Forbes Middle East
Forbes Middle East


Gucci, One Of The World’s Most Valuable Brands, Is Now Carbon Neutral

Jamila Gandhi
Gucci, One Of The World’s Most Valuable Brands, Is Now Carbon NeutralImage source: Wikimedia Commons

The Kering-owned luxury fashion house, Gucci, has added its name onto the ever-growing list of fashion companies determined to reduce their carbon footprint. The trend-led label is completely carbon neutral in its operations and across the entire supply chain, accounting for all the greenhouse gas (GHG) emissions they generate, as announced on Thursday.

According to McKinsey and Company, textile production is the world’s second most polluting industry after the oil industry, with predictions of greenhouse gas emissions to rise by more than 60% by 2030. With 90% of carbon emissions making up Gucci’s supply chain, the label is now attempting to do its bit, contributing to Kering’s pledge to the G7 Fashion Pact signed in August.

Founded in 1921, Guccio Gucci first set up a leather goods company and small luggage store in his native Florence. Today, the Italian label is part of fashion conglomerate, Kering, which is controlled by French billionaire Francois Pinault and is listed today as one of the world’s most valuable brands. The announcement comes after similar recent sustainable commitments made by retailers, including fast-fashion giants Zara and H&M.

In a statement, the brand added that it will be offsetting all its GHG emissions by implementing four REDD+ projects that support forest conservation across the globe. “A new era of corporate accountability is upon us and we need to be diligent in taking all steps to mitigate our impacts, including being transparent and responsible for our GHG emissions across our supply chains”, said Marco Bizzarri, President and CEO of Gucci.

Previously in 2015, the company outlined a 10-year sustainability program to reduce its emissions by 50% and, as of 2018, a reduction of 16% was seen. By next year, Gucci is also aiming to use 100% renewable energy in its factories; at present they remain at 70%. The ambitious new plan extends into its manufacturing operations, impacting the tanneries where it sources its leather and the factories where raw materials are processed.

The Italian brand recorded sales of $2.56 billion in the first quarter of 2019, and expects to make $11.2 billion in 2020.

Jamila is a wealth reporter at Forbes Middle East Magazine, where her work includes billionaires’ philanthropy, influence and leadership insights.

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