CRAFTING TOMORROW’S LUXURY

Carlo IMO President Kering Apac

Gucci • Bottega Veneta • Saint Laurent • Alexander McQueen • Balenciaga Brioni • Christopher Kane • McQ • Stella McCartney • Tomas Maier

Boucheron • Dodo • Girard-Perregaux • JeanRichard • Pomellato • Qeelin • Ulysse Nardin

LUXE

https://youtu.be/Z5YURxNpjlE

”More than ever I am convinced that

sustainability can redefine business value and drive

future growth.”

François-Henri Pinault

OUR CEO’S VISION FOR SUSTAINABILITY

At Kering we believe in pushing ourselves beyond our limits and driving our brands toward

higher levels of economic, environmental, ethical and social performance.

We believe sustainability is a necessity and inherent to quality.

We believe it gives us the chance to create value and competitive advantage.

We believe that sustainability and luxury are one and the same.

WHAT DOES SUSTAINABILITY MEAN FOR KERING?

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Since we have placed sustainability at the core of our business strategy, we have a strong governance structure enabling sustainability to be embedded across our Group, from a committee within the Board of Directors to a group-wide network dedicated to implementing our strategy. In total, 50 people are dedicated to sustainability within the Group.

A STRONG GOVERNANCE FOR SUSTAINABILITY

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WHAT IS AN EP&L? An EP&L is an means of placing a monetary value on the environmental impacts along the entire value chain of a business. In 2015, we were the first Group ever to develop an EP&L and open source its methodology. http://www.kering.com/en/sustainability/methodology

THE ENVIRONMENTAL PROFIT & LOSS ACCOUNT (EP&L)

THE MATERIALS INNOVATION LAB (MIL)

Kering founded the Materials Innovation Lab (MIL) in 2013 to identify sustainable raw materials that meet luxury’s utmost standards of quality and enable the Group’s brands to integrate these into their collections.

Located in Northern Italy, the MIL now boasts a comprehensive library of over 2,000 fabrics, which are ranked against external standards as well as the MIL’s own evaluation tool.

In addition, a team of in-house experts at the MIL offer support to our Group’s brands and their suppliers so as to integrate these materials into their product offerings.

We will help craft tomorrow’s luxury, with our new three pillar

strategy for 2025: care, collaborate, create.

CARE about our impact on the planet,

on climate change, on natural resources

COLLABORATE with our suppliers and engage our employees and our clients

CREATE innovations to safeguard our

rich heritage, and empower future generations

TODAY WE ARE OPENING A NEW CHAPTER: CRAFTING TOMORROW’S LUXURY

REDUCING OUR ENVIRONMENTAL FOOTPRINT –  Reduce our Environmental Profit & Loss (EP&L) by 40% by

2025, via actions to tackle the impact of our sourcing, manufacturing and operations;

–  Reduce our CO2 emissions by 50% by 2025 via

science-based targets. PRESERVING OUR RAW MATERIALS –  Trace all of our raw materials (cotton, leather, precious skins,

wool..) back as far as their country of extraction, to ensure a responsible supply chain;

–  Deploy Kering social, environmental and animal welfare standards across 100% of our supply chains.

WE CARE FOR OUR IMPACT ON THE PLANET, ON CLIMATE CHANGE, AND ON NATURAL RESOURCES BY:

CRAFTING TOMORROW’S LUXURY

PRESERVE OUR INDUSTRY’S HERITAGE –  Create a suppliers’ platform, with training on Kering standards; –  Provide craftsmanship and artisanal training programmes to those in

our operating regions, to safeguard their communities’ rich heritage.

INSTILL GENDER PARITY & DIVERSITY –  Reach gender parity and ensure salary equality; –  Launch a sponsorship programme for female managers.

PROVIDE EXCEPTIONAL EMPLOYMENT –  Offer our teams a caring working environment, and benefits including

a Global Parental Policy; –  Ensure exemplary working conditions for all those people working in

our supply chains.

WE COLLABORATE WITH PEOPLE ACROSS OUR BUSINESS ECOSYSTEM INCLUDING SUPPLIERS, EMPLOYEES & CLIENTS TO:

CRAFTING TOMORROW’S LUXURY

LAUNCHING DISRUPTIVE INNOVATIONS –  Develop new sourcing solutions, raw materials and processes by

applying new innovations such as biotech and the circular economy to luxury’s current practices;

–  Establish a Watches & Jewelry Innovation Lab, to explore new materials and processes.

EMPOWERING FUTURE GENERATIONS –  Co-develop sustainability curriculums at educational institutes

around the world to educate future designers;

–  Create a Young Leaders Advisory Group, to enable future business leaders to inspire our Group’s decision-making.

WE CREATE INNOVATIONS TO ENSURE OUR PLANET, OUR INDUSTRY AND OUR BRANDS THRIVE FOR THE LONG-RUN BY:

CRAFTING TOMORROW’S LUXURY

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A SHORT FILM RELEASED FOR THE LAUNCH: OVER 3 MILLION VIEWS ON TWITTER

VIDEO LINK

https://www.youtube.com/watch?v=_T8HeXezZ6c

THANK YOU!