SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain

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SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
SUSTAINABLE
DEVELOPMENT
   REPORT
  2018-2019

     -   1   -
SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
(
                     OUR PURPOSE

                       We, People of Guerlain

           We have been creating exceptional Fragrance
     and Beauty products since 1828 and we strive to preserve,
    develop and pass on this unique heritage to future generations.

                 WE COMMIT AND ACT
       IN THE NAME OF BEAUTY FOR OUR CLIENTS,
      IN THE NAME OF BEAUTY FOR OUR CREATIONS
      AND IN THE NAME OF BEAUTY FOR THE PLANET.
                                                                      (
                           We involve and unite
       (clients, partners, companies that share the same vision)
            in order to imagine and shape a more beautiful
                    and responsible world together.
SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
E D I T O                                                                                                                                                           E D I T O

                                                    2019, AN AMBITIOUS YEAR                                                                                                                                                IN THE NAME OF BEAUTY…

Laurent Boillot: Making Guerlain the                                                                                     cially the bee, the eco-design of our     Sandrine Sommer: In anticipation of this (r)evolution, our teams are led          conducive to the development of innovative and eco-designed products.
most prestigious and responsible                                                                                         creations, the reduction of our climate   to imagine and reinvent ways of working to provide solutions to these             After this first (internal) success, we decided to take another step forward:
company in the world, and develo-                                                                                        footprint by aiming for carbon            new challenges. Take biodiversity, at the heart of which is the Bee, which        to meet the information needs of our customers, who are increasingly
ping our franchises with the same                                                                                        neutrality by 2028 and the social and     has also been the symbol of our company since 1853. Beyond the sym-               interested in knowing what the products contain, we took the initiative to
perspective of social and environ-                                                                                       societal commitment that Guerlain         bol, the precious bee is widely threatened. Our commitment to its protec-         give them access to our Bee Respect traceability platform. Another first
mental responsibility remains a                                                                                          combines with the notions of genero-      tion is manifold through four programmes, the most recent of which is the         that Guerlain dares to try, in the knowledge that this is the meaning of
constant challenge. For more than                                                                                        sity and sharing that are important to    Bee School, initiated in 2018, which mobilises our voluntary employees            history, and it is up to us to lift the curtain on what happens behind the
twelve years, we have been commit-                                                                                       our employees.                            to go into schools to teach children about the subjects of bees, biodiver-        scenes!
ted to Guerlain becoming a com-                                                                                                                                    sity, climate and Bee Universities. We have such pride in the success of
pany that cares about the resources,                                                                                    Laurent Boillot: It also proves that for   the third edition at UNESCO on 22nd May, World Biodiversity Day.                  Sandrine Sommer: Finally, we wish to continue to promote women's self-
biodiversity and climate of the planet,                                                                                 us it is indeed a matter of considering                                                                                      esteem through our support for the charities Look Good Feel Better, Restos
and is also supportive of women who                                                                                     sustainable development as a vision        Laurent Boillot: Making the Abeille Royale pot lighter in 2019, in the            du Cœur and Laurette Fugain. The Guerlain teams are always very proud
suffer from low self-esteem. The recent                                                                                 integrated within the management of        wake of the lighter Orchidée Impériale pot in 2015, is testament to the           to participate in these heartfelt actions that give beauty a lot of meaning.
evolution of the company gives us a                                                                                     the company, to guide the creation of      challenges related to packaging and containers (saving material, avoi-            And I haven't forgotten our partnership with the towns of Montfermeil and
factual reason for creating a department in 2007, dedicated to imple-                value that we aim to achieve. In 2019, more than ever, we are committed       ding CO2 emissions etc.) that we face from year to year. Another signi-           Clichy-sous-Bois over the past nine years. I am very proud of all the initia-
menting a Sustainable Development strategy, which was then entrusted                 to preserving, developing and passing down our unique heritage; the           ficant step was taken in early 2019 with the launch of L'Essentiel, the           tives deployed and the emulation generated is even more inspiring!
to Sandrine, who joined the Executive Committee of the company                       formal drafting of our Purpose allows us to put our actions into a strategy   company's new foundation, a truly disruptive proposal in terms of formula,
in 2018.                                                                             in line with the new expectations of our customers and society.               combining naturalness and performance. This launch confirms our desire            Laurent Boillot: For over 12 years now, we have been acting and making
                                                                                                                                                                   to eco-design 100% of all our new products by 2022. With this in mind,            commitments to a more sustainable world “In the Name of Beauty”. And
Sandrine Sommer: Sustainable Development has become a subject sha-                   We consider Sustainable Development to be a great opportunity for             Guerlain has implemented its digital traceability platform, Bee Respect,          we have the desire to make this more widely known. Thanks to all our
red by everyone: while it provides strategy, inspiration and structure for           innovation, appreciated by our markets. Beyond pure generosity, the           which collects information on the origin of our ingredients, the path they        employees and partners, we will continue to complete actions based
the Executive Committee, it is also a source of meaning and pride for all            subject is eminently economic. Indeed, many studies show that, especially     have taken, their production cycle, their distribution through to their end       around our four key issues: biodiversity and the protection of bees;
employees. As supporters of excellence, we continue to raise the bar in              among Millennials, “Sustainable Luxury” is so popular that it is a reason     of life. This platform was firstly a great tool for raising awareness among       eco-design; climate and solidarity. Certain, as I like to remind everyone,
our four areas of commitment: the preservation of biodiversity and espe-             for choosing a brand.                                                         our teams about eco-design and “breaking down barriers”, which is more            that “nothing can withstand imagination, conviction and hard work”.

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SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
C L I M A T E                                                                                               E C O - D E S I G N
                        AC H I E V E M E N T S                                        AMBITIONS                                              AC H I E V E M E N T S                                  AMBITIONS
       TRANSPORTS                                 LA RUCHE                                                                    LIGHTER                         PERFUME FOUNTAINS                     By 2022

   The first innovative                  High Environmental
                                                                                     BY 2021

                                                                                   100%                                The pot in new Orchidée
                                                                                                                     Impériale packaging is 60%
                                                                                                                                                               Our iconic Bee
                                                                                                                                                                                                  100%
                                                                                                                                                                                        OF NEW GUERLAIN PRODUCTS WILL BE
  100% electric lorry                             Quality site     OF OUR SUBSIDIARIES WORLDWIDE                  lighter and the new Abeille Royale
                                                                                                                                                             bottles are refillable
                                                                                                                                                                                                  ECO-DESIGNED
  has been supplying                                                  WILL BE ISO 14001 CERTIFIED                       has a 44% smaller pot                       for life
                                          demonstrating our
    our Paris stores
      since 2014                                 commitment
                                                                                 CARBON                                                        11ST COMPANY
                                                                                                                        to offer customers the option to return their empty packaging
                                                                                                                                                                                        100%         OF NEW GUERLAIN PRODUCTS
                                                                                                                                                                                        WILL BE COMPOSED OF 95% INGREDIENTS

                               100%
                                                                                 NEUTRAL                                 for recovery through CEDRE, the recycling platform created
                                                                                                                                      in partnership with the LVMH Group
                                                                                                                                                                                              OF NATURAL ORIGIN BY 2021
                                                                            by 2028 in celebration of 200 years
    of our sites in France and 50% of our subsidiaries                         of Guerlain. (scopes 1 – 2 – 3)                                     100% TRACEABILITY FOR ALL OUR PRODUCTS BY 2020
                   are already ISO 14001                                                                                                 THANKS TO BEE RESPECT, OUR DIGITAL TRACEABILITY PLATFORM AND TRANSPARENCY

                                                                                                                                 12 Y E A R S O F C O M M I T M E N T ,
SUSTAINABLE                                                        DEVELOPMENT                                    10 Y E A R S O F AC H I E V E M E N T S A N D N E W A M B I T I O N S

                        AC H I E V E M E N T S                                        AMBITIONS                                              AC H I E V E M E N T S                                  AMBITIONS

                                                      7
                                                                                        12
        SINCE 2011
  A sustainable partnership           SUSTAINABLE INDUSTRIES                                                                                    SINCE 2015
                                                                                                                                                                                                   By 2022
 of research and sponsorship
        with the Brittany
   Black Bee Conservation
                                                   To protect
                                                   our iconic
                                                                          FROM SUSTAINABLE INDUSTRIES
                                                                                   BY 2022
                                                                                                                                AN OUTREACH DAY IN AID                                           100%
   Association in Ouessant                       raw materials                                                                      OF AN ASSOCIATION                                       OF GUERLAIN SUBSIDIARIES
                                                                                                                                                                                        THROUGHOUT THE WORLD INVOLVED
                                                                                                                                 SUPPORTED BY GUERLAIN
                            THE BEES                                                  BEES                                                AND AVAILABLE
                                                                                                                                                                                         WITH THE LOOK GOOD FEEL BETTER
                                                                                                                                                                                                   ASSOCIATION
Partnership with the French Observatory of Apidology (OFA) to         BECOME THE BENCHMARK COMPANY                                                                                             (or another similar NGO)
protect bees. Creation and organisation of Bee Universities to       IN TERMS OF THE PROTECTION OF BEES
                                                                                                                                       TO ALL EMPLOYEES
find solutions and help to protect the bees by “pollinating” the                 WORLDWIDE
best practices

                                          B I O D I V E R S I T Y                                                                                                     S O L I D A R I T Y
SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
BIODIVERSITY                                                                     B I O D I V E R S I T Y

PRESERVING      PRESERVING OUR ICONIC RAW MATERIALS:                                                    GUERLAIN AND BEE PROTECTION,

& PROTECTING    A SOURCE OF INSPIRATION AND INNOVATION
                Raw materials have been a source of inspiration and innovation for our
                company since its creation. Pledging to protect biodiversity is a natural
                                                                                                        THE OBVIOUS THING TO DO
                                                                                                        A very special bond has connected us to the Bee since 1853 when a
                                                                                                        bee landed on the bottle of the fragrance created by our founder for

THE BEAUTY OF   step to take to ensure the quality and longevity of our creations and sa-
                voir-faire. We are also aware that committing to this key issue allows
                us to aid in preserving the Beauty of the world in our own way. That is
                                                                                                        Empress Eugénie, Eau de Cologne Impériale.
                                                                                                        For close to 170 years, the Bee has been gathering pollen from creation
                                                                                                        to creation, with the same genius and endless passion for exceptional

THE WORLD       why our local biodiversity conservation strategy is to create sustainable
                industry partnerships, as our supplies of honey, orchids, bergamot, la-
                vender, sandalwood and vetiver show.
                In this context, in France, in Europe and all over the world, Guerlain is
                                                                                                        raw materials. We owe it so much.
                                                                                                        Biodiversity is at the heart of our creations. And the Bee, the sentinel of
                                                                                                        the Environment, is at the heart of biodiversity. A witness of our time,
                                                                                                        now threatened, doing our bit (and perhaps a little more...) to protect it
                                                                                                        seemed obvious. For this purpose, we’ve dedicated numerous partner-
                partnering with organisations and local stakeholders to implement pro-
                grammes and sustainable industry models for our essential supplies.                     ships to its protection.
                Whether at home or abroad, Guerlain supports cultural, environmental
                and socio-economic approaches to the natural materials that form part                   • Since 2011: a sustainable research and philanthropy partnership
                of our product compositions.                                                            with the Brittany Black Bee Conservation Association (ACANB) in
                For our sustainable industries, we strive to provide long-term support                  Ouessant.
                usually over a period of ten years. In concrete terms, this can be in the
                form of financial assistance, technical and scientific support or even a                • Since 2015: a partnership with the French Observatory of Apido-
                skills-based sponsorship. That is, ad hoc sharing of expertise present in               logy (Observatoire Français d’Apidologie, or OFA), helping them de-
                our voluntary teams. By blending “fair business” and philanthropy, the                  velop a stock of hives in Europe and promote the rare and crucial job
                range of methods used results in human exchanges and meetings                           of a beekeeper.
                “in the field”.
                                                                                                        • Since 2017: Guerlain's creation and organisation of Bee Universities,
                Re-inventing oneself: an art form                                                       an annual event that brings together the top specialists in the field (scien-
                To create the best fragrances and find the finest natural materials, Thierry            tists, associations, beekeepers, public authorities and relevant compa-
                Wasser, Master Perfumer at Guerlain, spends most of his time travelling                 nies) in order to determine the best bee conservation solutions and
                the four corners of the world. With a curious mind, and a craftsman at                  practices.
                heart, he goes in search of the living, in all its diversity. “We aren’t just
                buying inspirational, excellent raw materials, we’re buying them from                   • Since 2018: the Bee School, an awareness programme for primary
                someone”, he says. For Guerlain, these natural and humanistic dimen-                    school children led by the company’s employees, allowing children to
                sions fully express the meaning of the “sustainable industries” created                 discover the important role of the bee and to raise awareness of the
                and developed around our six favourite materials.                                       need to protect them.

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                  1
                           BECOME THE BENCHMARK
                           COMPANY IN TERMS
                                                              The number of defining
                           OF THE PROTECTION                                                                         THE NUMBER OF SUSTAINABLE INDUSTRIES
                                                              programmes developed
                           OF BEES WORLDWIDE                      regarding bees                                           THAT SUPPORT BIODIVERSITY

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SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
I N T E R V I E W
                            PROTECTING THE BEES IS ONE OF THE CORNERSTONES
                             OF OUR COMMITMENT “IN THE NAME OF BEAUTY”,
                         FROM WHICH MANY OF GUERLAIN'S ACTIONS ARE DERIVED.
                                                                                                                                                                                             Interview with Thierry Dufresne, Founder and President of the OFA, French Observatory of Apidology.

                                                                                                                                                                 THE OFA, A DEFINED PARTNERSHIP                                                     It's up to us to take care of them! Starting with... offering the precious
                                                                                                                                                                 THAT KNOWS HOW TO “SWARM”                                                          foragers more flowers! In June 2019, the “Sowing for Bees” day
                                                                                                                                                                                                                                                    launched in 2015 increased in reach. For a whole month this time, all
                                                                                                                                                                 We are very proud to be in partnership with the OFA and its many                   the employees at Guerlain and all OFA partners, as well as everyone
                                                                                                                                                                 actions to protect bees, including training for beekeepers, scientific             through the website flowersforbees.com, were invited to sow 1 billion
                                                                                                                                                                 research and awareness campaigns, and we are particularly                          honey-producing plant seeds (flowers, plants and shrubs) from the list
                                                                                                                                                                 pleased that this meaningful partnership continues to swarm and in                 of 200 plant species attractive to bees presented at the beginning of
                                                                                                                                                                 a very defined way: at the European Commission, for example, with                  the month at the “Jardins, jardin” exhibition in Paris. Filling their pantry
                                                                                                                                                                 the European and Mediterranean Beekeeping Union (Union de                          because they have done such a fine job of filling ours, as well as a
                                                                                                                                                                 l'Apiculture de l'Europe et de la Méditerranée, or UAEM), of which                 good part of our pharmacopoeia: a fair reward!”
                                                                                                                                                                 Guerlain is a member, where we went to exchange strategic
                                                                                                                                                                 measures regarding the protection of bees with parliamentarians.
                                                                                                                                                                 Then within our company, with a massive mobilisation of our
                                                                                                                                                                 employees who are involved in the “Flowers for Bees” campaign
                                                                                                                                                                 every year, initiated by the OFA.

                                                                                                                                                                 Thierry Dufresne, Founder and President of the OFA and member of
                                                                                                                                                                 the ethical “BEE COMMITTEE” that Guerlain consults to “challenge”
                                                                                                                                                                 its Sustainable Development strategy.

                                                                                                                                                                                 “With Guerlain's support, the OFA will train more

                                                                                                                                                                 “
                                                                                                                                                                                 beekeepers: we're sorely lacking in them! In 2014, I
                                                                                                                              Laurent Boillot, 22nd May 2019
                                                                                                                                                                                 founded the OFA to better understand the behaviour
                                                                                                                                                                                 of bees and work out that they could be the best way
                                                                                                                                                                                 to raise colonies and offer them greater well-being.
                                                                                                                                                                                 On 16th April 2015, we presented a pilot scheme
THE THIRD BEE UNIVERSITIES: JOINING TOGETHER,                                       are sponsored by Sandrine Bélier, Director of “Humanité Et Biodiversité”                     to the European Parliament on three emergency
SHARING AND BECOMING MORE INVOLVED                                                  (Humanity and Biodiversity), a national association recognised as a          measures aiming to repopulate bees, regenerate a stock for hives and
                                                                                    public utility and approved under the protection of nature by the Ministry   train professional beekeepers.
Under the aegis of Guerlain, the greatest specialists have been meeting             for the Ecological and Inclusive Transition.                                 Training, research, lobbying and co-constructing concrete solutions
since 2017 to clarify the causes and consequences threatening bees,                 Fourteen specialists spoke at the third edition of Universities of Bees      are part of the equation to be solved. Hence the creation of the
and to share the most innovative solutions to curb this decline, which is           in front of 450 participants from Europe, alongside UNESCO experts           UAEM in 2018: European and Mediterranean Beekeeping Union
affecting the biodiversity of our planet as a whole. At UNESCO, and                 and decision-makers and their cycle of Man & Biosphere (MAB)                 (Union de l’Apiculture de l’Europe et de la Méditerranée), encom-
on World Biodiversity Day 2019, the company presented a pro-                        conferences.                                                                 passing 42 countries. It is a collection of leading figures from all back-
gramme, with the author and columnist Frédéric Denhez, highlighting                 This UN initiative, which began in 1971, is at the origin of ad hoc inter-   grounds, including Guerlain's Director of Sustainable Development,
the disappearance of bees, the erosion of biodiversity and the positive             governmental scientific programmes aimed at establishing a scientific        Sandrine Sommer, who have the task of striving to develop the bee-
solutions put forward by scientists, public authorities and companies.              basis for improving human-nature relations on a global level. The Uni-                                                                                                                                                   Thierry Dufresne
                                                                                                                                                                 keeping sector, protect its environment and, by focusing on pollination,
Bees and biodiversity being eminently linked, the Universities of Bees              versities of Bees promoted by Guerlain are one of those programmes.          preserve food security and human health.

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PRESERVING OUR NATURAL RAW MATERIALS:                                                                                                                                                                              6 NATURAL MATERIALS,
A SOURCE OF INSPIRATION AND INNOVATION                                                                                                                                                            DERIVED FROM 7 SUSTAINABLE INDUSTRIES
The protection of biodiversity, through the co-creation of our sustainable industries, is in line with our quest for quality and joins                                                             These industries pave the way for others, for raw materials that are just as symbolic of the brand.
together with the sustainability of our creations and expertise. It is a key issue to contribute to the Beauty of the world in our own way.                              Our strategy in terms of biodiversity conservation is therefore to create sustainable industries covering everything we offer.

     HONEY FROM OUESSANT                            LAVENDER FROM PROVENCE                               ORCHIDS FROM TIANZI                                  VETIVER FROM INDIA                               BERGAMOT FROM ITALY                             SANDALWOOD FROM ASIA
           The power of a symbol                            The purity of an essence                 A global commitment to the flowering                             Back to its roots                           Fantastico, Calabrian gold                       AND AUSTRALIA
                                                                                                          queen of the plant kingdom                                                                                  from start to finish                             Long-term preservation
  When the Abeille Royale range was created,        Flowering in Drôme, in south-east France,                                                           Guerlain has endeavoured to revive an in-
  Guerlain was looking for honey of exceptio-       where our perfumer Thierry Wasser disco-         The queen of climbing flowers, the orchid is       dustry in India, where one of the favourite        One of the Guerlain Perfumer's trips led him       Sandalwood is an essential component of
  nal quality. The honey made by black bees,        vered passionate farmers who respect their       naturally endowed with the biological              materials vetiver originates, in partnership       to the edge of the Italian peninsula. Under        the company's iconic fragrances, particu-
  native to the island of Ouessant, met the com-    land, Carla lavender is the result of organic    means to keep it alive for 100 years or            with a highland community overlooking the          a constellation of bergamot with the particu-      larly Jicky, Shalimar and Samsara. However,
  pany's needs. This unique species is only         farming. A material of rare purity, the finest   more, in the most hostile environments. In         city of Coimbatore, in the south of the coun-      larly fragrant bark of the Fantastico variety, a   this wild tree is becoming increasingly rare...
  found on this island and its isolation has for-   terroir and expertise was what struck Thierry    TianZi, in south-west China, the kingdom of        try (in addition to the supply Guerlain re-        more recent but surprisingly prolific and ro-      Especially since Guerlain only uses
  ged its unique and rustic character.              Wasser, the company perfumer!                    a variety of orchid brimming with exceptio-        ceives from Haiti).                                bust cultivar grown by Gianfranco Capua, a         Santalum album, which was originally only
  The Brittany Black Bee Conservation Associa-                                                       nal anti-ageing properties flourishes, the des-                                                       Calabrian arborist. This generous tree lives       cultivated in the Mysore forest in South India.
  tion (Conservatoire de l'Abeille Noire d'Oues-    Especially since a meeting with the founder      tiny of which is intrinsically linked to that of   The plant is 100% usable: the grasses are          for thirty years or so, planted on plots of a      Nowadays, there is practically none left.
  sant) in Ouessant takes care of this heritage     of the Provençal company “Beaume des             its original tropical forest ecosystem, unique     used as feed for the livestock on farms, the       reasonable size. As part of our sustainable        This is due to deforestation and exponential
  and Guerlain has been developing relations-       Anges” in 2013 revealed the possibilities of     to Yunnan. To explore the principles of the        plants for cuttings, the roots for the fragrant    supply chain, it is subject to a management        demand. That is why we are turning to other
  hips with it since 2008 to build the community    obtaining a lavender essence very close to       orchid's longevity and the secrets of its resi-    essence they contain.                              plan to ensure it is replanted. It is an arbori-   supply sources, particularly in certain
  and the reputation of these hives, which de-      the plant, at a low temperature (and there-      lience, Guerlain has developed a unique re-                                                           culture that does not require any phytosani-       countries in Asia that can provide us with
  pend on their incomparable biotope. The first     fore with a reduced carbon footprint).           search platform, the Orchidarium: a                During its growth, this plant limits erosion and   tary inputs: the bergamot tree is naturally        similar quality in Australia. The tree is deman-
  partnership agreement of 2011 was followed        Thanks to the innovative and patented pro-       fundamental research laboratory in France          improves soil moisture and fertility. Launched     resilient and knows how to protect itself from     ding and requires over fifteen years of matu-
  by a Sustainable Development Sponsorship          cess of this company, in partnership with        (Strasbourg), an experimental garden in            in 2015, the Indian industry has been co-de-       insects and fungi. In addition, its fruiting re-   rity so that the essence can be extracted
  Pact, signed in 2014 for10 years.                 Guerlain, based in the production region of      Switzerland (Geneva) and the TianZi Centre         veloped with the local population, accor-          quires little water. Harvesting is done solely     from the core of its trunk.
                                                    this exceptional lavender, the essential oil     for Biodiversity Research and Development          ding to sustainable and environmentally            by hand, from December to February, and            We have therefore made sure to let it grow
  To date, it is based on two pillars: on one       obtained “tastes like it smells” and can be      in China. A partnership has been establi-          friendly cultivation practices, with the option    on a regular basis by well-trained teams.          freely in a place that ensures “Guerlain” san-
  hand, financial support to better remunerate      used in perfumes or in cooking, as it is so      shed with the local nature reserve for ten         to extract the essence nearby, via partner         Gianfranco Capua, our Calabrian partner,           dalwood that meets our quality standards.
  the island's beekeepers, the maintenance of       pure, 100% natural and certified organic.        years, since 2009. In this context, Guerlain       Jasmina India according to qualitative and         is seeking UEBT certification (The Union for       Our Australian partner has become involved
  the hives and the various actions the Associa-                                                     contributes to preserving part of the original     ecological standards, the “greenification” of      Ethical BioTrade). This is an approach pro-        in this approach and is committed to replan-
  tion needs including legal support, and on the    In the Mon Guerlain perfume launched at          tropical forest, promoting polyculture and         which Guerlain also encourages: more yield         moted by the eponymous NGO that sup-               ting two trees each time they cut one down.
  other, support for its research and communi-      the beginning of 2017, then the eponymous        protecting its extraordinary fauna and flora.      with less water consumed, and firewood re-         ports candidates in fair and transparent           In addition, with 30% of the employees
  cation activities.                                body lotion and the variations of Mon Guer-      Results since 2009: more than 10,000 or-           placed by biomass from distillation waste in       sourcing, with certification as a key element.     being Aboriginal, through this partnership
  As for the supply of honey for its range, the     lain Intense in 2019, Carla lavender, with its   chids have been replanted in TianZi, the de-       particular.                                        This is a good omen for the respect for bio-       they find a welcome source of income in
  company is committed to complying with cer-       ethereal charm, has found its place and          velopment of orchid growth of all kinds,                                                              diversity as a whole, the ethics of our part-      their arid and isolated environment, favoura-
  tain conditions, which are characteristic of an   been able to express itself fully.               beyond the supply needs of Guerlain.                                                                  ner's practices and the traceability that the      ble only to mangroves and sandalwood
  ethical and social approach.                                                                                                                                                                             UEBT makes more reliable.                          shrubs.

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SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
I N T E R V I E W

                                                                                                                                                                                      Bernard Peillon: Indeed, during our work seminar on sustainable
                                                                                                                                                                                      viticulture in Argentina in autumn 2018, a country where the Moët
                                                                                                                                                                                      Hennessy Group was established in the 1950s, the testimonial
                                                                                                                                                                                      presence of the President of Guerlain, known for his commitment and
                                                                                                                                                                                      the value of the example his company sets on CSR issues, was genui-
                                                                                                                                                                                      nely stimulating. The climate crisis represents a wall for all of us; a
                                                                                                                                                                                      challenge that pushes us to surpass ourselves. As Presidents, we have
                                                                                                                                                                                      a duty of momentum, to drive all the regions of the world in which we
                                                                                                                                                                                      have some influence towards this objective.

                                                                                                                                                                                      Laurent Boillot: In practice, we are carbon producers: Guerlain
                                                                                                                                                                                                                                                                        in time...
                                                                                                                                                                                                                                                                                                                     “
                                                                                                                                                                                                                                                                        When it comes to luxury goods, 60% of customers (and among Mil-
                                                                                                                                                                                                                                                                        lennials, this rate increases to 75% according to the latest BCG study
                                                                                                                                                                                                                                                                        of 2019) may prefer one company to another based on these com-
                                                                                                                                                                                                                                                                        mitments! Realisation will be painful for those who have not taken steps

                                                                                                                                                                                                                                                                        Bernard Peillon: Our companies work with partners that we have to
                                                                                                                                                                                                                                                                        bring together in the same coherent vision. From the moment we obtain
                                                                                                                                                                                                                                                                        our raw materials, in particular: their practices must be in line with our
                                                                                                                                                                                                                                                                        Sustainable Luxury objectives that respect people and the planet.
                                                                                                                                                                                                                                                                        At Hennessy, we are committed to convincing all winegrowers who

                                                                                                                                                                                          “
                                                                                                                                                                                                                        MINIMISING THE IMPACT ON THE CLIMATE IS A CHALLENGE
                                                           Laurent Boillot,                                                                                        Bernard Peillon,
                                       Chief Executive Officer of Guerlain                                                                     Chief Executive Officer of Hennessy                                                  SHARED BY ALL COMPANIES WITHIN LVMH.

               Conversation between Laurent Boillot, Chief Executive Officer of Guerlain and Bernard Peillon, Chief Executive Officer of Hennessy                                     produces in France and exports. This is its major business model. The             work with or for us to reduce pesticides, to move towards zero use of
                                                                                                                                                                                      CO2 that each company is committed to drastically reducing is clearly             herbicide and to adapt their cultivation practices to preserve the soil
                                                                                                                                                                                      the “wall” at the top of our agenda, including the carbon neutrality              and the environment, moving towards fewer and fewer inputs, based
                                                                                                                                                                                      that we are aiming for by 2028. The opportunity for improvement                   on the sustainable viticulture model.
                       TWO PRESIDENTS AT THE FOREFRONT OF COMMITMENT
                                                                                                                                                                                      ahead in long-distance transport is challenging. In the industrial sector,
             “SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REINVIGORATES THE SPIRIT                                                                                                        the extension of our Chartres plant is designed to be carbon neutral.             Laurent Boillot: Beliefs are essential and at Guerlain, ours is to move
                   OF THE COMPANY INHERITED FROM THE FOUNDING FAMILIES”                                                                                                                                                                                                 towards greater transparency. This is why we made the first move and
                                                                                                                                                                                      Bernard Peillon: It is also the yardstick against which our new bottling          wanted to share information by opening our Bee Respect traceability
                                                                                                                                                                                      plant in Pont-Neuf was designed. As a result, this site has been                  platform. We did not wait until everything was perfect before starting
                                                                                                                                                                                      designed to use nearly 40% less energy than a conventional site.                  to share; we are lifting the curtain on what happens behind the scenes
For both Guerlain and Hennessy, Sustainable Development is a                               unreliable in winter, and must be improved so it is equally efficient in                   Certified HQE at an exceptional level, it required further investment.            and the progress of our commitments, to move forward, consistently
source of innovation and also a tremendous opportunity to                                  all weathers.                                                                              An additional cost in line with the standards of excellence that drive            and transparently. With these commitments at the heart of our Purpose.
reactivate the spirit of the founders of each of the companies in the                                                                                                                 us and that our shareholder supports.
LVMH world. And an opportunity to challenge one another.                                   Laurent Boillot: Each company has its own specificities for transporting                                                                                                     Bernard Peillon: Yes, beyond the alignment of the personal and
                                                                                           its products. Ours are made in France and also transported in part to                      Laurent Boillot: In addition to the carbon footprint, biodiversity                professional commitments it allows, to our greatest satisfaction,
Bernard Peillon: Minimising the impact on the climate is a challenge                       this sizeable market. We favour maritime shipping as much as possible                      upstream of our production is one of the subjects important to us. My             responsible luxury is an economic subject with a competitive issue at
shared by all companies within LVMH. In 2018, Hennessy was the                             because the impact of air transport is far from minimal for our level of                   discussions with the Hennessy CEO and my visit, at his invitation, to             stake. Our customers would not understand if we did not give ourselves
first company in its sector to test the new rail “Silk Road” between Duis-                 activity – it remains significant and we must improve our air/sea ratio.                   the Mendoza seminar on the global subject of sustainability. We are               the means to meet the demands of sustainable development. It
burg and Chongqing: this route, the name of which resonates like a                         Thanks to the experience Hennessy has had, we have also begun using                        in a position to act; Bernard and I are doing our bit and even a little           gives meaning to our business and the sustainable development of
distant echo of the mythical journey of Marco Polo is twice as fast,                       rail for some of our deliveries. However, since our constraints are very                   more. These are battles that people become involved with, over time,              our companies. It seems to me that CSR is taking over from the part
emits 100 times less CO2 than air travel and connects us to the second                     different from those of wines and spirits, Hennessy's experience cannot                    despite the resistance that they generate, of course. Both of us know             of the soul that was once inherent in the founding families of our
largest market in the world. There is just one drawback: it is currently                   be fully replicated, even if some experiences are inspiring for others.                    that the subject is eminently economic, and absolutely necessary.                 companies.

                                                                              -   12   -                                                                                                                                                                       -   13   -
SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
ECO-DESIGN                                                                                                                                               É C O - D E S I G N

REINVENTING                                                                           Guerlain is committed to the eco-design of the contents and containers
                                                                                      of its products, including delivery. The concept is applied from the raw
                                                                                      materials (sustainable industries) all the way to the packaged and
                                                                                                                                                                           is refreshed each time, because it is the same amount of energy and
                                                                                                                                                                           materials not being consumed.
                                                                                                                                                                           Since 2018, we have implemented “Eco-formula” bodies to improve

LUXURY IN A MORE                                                                      transported product, and not forgetting Guerlain sites: headquarters,
                                                                                      production and stores. On the product side: refillability, lighter packa-
                                                                                      ging, natural formulations, improving the carbon footprint linked to their
                                                                                                                                                                           the creation of our products with the objective of 95% natural products
                                                                                                                                                                           and 100% traceability of our formulas.

RESPONSIBLE &                                                                         manufacture and transport to their point of sale are tangible proof of
                                                                                      the sustainable development approach that has guided the company
                                                                                      consistently for over a decade.
                                                                                                                                                                           Our eco-design approach does not stop with the products we sell. We
                                                                                                                                                                           also strive to reduce the environmental impact of all the tools we use to
                                                                                                                                                                           help promote them. Gifts, for example, are also developed with a 3 Rs
                                                                                                                                                                           approach. In 2019, 80% of them are either Reusable, Recyclable or

SUSTAINABLE WAY                                                                       We expand our offers while seeking to limit their environmental impact,
                                                                                      from the moment they are designed, via their formulation and manufac-
                                                                                      ture to their end-of-life. With continuous improvement in mind, progress
                                                                                      is qualified and quantified. For each development, thanks to the Edibox
                                                                                                                                                                           made from Recycled materials (mostly recycled cotton or PET). In 2020
                                                                                                                                                                           we are aiming for a rate of 95%.

                                                                                                                                                                           We also go over POS (Point of Sale Advertising) with a fine-tooth comb
                                                                                      software managed by the LVMH Group, the calculation of an EPI (En-                   every year with regard to environmental optimisation: less plastic, less
                                                                                      vironmental Performance Index) is applied. It allows each new deve-                  material, less volume to be shipped... The operational teams work conti-
                                                                                      lopment to be scored from 0 to 20 according to its environmental                     nuously to reduce the environmental impact of our equipment and tools,
                                                                                      impact. For 2020, we have set ourselves the optimum objective: 100%                  both temporary and permanent. Other more confidential but neverthe-
                                                                                      of our new products will be eco-designed, i.e. with an EPI above                     less symbolic actions demonstrate the sincerity of Guerlain's approach:
                                                                                      12/20.                                                                               thanks to a partnership since 2012 with Bilum, a company specialised
                                                                                      Shared and challenged within the Sustainable Innovation Committee,                   in upcycling working with people with disabilities, some of our adverti-
                                                                                      this index is important to this body, which periodically brings together             sing posters are given a second life in the notebooks distributed to our
                                                                                      Guerlain's Marketing, Merchandising, Packaging, Purchasing and In-                   employees, and the top-of-the-range linen in our Instituts is transformed
                                                                                      dustrial Management departments. It has been in place since 2016 for                 into washable and reusable cleansing gloves. (Nothing is lost, nothing
                                                                                      the development and increase of eco-designed projects. Here are some                 is created, everything is transformed...).
                                                                                      of the most significant examples of the key, inspiring achievements:
                                                                                      • Orchidée Impériale skincare: the fourth generation of the cream in
                                                                                      this range was launched in 2017 in a bold eco-designed jar (lighter
                                                                                                                                                                                                          100 %
                                                                                                                                                                                      ALL OF OUR ICONIC BEE BOTTLES ARE REFILLABLE FOR LIFE
                                                                                      glass, modified volume, non-laminated paper, pine cellulose cushioning)
                                                                                                                                                                                              IN OUR GUERLAIN FRAGRANCE STORES
                                                                                      with a 55% reduction in carbon footprint.
                                                                                      • Abeille Royale skincare: Guerlain has opted for a new Infinite
                      TO REDUCE, REUSE AND RECYCLE

         Think again to Reduce, Reuse and Recycle: the 3 Rs rule governs all new
         projects at Guerlain and the Marketing and Development teams are well
                                                                                      Glass® NEO jar, lightened and presented by Verescence as a glass
                                                                                      made of 25% postconsumer glass (PCR).
                                                                                      • Our Bee bottles, which have always been refillable, have become
                                                                                                                                                                                    97%
                                                                                                                                                                                  natural ingredients
                                                                                                                                                                                                                   90% of glass recycled
                                                                                                                                                                                                                     Guerlain has opted for a new
                                                                                                                                                                                                                        Infinite Glass ® NEO jar,
                                                                                      refillable for life at our 18 perfume fountains with up to 110 fragrances                                                       lightened and presented by
         trained and practised in the 3 Rs. Additionally, with a view to continuous   offered to date.                                                                               in L’Essentiel,
                                                                                                                                                                                                                    Verescence as a glass made of
         improvement, this progress needs to be quantified; that is, each new de-     • Unscrewable pumps for our range of contemporary bottles, in order                        our new foundation.                25% postconsumer glass (PCR).
         velopment is scored using the EPI (Environmental Performance Index), cal-    to facilitate recycling (for the record, via Cèdre, the Group's recycling
         culated using Edibox, the LVMH Group’s software. This index thus makes       platform, our bottles are 95% recycled).                                                                       OUR ORCHIDÉE IMPÉRIALE BLACK ORCHID
         it possible to score each new development between 0 and 20, thus mea-
         suring its environmental impact.
                                                                                      • Since September 2018, the Orchidée Impériale Black porcelain
                                                                                      pot designed by the Maison Bernardaud is also refillable. The beauty
                                                                                                                                                                               100%
                                                                                                                                                                                 REFILLABLE
                                                                                                                                                                                                     TREATMENT COMES IN A PORCELAIN POT
                                                                                                                                                                                                     THAT IS REFILLABLE FOR LIFE,
                                                                                                                                                                                                     CREATED BY THE MAISON BERNARDAUD
                                                                                      of these jars fully justifies their re-use, with an environmental saving that

                                                                                                                                                                  -   15   -
SUSTAINABLE DEVELOPMENT REPORT 2018-2019 - Guerlain
Rouge G Lipstick                                 Our contemporary fragrances                              L’Essentiel Foundation

                        E C O - D E S I G N

             GUERLAIN, PIONEER
               OF RESPONSIBLE
           AND SUSTAINABLE LUXURY

L’ESSENTIEL, THE NEW FOUNDATION BY GUERLAIN: 97%                                              100% REFILLABLE BEE BOTTLES
ingredients of natural origins. Containing 97% ingredients of natural                         A step ahead of the evolution of today's consumers, seduced by alter-
origin, the environmental impact of its formula, including water consump-                     natives to “throw-away society” and uniformity, Guerlain Fragrance
tion, is substantially reduced.                                                               stores are renowned for pushing the refillability and ultra-personalisation
L’Essentiel is translucent on the skin in light of its list of ingredients: the re-           of their offers to an unrivalled level! Ninety fragrances are available in
maining 3% is used to optimise the integrity of the formula over time and                     our iconic bottle, the Bee bottle, manufactured by Pochet du Courval
its sensoriality; it reinvents make-up in the world of luxury, through its high               since its creation. The perfume fountains available in our Guerlain                           A SOURCE OF INNOVATION, CREATIVITY
levels of naturalness and the performance of mineral pigments combi-                          Fragrance stores allow Bee bottles to be refilled: the quintessence of a                       AND COMMITMENT FOR OUR TEAMS,
ned with active marine and plant ingredients.                                                 highly ecological process, refills for life. This offer illustrates our
                                                                                                                                                                                             ECO-DESIGN INSPIRES THE CONSTANT
A duo of tara gum and red seaweed extracts lets the skin breathe while                        approach, that of a luxury company committed to reducing the
protecting it from pollution. White cocoa bean extract hydrates and fil-                      environmental impact of its containers and packaging, while remaining                    RE-INVENTION OF LUXURY, WHICH IS THE “BRAND”
ters blue light. Innovative technology balances and strengthens the cu-                       faithful to its codes. All our fragrances – i.e. the 110 in the catalogue –                OF THE COMPANY, A PIONEER OF RESPONSIBLE
taneous barrier through the pre- and probiotics that, in nature, interact                     can be ordered in Bee bottles, which can be refilled for life. A dedica-                  AND SUSTAINABLE LUXURY. A DETAILED OVERVIEW
interdependently. L'Essentiel is the champion of the naturalness that                         ted workshop is located at the heart of the store: in shape, size, colou-
Guerlain is committed to instilling in all its future make-up ranges.                         ring, silkscreen printing, engraving, ribbon or knot, each bottle is unique.                OF OUR MOST COMMITTED ACHIEVEMENTS.

ABEILLE ROYALE CREAM AND THE CHOICE OF INFINITE GLASS                                         OUR FEMININE FRAGRANCES REVISITED                                                                            Abeille Royale day cream                                                 Our Bee bottles
A pioneering company in its choice of 90% recycled glass for its new                          We have given our company heritage pride of place by revisiting bot-
Abeille Royale cream jars, Guerlain repeated the achievement of reducing                      tles as iconic as Samsara and Insolence, in the light of ecological cri-
the weight of the jar and the carbon footprint in 2018, initially achieved                    teria. Our feminine fragrances have been reinterpreted, without lacquer
two years earlier with the Orchidée Impériale jar.                                            or tinted glass, with a lighter, more “eco-friendly” weight, in a new Bee
                                                                                              bottle, which remains a pioneer, today as it was yesterday. They pave
A success story supported by our customers who loved it and told us that                      the way: all our contemporary fragrances will be presented in eco-des-
they would now happily take the jars with them everywhere. A glowing                          igned glass bottles that can be unscrewed by 2020.
report that continues to inspire us. A high recycled cullet content and a                     Our objective is to expand separability and eco-design for all our fra-
lighter weight of glass, for an identical capacity of course, are in the spot-                grances. It is a sizeable challenge, and we are putting all our energy
light with the new Abeille Royale cream jar.                                                  and daring at the service of our societal and environmental beliefs.

This nectar is now available in an Infinite Glass® NEO jar, an eco-innova-                    ROUGE G 100% REFILLABLE LIPSTICK remains one of the few refil-
tion from our partner Verescence, which presents it as the first premium                      lable lipsticks on the market. It was reinterpreted in 2018 to create a
glass composed of 90% recycled glass, of which 25% is post-consumer                           lighter refillable product (previously magnetic, now fastens with a clip)
glass (PCR). That is an annual carbon footprint reduced by 44%, and                           that is even more customisable than before. There are some 450                                                                                       Le Bourdon, notre camion éléctrique
water consumption reduced by 42%.                                                             potential combinations of stick and case.
                                                                                 -   16   -
Michel Bernardaud, Chairman of the Board
of the eponymous porcelain factory

                                                                                                                                                                                      E C O - D E S I G N

                                                                                                                                                             ORCHIDÉE IMPÉRIALE BLACK,
                                                                                                                                                  A PRECIOUS AND SUSTAINABLE POT THAT DEFIES TIME

                                                                                                                 With Orchidée Impériale Black, Guerlain expresses eco-design                              vented in Limoges since 1863, combining tradition and modernity. Por-
                                                                                                                 and the culture of beauty even more strongly. An ultra-precious                           celain, an inert material, is recycled once it has been fired. In the
                                                                                                                 experience: unique and sustainable, the promise has been                                  construction sector, for example, it generates zero waste during its ma-
                                                                                                                 concrete since last October. Architects of this exceptional co-                           nufacture (unfired waste can be reinserted in the production cycle), not
                                                                                                                 creation, Michel Bernardaud, Chairman of the Board of the                                 to mention that this production is locally “made in France”.
                                                                                                                 eponymous porcelain factory and Margerie Barbès-Petit, Director
                                                                                                                 of International Marketing and Communication at Guerlain.                                 Margerie Barbès-Petit:: Our requirements in terms of eco-design and
                                                                                                                                                                                                           reduction of environmental impact in comparison with a conventional
                                                                                                                 Margerie Barbès-Petit: The collaboration between Guerlain and Ber-                        pot have been met. What's more, Bernardaud is producing just the
                                                                                                                 nardaud has arrived just at the right moment. We share the same values,                   amount required at Guerlain's request. This “modularity” is in addition
                                                                                                                 and we both have founders who defended a vision of uncompromising                         to the other natural properties of this material.
                                                                                                                 quality and pioneering innovation from the beginning.
                                                                                                                                                                                                           Michel Bernardaud: Indeed, porcelain is a non-polluting material made
                                                                                                                 Michel Bernardaud: A happy coincidence indeed! Our companies                              of quartz, feldspar and kaolin, extracted from the ground. The result of
                                                                                                                 have known each other for a long time, particularly through the Comité                    our collaboration with Guerlain is an artistic object, intended to stand
                                                                                                                 Colbert. When Guerlain wanted a container in harmony with the                             the test of time; a feat of craftsmanship, requiring the expertise of around
                                                                                                                 concerns of our times, ecological and responsible, Bernardaud had rea-                    fifty people - testimony to an expert gesture that our companies are
                                                                                                                 ched a point of maturity that made it possible to remove the technical                    committed to preserving and challenging.
                                                                                                                 constraints linked to this bold partnership: a jar that is beautiful in itself,
                                                                                                                 which can be caressed or gazed upon and refilled for life. A container                    Margerie Barbès-Petit: This exceeds the notion of a simple functional
                                                                                                                 of fine porcelain, compatible with the replaceable plastic refill filled with             container! It is a precious and sensual object that enhances the treat-
                                                                                                                 precious treatment, represented a challenge because the refill has a fixed                ment experience imagined by Guerlain. This approach will be later
                                                                                                                 diameter while the shape of our delicate paste is much less predictable:                  used for the Eye Cream treatment in the same Orchidée Impériale Black
                                                                                                                 ceramic, a living material, shrinks during the firing process by about 14%.               range.

                                                                                                                 Margerie Barbès-Petit: We wanted to celebrate the beauty of the treat-                    Michel Bernardaud: Porcelain speaks to almost all the senses: taste (in
                                                                                                                 ment process, through the formula and the object and our commitment to                    tableware, it's obvious!), touch, hearing (tap it with your fingers, you'll
                                                                                                                 sustainable luxury. Content and container are the result of artisanal ex-                 hear the sound porcelain makes), sight (see the interplay of contrasts
                                                                                                                 pertise and enormous amounts of similar attention, at each stage of pro-                  between the unglazed white biscuit and the lacquered black in this
                                                                                                                 duction, for the manufacture of both: the demand for quality is ceaseless.                pot). All that was missing was the sense of smell: the challenge we have
                                                                AN ARTISTIC OBJECT, INTENDED TO STAND THE TEST                                                                                             risen to with Guerlain fills this gap...
                                                                 OF TIME; A FEAT OF CRAFTSMANSHIP, REQUIRING     Michel Bernardaud: In our company, quality control involves one in
                                                                                                                 four employees, from shaping the paste to firing. Ceramics is one of the                  Margerie Barbès-Petit:: ...to express our commitment to more sustaina-
                                                                         THE EXPERTISE OF AROUND FIFTY PEOPLE.
                                                                                                                 oldest craft techniques in the world; ours has been continuously rein-                    ble luxury, In the Name of Beauty of a gesture!

   Margerie Barbès-Petit, Director of International Marketing                                                                                                                                 -   19   -
                            and Communication at Guerlain
E C O - D E S I G N
                                                                                                                                                                         ROBIN CORNELIUS, FOUNDER OF PRODUCT DNA
                                                                                                                                                                         “BEHIND THE SCENES OF LUXURY”
                                                                                                                                                                         “The most beautiful colour is transparency! Guerlain has understood this
                                                                                                                                                                         correctly: consumers want to know and understand what they are buying. Their
REDISCOVERING                                                                                                                                                            latent and growing demand is to be able to buy in line with their values.
                                                                                                                                                                         Initially, Bee Respect was an internal traceability tool designed to map the
OUR CREATIONS,                                                                                                                                                           LCAs (life cycle analyses) of new creations at Guerlain, which was then

                                                                                                                                                                    “
TRANSPARENTLY:                                                                                                                                                           opened up to customers.
                                                                                                                                                                         And those who believe that opening it up denotes weakness are wrong. We
BEE RESPECT                                                                                                                                                              must take the lead, like Guerlain which is innovating: this platform is a pioneer
                                                                                                                                                                         in its sector. It rises to the challenge of going far in lifting the curtain without
“ECO-INNOVATION”                                                                                                                                                         taking anything away from the dream associated with luxury.
BY GUERLAIN
                                                                                                                                                                                                              BEE RESPECT IN FIGURES

                                                                                                                                                                    470                                100
                                                                                                                                                                                                  products presented
                                                                                                                                                                                                                                                  40                            250
                                                                                                                                                                                                                                                                                employees
                                                                                                                                                                    ingredients                                                                    valued
                                                                                                                                                                                                    on the platform                               suppliers               and partners recruited
                                                                                                                                                                      traced
                                                                                                                                                                                                      Mid-2019                                  and partners                   to bring Bee
                                                                                                                                                                     Mid-2019                  (Skincare and Make-Up)                                                                      “
                                                                                                                                                                                                                                                                             Respect to life
Thanks to the initiative of a luxury perfumes and cosmetics company,                    manufacturing sites; carbon footprint to reach points of sale etc.),
choosing to lift the curtain on its own major impact and its most                       - our make-up range, including the new L'Essentiel foundation, the icon
prominent eco-objectives, Bee Respect is the first public platform                      of our quest for naturalness, while waiting for our complete perfume
intended to bring to light its ingredients and main suppliers. A tangi-                 range in 2020.
ble sign of our irrevocable and long-term social and environmental
commitments.                                                                            Knowing more about the history of our actions, their environmental and
                                                                                        social impact, their production conditions, of which the company takes                                              LAETITIA CORBET
Originally designed for internal use, the platform initially proved its worth           great care, is likely to strengthen their appeal and cultivate a form of                                            SUSTAINABLE DEVELOPMENT PROJECT MANAGER
as a tool for working together, with the aim of collaborative eco-design                multi-faceted attachment. Bee Respect enriches the experience of cus-                                               IN CHARGE OF BEE RESEPCT
within Guerlain. The result is better knowledge of the life cycle of pro-               tomers: for Guerlain, the good and the beautiful go hand in hand. Bee
ducts and good emulation between the different teams and roles ne-                      Respect, initiated by Guerlain, was designed in partnership with Product                                            “Since April 2019, the digital platform Bee Respect has been open to the
cessary for the design of our creations.                                                DNA. Founded by renowned traceability architects, this Switzerland-                                                 public. As of July 2019, all of our skincare and make-up are included in our
Opened to the public in April 2019, Bee Respect expands the expe-                       based company knows how to make QR codes talk!                                                                      mapping. Formulae, ingredients, jar, cap and packaging are all accounted
riential range joined onto digital applications, to meet the growing de-                Opened to the public in April 2019, Bee Respect expands the expe-                                                   for. By 2020, 100% of the company's iconic products will have been incor-
mand from Guerlain's customers.                                                         riential range joined onto digital applications, to meet the growing de-                                            porated. There is also great emulation between the different teams and roles
                                                                                        mand from Guerlain's customers.                                                                                     necessary for the design of our creations, and I would like to thank all the
Our Bee Respect platform is accessible from any smartphone or tablet                                                                                                                                        employees who supported us in this project.”
and provides the “consumer actor” with a wealth of information on:                      It has developed “Respect Code” to offer consumers an experience
-our flagship skincare ranges (formula ingredients, packaging, suppliers,               that matches their exponential curiosity, thanks to product traceability.

                                                                           -   20   -                                                                                                                                              -   21   -
C L I M A T E

                     Transportation accounts for the largest share of our greenhouse gas                   Our commitment is global: 25% of the Guerlain fleet, used by employees,
                     emissions. Every link in the supply chain counts! Consequently, the                   consists of hybrid or electric vehicles. Our company promotes eco-friendly
                     stakes are high. Guerlain, its partners and its service providers are                 transport, for example by funding 43 electrical charging points on sites
                     firmly committed to meeting the climate challenge, which also involves                hosting its staff. At the Levallois-Perret headquarters, using Parisian bicycle
                     the available local and international infrastructure.                                 couriers is preferred, or hybrid taxis if necessary; employees who choose
                                                                                                           to cycle for their commute are entitled to a citizen bonus or, like in Belgium,
                     Since 2007, we identified the transport sector as the main contributor in             bicycles are available to them during the day for their business trips.
                     our activity to the greenhouse effect. Indeed, logistics activity accounted
                     for 56% of Guerlain's total CO2 emissions in 2018, when products,                                            0 NOISE, 0 EMISSIONS
                     mainly Made in France, were exported. Hence the desire that we share
                     with our subsidiaries to favour maritime shipping, to satisfy our most distant              FOR 5 YEARS WE HAVE BEEN USING THE “BOURDON”,
                     customers as much as we can, in particular, through a concrete incentive:                                  AN ELECTRIC LORRY,
                     every month, a balance of goods in kg, invoiced in Euro thus correspon-                               TO SUPPLY OUR 15 PARIS STORES
                     ding to the CO2.

                     Locally since 2014, Guerlain has been supplying its 15 Parisian stores
                     with the “Bourdon”, a 100% electric lorry that runs at night, without noise,
                     CO2 emissions or fine particle emissions. An innovative vehicle set up in
                                                                                                                  100%                                   HQE LEVEL
                                                                                                                                                         EXCELLENT
                                                                                                                OF OUR SUBSIDIARIES                  Opened in 2015, “La Ruche”, our
                     synergy with our partners Speed Distribution Logistique and Renault Trucks.
                     During pollution peaks in Paris, our Sales Advisors are delighted to be                                                         skincare and make-up production
                                                                                                               WORLDWIDE WILL BE ISO                 site is certified HQE (High Environ-
                     able to inform our customers that Guerlain plays its part with regard to
                                                                                                                                                     mental Quality) and has achieved
                     air quality and climate. This initiative has gradually spread within the                  14001CERTIFIED BY 2021
                                                                                                                                                     an excellent” rating
                     LVMH Group and, sometimes, even to its external partners.

CLIMATE                 Clément Renaudet, Sustainable Development Project Manager in charge of carbon trajectory and ISO 14001 certification

                        THE CHALLENGE: A CARBON NEUTRAL COMPANY,

LEAVE THE SMALLEST      ISO 14001 CERTIFIED EVERYWHERE
                        “Today, 100% of the company’s French premises and 50% of its premises worldwide are ISO 14001 certified.
                        Our ambition is exhaustive: to certify the entire premises on a worldwide level. The advantage of the standard

POSSIBLE FOOTPRINT      is that it is internationally recognised, and it establishes requirements for our environmental management
                        systems. Becoming the first carbon neutral luxury company, on scopes 1 to 3, i.e. from manufacture to the
                        transport of our products, is a global challenge for a brand Made in France and sold all over the world. By
                        2028, this means finding solutions that improve our entire Value Chain by reinventing the way we produce

ON THE PLANET           and transport to adapt to the climate challenge.”

                                                                                                  -   23   -
C L I M A T E

                       WHEN THE ENERGY EFFICIENCY IN STORE MAKES THE CUSTOMER
                          FALL IN LOVE WITH THE EXPERIENCE ALL OVER AGAIN

Conversation between Nicolas Martin, LVMH Lighting Manager                           creating a “work of light” that enhances the feel of the place and the
in the Group's Environment Department and Guillaume Renard,                          brand. A place that is most conducive for developing unique expertise:
International Architecture Manager at Guerlain.                                      Guerlain Fragrance stores offer a captivating immersion in the world
                                                                                     of the company. In Passy, I used light to highlight the contrasts important
Winner of the 2018 “LIFE in Stores Awards” designed by the Group                     to Guerlain. The shadows compound and sculpt the elements that
to encourage environmental excellence in the companies' points of                    inhabit the shop. There is a “culture of light” specific to each company.
sale and reduce their carbon footprint, the Vendôme store in Paris                   The Group provides all of us with reference points, recommendations
is one of the gems of eco-design within LVMH. One of Guerlain's                      and a catalogue that inspired me.
gems is in Passy, which has also just been renovated and has taken
on a bright new identity with exemplary energy restraint on top. It                  Nicolas Martin: Because the Group doesn’t have a lighting dogma!
is an aesthetic interpretation of the best practices in this field.                  We invite creativity without losing sight of the ecological objectives to
                                                                                     which each point of sale everywhere in the world, old or new, must
Nicolas Martin: With “LIFE in Stores”, the Group encourages the en-                  contribute. This means improving the energy efficiency of existing stores

                                                                                                                                                                                                         “
vironmental excellence of its companies by rewarding their most outs-                by an average of 15% when they are renovated, like in Passy, with the
tanding stores. Guerlain in particular was one of the eight companies                original 1960s design. New stores must have an environmental per-                                                                                             “
honoured in 2018. More than just a glowing report, these awards are                  formance of at least 50/100 on the LVMH Store Guidelines evalua-
a source of emulation for the entire inter-company network, in order to              tion grid, based on international standards. And a Lighting Power
share, explore avenues, co-construct a common guide for continuous                   Density of 30 watts per m² for the entire lighting.                                                                 UPCYCLING IN OUR STORES
improvement on subjects as varied as the façade of a building, the                                                                                                                                       As part of a call for proposals organised by the eco-orga-
restraint of lighting, the management of consumption, particularly                   Guillaume Renard: In this field, we have come a long way:                                                           nisation Valdelia, we were able to show that 50 to 80% of
energy consumption or air purity. 70% of the Group's greenhouse gas                  today, bringing something to light is seen both as cultural work and                                                our shop furniture could be manufactured with recycled ma-
emissions come from its points of sale (scope 2).                                    the translation of precise specifications. LEDs and intelligent                                                     terials. The winner of this call for proposals, we were able
                                                                                     Bluetooth, as well as the daily saving in energy consumption, have                                                  to carry out our study thanks to two prototypes made with
Guillaume Renard: The renovation of Vendôme or Passy and the                         been installed without waste. In other words, no ceiling to remove, no                                              wooden panels from dismantled desks, collected by Valde-
opening of new stores around the world (Shanghai, Hong Kong,                         new materials brought in, and miles of cables saved. It saved time too,                                             lia and made available to our fitters. This study allowed us
Riyadh, etc.) provide Guerlain with an opportunity to innovate and                   and in the end a minimal carbon footprint for some very successful                                                  to demonstrate that upcycling, even with a small quantity of
eco-design its own points of sale as close as possible to its customers.             lighting, with well-timed support from “Voyons Voir”, an inspired                                                   furniture to be produced, encourages the reduction of our
In Passy, a pioneering trial store, with intelligent Bluetooth technology,           lighting designer, which allowed me to enrich my “Bible of Light”!                                                  carbon footprint compared to manufacturing with new ma-
the aim is to improve daily maintenance as well as the welcome and                   Thus, in line with the spirit of the place, the pioneering operation in                                             terials. By reusing existing materials, we reduce the produc-
atmosphere. The new lighting in this vintage store, renovated in 2018,               Passy can be extended elsewhere while respecting not just the planet,                                               tion of waste and the environmental impact of its destruction
is an example of this with its simple and sensible use of lighting, while            but the identity specific to each point of sale.                                                                    by incineration or landfill.

                                                                        -   24   -                                                                                 Nicolas Martin,   Guillaume
                                                                                                                                                                                      - 25 -   Renard,
                                                                                                                                                                           LVMH               Guerlain
S O L I D A R I T Y

                       Beyond its interests, Guerlain supports associations whose projects             makes sense of an environmental or social point of view. A personal
                       are close to its heart. The idea of beauty embraced by the company,             investment that can take many forms.
                       a mark of usefulness through our societal commitments, has the sup-             For example, the “beauty breaks” as part of the workshops supporting
                       port of our employees. They can choose to become involved in our                the Belle & Bien charity (“Look Good Feel Better”), because helping
                       partnerships.                                                                   women being treated for cancer to feel well and beautiful in their bo-
                       This year, an environmental component has been added to the                     dies is beneficial to them. The company beauticians and make-up ar-
                       range of possible actions linked to Volunteering Day, which Guer-               tists receive psychological support beforehand, coordinated by the
                       lain is offering its employees: Bee School, an awareness programme              charity, before volunteering their time throughout the year in hospitals,
                       for schools about the bee, the sentinel of the environment, run by              drawing on their Guerlain expertise.
                       our employees since 2015. A trial took place at the end of 2018,                Since 2018, these Beauty Workshops have also been offered as part
                       and we will officially launch the programme internationally for 2019            of our partnership with the Laurette Fugain charity: make-up and mas-
                       from October to December.                                                       sage workshops are offered to mothers of children in hospital and to
                                                                                                       nursing staff in the haematology and oncology departments of Hôpital
                                                                                                       Trousseau and Hôpital Robert-Debré in Paris. Alongside Restos du
                                                     Since 2003 supporting                             Cœur, our beauty breaks have become popular rituals, especially on
                                                     BELLE & BIEN                                      Mother's Day!
                                                     LOOK GOOD FEEL BETTER                             A new project created in 2019 is taking shape, this time alongside Se-
                                                                                                       cours Populaire as part of the LVMH Group. The aim is to support at
                                                                                                       least 350 women in celebration of International Women's Day.
                                                     Since 2011 partnership with
                                                     the towns of CLICHY SOUS BOIS
                                                     and MONTFERMEIL
                                                                                                                                                  OVER 900
                                                     Involvement with
                                                                                                              1000                                WOMEN
                                                                                                             Make-up artists for                   MADE UP IN 2019
                                                     RESTOS DU CŒUR since 2014
                                                                                                           a day since the launch                IN RESTOS DU COEUR
                                                                                                                                                 AND LAURETTE FUGAIN
                                                                                                            of Volunteering Day
SOLIDARITY                                           Since 2017 partnership with
                                                     l’ASSOCIATION LAURETTE FUGAIN
                                                                                                                                                     WORKSHOPS

                                                                                                           15 YEARS OF SUPPORT FOR LOOK GOOK FEEL BETTER

EMPOWER WOMEN,                                       Since 2019
                                                     PAUSES BEAUTÉ
                                                     LVMH-SECOURS POPULAIRE
                                                                                                                3 YEARS
                                                                                                            OF PARTNERSHIP WITH
                                                                                                                                                    6 YEARS
                                                                                                                                                OF INVOLVEMENT WITH

PROMOTE SELF-ESTEEM    This desire to go further in societal commitment is spreading throughout
                                                                                                            THE LAURETTE FUGAIN
                                                                                                                ASSOCIATION

                                                                                                                                     8 YEARS
                                                                                                                                                   RESTOS DU COEUR

AND INCLUSIVE BEAUTY
                       the world, where the company is present, and translates into many ini-
                       tiatives including the launch of Volunteering Day in 2015. This is a day              of support for the towns of Clichy-sous-Bois and Montfermeil
                       offered by Guerlain that the teams voluntarily devote to an action that

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