How are Fashion's Leading CEOs Driving Sustainability?

The fashion industry, particularly the fast fashion sector, is often criticised for its environmental impact and the sustainability of its global supply chains. 

Change as multifaceted and complex as sustainability requires organisation-wide action that starts from the top. That’s why CEOs of some of the largest brands are quick to outline their major initiatives. 

An examination of three of the largest businesses, LVMH, Hermes and Inditex, offers key insight into the progress being made to address these concerns from the board down. 

According to its 2024 Social and Environmental Responsibility Report, LVMH states: “LVMH’s 2024 environmental performance metrics show it is on the right track to meet its LIFE 360 targets for 2026 and 2030.” 

LVMH's report indicates progress towards its sustainability and social responsibility goals, with a focus on circular economy innovation, supply chain traceability and reductions in greenhouse gas (GHG) emissions.

Discussing this, Bernard Arnault, Chairman & CEO of LVMH, says: “Our ethical principles and our commitment to upholding our social, environmental and cultural responsibilities are rooted in a simple, strongly held belief that it is by working together with our employees and all our other stakeholders – public and private institutions, suppliers and partners, NGOs and indeed other companies in our sector – that we will be able to transform challenges into opportunities to drive progress across society as a whole.”

LVMH's progress and environmental targets

LVMH appears to have made progress on its environmental targets. 

The company met its GHG reduction targets for scopes 1 and 2 two years ahead of schedule, recording a 55.1% reduction in these emissions. It also reported a 32.8% reduction in Scope 3 emissions. 

LVMH is aiming for a 50% reduction in energy-related GHG emissions by 2026 from a 2019 baseline. Other goals include phasing out virgin fossil-based plastic in all packaging by 2026 and regenerating or rehabilitating five million hectares of habitat by 2030, of which 3.8 million hectares have been addressed. 

Looking ahead, LVMH plans to achieve full supply chain traceability for all strategic materials between 2026 and 2030 and expand its work in regenerative agriculture.

Hermès' approach to decarbonisation

French luxury house Hermès outlined its sustainability progress in its 2024 Annual Report. 

It ensures all its products are “responsibly manufactured, using sustainable materials, with a frugal use of materials, an approach based on craftsmanship and by applying the principles of the circular economy in its production approach as much as possible". 

In terms of its products, the report adds: “Sustainability, the quality of the raw materials used and the quality of the savoir‑faire are intrinsic characteristics of Hermès’ products.”
Axel Dumas, CEO of Hermès, says: “Hermès places responsibility and sustainability in all its actions and creations. Each métier applies the principles of eco-design to optimise the use of materials so as to reduce waste, promote reuse and recycling, and be part of a circular economy approach.” 

Hermès exceeded its science-based targets for direct GHG emissions reductions ahead of schedule, with a 63.4% reduction in scopes 1 and 2 emissions compared to 2018. Hermès is now working to achieve 100% renewable energy in all operations by 2030 and deepen supply chain transparency.

Inditex and supply chain transformation

Inditex, which owns brands including Zara, Pull&Bear and Massimo Dutti, detailed its strategy in its 2024 Sustainability Report. 
Oscar Garcia Maceiras, CEO of Inditex, says the directions the fashion world will take are "difficult to predict", but Inditex's results are "very positive." 

He noted Inditex's progress in using lower-impact and recycled fibres. A key part of the report is its focus on the Inditex Supply Chain Transformation Plan, which was launched in 2023.

“We are leveraging that plan to support and advise our suppliers and manufacturers so that they can meet more ambitious requirements around water management, chemical substances, waste and emissions. As a result of this and other initiatives, we made further progress towards a low-carbon economy,” Oscar explained. 

Inditex has set a target for net-zero emissions across its value chain by 2040. In 2024, 73% of its textile fibres were lower impact and 39% were recycled. Inditex is now focused on completing its transition to only lower-impact fibres by 2030 and decarbonising its entire supply chain by implementing mandatory renewable energy, waste and water reduction plans for all its suppliers.