| Invested through |
|
|---|---|
| Asset Classes | Corporate bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | FR0013165677 |
| Aligned with SDGs |
Founded in 1963, Kering designs, manufactures, markets and retails apparel and accessories. Leather goods constitute 52% of the company’s revenues, 20% shoes, 15% ready to wear, 6% watches and jewellery, and 7% others, including cosmetics and perfumes.
The company operates through its different brand houses, including Gucci, and Yves Saint Laurent. The company derives 78% sales directly operated stores and 22% through wholesale sales and other revenues including royalties. The company’s largest market is Asia Pacific with 39% revenues in FY 2020, followed by western Europe with 27%, North America (21%), Japan 7% and rest of the world 6%.
Investment rationale
The company operates in a sector that faces many sustainability challenges, ranging from labour practices in the supply chain to the environmental footprint of garment production and consumption. The dominant trend in the apparel sector is fast fashion, which builds on high production rates, high-pace development and switch of collection, low quality and low costs.
Kering is a luxury brand that builds on high value and durable products. The company helps pioneering sustainable materials by financing research in its materials innovation lab and by scouting and enabling innovative fashion start-ups. Kering uses low environmental impact raw materials, such as organic cotton, recycled polyester or regenerated cashmere from wool scraps. By 2025, Kering aims to leverage innovation in order to roll out sustainable sourcing and manufacturing, and full traceability in its key raw materials. Its 2025 targets also include that 100% of the cotton it uses is organic, and to reduce the Group’s total environmental footprint by 40%, including own operations and supply chain.
The group’s Environmental Profit & Loss (EP&L) account measures carbon emissions, water consumption, air and water pollution, land use, and waste production along the entire supply chain. The company operates highly specialised manufacturing sites, and also works with small, predominantly Italian suppliers.