Mainstreaming Biodiversity in Manufacturing & Processing

A Focus on Luxury Supply Chains CBD SBSTTA 21

Dr. Helen Crowley, Head of Sustainable Sourcing Innovation 11 December 2017 WHO WE ARE

Kering is a global luxury Group with an ensemble of luxury Houses in fashion, leather goods, jewellery and watches: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin

Kering also owns Sport & Lifestyle brands Puma, Volcom and Cobra

Kering is a luxury Group in motion, audacious and free to make its own choices. By ‘empowering imagination’, Kering encourages its brands to reach their full potential, in the most sustainable manner

24 November 2017 2 OUR CEO’S VISION FOR SUSTAINABILITY

”More than ever I am convinced that sustainability can redefine business value and drive future growth.”

François-Henri Pinault TITLE

WE DON’T JUST SEE THIS...

19.01.18 4 TITLE

...WE A L S O SEE THIS

19.01.18 5 NATURAL CAPITAL ACCOUNTING

KERING’S ENVIRONMENTAL PROFIT & LOSS ACCOUNT WHAT IS AN EP&L?

PROFITS = BENEFITS TO SOCIETY LOSSES = IMPACTS ON ENVIRONMENT

An Environmental Profit & Loss is an account that

measures in monetary value (€) the environmental impacts on society that

are generated by a company across its entire value chain,

be it within its own operations or its supply chain.

THE VALUE LOST/GAINED BY SOCIETY TOTAL IMPACT OF BRINGING OUR DUE TO OUR ACTIVITIES PRODUCTS TO MARKET

24 November 2017 7 WHY USE AN EP&L?

• Understand our true impacts and identify hotspots

• Reveal risks and find effective solutions for mitigation

• Use as decision-making tool and influence daily choices

• Monitor progress in 2025 strategy, while forecasting and preparing for the future

• Be transparent with our stakeholders

24 November 2017 8 BIODIVERSITY WITHIN THE EP&L

• We know that business can have impacts on species & ecosystems • The degradation of ecosystems is measured as loss of ecosystem services through the “Land Use Change (LUC)” indictor in the EP&L • Other indirect impacts on ecosystems and biodiversity are captured to some extent through the other five indicators in the EP&L • However, we also recognize that we need to capture a broader scope of impacts on biodiversity (e.g. endangered species) and this does not need to be “monetized” within the EP&L

24 November 2017 9 Collaboration on developing a biodiversity impact metric for companies

OPPORTUNITIES FOR BIODIVERSITY IN SUPPLY CHAINS