Kering releases the results of its Group-wide Environmental Profit and Loss Account

1910

laptop on grassKering released the results of its pioneering Environmental Profit and Loss Account (E P&L), measuring its environmental footprint in its own operations and across the Group’s supply chai
ns and valuing it in monetary terms. Further, Kering has published its E P&L methodology in order to provide an open-source tool to encourage other corporations to understand their entire impact on natural capital. Kering is sharing this work to support the development of corporate accounting of natural capital, and the Natural Capital Protocol2, a cross-sector industry initiative developing a global methodology for environmental accounting.

Through the E P&L, Kering has analysed the impact on natural capital from raw materials to the delivery of products to its customers, including logistics and stores. This assessment deepens the understanding of its activities, providing visibility so as to enable better decision-making. In doing so, a company increases its ability to reduce its impact, and also to respond to drivers of change in the supply chain, including fluctuations in raw material quality and availability.

The Kering E P&L Methodology and 2013 Group results report serves as a sustainability metric and methodology for the company. It is not related to financial results or financial reporting. Rather, the E P&L is a new way of estimating the cost to society of the changes in the environment resulting from businesses’ activities across the entire supply chain. These changes or environmental impacts are measured through Greenhouse Gas emissions, water use, water and air pollution, waste production and land use changes linked to Kering’s operations (retail, offices and transport) as well as those of its suppliers, from raw materials through to manufacturing.