Luxury goods group LVMH has created an internal carbon fund – already valued at over EUR5m (US$5.4m) – aimed at reducing the amount of energy consumed at its production sites and stores.

The fund, a first in the group’s history, will be financed by contributions from each of its 70 brands, which include fashion and leather goods labels Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Donna Karan and Marc Jacobs.

The amount contributed will be calculated based on the greenhouse gas emissions generated by their activities, specifically in terms of energy consumption in their production sites and stores. This will then be used to fund investments in equipment to reduce energy consumption, or the production of renewable energy on an international scale.

The brands will begin paying in to the initiative starting in 2016, with the amount currently calculated at EUR15 per tonne. This price will be reviewed each year.

“The most beautiful materials…which are the heart of our business, are all provided by nature,” explains Bernard Arnault, LVMH chairman and CEO.

“Environmental performance has been integrated into the growth strategy of all our Maisons in the same way as quality, innovation and creativity. Today respect for the environment is not only an imperative, it is also a lever that drives progress.”

The carbon fund is an additional step in the group’s LIFE programme (LVMH Initiatives For the Environment), which was created in 2013.