Sustainability and efficiency: The lvmh strategy to reduce its carbon footprint

Authors

  • Belén López ESIC University
  • Manuel Fernández IE University
  • Celia Rangel-Pérez Universidad Complutense de Madrid

DOI:

https://doi.org/10.62701/revsocial.v13.5418

Keywords:

Sustainability, Corporate Social Responsibility, Luxury, Efficiency, Carbon footprint, Climate change, Strategy

Abstract

This research investigates efficiency in reducing the carbon footprint within the luxury sector, focusing on the LVMH group. It compares greenhouse gas (GHG) emissions, measured by CO2 outputs per IPCC standards, with overall revenue and corporate social responsibility (CSR) initiatives. The study identifies which CSR measures contribute effectively to environmental protection efforts. Findings are relevant beyond LVMH, offering insights applicable to other sectors. Achieving carbon footprint efficiency aligns with the UN's 2030 Agenda, which calls for sustainable and effective corporate strategies to combat climate change as part of broader CSR commitments.

Downloads

Download data is not yet available.

Global Statistics ℹ️

Cumulative totals since publication
29
Views
6
Downloads
35
Total

References

Amatulli, C., De Angelis, M., Korschun, D., & Romani, S. (2018). Consumers’ perceptions of luxury brands’ CSR initiatives: An investigation of the role of status and conspicuous consumption. Journal of Cleaner Production, 194, 277-287. https://doi.org/10.1016/j.jclepro.2018.05.111 DOI: https://doi.org/10.1016/j.jclepro.2018.05.111

Bae, S. Y. (2019). Luxury, sustainability, and the future—The case study of Burberry -. The Research Journal of the Costume Culture, 27(1), 64-71. https://doi.org/10.29049/rjcc.2019.27.1.064 DOI: https://doi.org/10.29049/rjcc.2019.27.1.064

Barnett, M. L., Henriques, I., & Husted, B. W. (2020). Beyond good intentions: Designing CSR initiatives for greater social impact. Journal of Management, 46(6), 937-964. https://ssrn.com/abstract=3506963 DOI: https://doi.org/10.1177/0149206319900539

Belz, F. M., & Schmidt-Riediger, B. (2010). Marketing strategies in the age of sustainable development: Evidence from the food industry. Business Strategy and the Environment, 19(7), 401–416. https://doi.org/10.1002/bse.649 DOI: https://doi.org/10.1002/bse.649

Berg, A., Granskog, A., Lee, L., & Magnus, K. H. (2020). Fashion on climate. McKinsey & Company. https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/fashion%20on%20climate/fashion-on-climate-full-report.pdf

BHP. (2020). BHP Scope 1, 2 and 3 Emissions Calculations Methodology 2020. https://www.bhp.com/-/media/documents/investors/annual-reports/2020/200908_bhpscope12and3emissionscalculationmethodology2020.pdf.

Brewer, M. K. (2019). Slow fashion in a fast fashion world: Promoting sustainability and responsibility. Laws, 8(4), 24. https://doi.org/10.3390/laws8040024 DOI: https://doi.org/10.3390/laws8040024

Browne, M.A., Crump, P., Niven, S.J., Teuten, E., Tonkin, A., Galloway, T., & Thompson, R. (2011). Accumulation of Microplastic on Shorelines Woldwide: Sources and Sinks. Environmental Science & Technology, 45(21), 9175–9179. https://doi.org/10.1021/es201811s DOI: https://doi.org/10.1021/es201811s

Carroll, A. B., & Buchholtz, A. K. (2014). Business and society: Ethics, sustainability, and stakeholder management. Cengage Learning.

Carroll, A. B. (2021). Corporate Social Responsibility: Perspectives on the CSR Construct's Development and Future. Business & Society. https://doi.org/10.1177/00076503211001765 DOI: https://doi.org/10.1177/00076503211001765

Cervellon, M. C. (2013). Conspicuous conservation: Using semiotics to understand sustainable luxury. International Journal of Market Research, 55(5), 695-717. https://doi.org/10.2501/IJMR-2013-030 DOI: https://doi.org/10.2501/IJMR-2013-030

Chapagain, A.K., Hoekstra, A.Y., Savenije, H.H., & Gautam, R. (2006). The water footprint of cotton consumption: An assessment of the impact of worldwide consumption of cotton products on the water resources in the cotton producing countries. Ecological Economics, 60(1), 186–203. https://doi.org/10.1016/j.ecolecon.2005.11.027 DOI: https://doi.org/10.1016/j.ecolecon.2005.11.027

Charter, M., Peattie, K., Ottman, J., & Polonsky, M. J. (2006). Marketing and Sustainability. Centre for Business Relationships, Accountability, Sustainability and Society (BRASS). http://www.cfsd.org.uk/smart-know-net/links/smart-know-net.pdf

Choi, T. M. (2014). Luxury fashion branding: Literature review, research trends, and research agenda. In T.-M. Choi (Ed.), Fashion branding and consumer behaviours, international series on consumer science (pp. 7–16). Springer. https://doi.org/10.1007/978-1-4939-0277-4_2 DOI: https://doi.org/10.1007/978-1-4939-0277-4_2

Claro, D.P., Laban Neto, S.A. & De Oliveira Claro, P.B. (2013). Sustainability drivers in food retail. Journal of Retailing and Consumer Services, 29, 365-371. https://doi.org/10.1016/j.jretconser.2013.02.003 DOI: https://doi.org/10.1016/j.jretconser.2013.02.003

D'Arpizio, C., Levato, F., Steiner, A., & Montgolfier J. (2024, January 18). Long Live Luxury: Converge to Expand through Turbulence. Bain & Company. https://www.bain.com/insights/long-live-luxury-converge-to-expand-through-turbulence/

Deloitte. (2023). Global Powers of Luxury Goods 2023. Game changing steps in luxury. https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2024/gx-global-powers-of-luxury-goods-2023.pdf

Deloitte. (2020). Global Powers of Luxury Goods 2020. The new age of fashion and luxury. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/gx-consumerbusiness-gplg-2020-report.pdf

Diallo, M. F., Dahmane, N., Gadekar, M., & Schill, M. (2021). CSR actions, brand value, and willingness to pay a premium price for luxury brands: Does long-term orientation matter? Journal of Business Ethics, 169(2), 241-260. https://doi.org/10.1007/s10551-020-04486-5 DOI: https://doi.org/10.1007/s10551-020-04486-5

Downie, J., & Stubbs, W. (2013). Evaluation of Australian companies’ scope 3 greenhouse gas emissions assessments. Journal of Cleaner Production, 56, 156–163. https://doi.org/10.1016/j.jclepro.2011.09.010 DOI: https://doi.org/10.1016/j.jclepro.2011.09.010

Gardetti, M. A. (2017). Sustainable management of luxury. Springer book series on environmental footprints and eco-design of products and processes. Springer. https://doi.org/10.1007/978-981-10-2917-2 DOI: https://doi.org/10.1007/978-981-10-2917-2

Habib, R., White, K., Hardisty, D. J., & Zhao, J. (2021). Shifting consumer behavior to address climate change. Current Opinion in Psychology, 42, 108-113. https://doi.org/10.1016/j.copsyc.2021.04.007 DOI: https://doi.org/10.1016/j.copsyc.2021.04.007

Henry, B., Laitala, K., & Klepp, I.G. (2019). Microfibres from apparel and home textiles: Prospects for including microplastics in environmental sustainability assessment. Science of The Total Environment, 652, 483–494. https://doi.org/10.1016/j.scitotenv.2018.10.166 DOI: https://doi.org/10.1016/j.scitotenv.2018.10.166

Hertwich, E. G., & Wood, R. (2018). The growing importance of scope 3 greenhouse gas emissions from industry. Environmental Research Letters, 13(10), Article 104013. https://doi.org/10.1088/1748-9326/aae19a DOI: https://doi.org/10.1088/1748-9326/aae19a

IPCC Report. (2022). Retrieved from https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_Full_Report.pdf.

Khan, S., & Ahmed, M. (2017). Who are the consumers for sustainable luxury? In 2017 global fashion management conference at Vienna (pp. 181-182). https://doi.org/10.15444/GFMC2017.03.02.03 DOI: https://doi.org/10.15444/GFMC2017.03.02.03

Ki, C., & Kim, Y. K. (2016). Sustainable luxury fashion consumption and the moderating role of guilt. Fashion, Industry and Education, 14(1), 18-30. https://doi.org/10.7741/FIE.2016.14.1.018 DOI: https://doi.org/10.7741/fie.2016.14.1.018

Kunz, J., May, S., & Schmidt, H. J. (2020). Sustainable luxury: Current status and perspectives for future research. Business Research, 13, 541-601. https://doi.org/10.1007/s40685-020-00111-3 DOI: https://doi.org/10.1007/s40685-020-00111-3

Li, J., & Leonas, K. K. (2019). Trends of sustainable development among luxury industry. In Sustainable luxury (pp. 107–126). Springer. https://doi.org/10.1007/978-981-13-0623-5_6 DOI: https://doi.org/10.1007/978-981-13-0623-5_6

López, B., Rangel-Pérez, C., & Fernández, M. (2023). Sustainable strategies in the luxury business to increase efficiency in reducing carbon footprint. Journal of Business Research, 157, 113607. https://doi.org/10.1016/j.jbusres.2022.113607 DOI: https://doi.org/10.1016/j.jbusres.2022.113607

LVMH. (2024). Key Documents. https://www.lvmh.com/en/press/key-documents

LVMH. (2023a). LIVE 360. https://www.lvmh.com/group/lvmh-commitments/social-environmental-responsibility/life-initiative-lvmh/

LVMH. (2023b). Social & environmental responsibility. https://www.lvmh.com/group/lvmh-commitments/social-environmental-responsibility/

LVMH. (2020). Environmental reports. https://www.lvmh.com/news-documents/

McKinsey & Company. (2020). The State of Fashion 2020: In search of promise in perilous times. https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20state%20of%20fashion%202020%20navigating%20uncertainty/the-state-of-fashion-2020-final.pdf

Olatubosun, P., Charles, E., & Omoyele, T. (2021). Rethinking luxury brands and sustainable fashion business models in a risk society. Journal of Design, Business & Society, 7(1), 49-81. https://doi.org/10.1386/dbs_00020_1 DOI: https://doi.org/10.1386/dbs_00020_1

Osburg, V. S., Davies, I., Yoganathan, V., & McLeay, F. (2021). Perspectives, opportunities and tensions in ethical and sustainable luxury: Introduction to the thematic symposium. Journal of Business Ethics, 169(2), 201-210. https://doi.org/10.1007/s10551-020-04487-4 DOI: https://doi.org/10.1007/s10551-020-04487-4

Ozdamar-Ertekin, Z. (2019). Can luxury fashion provide a roadmap for sustainability? Markets, Globalization & Development Review, 4(1). https://doi.org/10.23860/MGDR-2019-04-01-03 DOI: https://doi.org/10.23860/MGDR-2019-04-01-03

Ozdamar-Ertekin, Z., & Atik, D. (2015). Sustainable markets: Motivating factors, barriers, and remedies for mobilization of slow fashion. Journal of Macromarketing, 35(1), 53-69. https://doi.org/10.1177/0276146714535932 DOI: https://doi.org/10.1177/0276146714535932

Pencarelli, T., Gabbianelli, L., & Savelli, E. (2020). The tourist experience in the digital era: The case of Italian millennials. Sinergie Italian Journal of Management, 38(3), 165-190. https://doi.org/10.7433/s113.2020.10 DOI: https://doi.org/10.7433/s113.2020.10

Pirc, U., Vidmar, M., Mozer, A., & Kržan, A. (2016). Emissions of microplastic fibers from microfiber fleece during domestic washing. Environmental Science and Pollution Research, 23(21), 22206–22211. https://doi.org/10.1007/s11356-016-7703-0 DOI: https://doi.org/10.1007/s11356-016-7703-0

Regenerate Fashion (2020). SDG for better fashion. Report 2018-19. Available at: https://regeneratefashion.com/wp-content/uploads/2020/08/SDGs-for-Better-Fashion-Progress-Report-.pdf

. Rukhaya, S., Yadav, S., Rose, N. M., Grover, A., & Bisht, D. (2021). Sustainable approach to counter the environmental impact of fast fashion. The Pharma Innovation Journal, 10(8S), 517-523. https://www.thepharmajournal.com/archives/2021/vol10issue8S/PartH/S-10-7-243-699.pdf

Shashi, K., Centobelli, P., Cerchione, R., & Mittal, A. (2021). Managing sustainability in luxury industry to pursue circular economy strategies. Business Strategy and the Environment, 30(1), 432-462. https://doi.org/10.1002/bse.2630 DOI: https://doi.org/10.1002/bse.2630

Sun, J. J., Bellezza, S., & Paharia, N. (2021). Buy less, buy luxury: Understanding and overcoming product durability neglect for sustainable consumption. Journal of Marketing, 85(3), 28-43. https://doi.org/10.1177/0022242921993172 DOI: https://doi.org/10.1177/0022242921993172

The Fashion Pact. (2020). First steps to transform our industry. https://www.kering.com/api/download-file/?path=Fashion_Pact_2020_Progress_Report_02c1bedfe3.pdf

The Manifiesto. (2019). Unlocking responsible luxury. Retrieved from https://www.som.polimi.it/en/the-manifesto-2019-unlocking-responsible-luxury/

Thomas, S. (2018). Peace of mind: The quintessential luxury. Journal of Design. Business & Society, 4(2), 151–169. https://doi.org/10.1386/dbs.4.2.151_1 DOI: https://doi.org/10.1386/dbs.4.2.151_1

Thorisdottir, T. S., & Johannsdottir, L. (2020). Corporate social responsibility influencing sustainability within the fashion industry. A systematic review. Sustainability, 12(21), 9167. https://doi.org/10.3390/su12219167 DOI: https://doi.org/10.3390/su12219167

United Nations Cf, O. D. D. S. (2015). Transforming our world: the 2030 Agenda for Sustainable Development. United Nations: New York, NY, USA.

UN. (2016). The Paris Agreement. https://www.un.org/en/climatechange/paris-agreement

UN. (2021, November 13). COP26 closes with ‘compromise’ deal on climate, but it’s not enough, says UN chief. https://news.un.org/en/story/2021/11/1105792

Wadera, D., & Kaur, J. (2020). Comparing sustainability practices in luxury brands: A conceptual model. Journal of Asia Entrepreneurship and Sustainability, 3(XV), 151-194. https://d1wqtxts1xzle7.cloudfront.net/111496086/JAESVolXVDec2019-libre.pdf?1708010461=&response-content-disposition=inline%3B+filename%3DHigh_School_Education_in_a_Variety_of_Re.pdf&Expires=1748201121&Signature=WCcOyAzp0~QbnLBiCyPKxjC9Gvnd9k1h1x7Ae9UANDnu9pMQjys-VxJHztzSs74nAGkOAuuJIkDsLLupEFTYcwpOUdszAEZaIdWYb4TZCOI-hYv1Q8dWuiqISx9IB4WRc82LiqFGcUMn6VbmA5uCSdaJGMao0ebv6QA2BCXlP26u85aPw7BPlHfYiWn770I6UG3b1sixBzGl59QcdSOIr3Og33gUFpt-kIMVd0-StYLDA6jkqELCifGX55JBUZRzEpeDEu6MS8MUACPBAgM9t1dpszMQq62TuF4Pcit9kneQX~PgMZt2qu5owVK47XKV5PqFgzDnp6-139VmDu90xQ__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA#page=151

Waller, M. A., Fawcett, S. E., & Johnson, J. L. (2015). The luxury paradox: How systems thinking, and supply chain collaboration can bring sustainability into mainstream practice. Journal of Business Logistics, 36(4), 303–305. https://doi.org/10.1111/jbl.12110 DOI: https://doi.org/10.1111/jbl.12110

Willersdorf, S., Hazan, J., Ricci, G., Prénaud, A., Bianchi, F., Seara, J., & Yang, V. (2020, July 21). A new era and a new look for luxury. BCG Global. https://www.bcg.com/publications/2020/new-era-and-new-look-for-luxury

World Economic Forum (2023). The Global Risks Report 2023 (18th ed.). Retrieved from

https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf

Downloads

Published

02-06-2025

How to Cite

López, B., Fernández, M., & Rangel-Pérez, C. (2025). Sustainability and efficiency: The lvmh strategy to reduce its carbon footprint. SOCIAL REVIEW. International Social Sciences Review Revista Internacional De Ciencias Sociales, 13(1), 11–22. https://doi.org/10.62701/revsocial.v13.5418

Issue

Section

Research articles