French luxury goods group Kering is to offset its annual Greenhouse Gas (GHG) emissions from 2018 as part of a bid to make the entire group carbon neutral within its own operations and across the entire supply chain.

In an announcement today (24 September), Kering said the move marks the next step in its long-term commitment to sustainability on top of all efforts to first avoid and then reduce them. 

Kering's commitment is an extension of its annual offsetting approach that has been established since 2011 and initially incorporated Scopes 1 and 2 of the Greenhouse Gas Protocol.

Since then, the group has been leveraging its Environmental Profit and Loss (EP&L) accounting to analyse its GHG emissions up to the base of the supply chain, where raw materials are created. This comprehensive data has enabled Kering's houses to put in place customised supply chain initiatives and efficiency programmes to effectively avoid and reduce its emissions.

In addition, Kering set a Science-Based Target to reduce all its GHG emissions related to its own operations and supply chain by 50% by 2025, from a 2015 baseline.

While these efforts to avoid and reduce its footprint across the supply chain will continue to be focused on as a priority, Kering is now offsetting all the remaining annual emissions in Scope 3 of the GHG Protocol as well. For 2018, and as published in the EP&L results, the total remaining GHG emissions offset for the group will be about 2.4m tonnes CO2E. This encompasses the 1.4m tonnes of CO2E already offset by Gucci for 2018.

Kering says offsetting will continue to be accomplished through projects verified by the UN project Redd+ – 'Reducing Emissions from Deforestation and Forest Degradation' which conserve critical forests and biodiversity, and support the livelihoods of local communities. The group notes 2018 offsets will equal nearly 2m hectares of important forests around the world. 

"When it comes to climate change, we can no longer wait to take real action. We all need to step up as businesses and account for the GHG emissions that we generate in total. Kering is committing to become completely carbon neutral as a group across all our operations and supply chains," says François-Henri Pinault, chairman and CEO of Kering.

"While we focus on avoiding and reducing our GHG emissions to meet our Science-Based Target, we will offset all our remaining emissions and support the conservation of vital forests and biodiversity around the world."

The announcement follows the launch of a new coalition which was unveiled by French President Emmanuel Macron and Pinault during the G7 meeting in Biarritz, France, last month.

The Fashion Pact sees 32 of the world's leading fashion and textile companies – including Adidas, H&M, Inditex, Fung Group, Nike and Gap – commit to achieving practical objectives together in three areas: climate, biodiversity and oceans.