Louis Vuitton 2009 Annual Report Download - page 69

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Hublot’s new Swiss manufacturing site installed thermal solar panels
to heat the hot water for its bathrooms and implemented a large
number of energy-efficient technologies, including ventilation systems
with heat recovery. Wind energy is very much in evidence at Cloudy
Bay, which is testing a small wind turbine to supply its maintenance
shop.
Biodiversity increasingly a top priority
For most of the Group’s brands, the living world is a vital resource
for product development. LVMH is committed to a large number of
programs, including integrated wine growing and ethnobotany and
conducted a study last year to measure the dependence of its busi-
nesses on biodiversity. The Group is heavily involved in the Foundation
for Biodiversity. The principal objective of this Foundation, on the
eve of the year of biodiversity in 2010, was to create synergy between
French research and the challenges of society as part of a dialogue
between science and society.
LVMH’s initiatives in ethnobotany continue, and the Perfumes and
Cosmetics Research and Development Department has been active
in this area for years. In Madagascar, for example, the partnership
initiated in 2006 with an association of longoza growers continues.
The longoza plant is a plant species used in the composition of the
Capture Totale eye skin care product: the quota repaid finances major
programs, such as the creation of a House of Rice or even school im-
provements. In the context of Orchidarium, its orchid research plat-
form, Guerlain is participating in a reforestation project in Laos: trees
are in fact the prime location for orchids. Guerlain has therefore ini-
tiated a plant reserve coupled with a research and cultivation unit:
the Exploratory Reserve. In 2009, special attention was paid to the
wild Vanda coerula. Hundreds of young plants were reintroduced and
will be followed by thousands more. Guerlain is also developing the
ability to harvest its orchids under the conditions of their natural en-
vironment.
Integrated winegrowing is expanding to all the Estates & Wines com-
panies of the Group. Cloudy Bay is working particularly on soil ma-
nagement and protection and is testing new solutions to improve di-
sease resistance. Four hectares are already certified as organic
winegrowing and the Australian company is letting its sheep graze
during the winter to reduce the use of herbicides. Domaine Chandon
California and Newton last year applied the “Mow & Blow” program
on 60 hectares in order to significantly reduce the use of pesticides
and insecticides. New habitats for owls and birds of prey were thus
established in 2009, improving the natural protection against undesi-
rable species.
A first in the luxury goods industry:
a joint recycling platform
In order to reduce the use of incineration, the cost of which is rising,
the Perfumes and Cosmetics companies established a recycling
center for the waste products from perfume testers, unsold products
and quality scrap, at a shared platform located in Cosmetic Valley.
This recycling center, unprecedented in the luxury goods sector, is in
line with the social and environmental commitments made by the
Group when it signed the “Eco-Responsible Cosmetic Valley” Charter
in October 2009.
Water—a vital resource to be protected
Water, a particularly precious resource for the Group’s businesses,
particularly for the Wines and Spirits and Perfumes and Cosmetics
businesses, is the target of intense scrutiny: every year, ambitious
objectives are set to reduce water consumption and efforts are redou-
bled to limit discharges. All this assumes the use of the best technolo-
gies available, whether this is reutilization equipment, more economic
processes and/or closed systems, or even systems without any dis-
charge. Bodegas Chandon in Argentina, for instance, obtained a brand
new waste water treatment plant, which recycles the water for irrigation
purposes. With the use of this new technology, water consumption
was cut by 54% in 2009.
Continuing to reduce environmental risks
LVMH is particularly proactive in managing environmental risks: sys-
tematic identification, prevention, protection of people and property,
and a crisis management procedure are the four components of its
risk management policy. This particularly impacts the storage and
shipment of raw materials. In June, Krug earned ISO 22000 certifi-
cation, and the Belvedere distillery in Zyrardow, which is OHSAS
certified, adjusted its system in 2009 in order to comply with the
latest version of the standard.
Simplified dress
code to limit air conditioning
At both Louis Vuitton and TAG Heuer, the trend is now a summer
“dress code” in order to reduce the use of air conditioning
and the related greenhouse gas emissions. Louis Vuitton
has succeeded in establishing the principle in certain regions,
including China, while TAG Heuer has made it a general
principle in hot countries.