, opulent trained and every hotel has a responsi- tion is organised by the local branch of the Missoni hotels in Kuwait and Edin- “The important thing is that none ble business champion. Above them are the Cyrenians, a charity which supports burgh, as well as many other hotels of this affects the guest experience in surroundings, relaxing spas and the regional champions and I co-ordi- homeless and vulnerable people. around the world. anyway – guests would never notice nate this network,” she says. “We allow In Egypt, as is the case with most cit- This is just one of the latest exam- that these features exist and that’s very excellent food incompatible with each hotel and each member of staff to ies, El Quseir is facing a huge problem ples of high-end hotels addressing an important for us because as a luxury take control and empower them to do of discarded plastic bags and food increasingly important issue: can you brand we need to ensure that the qual- protecting the environment? what they can. But it’s also important to packing. So staff at the Radisson SAS enjoy a luxury hotel experience and still ity standards of all our hotels are always lead from centre so we set targets and Resort, El Quseir, have organised a be green? In other words are five-star maintained,” says Ms Huijbrechts. standards and share best practice.” monthly clear-up campaign. Local service, opulent surroundings, relaxing The hotel’s building management Excess water is even delivered free of In 2007, the Radisson Blu Hotel & children have also been involved. Not spas and excellent food incompatible system senses when no one is occu- charge to local forestation projects.” Spa Cork committed itself to reduc- only does this mean that the environ- with protecting the environment? pying a room and then automatically For one of the largest hospitality ing its impact on the environment by ment is cleansed of this ugly pollution, For Rezidor Group, the company allows the room to fluctuate towards groups, with 317 hotels and resorts in employing a chief engineer to imple- but it ensures that the next genera- behind such well known hotel brands the natural ambient temperature by Europe, the Middle East and Africa and ment an environmental management tion is learning about the importance as Radisson Blu, the answers to such controlling the air conditioning system. plans to open 100 more over the next programme which has been taken for- of looking after the beautiful, rugged questions has been a resounding ‘yes’. It will also manage the boiler tempera- few years – nearly one every week – the ward by the staff themselves. A new landscape that surrounds them so But satisfying these two very differ- ture and boiler flue gasses, to minimise challenge has been to bring all staff on waste, water and energy management that future generations of visitors can ent aspects of the hotel business, still air emissions. board, wherever they work. training schedule was put in place with also enjoy it.

TWITTER.COM/RACONTEURMEDIA RACONTEUR 05 Sustainable luxury mages etty I AFP / G ©

GIVING THE ENVIRONMENT A SPORTING CHANCE

SUPPLY CHAIN When consumption is under attack as a key challenge to maintaining environmental balance, how is a consumer brand leading the charge on transparency and environmental reporting? Felicia Jackson asks Jochen Zeitz, chief sustainability officer of luxury group PPR and executive chairman of sports lifestyle brand PUMA

ȖȖOne of the great challenges in Clearly, the bulk of its ecological FSC (Forest Stewardship Council) provided by the EP&L to act as a addressing sustainability issues is impact lies in the supply chain and, certified paper for its packaging, catalyst for change. He believes in that, while it is clear the world is unsurprisingly, the largest impact to certification of the company’s business as a force for better, saying: overusing its resources, it is less is at the greatest distance, where main logistics platform LGI (Lux- “Whether you look at it as a respon- clear what specifically should be raw materials are garnered through ury Goods International). sibility or as an opportunity, govern- done. Jochen Zeitz believes that the use of natural resources, from ment and corporations need to work transparency about how products the water used for growing cotton SAVINGS together.” By enabling the company are designed, made and distributed to cattle ranching for the supply of It is a tool which is expected to pro- is the most important step towards leather. This part of the supply chain vide the basis for a growing strategic sustainable business. accounts for 36 per cent of the total framework. For any business, strate- Environmental profit He believes that everyone can con- GHG (€16.7 million or £14.8 million) gic planning requires an understand- tribute to a more sustainable life and 52 per cent of water consump- ing of how prices may change and how and loss can be integrated and that luxury brands, which are tion (€24.7 million or £22 million). that might affect the bottom line. By all about desirability, have a tre- What makes the EP&L so exciting looking at the numbers, PUMA can into overall profit and mendous opportunity to change is that PUMA has taken a significant see where energy use, emissions or consumer behaviour. “We need step away from addressing environ- water consumption are costing the loss, providing a basis for global solutions but we can’t wait mental concerns as a purely corporate most and, therefore, where it is most for them,” he says. social responsibility (CSR) issue and likely to find efficiencies – and that embedding reliance on Working with PPR Home, PPR’s made it one for the finance team. The means cost savings. sustainability initiative, PUMA has EP&L can be integrated into overall Mr Zeitz says that these measure- ecosystem services into launched an environmental profit and profit and loss, providing a basis for ments of environmental profit and loss (EP&L) account to address this embedding reliance on ecosystem loss are just the first stage of the jour- business strategy challenge. The EP&L attempts to put services into business strategy. ney for PUMA. It is already working an economic value on the impact of with tier-1 suppliers to work sus- the company’s greenhouse gas emis- IMPACTS tainably and plans to require these to truly understand the impact of its sions and water use. Working with Mr Zeitz says: “The business impli- suppliers to push PUMA standards actions, by enabling that framework PricewaterhouseCoopers and Tru- cations of failing to address nature further down the supply chain. The to be used by others and by inte- cost, the company has reported that in decision-making is clear: since goal is to influence change all the way grating the real cost of our actions the cost of these external impacts is ecosystem services are vital to the along the line. into economic activity, we could be equivalent to €94.4 million (£84 mil- performance of most companies, The EP&L has flaws. It does not facing a cultural shift in the way in lion) per year. By measuring these integrating the true cost for these address the disposal of goods, which which we do business. And, if that is impacts, the company can then man- services in the future could have sig- is a growing problem as the cost of the case, understanding those costs age them more efficiently. nificant impacts on corporate bot- landfill increases and availability is going to become an integral part It is how that cost is broken down tom lines.” decreases. It is a work in progress, of doing business. that is noteworthy, however, with What the EP&L does is provide with a broader evaluation, including Puma is replacing only a small percentage of its impact a strategic framework that any impacts on land-use, waste and acid cardboard shoeboxes being under the company’s direct brand within the PPR network, or rain, due later in the year. The with a reusable, control. The direct ecological impact elsewhere, can use to address costs group also hopes to inte- eco-friendly bag of PUMA’s operations is equivalent within its operations. It is a tool grate reporting on social to €7.2 million (£6.4 million) with an that allows companies to visual- and economic impacts, additional €87.2 million (£77.5 mil- ise their impacts and then manage from the creation of jobs lion) falling across four tiers of its them. It is important to note that it and tax contributions supply chain. Of the total, PUMA’s is not replacing other CSR activi- to philanthropic initia- direct operations accounted for 15 ties by other brands. These range tives and other value- per cent of the overall greenhouse from social accountability standard adding elements. gas emissions (GHG) analysed and SA 8000 certification for Bottega Most important, however, 0.001 per cent of water consumption. Veneta and Gucci, which also uses to Mr Zeitz is the opportunity Source: WWF Living Planet Report, 2010

06 RACONTEUR TWITTER.COM/RACONTEURMEDIA Sustainable luxury

FOR RICHER, FOR POORER? FOR THE SAKE OF PLANET EARTH

OPINION WWF-UK’s head of business & industry Dax Lovegrove asks can luxury brands truly embrace deeper values while avoiding conflict with the needs of those who are less well-off?

ȖȖWe are already using natural of the pollution impacts from dredg- Perhaps we will see clothing com- resources well beyond the planet’s ing activities. California now looks panies go even further, and luxury ability to replenish them and we set to rule in favour of the salmon and clothing leased and shared rather know that this ecological debt will could soon outlaw prospecting. than wastefully bought, worn rarely have to be repaid. Just as jewellery production is and thrown away to make room for WWF’s Living Planet Report shows coming under increasing pressure next season’s fashions. we are currently using the equivalent to balance the desires of the rich, Additional support for demate- resources of 1.5 planets to support the needs of the poor and environ- rialisation comes from increasing our activities and that a continua- mental considerations, so is high- waste-to-resource practices. Worn tion of current trends on a global fashion clothing. Again is an example of a business scale would mean that by 2030 we Bulk turnover in clothes and new that ‘upcycles’, converting textile would need the equivalent of two fashions from season to season waste into a resource to create new planets’ productive capacity to meet require increasing use of textiles, products. Its latest product uses our demands. which can have a significant water postal workers’ decommissioned So how do we start to ensure our footprint in India, Pakistan and storm jackets which are turned into resources are best used for rich and China, where they are often sourced, everyday bags. poor while operating within the and in regions where water scarcity Innovative upcycling has also fea- planet’s natural limits? is an increasing problem for poorer tured from the outset for luxury In developed economies and within communities. Various businesses goods producer Elvis & Kresse. the growing middle classes in emerg- are working to improve practices The company has actively sought ing economies, there is an increas- through the Better Cotton Initiative ways of turning waste into luxury ing appetite for luxury goods, which in the face of increasing water crises. goods. Its Fire-Hose range, avail- can often have high environmental But how can luxury industries able at Harrods, includes high-end impacts. For example, the consump- move into new opportunities that bags and wallets made from decom- tion and impacts around jewellery embrace deeper values and manage missioned fire-brigade hoses that are spotlighted within WWF’s foot- social and environmental impacts? would normally end up in landfill. print calculator, (http://footprint. The answer potentially lies within Fifty per cent of profits from the wwf.org.uk). the innovative thinking that is fire-hose line are donated to The Jewellery production has made pro- emerging in parts of the sector. Fire Fighters Charity. gress with mining industries making Vivienne Westwood, for exam- These innovations manage to com- significant improvements in environ- ple, has encouraged customers to bine the essence of luxury with the mental management. But diamonds ‘choose well and buy less’, and recy- deeper values of social and ecological and gold remain among the most cle clothes. She has warned against enterprises. They point the way for carbon-intensive items of adorn- the ‘drug of consumerism’. luxury brands to drive consumers ment in terms of the energy inputs This push on reducing consump- to value quality and sustainability. around their extraction and process- tion and recycling helps to drive the Moreover, luxury goods that pro- ing. Extractive activities also require industry to dematerialise and there- vide net benefits rather than harm- and impact a great deal of land, fresh fore lessen its impacts. It also sup- ful impacts to rich, poor, and the water and other resources that many ports a future when far more equi- natural world will be more resilient would argue could be better used to table use of vital natural resources, in the face of increasing resource support the needs of the poor. such as fresh water, will be rising up constraints and greater scrutiny on As a case in point, the Grasberg international agendas. activities within the supply chain. gold mine has created friction in Indonesia with local communities. It produces hundreds of thousands of tonnes of mining waste which has Perhaps we will see luxury impacted the water quality of the Aikwa River, local fishing and sub- clothing leased and shared rather sistence farming in the region. On a smaller scale, modern-day than wastefully bought, worn 49ers in California, who champion their rights for continued gold pros- rarely and thrown away to make pecting, have come up against reports Source: WWF Living Planet Report, 2010 of declining Pacific salmon as a result room for next season’s fashions

TWITTER.COM/RACONTEURMEDIA RACONTEUR 07 Sustainable luxury

Ecological Footprint: Economic level The ecological footprint, according to four political groupings which broadly represent different economic levels, illustrates that higher income, more developed NEW FRONTIERS countries generally make higher demands on the Earth’s ecosystems than poorer, less developed countries. In 2007, the 31 OECD countries, which include the world’s richest economies, accounted for 37 per cent of humanity’s ecological footprint. In contrast, the ten ASEAN countries and 53 African Union countries, which include some of the world’s poorest and least developed countries, together accounted for IN LUXURY only 12 per cent of the global footprint. MAY SHAKE UP OLD GUARD Key Organisation for Economic Co-operation and Development (OECD) Brazil, Russa, India and China (BRIC) African Union EMERGING MARKETS The jury is out, but some analysts think that Association of Southeast Asian Nations (ASEAN) the emerging economies could prove a driving force in the spread of Rest of the world sustainability among luxury brands. However, new consumers overseas could prefer luxury goods produced closer to home, challenging the established order. Josh Sims weighs up the evidence

Ecological key footprint for OECD, ASEAN, BRIC and African Union countries in 2007, as a proportion of humanity’s total ecological footprint (Global Footprint Network, 2010)

ȖȖGrowing economies, most nota- ship and learning that could be devel- are greater social pressures to think bly the so-called BRIC countries of oped – but the right pressures will about sustainability even more so Key Brazil, Russia, India and China, are need to be applied.” than in the West,” says Dr Quinn. “It’s Carbon In contrast, the relative contribution from the cropland, grazing land and Grazing forest footprint components has generally decreased for all regions. The boom markets for the luxury goods Indeed, other commentators are less about the personal freedom of Forest decrease in the cropland footprint is the most marked, falling from 44–62 industry, with rising numbers of now suggesting that the change to the individual, as working together Fishing per cent in all groupings in 1961 to 18–35 per cent in 2007. This shift from a biomass to a carbon-dominated ecological footprint reflects the substitu- mega-rich and a rapidly increasing more socially conscious shopping for future generations. There’s a cul- Cropland Built-up land tion of fossil fuel-based energy for ecological resource consumption. middle class aspiring to world-class may come sooner than imagined and tural divide between the West and international brands. that ethics will become core to brand emerging markets, China especially, Certainly, emerging markets look image as much in Moscow as Man- that will show up soon.” OECD BRIC African set to further boost demand for hattan, Beijing as Berlin. Small wonder the likes of both Jag- Union luxury goods, not least because of Milton Pedraza, chief executive of uar and Roll-Royce have recently societal restructuring. China, for specialist research body the Luxury

example, is now planning to reduce Institute, for example, notes how 1961 its relatively high taxes on luxury consumers in emerging markets are HOW HARRY imports, as well as launching initia- typically highly educated and sub- POTTER’S MAGIC tives against the counterfeiting of ject to the same cycle of awareness CAST A SPELL ON luxury goods. in ethical issues. “And the emerging HIS CREATOR TO It is no surprise then that the likes markets are unlikely to let luxury DO GOOD WITH of Prada can plan to float on the Hong goods companies off the hook for A BOOK AND Kong Stock Exchange, with a flo- long,” he adds. MOVIE FORTUNE tation value at £9 billion. Nor is it - page 12 surprising that luxury goods are set ASPIRATIONS to be the fastest growing consumer Other factors may play a part too. category in China over the next five “There is a structural quality to sus- trialed electric versions of tradition- 2007 years, according to research com- tainability and growth’s appeal to the ally gas-guzzling vehicles. “It’s an pany CLSA, who predict the greater people of emerging markets – they’re exploration of what our new clients China region will account for 44 per both responsive to very human aspi- think about a more environmen- cent of the luxury goods market by rations,” says Francis Quinn, head tally-friendly engine,” says Rolls- the end of the decade, compared with of sustainability for L’Oreal, which Royce chief executive Torsten Mul- the 10 per cent it accounts for now. published its first country-specific ler-Otvos of the Phantom 102EX. “It The assumption has been that con- sustainability report last year. “The is perhaps less about whether they The relative size and composition of the total ecological footprint in OECD, sumers in emerging markets are link made between luxury and qual- really want it so much as respond- BRIC, ASEAN and African Union countries in 1961 and 2007. allowing the luxury goods industry ity of life in the emerging markets is ing to changes in legal issues in cer- The total area of each pie chart shows the relative magnitude of the footprint for each political region (Global Footprint Network, 2010). to further delay a high-profile ethi- very strong and, although there is a tain countries that might encourage cal overhaul. The notion is that they, big income disparity, there is wide- them to look into the area. Get it right unlike their more developed west- spread acceptance of privilege and though and there’s definitely a mar- ern counterparts, are still primarily wealth because there is the sense that ket there.” driven to buy by the appeal of status everyone is in the same rising boat.” Even demand in the emerging and the ostentation of high prices. Furthermore, with the very wealthy markets for the ultimate luxury The assumption has been that in emerging markets tending to item – a yacht – is in part already PRESSURES be younger than in the West, being shaped by sustainability issues, consumers in emerging markets “And this is in large part true,” says Jill with each new generation gener- according to Ed Dubois, founder of Telford, UK chief executive of market ally more ardent in their ethical Dubois yacht designers, who are are allowing the luxury goods analysts Synovate. “For the moment consumption and with internet currently working on a £16-million consumers in these countries don’t access increasingly a vital tool for yacht for a Chinese client. “The West industry to further delay a high- appear to be interested in sustainabil- disseminating understanding of may be ahead on the cycle but inter- ity in their purchases, much as they’re the ethical ramifications of pur- est in emerging markets is growing,” profile ethical overhaul not concerned about local river or air chases, emerging markets could says Mr Dubois. “There is an aware- pollution. They could change faster be set to ask difficult questions ness that in buying a yacht one is, for than the West did – the Chinese, for of even the most elite producers. example, investing in almost entirely example, have a love of connoisseur- “Collectivist thinking means there artisan skills, even seeing such luxury

08 RACONTEUR TWITTER.COM/RACONTEURMEDIA Sustainable luxury

http://wwf.panda.org/lpr FOOTPRINT V BIODIVERSITY A country’s ecological footprint is a measure of how many renewable resources it uses to feed and support its citizens. These resources can come from around the world — a country’s ecological footprint can exceed its own country’s capacity if it’s using resources that are taken from other countries. And, if we look at the last 40 years, while wealthier countries’ ecological footprints have risen drastically — implying that they are using more ecological resources than before — their biodiversity (as measured by the Living Planet Index) has increased. At the same time, the biodiversity of poorer countries has plummeted. Are wealthy countries using more resources at the expense of the less- well-off?

Key Organisation for Economic Co-operation and Development (OECD) Brazil, Russa, India and China (BRIC) African Union

1 1

198 19

19 1 Association of Southeast Asian Nations (ASEAN) 19

1985 9 9 19

19 99

8 8 19 9

1983 8 9

8 9 1995 0

7 93 Rest of the world 1

19 6 84 2 1996

19 9 4

1980 8 19

8 2 1998

1979 1 9 19

19 7 20

19 7 99

8 AL F O 20

19 7 G IC OT

P 0

7 LO R 2 1

S 7 O IN 00

E 1975

6 C T 2 I

E 0

R 19 0

T 2004 N 7 3

U 19 4

MAP KEY 2

O 7 00

C 19 3

5 2 7 00

E 1 2

M S 6

E 9 20

O I 7 High-Income Middle-Income Low-Income Not Categorised 1 0 C R 19 7 N T 7 I N 0 - S U H E O I G I C R T H E N M U O O C C

N I E - M E L O C D N D I I -

M W

L Ecological key footprint for OECD, ASEAN, BRIC and African Union countries in 2007, as a proportion of humanity’s total ecological footprint (Global Footprint Network, 2010) 10 9 87654321 0 021 345678910

NUMBER OF GLOBAL HECTARES PER PERSON

In contrast, the relative contribution from the cropland, grazing land and forest footprint components has generally decreased for all regions. The decrease in the cropland footprint is the most marked, falling from 44–62 per cent in all groupings in 1961 to 18–35 per cent in 2007. This shift from a biomass to a carbon-dominated ecological footprint reflects the substitu- tion of fossil fuel-based energy for ecological resource consumption.

African ASEAN LIVING PLANET INDEX Union

2 4 7 3 6 7 8 9 1 4 5 7 9 01 02 05 07 70 71 73 7 75 76 7 78 79 8 8 8 8 8 9 0 19 19 197 19 19 19 19 19 19 19 1980 1981 1982 19 1984 1985 19 19 19 19 1990 199 1992 1993 199 199 1996 19 1998 199 2000 2 20 2003 2004 20 2006 20

1.1 1.0 HIGH-INCOME COUNTRIES 0.9 MIDDLE-INCOME COUNTRIES 0.8 EX (1970 = 1) LOW INCOME D 0.7 LOW-INCOME COUNTRIES 0.6 ANET IN

L 0.5 0.4 ING P V I

L 0.3

COUNTRY CATEGORISATION

High-Income: Andorra, Antigua and Barbuda, Australia, Aus- Middle-Income: Albania, Algeria, American Samoa, Angola, Ar- Low-Income: Afghanistan, Benin, Burkina Faso, Burundi, Côte tria, Bahamas, Bahrain, Barbados, Belgium, Bermuda, Brunei gentina, Belize, Bhutan, Bolivia, Brazil, Bulgaria, Cameroon, d’Ivoire, Cambodia, Central African Republic, Chad, Comoros, Darussalam, Canada, Cayman Islands, Channel Islands, Cy- Cape Verde, Chile, China, Colombia, Congo, Costa Rica, Cuba, Democratic Republic of Congo, Gambia, Ghana, Guinea, Guinea- prus, Denmark, Equatorial Guinea, Finland, French Polynesia, Djibouti, Domincia, Dominican Republic, Ecuador, El Salvador, Bissau, Haiti, Kenya, Democratic People’s Republic of Korea, Germany, Greece, Guam, Hungary, Iceland, Ireland, Isle of Man, Rijo, Gabon, Grenada, Guatemala, Guyana, Honduras, India, Liberia, Madagascar, Mali, Mauritania, Mozambique, Myanmar, Israel, Italy, Japan, Republic of Korea, Kuwait, Liechtenstein, Indonesia, Islamic Republic of Iran, Iraq, Jamaica, Jordan, Nepal, Niger, Nigeria, Pakistan, Papua New Guinea, Rwanda, Luxembourg, Malta, Monaco, Netherlands, Netherlands An- Kiribati, Lebanon, Libyan Arab Jamahiriya, Malaysia, Maldives, Senegal, Sierra Leone, Solomon Islands, Somalia, Togo, tilles, New Caledonia, New Zealand, Norway, Oman, Portugal, Mauritius, Mayotte, Mexico, Mongolia, Morocco, Namibia, Nica- Uganda, Vietnam, Yemen, Zimbabwe. Puerto Rico, Qatar, San Marino, Saudi Arabia, Singapore, ragua, Panama, Paraguay, Peru, Philippines, Poland, Romania, The relative size and composition of the total ecological footprint in OECD, Spain, Sweden, Switzerland, Trinidad and Tobago, United King- Saint Lucia, Saint Vincent and Grenadines, Samoa, Seychelles, BRIC, ASEAN and African Union countries in 1961 and 2007. dom, United States of America, US Virgin Islands. South Africa, Sri Lanka, Sudan, Suriname, Syrian Arab Repub- The total area of each pie chart shows the relative magnitude of the lic, Thailand, Timor-Leste, Tonga, Tunisia, Turkey, Uruguay, footprint for each political region (Global Footprint Network, 2010). Vanuatu, Bolivarian Republic of Venezuela. Source: WWF Living Planet Report, 2010

purchases as a means of redistribut- report, the middle class of India, which it is still closely associated. the psyche of the home consumer. on an ecology ticket. US First Lady ing wealth. Certainly the extreme which has tripled in the last 20 Indeed, perhaps the bigger ques- And those anti-counterfeiting meas- Michelle Obama wears not the cou- wealth that some emerging-market years to some 250 million people, tion is not whether the luxury ures are as much to protect these new ture of old Europe but dresses by customers have gives the luxury of may have been raised on western goods companies can sell to emerg- domestic luxury brands as imports Chinese designer Jason Wu. being able to spend with conscious- media, but 68 per cent now believe ing markets on the sustainability from Italy, France and the UK. And, attempting to debunk any ness about such issues.” locally-made goods are just as good ticket, highlighting its credibility The signs are already there. The idea that a luxury brand takes dec- Yet perhaps they will prefer to as international brands. That is one through advertising and market- Chinese contemporary art market is ades or centuries to build, Hermes spend at home, to keep money within reason why luxury goods houses are ing, so much as whether they will in booming and the first Chinese work has now launched Shang Xia, the their own economies, which is argu- set to look at ways of employing local fact be beaten to it by new competi- is expected to sell for $100 million first bona-fide Chinese luxury goods ably another form of sustainabil- artisan skills in these buoyant mar- tion? The first luxury goods brands (£63 million) by the end of the year, brand, specialising in Chinese crafts ity in straitened times. The lure of kets and, in time, might help foster native to the emerging markets, while Russia is leading the way in and Chinese materials. It opens its the “patriotic purchase” is strong. an appreciation for quality, regard- are now launching and are argu- cutting-edge multi-media arts. Bra- second standalone store this year According to a recent Synovate less of the place of manufacture with ably better placed to understand zil has elected its new president – in Paris.

TWITTER.COM/RACONTEURMEDIA RACONTEUR 09 Sustainable luxury CUT AND THRUST OF SAVING TRADITIONAL SKILLS

Fashion, hotels, private jets and the tuna fish … examples of sustaining luxury living – page 15

10 RACONTEUR TWITTER.COM/RACONTEURMEDIA

Sustainable luxury

FORTUNE FAVOURS THOSE WHO KNOW HOW TO HELP OTHERS

PHILANTHROPY The ultimate luxury is having money to give away, but there are a host of different ways to do it. Billionaire philanthropists Bill Gates and Warren Buffett are among the biggest individual givers who donate on a not-for-profit basis, for example. Mike Scott looks at the various models of how to give away a fortune and make the cash count

ȖȖPerhaps the ultimate luxury is tries, for example. “We focus on only mary education and microfinance having enough money to give it a few issues because we think that’s – serving the “base of the economic away to good causes. As JK Rowling, the best way to have great impact pyramid”, provide a potential invest- author of the Harry Potter books, and we focus on these issues in par- ment opportunity of between says: “Large amounts of wealth ticular because we think they are the US$400 billion (£250 billion) and bring a certain responsibility. If biggest barriers that prevent people $1 trillion (£630 billion), with poten- you’re any kind of human being, from making the most of their lives,” tial profits of between $183 billion then after you fulfil your family’s the couple say. (£115 billion) and $667 billion (£418 needs, you think, well how do I do billion) over the next decade. some good with this?” ROCKEFELLER There are countless examples of While the Gates Foundation is not- GOLDSMITH wealthy individuals and large corpo- for-profit, other wealthy individuals Another approach is to set up your rations using their financial muscle and organisations hope to do good own investment fund focusing on to help others, but it is by no means and generate a profit at the same a particular field. One area that is as straightforward as it might seem time, in a process known as impact very popular at the moment is clean – there are a number of models of investing. “Government funding, technology, where a number of fam- how to put your money to good use. international aid and philanthropy ily investors have started their own One of the most obvious and high- alone are insufficient to solve the funds to invest in the start-up com- profile ways is to set up your own world’s most challenging problems,” panies that characterise the sector. charitable foundation, as Micro- says Judith Rodin, president of the Prominent examples include Ben soft founder Bill Gates and his wife Rockefeller Foundation, one of the Goldsmith, brother of Conservative Melinda have done. Thanks to their oldest charitable foundations in MP Zac and a co-founder of Lon- De Beers, the mining company input and donations from another of the United States. Impact investing don-based WHEB Ventures, Andre the world’s richest men, Warren Buf- could attract huge sums of private Heinz, whose Sustainable Technolo- that is synonymous with diamonds, fett, the Bill and Melinda Gates Foun- money to complement philanthropy gies Fund is based in Sweden, and Al dation is one of the biggest charities in addressing pressing social chal- Gore, the former US vice president says investment in the future of in the world. lenges, Dr Rodin adds. who is co-founder of Generation Because of its scale, the Foundation The Global Impact Investing Net- Investment Management. communities is core to receiving its can take on some of the biggest chal- work says that five sectors – afford- Luxury brands have tapped into lenges there are, extreme poverty able urban housing, rural access to this philanthropic spirit with their social licence to operate and poor health in developing coun- clean water, maternal health, pri- own initiatives. The luxury pen and

12 RACONTEUR TWITTER.COM/RACONTEURMEDIA Sustainable luxury

Philanthropists Bill and Melinda Gates work © Bill & Melinda Gates Foundation in developing countries to tackle the causes of extreme poverty and poor health Banking on an eco- partnership

watchmaker Montblanc, for example, commits to a charity initiative each year. In 2009, it raised more than $4 million (£2.5 million) for the UNICEF Signature For Good project to fight illiteracy worldwide, while in 2010 the company launched a John Lennon Edition of writing instru- ments which saw proceeds donated to music charities around the world. This year, it has teamed up with the Princess Grace Foundation-USA, a charity dedicated to identifying and assisting emerging talent in the per- forming arts. De Beers, the mining company that is synonymous with diamonds, says investment in the future of communities is core to receiving its social licence to operate. In its 2010 Report to Society, the company says that it spent $29 million (£18 million) on community investment last year ranging from HIV and Aids Kevin Baker, programmes to strategic philan- chief executive of Thomas Lyte thropy in the areas of education, health, youth development, environment and cultural projects. support Ask most people to think of eco-fashion and visions of drab designs using coarse fabrics will spring to mind, writes Simon Brooke

ȖȖWearing them might make you company was founded in 2007. “We Europe. Since it started, 200,000 feel virtuous, but you certainly won’t decided that we would be a modern, children have benefited from its pro- feel stylish or comfortable - and nei- ethical, luxury brand and we enjoy grammes, the charity says. ther will there be anything luxurious a supportive relationship with the The financial background of the char- about them. HSBC team,” says chief executive ity’s trustees is evident in its philosophy, Not any more, though. Over recent Kevin Baker. which requires projects to deliver: years both the image and the reality The company has hired ethical strat- ȯȯ High impact – focusing pro- of eco-luxury and eco-fashion have egy consultants to advise them on eve- grammes on the most disadvan- changed radically. rything they do from design through taged children and on interventions Founded by the British Fashion to manufacture and distribution. where it can make a real difference Council five years ago and spon- Silver residue from the manufac- ȯȯ Measurable social returns – applying sored by retailer Monsoon, Estethica turing process is collected and recy- sound business disciplines, empha- showcases the growing movement of cled, while vegetable dyes are used on sising measurement and evaluation cutting-edge designers committed its leather pieces instead of chemical ȯȯ Catalysts for change – ARK sticks to working along sustainable and products. Ten per cent of the com- with a programme until it can stand ecological lines. pany’s profits go to help new, young FOCUSED KIDS’ CHARITY on its own feet, supported by a “It shows how sustainable design creative talent. mix of local, national and suprana- is not about an itchy hemp sack. Orla Kiely, known for her beauti- GETS MEASURABLE RESULTS tional partnerships, to ensure pro- Instead it can be a beautiful dress ful bags and accessories, also uses grammes act as a catalyst for long- or a fabulous piece of statement jew- vegetable dyes. “We have a recycling CASE STUDY The ARK Foundation uses its financial term, systemic change ellery,” says Caroline Rush, British policy and all our paper is reused,” expertise to ensure the charity’s funds are put to the most ȯȯ Leverage – the Foundation max- Fashion Council chief executive. says managing director Dermott imises the value of voluntary do- Carol Bagnald, HSBC regional com- Rowan. “We also have a company effective use, writes Mike Scott nations by leveraging additional mercial director, is on the board of the bike scheme which encourages peo- funding from governments and in- British Fashion Council and has seen ple to ride to work.” A mainstay of the luxury market in re- of Cambridge, and for the huge sums ternational grant-making bodies. some of these exciting innovations An Orla Kiely bag designed for cent years has been London’s hedge spent by guests on lots that includ- first-hand through the work of Esteth- Tesco, to discourage shoppers from fund community. Masters of con- ed a weekend at Blenheim Palace do- This approach clearly produces re- ica and also their own customers, such using plastic bags and which includes spicuous consumption, they are also nated by the Duke of Marlborough, a sults. At the annual UK Charity Awards as Thomas Lyte and Orla Kiely. a 50p donation to charity, is now so adept at conspicuous philanthropy. work by artist Tracy Emin, a weekend 2011, ARK won the international aid For Thomas Lyte, a new British sought-after that some early editions One of the most adept is Arpad Bus- at the Oscars, and a day at a fashion and development award for its work in luxury leather brand, being green are currently selling on eBay at many son, who runs the £8-billion EIM hedge show with Vogue editor Anna Win- Bulgaria to support children in leaving is not simply an add-on, it’s been an times their original price – a great fund, but is better known for his colour- tour. The dinner raised more than £17 institutional care and prevent children essential consideration since the example of sustainable luxury. ful love life – former partners include million to add to the more than £150 from being abandoned. model Elle Macpherson and actress million the Foundation has raised Most recently, ARK doubled its con- Uma Thurman – and his ARK (Abso- since its establishment. tribution to the Global Alliance for lute Return for Kids) Foundation. ARK says its aim is “to transform Vaccines and Immunisation to £2 mil- Over recent years both the image ARK’s tenth anniversary fundraising children’s lives” and it focuses on lion to help fund the roll-out of the ro- dinner in June was notable for being health in sub-Saharan Africa, educa- tavirus vaccine to treat diarrhoea in and the reality of eco-luxury and the first public appearance since their tion in the UK, United States and In- Zambia. Diarrhoea is the second big- honeymoon of the Duke and Duchess dia, and child protection in Eastern gest killer of under-fives in Africa. eco-fashion have changed radically

TWITTER.COM/RACONTEURMEDIA RACONTEUR 13 Sustainable luxury

LEADING BY EXAMPLE WITH SUSTAINABLE BUSINESS PLANS hotels

ȖȖThe Scarlet Hotel, a luxury eco- ness model that could show people This means that, while the Scarlet INNOVATION Reducing the environmental impact hotel on the north coast of Cornwall, there could be a different way. Peo- is decorated with water-based paints, was built from scratch to incorporate ple seemed to be doing more and heats its swimming pools using solar of luxury goods requires a combination of new a host of environmentally-friendly more ridiculous things that passed power and its rooms with a biomass technology and a new way of thinking. Mike Scott technologies and materials. “What for luxury. We deliberately wanted boiler, as well as harvesting rain- took the time was not the construc- to challenge what luxury was.” water and recycling “grey water” reports on best practice across four sectors tion, but thinking about what was The sisters were sure that they which has been used for washing, its needed,” says Emma Stratton, one wanted to build something that was approach is as much about being part of three sisters who run the hotel. really luxurious. “But we questioned of the local community and sourcing The tourism industry is incred- whether luxury had to be all about local ingredients for its restaurant. ibly wasteful, whether in the way consumption,” says Ms Stratton, “Luxury should always be sustain- produced in substandard conditions that there is air conditioning in every who defines luxury as being about able if it is worth having,” Ms Strat- by poorly paid workers. room or the “lavish overfeeding” of wellbeing, simplicity and a more ton says. “It is the simple pleasures in “Ethical fashion is about rebalanc- guests, she says. “We wanted a busi- caring approach. life that make people happy.” ing and encouraging people to engage emotionally with what they buy,” says Ms de Castro, who also curates Estethica, a sustainable fashion initiative at London Fashion Week. “Buy less, buy better is our credo.” Customers are now more interested in where and how their clothes are being made, and by whom, so the industry has to “create an alternative where people are aware that something made in the UK will be a bit more expensive but also a lot more sustainable,” she says. “We need to redefine the word luxury. At the moment, it just means PRIVATE JETS ‘glossy’. It is important for customers to know that luxury is not just ȖȖFew things spell out luxury – or have to take account of the soaring fuselage made from lightweight about your own private definition, excess – more than turning left, not price of fuel, which is one of the composite materials and specially fashion but that it extends throughout the on the plane but on the runway, to main costs for private jet owners. designed wings with a smoother supply chain.” head to your own private jet. But The £2.8-million light business jet surface that reduces drag. ȖȖBy definition, fashion is an ephem- even this symbol of conspicuous con- has a number of fuel-saving features Innovation in this field is not just eral, here-today gone-tomorrow sumption is having to take account and lives up to the brand’s reputa- about technology. NetJets, a com- business that is fast-moving, dis- Waste is a huge of pressures to be more environmen- tion for efficiency in its cars. pany that allows users to fly privately posable and dynamic. But it is also a tally-friendly. These include engines mounted without the expense of owning a jet, sector with a wide variety of sustain- problem and there are Take the new HondaJet, which is above the wing which the com- offers its customers the option of off- ability issues that range from agricul- due to come onto the market next pany says raises the aircraft’s per- setting their carbon emissions and is ture – the use of pesticides and fer- also issues around the year and is typical of the new breed formance, improving fuel efficiency also involved in research to develop tilisers, and water availability – to of corporate aircraft. Even tycoons and reducing noise. It also has a low-carbon fuels. child labour and sweatshop factories. environmental impacts According to the Centre for Sus- tainable Fashion: “The fashion of crops such as cotton industry is based on a model of con- © Jerry Driendl / Getty images tinual economic growth fuelled by ever-increasing consumption of Ms de Castro’s own brand perhaps resources.” The Centre points out comes closest to embodying the con- that the unsustainability of this cept of sustainable, luxury fashion model is widely acknowledged. through its championing of “upcy- Globalisation of the industry, dur- cling”. While recycling often involves ing the last 20 to 30 years, has con- chemical or mechanical processes to tributed to a trend of overconsump- return a material to a state where it tion, says Orsola de Castro, founder can be fed back into the supply chain, of the label From Somewhere, which upcycling takes that material and makes clothes from “pre-consumer” creates new products with it. bluefin tuna offcuts of luxury materials that It is, therefore, ideally suited to the would otherwise be thrown away, fashion industry, which is full of crea- ȖȖBluefin tuna is one of the world’s the species is severely overfished, also been attempts to breed the fish and focuses on the issue of recycling tive people able to spot the opportu- most sought-after and expensive fish particularly in the Mediterranean. in captivity, but with limited suc- in the industry. “Waste is a huge nities to take unwanted fabrics and – and one of the most endangered. It According to WWF, actual catches cess so far. problem and there are also issues materials and turn them into new illustrates some of the dilemmas fac- exceeded the quota by 1.5 times in However, such initiatives have around the environmental impacts products. “Upcycling is very costing the luxury market and the knots 2004. Because they reach such huge not stopped a campaign against res- of crops such as cotton.” effective, but also incredibly crea- that companies can tie themselves sizes, bluefin take a long time to taurants such as Nobu, which still While some brands retain the hand- tive and visually very strong. It really in trying to deal with them. grow to maturity and many fish are serve the fish. Unlike other restau- made, artisanal approach in their tra- makes sense for the fashion industry,” The fish is prized in Japanese res- being caught before they have had rants that have removed it from ditional European bases, where the says Ms de Castro, whose commis- taurants in particular for sushi and a chance to breed. their menus, Nobu serves bluefin ratio of price to the craft that goes sions include a dress for actor Colin sashimi, and can grow to almost In response, companies such as but has a note on its menu that says: into the manufacture of the good is Firth’s wife to wear to the Oscars and four metres long and more than Umami have started farming blue- “Bluefin tuna is an environmentally about right, many have outsourced a collection made from the full-body 600 kilograms in weight. A single fin by capturing them in the wild threatened species. Please ask your production to countries such as China swimsuits worn by Olympic swim- tuna sold at auction in Japan ear- and then towing them to feeding server for an alternative.” There and Vietnam, exposing them to the mers after swimming’s governing lier this year for almost £250,000. cages. Umami has tuna farms in are some problems that technology possibility that their goods are being body banned the costumes. It is not surprising, therefore, that Mexico and Croatia. There have cannot solve.

TWITTER.COM/RACONTEURMEDIA RACONTEUR 15