PPR Introduces Environmental and Social 5-year
Targets across Luxury and Sport & Lifestyle Brands
PPR Acquires Stake in Wildlife Works Carbon, REDD Carbon
Offsetting Company as part of next phase of Sustainability
PPR, through its sustainability department PPR HOME,
announced a set of core targets to achieve across its
Luxury and Sport & Lifestyle brands by 2016 at the
company's Annual General Meeting today. Additionally,
a 5% stake in Wildlife Works Carbon, LLC has been acquired
as part of PPR's long-term sustainability strategy for the
In this next phase of PPR's sustainability efforts, a
multi-tiered action plan over the next five years is in
place to leverage the benefits gained from a Group
Environmental Profit & Loss Account (E P&L), while reducing
and managing PPR's social and environmental footprint.
"Our pursuit of operating on a more sustainable level
across all areas of our business is integral to our
business plan and to the longevity of our businesses. The
next five years are pivotal and we now have a clear view of
what we want to achieve, and the actionable targets we need
to take to get us there," said Francois-Henri Pinault,
Chairman and CEO, PPR, "We are confident that this type of
innovative, sustainability-driven approach will ultimately
generate new business revenues from sustainable products
and services and create new business models for us as a
As a comprehensive and progressive approach to
sustainability, the E P&L analysis and 2016 targets
function together as a complimentary approach. The Group E
P&L will help in identifying new opportunities across the
supply chain to enhance the sustainability of PPR's
products and to ultimately implement efficient and
innovative initiatives to reduce the environmental impacts
from the sourcing of raw materials, processing,
manufacturing, and distribution of the Group's
products. In the interim, the defined targets will
drive the Group to reduce and manage the impacts associated
with the production of the products of all PPR's Luxury and
Sport & Lifestyle brands. Additional corporate and
brand-specific targets will be introduced as needed to
adapt to challenges encountered.
Key areas of focus during this period are the reduction of
CO2, waste and water; sourcing of raw materials; hazardous
chemicals and materials; paper and packaging; and our
supply chain. A set of specific targets in these areas to
be achieved by 2016 include:
• Evaluating all our key suppliers a minimum of every
2 years and helping guide them to meet best practices and
adhere to PPR's code of conduct.
• Reducing our carbon emissions, waste and water usage
resulting from the production of products and services by
25%, while accounting for the growth of our business. All
remaining emissions from scope 1 and scope 2 of the
Greenhouse Gas Protocol will be offset annually. PPR will
continue to partner with offset programs that contribute to
the welfare of the community and the conservation of
biodiversity in its regions of operations.
• 100% of paper and packaging for PPR will be sourced
from certified sustainably managed forests with a minimum
of 50% recycled content.
• All our collections will be PVC-free latest by
• Ensuring all hazardous chemicals have been phased
out and eliminated from our production by 2020.
• 100% of gold and diamonds in PPR's products will be
sourced from verified operations that do not have a harmful
impact on local communities, wildlife or the ecosystems
which support them.
• 100% of leather from domestic livestock within PPR's
products will be from responsible and verified sources that
do not result in converting sensitive ecosystems into
grazing lands or agricultural lands for food production for
• 100% of precious skins and furs in PPR's products
will come from verified captive breeding operations or from
wild, sustainably managed populations. Additionally
suppliers will employ accepted animal welfare practices and
humane treatment in sourcing.
To achieve these targets, PPR HOME is implementing detailed
policy and guidelines and will be monitoring performance,
with a priority focus on the sourcing and suppliers of raw
materials, and subsequent compliance. Additionally, PPR
HOME will support the brands to customize action plans and
to identify priority issues in order to achieve the overall
2016 Group targets.
As part of PPR's overarching sustainability strategy and
alongside measuring, reducing and mitigating the Group's
environmental and social footprint, remaining greenhouse
gas emissions are being offset. As such, PPR has offset the
2011 global emissions from the Luxury division, Sport &
Lifestyle division, and PPR's headquarters totalling 95,100
tons to become carbon neutral in Scopes 1 & 2 of the
Greenhouse Gas Protocol. Carbon credits were purchased from
Wildlife Works' leading REDD (Reduced Emissions from
Deforestation and Degradation) offsetting project in Kenya
which is the world's first Voluntary Carbon Standard (VCS)
validated and verified REDD program. Wildlife Works'
project directly: reduces greenhouse gas emissions by
protecting threatened forests that are essential in
mitigating climate change; improves the quality of life for
local communities; and conserves endangered wildlife.
Furthermore, PPR has acquired a 5% stake in Wildlife Works
Carbon, LLC. Aside from already having 500,000 hectares
under protection, Wildlife Works Carbon, LLC has a
prospective project pipeline of several million hectares of
natural forests around the world. The voluntary
carbon market is placed for growth and potential for return
could exceed the original investment by multiple times.
Additionally, the investment fulfills one of PPR HOME's
primary goals, to invest in for-profit businesses that
incorporate biodiversity conservation and social concerns
into their business model, resulting in net-positive social
and environmental impacts.
PPR, via PPR HOME, will hold a seat on Wildlife Works'
Management Committee and joins a group of reputable
corporate partners and shareholders in the company. PPR now
has an active role in supporting Wildlife Works' aims to
secure 5 million hectares of native forest over the next 3
years and to protect them for a minimum of 20 years with an
expected 25 million tonnes of CO2 emissions mitigated
annually, while supporting human wellbeing and improved
livelihoods for local communities.
"Over the next 5 years our goal is to implement actions
that will measurably reduce our negative impacts, which
will ultimately deliver innovative, sustainable products
while retaining the quality and craftsmanship synonymous
with luxury and the desirability of sport and lifestyle,"
said Jochen Zeitz, Chief Sustainability Officer, PPR,
"Investing in Wildlife Works Carbon, LLC rounds out our
5-year plan, linking our long-term strategy of a more
sustainable business model to an investment that results in
net-positive social and environmental impacts. The
acquisition is a win-win-win for us as an investor, for the
local community and for the land that is being conserved,"
The PPR Group empowers a coherent ensemble of Luxury and
Sport & Lifestyle premium brands, specializing in apparel
and accessories, to reach their full growth potential.
Distributed in more than 120 countries, PPR generated
revenues of €12.2 billion in 2011 and had over 47,000
employees at year end. The PPR share is listed on Euronext
Paris (FR 0000121485, PRTP.PA,
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About PPR HOME
The PPR Group unites its brands behind PPR HOME to work
together towards PPR HOME's Vision of a better world that
is more sustainable - economically, socially and
ecologically - than the world we know and live in today.
With PPR HOME, the Group commits to lessen its impact on
the environment, taking responsibility and proactive steps
to implement more sustainable business practices. PPR HOME
moves beyond the conventional CSR approach and promotes a
new business paradigm whereby the attainment of
sustainability is driving creativity and innovation, and
vice versa, to build businesses that deliver financial,
social and environmental returns for the long run.
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