Gucci, the Florence-based luxury house operating under the Kering Group, is one of the world’s most closely watched brands on sustainability, accounting for the largest share of Kering’s annual revenue. The brand’s ESG framework, known as Gucci Equilibrium since 2018, integrates environmental targets, social impact programs, and circular economy strategies into a single reporting structure. The most recent published document, the 2024 Gucci Equilibrium Impact Report, confirms progress on several metrics while revealing structural gaps that require attention from sustainability practitioners benchmarking luxury fashion performance.
Gucci ranked second among 250 major fashion brands and first among all luxury brands in Fashion Revolution’s “What Fuels Fashion?” report in 2024 and also ranked first for ESG in the 2024 Vogue Business Index.
Source
https://www.gucci.com/int/en/nst/equilibrium
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
Sustainability Strategy and Goals
Gucci’s formal strategy is structured around three pillars: Planet, People, and Progress, all captured under the Equilibrium platform. The brand operates within Kering’s group-level SBTi-validated targets and aligns its commitments with the UN SDGs, the Fashion Pact, and the Ellen MacArthur Foundation’s circular economy framework. Gucci became a Strategic Partner of the Ellen MacArthur Foundation in 2022, building on its existing circular economy work and extending it across its entire value chain.
Net Zero and Carbon Emissions
Gucci declared itself carbon neutral across its entire supply chain in 2018, making it one of the first luxury brands to extend carbon neutrality beyond direct operations to the full value chain.
- 2024: Registered a 4% reduction in absolute Scope 1 and 2 GHG emissions, continuing a multi-year downward trajectory
- 2024: Achieved a 32% overall GHG reduction across all scopes compared to the 2022 baseline
- 2024: Raw material production and processing, which represents 64% of total emissions, decreased by 22% compared to the previous year
- 2018 (baseline): Implemented a hierarchy of actions: avoid, reduce, restore, and offset, with avoidance measures saving 440,125 tons of CO₂ in 2018 alone
- Carbon neutrality relies in part on REDD+ forest conservation in Peru, Kenya, and Indonesia, with recognized limitations on offset permanence and verification accuracy
Water Stewardship
Gucci’s water strategy falls within the Kering Group’s broader science-based water commitments, which are among the most specific in the luxury sector. Kering has identified ten global watershed hotspots, with Tuscany’s Arno Basin as the first priority given Gucci’s heavy manufacturing presence in the region.
- Kering targets a 21% reduction in water withdrawals for all company-owned facilities in the Arno Basin by 2030
- Kering’s tannery in Normandy uses organic, metal-free tanning processes that require 25% less water, currently recycling 30% back into production with a target to reach 50% by end of 2025 and 75% by 2030
- 83% of Kering’s water risks lie outside direct operations, concentrated in agricultural supply chains, which is why the strategy requires supplier-level water target disclosure by 2030
Regenerative Agriculture
Gucci has been investing in regenerative agriculture since 2020 as an integral part of its sourcing strategy for collections. This work spans silk, cotton, and wool supply chains, with the aim of improving soil health, water quality, biodiversity, and carbon sequestration.
- Gucci sources regenerative wool from Uruguay through a partnership spanning 13 farms across 100,000 hectares, with a firm purchase commitment of 50 tons of regenerative wool per year
- The brand integrates regenerative silk and cotton supply chains in Italy and internationally, supporting farming communities as long-term land stewards
- Kering’s broader group target is to quadruple the volume of regeneratively sourced materials by 2035, with Gucci’s wool and cotton programs representing the operational foundation
Deforestation and Biodiversity
Gucci’s REDD+ offset portfolio supports forest conservation in Peru, Kenya, and Indonesia, all designed to prevent deforestation and support local ecosystems alongside carbon sequestration. The Fashion Pact, which Gucci signed, includes collective commitments to halt deforestation in key supply chain commodities including leather and textile fibers. Kering’s Biodiversity Strategy, under which Gucci operates, uses the Environmental Profit and Loss (EP&L) methodology to assign monetary values to land use and biodiversity impact annually since 2015.
Packaging and Circular Economy
Gucci’s packaging commitments are among its most advanced and measurable, grounded in the Fashion Pact and EU packaging regulations.
- 100% of paper and cardboard used in packaging is now FSC-certified
- Gucci has signed the Fashion Pact and committed to eliminating all single-use plastics from packaging by 2030
- The Take Back program reuses protective plastic boxes, avoiding the production of new units in each product delivery cycle
- Circular Hub, launched in 2023 with Kering’s support, is projected to reduce up to 60% of GHG emissions currently generated in managing production waste within Gucci’s leather goods ecosystem
- The Gucci-Up program upcycles material leftovers, and the Gucci Scrap-less program in 2024 reduced 26 tons of leather scraps, saved 140,120 kW of energy, conserved 1,471,242 liters of water, and avoided 18.9 tons of chemicals
Human Rights and Responsible Sourcing
Gucci maintained 99% raw material traceability in both 2023 and 2024, with 100% traceability achieved for priority materials including precious skins and leather. The brand enforces the Kering Group’s Social Charter across its supply chain and is a signatory to the UN Global Compact, committing to human rights, labor standards, and anti-corruption principles. In 2024, PETA filed a lawsuit against Gucci over claims related to the sourcing of python skins, which the brand is contesting while Kering continues supply chain auditing.
Nutrition and Health
Gucci does not operate in the food or nutrition sector. Its direct health and wellbeing commitments are channeled through employee wellness programs, artisan health and safety standards in Italian ateliers, and supply chain labor compliance audits. The brand’s EP&L methodology accounts for health-related externalities in its supply chain chemical use and waste outputs.
Community and Social Impact
Gucci’s social impact work flows through the Gucci Changemakers initiative, the Gucci École de l’Amour, and partnerships with cultural institutions.
- The Gucci Changemakers North America Impact Fund and Scholarship program, launched in 2018, has continued to support underrepresented communities in fashion and the arts
- Gucci École de l’Amour was created to preserve and transfer artisanal craftsmanship skills to the next generation of luxury makers
- The brand supports artisan communities in Italy, providing employment and protecting traditional manufacturing techniques that form the backbone of its leather goods production
- Millennials and Gen Z together drive close to half of Gucci’s sales, and the brand’s social programs are designed partly to align with the ethical expectations of this demographic
Governance and Transparency
Gucci reports under the Kering Group’s Annual Activity Report, which follows GRI standards, CDP Climate Change and Water Security disclosures, and the EU’s Non-Financial Reporting Directive. Kering’s EP&L statement, one of the most rigorous natural capital accounting tools in any industry, is published annually and forms the financial foundation for Gucci’s sustainability governance. The 2024 Gucci Equilibrium Impact Report is structured to meet CSRD readiness and ISSB alignment, in preparation for mandatory European reporting requirements.
Technology and Innovation
Gucci’s material innovation program centers on reducing dependence on high-impact traditional luxury materials through lab-developed and bio-based alternatives.
- Demetra, Gucci’s proprietary animal-free fabric made from plant-based and recycled raw materials, was introduced in 2021; the Horsebit 1955 bag in Demetra won PETA’s Best Vegan Bag award in 2023
- The Circular Hub, co-developed with industrial partners under Italy’s PNRR framework, integrates AI-assisted traceability, logistics optimization, and material regeneration at the manufacturing level
- Gucci Scrap-less applies precision cutting algorithms to reduce leather waste at the tannery-to-factory stage, saving 18.9 tons of chemicals and 1.47 million liters of water in 2024 alone
- Kering’s tanneries have adopted organic, metal-free tanning processes that use 25% less water, with water recycling loops targeting 75% closure by 2030
Global Partnerships and Advocacy
Gucci is a signatory to the Fashion Pact, which commits brands to three global goals: stopping global warming, restoring biodiversity, and protecting oceans. In 2022, Gucci became a Strategic Partner of the Ellen MacArthur Foundation, the global authority on circular economy, to redesign its industrial production model. Gucci also partners with The RealReal for luxury resale, a first-of-its-kind formal brand-endorsed resale arrangement launched in 2020.
Source
https://www.texintel.com/eco-news/gucci-accelerates-its-vision-for-a-circular-economy-of-the-future-as-it-partners-up-with-the-ellen-macarthur-foundation/
https://www.moreschini.com/en/2024/12/03/gucci-and-sustainable-packaging-the-case-of-recycled-boxes/
https://www.gucci.com/int/en/nst/equilibrium-circular-vision
https://www.kering.com/en/news/gucci-supported-by-kering-invests-in-first-circular-hub-to-power-a-circular-made-in-italy/
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
https://www.scribd.com/document/805168174/Sustainability-at-Gucci
https://www.kering.com/en/sustainability/
https://ddd.uab.cat/pub/infanu/239915/iaKERINGa2024ieng.pdf
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
https://ssilife.com.ph/blog/gucci-is-now-entirely-carbon-neutral
Progress vs. Target Tracker
Source
https://www.gucci.com/int/en/nst/equilibrium
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
Key Sustainability Innovations and Technologies
Gucci’s innovation pipeline addresses the upstream material challenge, the mid-stream manufacturing waste problem, and the downstream circular lifecycle question.
- Demetra material platform: A proprietary animal-free substrate produced from plant-based and recycled raw materials, first launched in 2021 and commercially deployed in multiple product lines; leather still accounts for approximately 60% of Gucci’s sales, meaning Demetra’s systemic impact remains limited to date
- Gucci Scrap-less: A precision manufacturing program applied at the tannery-to-factory stage that saved 26 tons of leather scraps, 140,120 kW of energy, 1,471,242 liters of water, and 18.9 tons of chemicals in 2024 alone
- Circular Hub: An R&D and industrial production center, supported by Italy’s PNRR, that applies AI-assisted traceability, logistics coordination for material leftovers, and industrial partnerships to regenerate textiles and raw materials back into manufacturing cycles, with a projected 60% GHG reduction in leather goods waste management
- REDD+ ecosystem offsets: Forest conservation and mangrove restoration programs in Peru, Kenya, Indonesia, and Myanmar that serve as the carbon balance mechanism while direct reductions scale up
- Regenerative wool supply chain: A direct purchase agreement with 13 Uruguayan farms across 100,000 hectares at 50 tons per year, providing Gucci with first-tranche regenerative input for its collections while building a replicable model for silk and cotton
Source
https://www.kering.com/en/news/gucci-supported-by-kering-invests-in-first-circular-hub-to-power-a-circular-made-in-italy/
https://www.gucci.com/int/en/nst/equilibrium-circular-vision
Measurable Impacts
Gucci’s 2024 and 2023 data provide a clear two-year trajectory, anchored against a 2022 baseline for GHG performance.
- Scope 1 and 2 GHG: 4% absolute reduction reported in 2024 from the prior year
- All-scope GHG: 32% total reduction across all scopes compared to 2022
- Raw material and processing emissions: Down 22% in 2024 compared to 2023, representing progress in the category that drives 64% of total footprint
- Raw material traceability: Held at 99% in both 2023 and 2024; 100% achieved for leather and precious skins
- Renewable energy: 100% of direct operations powered by renewable sources since 2020, confirmed in 2024
- Packaging: 100% FSC-certified paper and cardboard achieved
- Scrap-less (2024): 26 tons leather scraps reduced; 140,120 kW energy saved; 1,471,242 liters water saved; 18.9 tons chemicals avoided
- CO₂ avoidance from supply chain initiatives: 440,125 tons avoided in 2018 at the point of establishing the carbon neutral claim; current annual avoidance figures are not separately disclosed in the 2024 report
Source
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
https://www.gucci.com/int/en/nst/equilibrium-circular-vision
Challenges and Areas for Improvement
Gucci faces three categories of material challenges: offset dependence, leather revenue concentration, and the pace of supply chain decarbonization.
- Carbon offset reliance: Gucci’s carbon neutral claim since 2018 is partially sustained through REDD+ credits, which have been independently scrutinized for overestimated carbon capture, verification gaps, and permanence concerns; Gucci has acknowledged these limitations but has not yet published a credible phase-out schedule for offset use
- Leather dependency: Leather accounts for approximately 60% of Gucci’s sales, and despite the Demetra platform and the Circular Hub, no target exists to reduce leather’s share of revenue or product volume by a defined date
- 50% GHG reduction target: The original 2025 target of a 50% supply chain GHG reduction against a 2015 baseline has not been confirmed as achieved; the 2024 report cites a 32% reduction vs 2022, not the full 2015 trajectory, leaving the 2025 target status opaque
- Kering recycled fabric sourcing: The target to reach 40% recycled fabrics by 2035 lacks a published Gucci-specific baseline or annual tracking figure
- Legal exposure: PETA’s 2024 lawsuit over python skin sourcing claims introduces reputational and regulatory risk that has not yet been resolved
- Scope 3 depth: While overall GHG fell 32% vs 2022, the brand does not publish absolute Scope 3 tonnage figures independently of Kering’s group-level reporting, limiting peer comparison
Source
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
https://fashionunited.uk/news/fashion/not-so-carbon-neutral-gucci-adjusts-sustainability-goals/2023051869634
Future Plans and Long-Term Goals
Gucci’s forward commitments extend to 2030, 2035, and 2050.
- By 2030: Eliminate single-use plastics from packaging in line with the Fashion Pact commitment
- By 2030: Kering’s water strategy requires supplier-level water reduction targets of at least 21% for strategic partners, with Gucci’s supplier base at the center given its Tuscan manufacturing cluster
- By 2030: Kering targets a 21% reduction in direct water withdrawals in the Arno Basin
- By 2035: Kering tanneries to recycle 75% of process water back into production
- By 2035: 40% recycled fabrics across Kering sourcing, with Gucci expected to carry a proportionate share
- By 2035: Quadruple volumes of regeneratively sourced raw materials across the group, building on Gucci’s Uruguay wool and Italian programs
- By 2050: Net-zero GHG across the full Kering value chain, under SBTi-validated targets
The Circular Hub model represents Gucci’s most credible path to moving beyond offset-based carbon neutrality. If it scales across the full leather goods production network, it could establish a genuinely circular material loop within Italian luxury manufacturing.
Source
https://www.kering.com/en/news/gucci-supported-by-kering-invests-in-first-circular-hub-to-power-a-circular-made-in-italy/
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
Comparisons to Industry Competitors
Gucci’s closest luxury competitors on sustainability reporting are LVMH and Hermès, both of which operate under similarly complex, supply-chain-heavy footprints.
LVMH reports a more advanced Scope 1 and 2 reduction at 55.1% versus Gucci’s parent Kering’s lower comparable figure, though LVMH measures against 2019 and Gucci’s 2024 report uses 2022 as a comparison base, making direct comparison imprecise. Gucci leads on transparency infrastructure, with the Equilibrium platform and EP&L accounting providing more granular supply chain data than either LVMH or Hermès publish at the brand level.
Source
https://www.lvmh.com/en/commitment-in-action/for-the-environment
https://www.tennaxia.com/en/blog/comment-decarboner-le-secteur-du-luxe
https://classyleatherbags.com/blogs/press-release/the-great-luxury-sustainability-battle-gucci-dominates-chanel-lags
What to Watch: 12 to 18 Month Indicators
Three specific developments will most significantly shift Gucci’s sustainability position through late 2026.
Resolution of the 2025 GHG reduction target: Gucci publicly committed to a 50% supply chain GHG reduction by 2025 against a 2015 EP&L baseline. The 2024 Impact Report presents a 32% reduction vs 2022 without resolving the full 2015 trajectory. The 2025 Equilibrium Impact Report, expected in mid-2026, will confirm whether this decade-long target was met, revised, or quietly dropped. A clear disclosure with the original 2015 baseline comparison would signal strong governance. Its absence would confirm the kind of target dilution that regulators under CSRD are increasingly scrutinizing.
Circular Hub scale-up and verified GHG outcomes: The Circular Hub launched in 2023 with a projected 60% GHG reduction in leather goods waste management. By late 2026, enough operational data should exist to verify whether that projection holds in practice. Watch for the first independently verified emissions impact report from the hub, and whether Gucci commits to expanding the model across additional product categories beyond leather goods.
Demetra adoption rate and leather revenue share: With leather at roughly 60% of Gucci’s sales, the pace at which Demetra and other alternative materials grow as a proportion of production is a structural indicator of long-term decarbonization credibility. If the 2025 or 2026 Equilibrium Report begins disclosing an alternative materials revenue or production percentage, it will signal a shift from innovation showcase to commercial strategy. Its continued absence would suggest Demetra remains primarily a branding exercise.
Source
https://www.gucci.com/int/en/nst/equilibrium
https://www.kering.com/en/news/gucci-supported-by-kering-invests-in-first-circular-hub-to-power-a-circular-made-in-italy/
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
Gucci has built one of the most visible and structurally coherent sustainability platforms in luxury fashion. The Equilibrium framework, the Circular Hub investment, the Scrap-less manufacturing program, and the regenerative agriculture commitments together form a credible multi-decade strategy, not a single campaign. The 32% all-scope GHG reduction vs 2022 and the 22% reduction specifically in raw material processing emissions demonstrate that supply chain engagement is producing verifiable results.
The carbon neutrality claim is the most contested element of Gucci’s profile. The brand has handled this responsibly by acknowledging that offsets are supplementary rather than a substitute for direct reduction, but it has not published a credible timeline for phasing offsets down as absolute reductions scale up. This gap is material for ESG analysts and regulators under CSRD, who distinguish between net-zero by reduction and net-zero by offsetting.
Three takeaways for practitioners benchmarking or replicating Gucci’s approach:
- The EP&L methodology, developed by Kering and applied across Gucci’s value chain since 2015, is the most replicable transparency tool in luxury. It converts natural capital consumption into monetary terms, making supply chain externalities legible to finance and board-level decision-makers. Practitioners seeking to move ESG from compliance to strategy should consider adopting a similar natural capital accounting approach before setting targets.
- The Circular Hub model demonstrates that industrial-scale circularity in luxury is achievable when brands co-invest with manufacturing partners under a policy framework (Italy’s PNRR) that de-risks the capital expenditure. Brands without a national recovery plan equivalent should explore EU taxonomy-aligned financing as a substitute mechanism.
- Gucci’s experience with retracted carbon neutral claims in 2023 is a case study in the cost of outpacing measurable progress with public commitments. Practitioners should calibrate carbon neutral claims to verified, independently audited figures, and treat offset portfolios as transitional tools disclosed separately from reduction performance.
Source
https://lampoonmagazine.com/gucci-sustainable-report-circularity-material-innovation-carbon-offset/
https://www.kering.com/en/news/gucci-supported-by-kering-invests-in-first-circular-hub-to-power-a-circular-made-in-italy/
https://www.kering.com/en/sustainability/
