LVMH established an internal carbon fund in November 2015, the first such initiative in the history of the Group. This initiative aims to create a virtuous circle to reduce greenhouse gas emissions generated by the Group and its Houses, contributing to international efforts to limit global warming. Watch this animated video to learn how the new fund works.
Over the past 20 plus years LVMH and its Houses have taken a host of initiatives to reduce this carbon footprint. In 2015, the Group is going even further with the creation of an internal carbon fund.
With governance ensured by the LVMH Environmental Department and a panel of experts, the fund will receive financing from all LVMH companies beginning in 2016. Calculation of the amounts contributed will be based on the greenhouse gas emissions from their respective activities.
For 2015, the rate has been set at 15 euros per metric ton. This rate will be revised annually.
This gives the fund an estimated initial amount of 5 million euros, to be used to finance investments designed exclusively to reduce the greenhouse gas emissions of LVMH Houses, thus creating a virtuous circle.
Three main categories of projects will receive financing:
- Investments in equipment that reduces energy consumption;
- Investments in renewable energy production on an international scale;
- Studies to more precisely determine the scope of our emissions (including suppliers, for example).
The first projects will receive financing as of 2016.
Through the creation of this new carbon fund, LVMH is actively contributing to international efforts to limit the global temperature rise to 2 degrees Celsius by 2100.
The LVMH carbon fund is an additional step in the implementation of the LIFE programme (LVMH Initiatives For the Environment) which the Group created in 2013 in order to integrate the environment into the management processes of each Maison. It fits within all of the Group’s activities in relation to COP21, with which LVMH is one of the partners.