Business Finance Homework Help

I’m working on a management report and need an explanation and answer to help me learn.

Read LVMH’s ESG report (https://r.lvmh-static.com/uploads/2021/05/en_lvmh_…) ONLY FOCUS ON ENVIRONMENTAL SECTION:
Summarize the Environmental metrics the company discusses in its report and explain whether or not these metrics align with the company’s strategy. If the metrics align with the company’s strategy, explain why you believe they align. If the metrics do not align with its strategy, explain why you believe they do not align.

Info on environmental accounting metrics for brands such as LVMH: https://www.sasb.org/wp-content/uploads/2018/11/Ap…

No intro or conclusion is necessary.

Some of LVMH’s environmental strategies include:

• LVMH Climate week “Be the change”
  • A week of dialogue with its 150,00 employees to present the key priorities of the LIFE 360 program – which will guide the Group’s environmental initiatives over the next three, six, and 10 years- and to encourage everyone to “take up the call for action and be a changemaker.”
    • Access to resources; make sure that employees are well informed
• Preservation
  • LVMH does everything so that their Maisons and workshops are properly preserved.
  • Low-carbon architecture is central to the design of new production sites.
    • E.g. new manufacturing facility opened by Celine in Chianti, Italy.
  • In the Himalayas, Ao Yun uses agroforestry methods to grow high-altitude vines while respecting the terroir and biodiversity, calling on local families to hand-pick the grapes.
• Biosphere reserves
  • LVMH supports UNSECO’s intergovernmental scientific program “man and the biosphere”, which protects over 700 biosphere reserves globally.
  • UNESCO-LVMH Amazon initiative is set up to tackle the root causes of deforestation and water pollution problems in Brazil, Bolivia, Ecuador, and Peru.
  • In another initiative within the partnership, Guerlain has launched Women for Bees, a scheme to train and support women beekeepers.
• Materials
  • 100% of strategic raw materials certified to standards guaranteeing the preservation of ecosystems and water resources by 2026
• Clean Tech
  • The Internal Carbon Fund: A tool used by the Maisons since 2015 to invest in low-carbon equipment that expands the production of renewable energies, it places a value of €30 on each metric ton of CO2 emitted. Over the last five years: 12,800 metric tons of CO2 equivalent emissions have been avoided through 361 projects €44m has been invested
• The Group also assessed its scope 3 water consumption, identifying that over 95% of water serves to produce raw materials, primarily precious wool—such as cashmere, mohair and vicuña wool—cotton, grapes and grape-based alcohols. Sourcing certified raw materials (such as LWG leather and GOTS cotton, see pages 82-83) represents the most effective way to reduce the Group’s footprint in this area. LVMH is drawing up an action plan to become water-neutral in its sourcing channels, in particular by eliminating raw materials from regions at the greatest risk of desertification and deforestation
  • Reducing the carbon footprint of grape farming primarily involves limiting the use of chemical substances, the production of which generates high levels of emissions.
  • The Maisons undertake to reduce either water consumption, energy consumption or waste production by 10% at each of their sites, as well as deploy an environmental management system to effectively strive for continuous improvement. Sites managed to cut their process water consumption by 11.6%, but did not fulfill the target with respect to waste production, achieving only a 4.4% reduction (compared with an 8.7% rise in 2019), and energy consumption (which rose 0.5%, compared with a 6.5% rise in 2019). The objective for all manufacturing and logistics sites to earn ISO 14001 certification was not achieved, yet the drop in certifications this year compared with 2019 (down from 71% to 69%) came as a result of a number of audits being pushed back to 2021 due to the pandemic.
• LVMH pays particular attention to the impact of wastewater discharge released by its leather and textile suppliers. Having signed up to the Zero Discharge of Hazardous Chemicals (ZDHC) commitment, the Group intends to roll the program out to all its strategic suppliers. This is already the case for LWG-certified tanneries, which accounted for 74% of the Group’s supply in 2020, as the standard integrates ZDHC requirements in its certification.