Louis Vuitton 2006 Annual Report Download - page 69

COMMON CONCERNS
Making every effort to preserve the environment
is something that LVMH intends to share with its
partners, suppliers, investors and clients. Together
with them, it is studying how to steadily improve
its actions and is trying to integrate thoughts about
environmental impact into the design of new
products.
SHARING ENVIRONMENTAL PRACTICES WITH OUR SUPPLIERS
LVMH continues to cooperate with its suppliers
so that everyone will share the best environmen-
tal and social practices. To help the various Compa-
nies evaluate their suppliers performance and, if
need be, support them in efforts at improvement,
the environmental department has given them a
tool, which was enhanced in 2006 with new textile
sheet. Adapted to each business line, it tells them
the laws in effect in the various countries and
enables them to ask each supplier the right ques-
tions.
Major progress has been made. The specifications
of Hennessys suppliers cite the Companys environ-
mental policy, which has been ISO 14001 certi-
fied, and asks them to follow its lead. Veuve Clic-
quot has scheduled three years of consciousness-
raising, in groups of 500 people, for the 1,500
vintners who supply it, and Moët & Chandon
explains its practices to grape transporters and urges
them to adopt the same. Other brands of the
Group, such as Louis Vuitton, Donna Karan,
Sephora, TAG Heuer and Parfums Christian Dior,
have also set up supplier charters and codes of good
conduct. SA 8000-type social audits are done at
suppliers.
PRESERVING CONSUMER HEALTH
Watching out for the health of consumers is one
of the main concerns of LVMH. The Group advo-
cates responsible consumption: drink less but better,
and avoid driving after consuming alcohol. In 2006,
it was decided to include a message of responsibi-
lity in all advertisements issued by the Wines and
Spirits companies. The action conducted with the
marketing teams that are in charge of enforcing a
code of good conduct has been intensified.
Every effort is made to guarantee the safety of
cosmetic products. Very obviously, the Group
complies with all international regulations. The
same holds true for the prohibition on animal
testing. Anxious to protect consumers, even beyond
the regulations, LVMH refrains from using certain
ingredients whose safety is not fully guaranteed.
OFFERING ENVIRONMENTALLY FRIENDLY PRODUCTS
Incorporating environmental criteria into product
design is another challenge for LVMH. Guerlain
updates the refills for its perfumes to current tastes.
The Champagne houses are on the verge of finali-
zing a project that originated at Moët & Chandon,
which aims to make bottles lighter. Bottles weighing
830 grams instead of 890 grams are in the indus-
trial vetting phase at Moët & Chandon and at
Veuve Clicquot. The first ones will be used in 2007.
MEASURING OUR PROGRESS
It is difficult to evaluate the cost of the environmen-
tal policy. Initially, it involves a commitment, a convic-
tion, hours of training, and investments. But over
the years, the adoption of green policies reduces water
and electricity consumption, and less packaging
means lower shipping costs. All that translates into
savings. Those actions are conducted under the atten-
tive eye of agencies that analyze good practices.
LVMH gets good grades. The Carbon Disclosure
Project (CDP) ranks it as the French leader in the
consumer goods category. The French Center for
Information on Businesses (CFIE) places it ahead of
the curve for environmental issues. The British stock
index FTSE4Good lists it among the companies with
the best practices in terms of social and environmen-
tal responsibility.
SUSTAINABLE DEVELOPMENT
LVM H 2 0 0 6 65
Vine Shoots from
Château d’Yquem
After the longoza plant was
used in the Capture Totale
cream that was launched
in early 2006, extracts
of vine shoots from Château
d’Yquem went into
the composition of the
L’Or de Vie line that was
launched in September
at Parfums Christian Dior.
Materials
from Renewable
Resources
Louis Vuitton eyeglasses
are manufactured from
cellulose acetate, a natural,
high-quality material from
a renewable resource: wood.