Kering, the Paris-based luxury conglomerate housing Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, and Kering Eyewear, reported revenues of €17.2 billion in 2024, a 12% decline from the prior year driven by luxury sector softness. Kering has been recognized as a CDP Triple A List company for the third consecutive year in 2025, covering Climate, Water, and Forests, making it one of fewer than 20 companies globally to hold all three A ratings simultaneously. The group’s most recent primary sustainability disclosure is its 2024 Universal Registration Document (URD), supplemented by the 2024 ESG Databook, the Carbon Footprint Data Report, and the EP&L Results, all published under its comprehensive measurement architecture.
In December 2025, Kering received a Sustainalytics ESG Risk Rating of 9.7, placing it in the Negligible Risk category, and scored 78/100 in the S&P Global Corporate Sustainability Assessment, ranking fourth in the Textile, Apparel and Luxury Goods industry.
Source
https://www.kering.com/en/sustainability/
https://www.kering.com/en/sustainability/measuring-our-impact/esg-performance/
https://www.kering.com/en/sustainability/measuring-our-impact/esg-disclosures/
Sustainability Strategy and Goals
Kering’s formal sustainability strategy operates under three pillars: Care, Collaborate, and Create, aligned with the UN Sustainable Development Goals and anchored by the group’s SBTi-certified Net Zero trajectory, validated by SBTi on October 31, 2024. The strategy is governed through the EP&L (Environmental Profit and Loss) accounting tool, developed internally since 2011 and now the most comprehensive natural capital measurement framework in the luxury industry, quantifying GHG emissions, water consumption, air pollution, water pollution, land use change, and waste across the entire supply chain in monetary terms. Kering reports against GRI Universal Standards, SASB, TCFD, CSRD (as of the 2024 URD, which marks Kering’s first full CSRD-aligned disclosure), and CDP Climate, Water, and Forests.
Net Zero and Carbon Emissions
Kering’s SBTi-certified Net Zero trajectory, validated on October 31, 2024, sets the most comprehensive GHG target structure in the luxury sector.
- 2022 baseline: Total GHG footprint of approximately 2.5 million tCO₂e across Scopes 1, 2, and 3
- 2024: Total carbon footprint of 2,159,908 tCO₂e, a reduction driven primarily by a 16% drop in Scope 3 Category 1 (purchased goods and services)
- 2024: Scope 1 and 2 emissions of 43,480 tCO₂e, representing approximately 2% of total footprint
- 2024: Scope 3 emissions of 2,116,428 tCO₂e, a 16% reduction from 2023, primarily from purchased goods and services
- SBTi near-term target: 54.6% absolute reduction in Scope 1 and 2 GHG emissions by 2033 from a 2022 base year
- SBTi near-term target: 54.6% absolute reduction in Scope 3 GHG emissions by 2033 from a 2022 base year
- SBTi FLAG target: 39.4% absolute reduction in Scope 3 FLAG GHG emissions by 2033 from a 2022 base year, with a no-deforestation commitment across all primary deforestation-linked commodities
- Long-term target by 2050: 90% absolute reduction in Scope 1, 2 and 3 GHG emissions from a 2022 base year
Water Stewardship
Kering became the first company globally to adopt science-based targets for both land and freshwater, validated by the Science Based Targets Network (SBTN) at COP16 on October 30, 2024. These targets are grounded in the group’s EP&L, which has measured water consumption across the full supply chain since 2011, providing a decade of baseline data.
- Kering targets a 21% reduction in water withdrawals at company-owned facilities in the Arno Basin (Tuscany), home to Gucci’s core manufacturing operations, by 2030
- Kering’s tannery in Normandy uses organic, metal-free tanning processes requiring 25% less water, with process water recycling at 30% currently, targeting 50% by end 2025 and 75% by 2030
- 83% of Kering’s water risks lie outside direct operations, in agricultural supply chains, which is why the SBTN freshwater targets extend to supplier-level water risk disclosure requirements by 2030
- Land footprint reduction: Kering targets a 3% land footprint reduction by 2030, exceeding SBTN’s 0.35% per year requirement, through increased use of recycled materials, regenerative agriculture inputs, and circular business model scaling
Regenerative Agriculture
Kering’s regenerative agriculture program is among the most structured and independently verified in any industry globally, anchored by the Regenerative Fund for Nature, co-launched with Conservation International in January 2021.
- Regenerative Fund for Nature: Targets the transition of 1 million hectares of farms and landscapes to regenerative agriculture across Kering’s raw material supply chains by 2025, with Kering also committing to protect an additional 1 million hectares of critical habitat outside its supply chain
- Mongolia Regenerative Cashmere Project: 342,000 hectares of goat rangeland in Mongolia enrolled in regenerative grazing practices, directly addressing climate adaptation risks from desertification in the Gobi Desert
- GRASS Project (South Africa): 300,000 hectares of sheep wool and leather grazing land enrolled in the Olive Leaf GRASS initiative, focused on soil health restoration, biodiversity enhancement, and farmer livelihood improvement
- Organic Cotton Accelerator Regenerative Cotton Project (India): 53,500 hectares enrolled in certified regenerative cotton production, providing Kering brands with a verified sustainable fiber source
- EP&L integration: All regenerative agriculture projects are evaluated through the EP&L, which assigns monetary values to soil carbon sequestration, water quality improvement, and biodiversity recovery at the hectare level, enabling financial comparability with conventional sourcing
Deforestation and Biodiversity
Kering adopted the first-ever science-based targets for both land and freshwater through SBTN at COP16 in October 2024, making it the first company in any sector globally to do so.
- Net positive biodiversity commitment: Kering’s Biodiversity Strategy launched in 2020 targets a net positive impact on biodiversity by 2025, structured around four stages: Avoid, Reduce, Restore and Regenerate, and Transform
- No-conversion commitment: Validated by SBTN, Kering’s Deforestation and Conversion-Free commitment covers all primary deforestation-linked commodities, including leather, wool, cashmere, cotton, and silk, strengthened in June 2023 with more detailed land use change assessments
- EP&L target achieved: Kering targeted a 40% reduction in EP&L intensity between 2015 and 2025; this target was achieved in 2021 and has been maintained through 2024
- Kering for Nature Fund: A companion fund to the Regenerative Fund, focusing on protecting 1 million hectares of critical, irreplaceable habitat outside direct supply chains by 2025
Packaging and Circular Economy
Kering’s circular economy strategy covers circular material sourcing, end-of-life product systems, material traceability, and the group-level Material Innovation Lab (MIL).
- Kering’s Material Innovation Lab (MIL): A group-level platform that identifies, evaluates, and scales low-impact and innovative materials for use across all Kering Houses, including bio-based fibers, recycled inputs, and cruelty-free alternatives
- Circular sourcing target: Kering targets 40% of materials from circular sources (recycled, regenerative, or reused) by 2035 across the group
- Stella McCartney collaboration: Kering invested in Stella McCartney, whose sustainable material platform advances the group’s access to mycelium-based and bio-fabricated material alternatives
- Store standards: The Kering Standards for Stores mandate LEED, HQE, or BREEAM certification for new and refurbished retail locations, integrating LED lighting (up to 90% energy savings), water efficiency, and sustainable materials specifications
- Packaging: All Kering Houses have committed to FSC-certified and recyclable packaging under the Fashion Pact framework, with single-use plastics in retail packaging eliminated
Human Rights and Responsible Sourcing
Kering enforces its Social Charter across all Tier 1 and Tier 2 suppliers, integrating labor standards, environmental performance, health and safety, and anti-corruption requirements.
- 99% raw material traceability at the group level was maintained through 2024 across all Houses, with 100% traceability achieved for priority materials
- Kering is a signatory to the UN Global Compact and enforces ILO core labor standards across its supply chain through annual third-party audits
- The group’s Fashion Pact commitment includes responsible sourcing for ocean plastics, cotton, and animal-derived materials, with living wage studies initiated across key sourcing geographies
- Supplier water stewardship requirements mandated by 2030: All strategic suppliers must set water reduction targets and disclose annual water performance data to Kering
Community and Social Impact
Kering’s community and social programs are channeled through the Kering Foundation, the group’s Fashion & Sustainability education initiatives, and its gender equality programs within the Fashion Pact.
- Kering Foundation: Focuses exclusively on combating violence against women globally, supporting NGO partners across Europe, Asia, and North America with grants, awareness campaigns, and legal advocacy
- Kering Generation Award: An annual international prize recognizing emerging sustainable innovation in the fashion industry, providing financial support and mentorship to winning innovators
- Equileap 2025 Gender Equality ranking: Kering ranked 81st out of 3,547 public companies in the Equileap Gender Equality Top 100, based on 19 gender equality indicators
- 47,000 employees across all Houses and corporate functions in 2024, representing a workforce of significant cultural and geographic diversity
Governance and Transparency
Kering’s 2024 Universal Registration Document is its first fully CSRD-aligned sustainability disclosure, integrating double materiality assessment, value chain due diligence, and science-based target reporting under the European Sustainability Reporting Standards (ESRS). The Sustainability Committee of the Board of Directors, chaired by an independent director, holds direct oversight over strategy, target-setting, and annual ESG performance assessment. The EP&L, independently assured annually by PricewaterhouseCoopers since 2015, provides the most externally verified natural capital accounting in the luxury sector.
Technology and Innovation
Kering’s sustainability innovation ecosystem spans natural capital accounting, material science, supply chain traceability, and regenerative agricultural technology deployment.
- EP&L platform: Developed since 2011 and openly published for industry adoption, the EP&L translates the group’s environmental impacts into monetary values across six categories (GHG, water, air pollution, water pollution, land use change, waste), enabling financial-equivalent comparability between conventional and sustainable sourcing decisions
- SBTN freshwater and land methodology: Kering’s participation in the SBTN corporate pilot used the EP&L to assess upstream pressures on nature, cross-referenced with pressure-sensitive state-of-nature data including the SBTN unified water risk assessment tool and WWF Biodiversity Risk Filter, producing the first-ever validated science-based nature targets
- Material Innovation Lab: A group-level R&D function evaluating bio-based, recycled, and animal-free materials, including mycelium leather, plant-based silk alternatives, and bio-fabricated materials, with selected innovations commercially deployed across Houses
- Forecasting and inventory optimization: Kering integrates improved demand forecasting and inventory management across Houses to reduce overproduction, directly lowering all EP&L pressures (GHG, water, land use) through volume reduction rather than only material substitution
- Regenerative agriculture technology deployment: Kering’s three SBTN-validated landscape projects in Mongolia, South Africa, and India deploy precision livestock management, soil carbon monitoring, and agronomic support at scale, combining proprietary EP&L monitoring with in-field third-party verification
Global Partnerships and Advocacy
Kering is a founding signatory of the Fashion Pact and co-chairs its Biodiversity and Oceans working groups, contributing its SBTN methodology to the broader industry. The group co-founded the Regenerative Fund for Nature with Conservation International and participates in the Ellen MacArthur Foundation circular economy programs alongside Gucci. Kering’s EP&L methodology has been voluntarily adopted by more than 30 companies globally and is used as the baseline framework by the SBTN for fashion industry Nature target-setting.
Source
https://www.kering.com/api/download-file/?path=Additional_information_to_ESG_reporting_2024_2025_4dcd240490.pdf
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ghg-emissions-results/
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ep-and-l-results/
https://www.kering.com/en/sustainability/safeguarding-the-planet/regenerative-fund-for-nature/
https://www.kering.com/en/news/kering-adopts-first-ever-science-based-targets-for-nature-globally/
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
https://net0tracker.com/corporates.html/Kering/
https://www.kering.com/api/download-file/?path=Environmental_Policy_2024_2025_d62e2905e2.pdf
https://sustainablebrands.com/read/kering-commits-to-net-positive-impact-on-biodiversity-by-2025
https://www.esgtoday.com/kering-launches-new-water-sustainability-strategy/
https://ddd.uab.cat/pub/infanu/239915/iaKERINGa2024ieng.pdf
Progress vs. Target Tracker
Source
https://net0tracker.com/corporates.html/Kering/
https://www.kering.com/api/download-file/?path=Environmental_Policy_2024_2025_d62e2905e2.pdf
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
https://sustainablebrands.com/read/kering-commits-to-net-positive-impact-on-biodiversity-by-2025
Key Sustainability Innovations and Technologies
Kering’s innovation platform is unique among luxury conglomerates for the depth of its proprietary environmental accounting infrastructure and the ambition of its nature science integration.
- Environmental Profit and Loss (EP&L) account: Developed internally since 2011 and independently assured by PwC since 2015, the EP&L is the only tool in any industry that translates six environmental pressure categories (GHG, water use, air pollution, water pollution, land use change, and waste) into monetary values across the entire supply chain from raw material to retail; it has been adopted by 30+ companies globally and used as the methodology baseline for SBTN’s fashion sector nature target-setting
- SBTN land and freshwater science-based targets: At COP16 in October 2024, Kering became the first company globally in any sector to adopt validated science-based targets for both land and freshwater use, grounded in the EP&L pressure mapping methodology; the targets go beyond GHG to formally govern land use change and freshwater depletion at specific geographic priority locations
- Mongolia Regenerative Cashmere Project (Good Growth Company): 342,000 hectares of Mongolian steppe under precision livestock management and regenerative grazing protocols, with in-field monitoring of soil carbon, vegetation cover, and water retention validated against SBTN criteria
- GRASS Project (Olive Leaf, South Africa): 300,000 hectares of sheep wool and leather grazing land enrolled in biodiversity restoration programs, directly addressing ecological degradation in Kering’s Southern Africa leather sourcing region
- Material Innovation Lab (MIL): A group-level R&D function identifying and scaling bio-based, recycled, and animal-free materials for commercial deployment across all Kering Houses, including mycelium-based leather alternatives and plant-based silk substrates, with structured evaluation against EP&L environmental criteria
- Forecasting and inventory optimization technology: Kering integrates AI-assisted demand forecasting and inventory management across Houses to reduce overproduction volumes, directly reducing all EP&L environmental pressures through volume reduction rather than material substitution alone
Source
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ep-and-l-results/
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
https://www.kering.com/en/news/kering-adopts-first-ever-science-based-targets-for-nature-globally/
https://www.kering.com/en/sustainability/safeguarding-the-planet/regenerative-fund-for-nature/
https://sciencebasedtargetsnetwork.org/wp-content/uploads/2024/10/SBTN-October-announcement.docx-1.pdf
Measurable Impacts
Kering’s 2024 and 2023 data provide a two-year trajectory covering GHG performance, EP&L outcomes, water, and biodiversity.
- Total GHG footprint (Scopes 1, 2, 3): 2,159,908 tCO₂e in 2024, reduced from the prior year, with Scope 3 down 16%
- Scope 1 and 2 combined: 43,480 tCO₂e in 2024, representing 2% of total footprint
- Scope 3: 2,116,428 tCO₂e in 2024, down 16% from 2023, primarily driven by a 16% drop in Category 1 (purchased goods and services)
- EP&L intensity: 40% reduction achieved versus 2015 baseline, target met in 2021 and maintained through 2024
- Regenerative landscape footprint: 695,500 hectares under verified regenerative programs (Mongolia 342,000 ha; South Africa 300,000 ha; India 53,500 ha)
- Tannery water efficiency: 30% process water recycling at Normandy tannery; 25% less water per unit from organic metal-free tanning processes
- Carbon intensity vs. revenue: Kering is one of a small number of companies where carbon intensity increased relative to revenue, driven by volume scaling without equivalent upstream supply chain transformation, an anomaly noted in a 2025 peer-reviewed academic analysis
- CDP Triple A List: Third consecutive year in 2025, covering Climate, Water, and Forests
- S&P Global CSA: 78/100, ranked 4th in Textile, Apparel and Luxury Goods in 2025
Source
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ghg-emissions-results/
https://tracenable.com/company/kering/ghg-emissions
https://www.kering.com/api/download-file/?path=Kering_Answers_Written_Questions_AGM_2024_afd513da46.pdf
Challenges and Areas for Improvement
Kering faces four material challenges: the confirmed gap between carbon intensity and revenue growth, unverified biodiversity hectare targets, tannery water recycling shortfalls, and the depth of House-level circular material integration.
- Carbon intensity increase relative to revenue: A 2025 peer-reviewed analysis covering 2019 to 2024 ESG and CDP data found that while Kering achieved absolute Scope 3 reductions in 2024, its carbon intensity per million euros of revenue increased by 18% over the period as revenues grew 12% without equivalent upstream supply chain transformation; this contrasts with LVMH and Prada, which achieved absolute intensity decoupling over the same period
- Biodiversity hectare gap: Three SBTN-validated landscape projects cover a confirmed 695,500 hectares against a 1 million hectare regenerative agriculture target by 2025; the remaining 304,500 hectares require confirmation from Fund-supported projects not individually disclosed in the 2024 URD
- Critical habitat protection confirmation: The Kering for Nature Fund target of 1 million hectares of protected critical habitat by 2025 lacks a published verified hectare figure in the 2024 annual disclosure, making independent assessment of target achievement impossible at this time
- Tannery water recycling shortfall: The Normandy tannery is at 30% water recycling against a 50% target by end 2025; the deadline has now passed without public confirmation of achievement
- House-level circular materials transparency: The group-level 40% circular materials by 2035 target does not yet have published House-level baseline figures or annual tracking data, making it impossible for external analysts to assess progress distribution across Kering’s portfolio of brands
- Scope 3 Category 1 reliance on estimates: While Kering discloses across 13 of 15 Scope 3 categories, the largest single category (purchased goods and services) at 2.116 million tCO₂e relies in part on estimated rather than directly measured supplier emissions, a gap the supplier water disclosure mandate by 2030 will partially, but not fully, address
Source
https://www.ewadirect.com/proceedings/aemps/article/view/27244
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ghg-emissions-results/
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
Future Plans and Long-Term Goals
Kering’s forward roadmap extends to 2025 for near-term biodiversity milestones, 2030 for water and circular targets, 2033 for SBTi near-term GHG targets, 2035 for circular materials and long-term water goals, and 2050 for net zero.
- By 2025 (confirmed ongoing): Net positive biodiversity impact, supported by SBTN-validated land and freshwater targets adopted at COP16
- By 2025 (deadline passed): 50% process water recycling at Normandy tannery; public confirmation pending
- By 2030: 21% reduction in direct water withdrawals in the Arno Basin; all strategic suppliers to set and disclose water reduction targets
- By 2033: 54.6% absolute reduction in Scope 1, 2 and 3 GHG from 2022 baseline; 39.4% absolute reduction in Scope 3 FLAG GHG, all SBTi-certified
- By 2035: 40% circular materials sourcing across all Kering Houses; 75% process water recycling at Normandy tannery
- By 2050: Net zero GHG across all Scopes, with 90% absolute reduction from 2022 baseline and permanent removal of residual emissions
Kering’s SBTN land and freshwater target adoption positions it at the frontier of nature-based disclosure regulation, ahead of anticipated mandatory EU Nature Restoration Law implementation and the post-2025 evolution of CSRD requirements on biodiversity.
Source
https://net0tracker.com/corporates.html/Kering/
https://www.kering.com/api/download-file/?path=Environmental_Policy_2024_2025_d62e2905e2.pdf
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
Comparisons to Industry Competitors
Kering’s most relevant comparators are LVMH and Richemont, both operating large multi-brand luxury portfolios with similar supply chain structures and shared exposure to animal-derived material risks.
Kering holds a decisive lead over both LVMH and Richemont on nature science governance, as the world’s first SBTN-validated company across both land and freshwater targets. LVMH leads on near-term Scope 1 and 2 absolute reduction pace, having achieved 55.1% against a 2019 baseline compared to Kering’s progress against a newer 2022 baseline. Richemont presents the most significant transparency gap, having validated SBTi targets but publishing no progress data, which limits peer comparison and raises governance questions that do not apply to Kering or LVMH.
Source
https://www.ewadirect.com/proceedings/aemps/article/view/27244
https://www.kering.com/en/sustainability/measuring-our-impact/esg-performance/
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
What to Watch: 12 to 18 Month Indicators
Three specific developments will most materially shift Kering’s sustainability standing through late 2026.
SBTN nature target implementation and verified hectare reporting: Kering adopted the first-ever SBTN science-based nature targets at COP16 in October 2024. The 2025 URD, expected in early 2026, will be the first disclosure that should include SBTN implementation progress, specifically whether the three validated landscape projects in Mongolia, South Africa, and India are delivering measurable improvement in ecological indicators (soil carbon, water quality, species indicators), and whether the remaining hectare gap to 1 million is now closed or formally revised. This disclosure will set the precedent for how SBTN-validated targets are operationally reported across the industry.
Carbon intensity decoupling from revenue: The 2025 peer-reviewed analysis found that Kering’s carbon intensity per million euros of revenue increased by 18% between 2019 and 2024, in contrast to absolute Scope 3 reductions driven by volume decreases in 2024. Given that revenue fell 12% in 2024, the 16% Scope 3 reduction may reflect reduced business activity rather than structural supply chain decarbonization. If revenues recover in 2025 or 2026 and carbon intensity rises again, it would confirm that Kering’s GHG reductions are volume-linked rather than embedded in upstream material transformation, a finding with significant implications for the credibility of its 2033 SBTi targets.
Tannery water recycling milestone and Arno Basin progress: The 50% tannery water recycling target at the Normandy facility was due by end of 2025. The 2025 URD will confirm whether this milestone was achieved, providing the first operational proof point for Kering’s SBTN freshwater targets. Combined with the first published Arno Basin water withdrawal data from partner suppliers, this section of the 2025 disclosure will determine whether Kering’s water science targets are backed by measurable operational execution or remain aspirational.
Source
https://www.kering.com/api/download-file/?path=Additional_information_to_ESG_reporting_2024_2025_4dcd240490.pdf
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
Kering has constructed the most scientifically rigorous and independently verified sustainability governance architecture in luxury fashion. The EP&L, developed over 14 years and now assured annually by PwC, provides a financial-equivalent view of natural capital consumption that no competitor in the sector has replicated at equivalent depth or independence. The SBTN land and freshwater target adoption at COP16, making Kering the first company globally to hold validated science-based nature targets across both categories, represents a strategic positioning that is years ahead of incoming regulatory requirements under the EU Nature Restoration Law and post-2025 CSRD biodiversity standards.
The challenge that practitioners must recognize is the distinction between governance architecture and operational execution. The 2025 peer-reviewed analysis confirms that despite Kering’s superior disclosure infrastructure, its carbon intensity per million euros of revenue increased over the 2019 to 2024 period, driven by volume scaling without equivalent upstream transformation. A 16% Scope 3 reduction in 2024 coincided with a 12% revenue decline, raising the question of whether the reduction reflects structural decarbonization or demand contraction. This is the central analytical question for Kering’s 2025 and 2026 ESG disclosures.
Three strategic takeaways for practitioners benchmarking or replicating Kering’s approach:
- The EP&L model, freely shared and adopted by 30+ companies globally, is the most transferable tool Kering has produced. Any company with agricultural raw material supply chains can adapt the EP&L methodology to assign monetary values to environmental externalities across six categories. Practitioners should prioritize building a natural capital accounting baseline before setting targets, as Kering’s decade of EP&L data gave it the foundation to adopt the world’s first SBTN nature targets with methodological confidence.
- The SBTN pilot experience confirms that place-based, location-specific nature targets, not aggregate tonnage commitments, are the emerging standard for credible biodiversity governance. Kering’s three landscape projects (Mongolia, South Africa, India) are defined by specific hectare boundaries, specific ecological conditions, and specific improvement indicators. Practitioners setting biodiversity commitments should move away from generic hectare pledges toward SBTN-aligned, location-specific targets tied to verifiable ecological outcomes.
- The carbon intensity risk identified in the peer-reviewed analysis demonstrates that absolute GHG reductions achieved during revenue contraction can mask the absence of structural supply chain decarbonization. Practitioners reporting ESG metrics during periods of business downturn should supplement absolute figures with intensity metrics (tCO₂e per million revenue or per unit of production) to ensure that structural progress is distinguishable from volume-driven improvement, and to provide investors with a credible forward view of emissions as revenues recover.
Source
https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/ep-and-l-results/
https://sciencebasedtargetsnetwork.org/case-studies/sbtn-pilot-kering/
https://www.ewadirect.com/proceedings/aemps/article/view/27244
