LVMH announces the success of its internal carbon fund, with more than six million euros of eligible projects
A year ago, LVMH announced the establishment of an internal carbon fund estimated at over five million euros. recently, the selected projects in the fund amount to over six million euros. The LVMH carbon fund aims to reduce the greenhouse gas emissions of the Group and its brands by 25% by 2020 as part of the LIFE program (LVMH Initiatives For The Environment). This programme drives LVMH’s approach to eco-design, biodiversity, traceability, supply chain management, greenhouse gas emissions, environmental excellence of production sites, the sustainability of its products and customer care.
The projects in the carbon fund focus on reducing energy consumption (with LEDs, roof insulation, more energy efficient distilleries etc.), the use of renewable energy (for example connection to the urban cooling networks) or putting in place energy consumption monitoring in France and worldwide. As such there are tens of thousands of tonnes of greenhouse gas emissions that can be prevented throughout the lifecycle of the equipment used. 70 per cent of the projects are relating to the stores.
This first year of the fund has provided an opportunity to establish the way it will function going forwards. The carbon projects are funded on the basis of 15 Euros per tonne of CO2 emitted. These projects were selected using five criteria: the carbon impact (its share of avoided CO2 emissions compared with the total emissions), the carbon efficiency of the investment (the amount invested to prevent the emission of one tonne of CO2), the trigger effect (pilot project), performance (strong commitment to the project) and innovation. The LVMH Carbon fund initiative will be repeated in 2017.