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Evaluating Valentino’s Key ESG Metrics and Future Commitments
Sustainability
30 July, 2024
Table of contents
Valentino Group recently published its Sustainability Report, detailing its progress and commitments across various Environmental, Social, and Governance (ESG) dimensions. This report, aligning with the Global Reporting Initiative (GRI) Standards, provides a transparent view of Valentino's efforts and achievements over the past year. Below, we delve into the key sustainability metrics, comparing them with previous periods and outlining the brand's future goals.
Valentino Group has made significant strides in reducing its environmental footprint. A notable achievement is the calculation of a traceability KPI, revealing that over 70% of key raw materials, particularly textiles and leather, are traceable. This marks a substantial advancement in ensuring sustainable sourcing practices.
Additionally, the Group has implemented stringent animal welfare standards, banning the use of fur since May 2021 and discontinuing alpaca fibre and angora in 2022.
In terms of carbon footprint, Valentino reported a reduction in total emissions from 254,928 tCO2e in 2022 to 239,372 tCO2e in 2023. The company’s participation in the Corporate SAF programme by Air France and KLM further exemplifies its commitment to reducing emissions, contributing to a reduction of approximately 76t of CO2 in 2023. Moreover, Valentino continues to innovate with digital sustainability initiatives, partnering with Karma Metrix to reduce the carbon footprint of its website, achieving a 4.4% reduction in CO2e emissions in the initial phase.
Valentino has focused on enhancing employee well-being and promoting inclusivity. In 2023, 71% of Valentino’s employees were covered by collective bargaining agreements, ensuring fair labour practices. The Group has also emphasised the importance of performance management, with 93% of employees receiving performance reviews, highlighting the company’s commitment to employee development.
In its efforts to foster a culture of fairness and equal opportunity, Valentino has implemented a comprehensive compensation policy based on merit. The company’s ‘Merit Matrix’ ensures that salary increases are aligned with individual performance evaluations, reinforcing its dedication to rewarding excellence and promoting talent retention.
Valentino’s robust governance framework supports its sustainability ambitions. The Sustainability Board, comprising the CEO and leaders from key functions, oversees the Group’s sustainability strategy, ensuring that resources are effectively allocated to meet business needs. Additionally, the Valentino Ethics & Sustainability Committee, established in 2022, plays a crucial role in championing sustainability initiatives across various regions.
The Group has also enhanced its supplier verification processes, conducting 145 site audits in 2023. These audits ensure compliance with international standards on labour and environmental practices, with 96% of suppliers agreeing to implement improvement plans based on the findings.
Valentino continues to strengthen its brand presence globally. In 2023, the brand maintained a diverse portfolio, including Valentino Garavani for leather accessories, Valentino Beauty, and the newly established Valentino eyewear line. The brand's strategic focus on quality and craftsmanship ensures that its products remain highly sought after in the luxury market.
Despite global macroeconomic uncertainties, the luxury market showed resilience in 2023. However, Valentino reported a 5,5% decrease in economic value generated, amounting to €1.341.915 compared to €1.419.330 in 2022. This decline was attributed to a reduction in the value distributed to suppliers, partially offset by an increase in value distributed to staff.
Looking ahead, Valentino Group aims to achieve 100% traceability of key raw materials by 2030 and align 90% of its energy consumption with renewable sources by the same year. The Group also plans to publish its first Group Sustainability Report in accordance with GRI standards by 2024 and ensure that all new free-standing stores achieve LEED certification.
While Valentino has made commendable progress, further efforts are needed to enhance transparency and expand the scope of sustainability initiatives. Continuous monitoring and evaluation of sustainability KPIs, coupled with stakeholder engagement, will be critical in driving the Group’s long-term ESG goals.
Valentino Group’s 2023 Sustainability Report shows the brand’s commitment to integrating sustainability into its core operations. By focusing on environmental, social, and governance metrics, Valentino not only enhances its market position but also contributes positively to global sustainability efforts. The future promises even greater achievements as the Group continues to innovate and lead by example in the luxury fashion industry.
Read the Valentino Group’s Financial report Here.
Cover Image Courtesy: Valentino Website