Moncler commits to carbon neutrality and 100% renewable electricity
Luxury fashion brand Moncler has pledged to ensure that its direct operations are carbon-neutral within a year and to transition to 100% renewable energy by 2023.
Moncler had already signed the Fashion Pact, coordinated by Kering to deliver a sector-wide transition to net-zero
The commitments form part of the company’s new sustainability strategy, called ‘Born to Protect’ and published today (22 October). They make up the strategy’s ‘climate action’ pillar – other pillars being the circular economy, fair sourcing, diversity and giving back to communities.
On the carbon neutrality target, Moncler has reduced its direct (Scope 1) and power-related (Scope 2) emissions by 30% since 2017 by investing in energy efficiency measures and renewable electricity. It uses 100% renewable electricity across its Italian operations and at its factory in Romania, which it owns.
It will need to purchase carbon credits to offset the remaining emissions and has said it will continue to prioritise reductions. At present, the company does not have a time-bound commitment for Scope 3 (indirect) emissions, but it is a member of the Fashion Pact, which binds it to address this issue in the coming years.
The circular economy pillar of Moncler’s new strategy includes pledges to eliminate single-use plastic packaging by 2023; recycle more than 80% of nylon scraps by 2023 and shift to 50% recycled nylon by 2025.
It also details a commitment to source down through traceable systems, creating an audit chain for information around waste and animal welfare, and to begin applying this system to down recycling next year. Moncler uses third-party inspectors to check its processes across the down life-cycle.
Moncler classes down and nylon as key materials. ‘Born to Protect’ includes a commitment to ensure that the supply chains of all key materials are fully traced within three years.
Commenting on the new strategy, Moncler’s chair and chief executive Remo Ruffini said it would take “new ways of thinking and working and innovative solutions in new places” to meet the updated targets.
He said: “The world is facing ever more urgent social and environmental challenges. The pandemic is a reminder that we can, we must, always go beyond what we have already achieved if we are to make our future better.”
On the social side, the new strategy sets out plans to enrol all employees on a three-year cultural awareness plan and to launch a diversity and inclusion council in early 2021. It also includes a commitment to donate to projects that reach 100,000 people over the next three years and to co-run one high-level social project biannually.
Refashioning finance
‘Born to Protect’ has been published shortly after Moncler signed for a €400m revolving credit facility with margins linked to key sustainability targets. Environmental targets only are taken into account, meaning the business has an incentive to deliver against its carbon, energy, water, waste and sourcing goals.
Other businesses with sustainability-linked loans include supermarket giant Tesco, soft drinks manufacturer Britvic and Finnish forestry firm UPM.
Some other firms have taken the decision to link sustainability and finance by launching green bonds or tying executive pay to factors like emissions reductions. BMW, Shell and BP have adopted the latter, while corporates to have issued green bonds this year include Visa, Alphabet and Chanel.
Sarah George
