Louis Vuitton 2004 Annual Report Download - page 84

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Sustainable development
VISION AND STRATEGY
Because our businesses are profoundly linked to nature,
respect for the environment has always been at the heart of
the efforts of the companies in the Group and the values
that drive them. It is a cornerstone of the LVMH mission-
-to promote quality and an art de vivre worldwide as exem-
plified by its products. We must, therefore, also become an
example in the environment. The Environmental Charter
adopted in 2001 sets out the Group’s concrete commitments:
to aim for a high level of environmental performance, to
foster a collective purpose, to control environmental hazards,
to guarantee the future of our products, and to make
commitments beyond the company.
RELATIONSHIP BETWEEN LVMH
AND THE ENVIRONMENT
Like any human activity, the Group’s operations have an impact
on the environment that varies in type and scope depending
on the activity. For almost all companies, those activities are:
●consumption of energy to operate equipment, to light and
heat buildings or certain specific operations (cold stabilization
of wine and cognac, distillation of cognac);
●consumption of raw materials, primarily the materials used
in packaging: glass, cardboard, plastic, and metals to a lesser
extent;
●production of wastes at the sites;
●air pollution by energy use, particularly during the shipment
of merchandise.
Wines & Spirits and Perfumes & Cosmetics have other specific
needs, such as the consumption of water, an essential resource
for ensuring the safety of the materials and equipment that
come in contact with the product, or to ensure the survival of
vines (irrigation of vines in Australia, New Zealand, Argentina
and California), and the production of liquid effluents that are
rich in organic matter. The Wines & Spirits sector has an impact
from the use of the soil to grow vines.
A COMMITMENT CLEARLY ASSERTED
LVMH formed its environmental department in 1992 and
Bernard Arnault chose to affirm its commitment in 2001 by
signing the “Environmental Charter”. The Charter asks each
company of the Group to make a commitment to set up an
effective environmental management system, review product-
related environmental issues together, manage risks and use
the best environmental practices.
A member of the OREE Association, LVMH is also committed to
respecting the principles of its Charter1, which has been in place
since 2001.
In 2003, Bernard Arnault signed the United Nations’ Global
Compact. This initiative, launched by UN Secretary General Kofi
Annan requires its signatories to apply and promote nine prin-
ciples in the field of human rights, labor and the environment.
A NETWORK ORGANIZATION
The environmental department reports to the Advisor to the
Chairman, who is a member of the Executive Committee.
The role of this department is to:
●steer the environmental policy of the Group's companies, based
on the LVMH Charter;
●monitor regulations and technology;
●create and develop environmental management tools;
●assist companies to anticipate risks;
●train and raise employee awareness at every level of the
organization;
●define and consolidate environmental indicators;
●work with the various stakeholders (associations, public autho-
rities, ratings agencies, etc.).
The companies have one or more contacts who are members of the
“LVMH Environment Commission”, run by the environmental
department, and who exchange information and good practices
through quarterly meetings and a Group Environmental Intranet
that is accessible to everyone. The environmental department also
regularly attends meetings of the Company Executive Committees.
Each company is responsible locally and implements its own
environmental management system, which organizes the prin-
ciples of the LVMH Charter according to its activity and with a
view toward ongoing improvement. It can decide whether or
not to move toward ISO 14001 or EMAS certification.
THE GROUP AND ITS STAKEHOLDERS
ASSOCIATIONS AND FEDERATIONS
Since 2003, LVMH has chaired the OREE association, and has
been a member of this group for 11 years. OREE is composed
of businesses, local authorities and associations to develop a
joint position and create tools to improve environmental aware-
ness. LVMH was heavily involved in 2004 in the creation of
the guide for integrating the environment in customer-supplier
relations.
(1) The OREE Charter is available at the association’s website: www.oree.org
Preserving the environment