Louis Vuitton 2008 Annual Report Download - page 67

LVMH010_2008_GB:Mise en page 1 24/03/09 11:14 Page 68
Eco-construction for new
and old projects is spreading
For the Group, taking the environment into consi-
deration must be part and parcel of the construc-
tion or renovation of a building, with the goal of
certification whenever possible. After its High Envi-
ronmental Quality "Eole" (god of the winds) logis-
tics hub in 2006, Louis Vuitton is going even
further: automated energy management and envi-
ronmentally friendly materials for the renovation
of the 4th floor of the headquarters in Pont Neuf,
the use of photovoltaic energy and natural lighting
at its two future storage warehouses in Cergy and
Shanghai, the choice of a new "Leed Certified"
center on the west coast of the United States,
heating and hot water production using geother-
mal and solar energy, and rain water recovery at
the Fiesso factory in Italy.
Moët & Chandon opened its new pressing center
in Mailly-Champagne, which was designed and is
operated using a High Environmental Quality
(HQE) approach with particularly noteworthy work
on water consumption and the treatment of waste
water: recovery of rain water for non-food uses and
the use of technologies to reduce the volumes of
water used by 60%. The plan to expand the Moët
& Chandon industrial site in Oiry includes an
HQE certification approach with five priority
targets: energy, water, service and maintenance,
the integration of the building in its environment,
and acoustic comfort.
Already firmly committed to its HQE approach
for renovating the Hôtel du Marc, which will even-
tually cover 70% of its heating needs using
geothermy and solar, Veuve Clicquot has just had
its project to expand the Crayères site (bottle packa-
ging building) selected as the pilot site for the "HQE
Approach—Industrial Buildings". Glenmorangie
and Domaine Chandon California - Newton are
also taking steps to build green buildings.
Integrated grape-growing
and biodiversity: efforts continue
The major challenge for the Wines and Spirits
and Perfumes and Cosmetics companies is the
preservation and restoration of biodiversity, which
is the focus of all our efforts. Moët & Chandon,
for instance, using equipment that permits very
localized applications, continues to reduce the
use of herbicides and pesticides (-34% in herbi-
cides in 2008 from 2005). The deployment of
grassed over areas and experiments with sowing
winter grains are also contributing to the reduc-
tion in the use of herbicides. Cloudy Bay, which
has cut its water effluents per ton of grapes produ-
ced by 30%, continues to work on biological viti-
culture by planting eucalyptus to develop the
byproducts from the vine and fix the carbon and
by the placement at its Omaka Valley site of falcon
nests, the natural predators of insects that are
particularly harmful to ripe grapes.
For Veuve Clicquot, partial or controlled vegeta-
tion in 2008 covered 70% of the surface area of
its vineyard. In 2009, 80% of the vineyard will
be covered, and further work on the soil under-
neath the row begun. The use of sexual confu-
sion (an alternative to the use of insecticides) is
also being performed on 70% of the surfaces.
The deployment of Sustainable Viticulture with
grape growers and suppliers continues and to date
involves 90% of the grapes provided.
Aware of the major challenge of biodiversity for its
activities, LVMH has expanded its international
actions in ethnobotany. The Group participates
in local economic development and contributes
to the preservation of certain plant species, for
example, in Madagascar or Vietnam. After the
first successful event, the second Africa and
Beauty Forum in Burkina Faso was an opportu-
nity to share the results of research work, discuss
practices (the planting of seedlings, water mana-
gement, etc.) and visit the village of Tiébélé with
which LVMH Research has been collaborating
for several years.
Common concerns
Formalizing requirements
for suppliers
In March 2008, the Group adopted a Supplier
Code of Conduct applicable by all companies.
It completes all the programs already imple-
mented and requires our partners, like the
Group's companies, to adopt the best environ-
mental and social practices. Any failure may
involve a review, or even a break in the commer-
cial relationship.
Louis Vuitton continues the approach it began
years ago. After inserting environmental clauses
into the contracts with its suppliers, surveys and
environmental and social SA 8000 audits are
conducted every year. A number of Houses, inclu-
ding Guerlain, Donna Karan and Hennessy, have
also initiated environmental audit campaigns.
Veuve Clicquot organized a technical day in
Beaune to train nearly 200 grape growers and
suppliers in the challenges of climate change for
their industry and in ways to correct them. A
special awareness program on personal safety,
food safety and the environmental impacts of
the activities was completed for outside service
providers working on site. Moët & Chandon
adopted the Code of Conduct and launched a
vast program of audits including environment
and food safety. They have already been conduc-
ted at more than thirty pressing centers and
about ten suppliers and service providers.
REACH is also a central element during
exchanges with our suppliers. In fact, the Euro-
pean Regulation for recording and evaluating
chemical substances to check whether or not they
are authorized involves all Group companies.
The companies have completed the compliance
work and are anticipating future requirements.
For example, Sephora has eliminated phthalates
from its products, and other companies have
eliminated certain suppliers.
Responsible marketing
The health of consumers is a constant concern of
the Group. In the Wines and Spirits segment,
LVMH recommends responsible consumption: drin-
king less but better. As a founding member of Busi-
ness and Prevention, an association created fifteen
years ago, the Group is a force for making recom-
mendations to public authorities to encourage
responsible consumption. Also involved in the Euro-
pean Alcohol and Health Forum created by the
European Commission, Moët Hennessy participates
in defining the future alcohol policies that will be
established in the Member States. The Wines and
Spirits companies practice a responsible marketing
policy in accordance with the Moët Hennessy marke-
ting code. Believing in the effectiveness of work that
is specifically targeted, Moët Hennessy is developing
many initiatives for its personnel and even for those
who visit the sites where the Group's wines and
spirits are prepared. Finally, the adoption of a Char-
ter on Responsible Alcohol Consumption is the
Group's expression of its strong convictions in this
area and an invitation to its partners to follow it in
this vision of the future.
Cosmetic products offer the very best safety guaran-
tees. LVMH does not use any ingredients the
complete safety of which cannot be guaranteed. The
Perfumes and Cosmetics Houses are not content
with applying the most stringent international regu-
lations in force; they anticipate and implement future
PASSIONATE ABOUT CREATIVITY 65