Luxury and sustainable development: what strategies do brands adopt?

Responsible sourcing

Whether derived from animals, plants, or minerals, the majority of raw materials used to create luxury products come from nature. As resources become increasingly scarce, brands are working toward supply chains that are ever more respectful of biodiversity and the planet: the preservation of resources, respect for animal welfare, the fight against deforestation, the elimination of hazardous chemicals, and the reduction of air and water pollution. This is evident, for example, at Chanel, which has stopped using crocodile skin. Yves Saint Laurent, for its part, favors vegetable-tanned leather for some of its designs. 

By acquiring tanneries, LVMH, Kering, Hermès, and Chanel are taking control of their supply chains and bringing expertise in-house while improving environmental practices. 

For its part, Chopard uses exclusively Fairmined gold, sourced from a responsible, artisanal mining site that minimizes its environmental impact. This gold is mined without the use of heavy metals and adheres to fair trade principles. 

Consumers, for their part, are becoming increasingly demanding when it comes to traceability and ethical standards for precious metals and exotic leathers, for example. These new challenges are forcing brands to innovate while maintaining their profitability.

The emergence of new materials

Recognizing the need to use more sustainable materials, luxury brands are turning to a new type of natural resource to save the planet.

One of the first brands to highlight its commitment to the environment is Stella McCartney. Refusing to use leather or fur, she has chosen to replace them with biomaterials: synthetic materials made from natural fibers (bamboo, soy, seaweed, etc.). The latest innovation in her collections is a fur made from Koba, a blend of corn and polyester that is fully recyclable; this faux fur produces up to 63% fewer greenhouse gas emissions. 

For its part, the luxury group Kering, which owns brands such as Gucci, Yves Saint Laurent, and Balenciaga, is investing in biotechnology to develop an eco-friendly and ethical leather produced in a laboratory from living animal cells. 

The jewelry industry, too, is rethinking its practices in light of the growing scarcity of gemstones and the complexity of their extraction. In 2017, Courbet entered the eco-friendly and ethical market by focusing on lab-grown diamonds. In doing so, the company dispels any suspicion that it contributes to the financing of conflicts, social exploitation, or environmental devastation. 

Recycling is also bringing a breath of fresh air to the luxury industry, and some brands are eager to innovate. Among the many initiatives, Breitling recently Breitling a new watch box made from recycled plastic bottles, available starting in early 2021. 

In the watch industry, Swatch has launched “1983,” a collection featuring two new bio-based materials derived from castor beans. The packaging, made from an innovative blend of potato starch and tapioca, is fully biodegradable and can be recycled at home with paper waste or even composted. 

In the same sector, the Baume brand, launched in 2018, was the first watch brand to use recycled materials and to ban the use of animal skins and precious metals. It is based on the concept of an eco-friendly watch, made from sustainable materials and produced on demand to avoid excess inventory. 

Environmental initiatives and the circular economy

To protect the environment, luxury brands are also improving their production processes by adopting more sustainable methods. 

LVMH has launched the LIFE Program (LVMH Initiatives for the Environment). The goal of this initiative is to integrate environmental considerations into production systems. For its part, Cartier is one of the founders of the Responsible Jewellery Council (RJC), the largest international organization promoting responsible practices in the jewelry and watchmaking industries. The RJC and its members are working to transform supply chains to make them more sustainable, with the goal of building trust in the industry. 

With the goal of reducing its greenhouse gas emissions by 50% by 2025, luxury giant Kering uses an internal tool called EP&L to measure the environmental impact of the entire supply and production chain across the group’s various brands. Currently, Kering has already reduced its environmental impact by 14% compared to 2015 and is counting on sustainable innovation to keep up the momentum. 

All of these initiatives are part of a new circular economy model aimed at producing goods and services sustainably by limiting the consumption and waste of non-renewable resources as well as waste generation. The concept of the circular economy is emerging as a crucial component for luxury brands that consume large quantities of raw materials. This is the case, for example, with the French brand J.M. Weston, which invites consumers to become active participants in the circular economy by trading in their used shoes for a gift card valid on all the brand’s products, with the aim of refurbishing them to resell them and meet this goal of sustainable and ethical consumption. 

A gem in a setting as striking as a landmark on the Geneva Lagoon, with its illuminated sign atop the building.

Reflecting a society that has become aware of a global crisis, ethics and sustainability are becoming major concerns for luxury brands. From sourcing to packaging, including production methods, the major players in the luxury sector are reinventing themselves. They are demonstrating creativity to meet consumer demand and embrace a sustainable development approach. While maintaining a strategy focused on environmental responsibility throughout the entire value chain, brands still need to reinforce and build their brand awareness using timeless media that transcend eras—such as illuminated signs, which are inherently durable and consume very little energy.