After COP26 where is the luxury goods industry on climate solutions?
International Luxury Group (ILG of Switzerland AG)
Amid the promises, pledges and disagreements between participating nations, signatories of the Fashion Industry Charter for Climate Action committed?to cutting emissions by half in the next decade compared with 2019 levels – a bigger drop than their?previous commitment?to cut by 30% over the next 10 years.
The main goal of net zero by 2050 remains the same, but the stronger commitments made by 130 retailers and 41 organisations – including the likes of Burberry, Kering, and?Nike are significant.
Interestingly, luxury giant LVMH – the group behind Louis Vuitton, Fendi, and Givenchy – was not listed as one of the 130 signatories, but has separately committed to cut Scope 3 greenhouse gas emissions per unit of economic output by 55% by 2030, and cut emissions linked to energy consumption by 50% compared with 2019 levels by 2026.?
It’s a sobering thought that fashion is the fourth most emitting industry after energy, transport, and food – and according to?a 2020 McKinsey report, without any abating actions taken the industry’s carbon emissions would rise to around 2.7 billion metric tons a year by 2030. In short, things must change right now.
Luxury consumers themselves used to be seen as part of the problem, but environmentally conscious customers are rapidly growing in number. Therefore, going green isn’t just the right thing to do, it’s good for business.
As Dr. Matt Johnson, professor at Hult International Business School wrote: "There is accumulating evidence that consumers are impacted by the perceived sustainability of [a] brand, and further, that consumers are willing to pay a premium for products from a sustainable brand over a non-sustainable competitor brand."?
And a?2019 survey led by Hotwire?found that 47% of internet users worldwide had ditched products and services from a brand that violated their personal values.
Protecting the environment topped that list.?
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