LVMH Moet Hennessy – Louis Vuitton

No leading practices were identified for the company in the governance and strategy area

Resource exploitation and circularity
The company has a target to improve soil health in its production or sourcing practices and reports progress against it.

Solid and air pollution
The company reports some activities to reduce plastic use and waste in its own operations.

GHG emissions
The company’s targets to reduce greenhouse gas emissions across all scopes is aligned with a 1.5-degree trajectory.

Indigenous Peoples’ and land rights
The company requires its business relationships to identify and recognise affected Indigenous Peoples and to obtain their free, prior and informed consent regarding whether and how to carry out projects.

Sustainability strategy and accountability
LVMH does not disclose its process for identifying and prioritising its most relevant sustainability topics and impacts and while the company discloses some sustainability targets, no evidence that the company has group wide targets on key sustainability topics for the most material parts of its value could be found in the public domain. The company reports consistently against all its targets. Furthermore, no evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
The company does not disclose how it engages with stakeholders, nor the issues it raises during such activities.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
The company does not disclose a commitment to ensure zero conversion, nor on activities or time-bound targets to achieve conversion-free supply chains. The company does not disclose a commitment or activities to minimise ecosystem conversion. While the company discloses its commitment to restore 5 million hectares of flora and fauna by 2030, no evidence that the company’s restoration efforts are addressing the ecosystem impacts derived from the company’s operations and value chain could be found in the public domain While the company discloses it has rehabilitated 657,000 hectares of wildlife habitats, it is unclear whether this is within the company’s value chain or areas affected by its own operations or upstream business relationships

Resource exploitation and circularity
The company does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. The company discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices.

Water
No evidence that LVMH reduces water withdrawal across the company’s own operations was found or that it has a time-bound target to reduce water withdrawal across its own operations. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. Although the company discloses qualitative evidence concerning the reduction of water quality pressures, this does not cover all of its subsidiaries. The company does not disclose its processes for managing and monitoring discharge water quality and only reports on pollution for some of its subsidiaries . Additionally, it does not disclose targets to reduce water pollution. Finally, LVMH does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
No evidence that the company reduces the production of hazardous substances was found. The company does not disclose a commitment to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. No evidence that the company is reducing the production of hazardous waste was found. While the company’s use of plastic in its packaging decreased between 2020 and 2021. no evidence that it reports on its most material part (e.g. clothing) could be found in the public domain. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report on air quality parameters of emissions of harmful air pollutants. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
While the company discloses greenhouse gas emissions across all scopes, these increased from the previous reporting cycle. The company has a time-bound target to reduce its emissions across all three scopes, but does not report progress against it.

Invasive species
No evidence was found that the company identifies the activities that could lead to the introduction of invasive alien species in its own operations or its value chain.

Safe, healthy, clean environment
The company does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
The company does not disclose a commitment to respect Indigenous Peoples’ rights. It also does not disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, nor does it describe how it obtains Indigenous Peoples’ free, prior and informed consent. While the company discloses it requires its suppliers to seek free, prior, and informed consent (FPIC) and ensure their human rights capacity’ no evidence of the company having such commitment regarding its own operations could be found in the public domain. No evidence was found that the company requires its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

The company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. The company describes the process for identifying human rights risks and impacts in its business relationships. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. While the company discloses that it conducts routine human rights risk assessments and that it remediates in locations with the highest risk, no evidence was found that it has a global system to act on all its salient human rights issues. The company states that in keeping with the aim of monitoring at-risk suppliers and ensuring permanent controls on their level of compliance, around one-quarter of the audits carried out in 2021 involved suppliers that had already been audited in previous years, however, it is not clear if it is an example of mitigation of one of the salient human rights issues as a result of assessment processes. While the company discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

The company has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. The company has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. The company has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company has an opportunity to describe how it determines a living wage for the regions where it operates. No evidence that the company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements was found. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

The company discloses a tax strategy, but it is not applicable to all its operations. The company takes steps to identify and address bribery and corruption. The company includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. No evidence that the company has a publicly available policy statement or policy setting out its lobbying and political engagement approach was found. The company specifies that it does not make political contributions.