KERING STANDARDSStandards & guidance forsustainable production

Overview – p.04
Introduction for use by Suppliers – p.06
Standards for Raw Materials – p.10
Introduction to the Standards for Raw Materials – p. 11
Hides & Skins for Leather – p.15
Precious Skins – p.24
Fake Fur – p.29
Cashmere – p.37
Wool – p.43
Silk – p.50
Cotton – p.55
Paper & Wood – p.61
Plastics – p.68
Down – p.74
Cellulosic Fibers – p.79
Synthetics – p.86
Gold – p.92
Silver & Other Precious Metals – p.100
Diamonds – p.106
Colored Gemstones – p.113
Other Raw Materials – p.119

Standards for Manufacturing Processes – p.122
Tanning – p.123
Textile Processing – p.131
Leather Goods and Shoe Manufacturing – p.144
Cut-Make-Trim – p.150

Standards for Non-Merchandising – p.155
Packaging – p.156
Visual Tools – p.166

Standards for Logistics – p.171
Warehousing – p.172
Transportation – p.179

Guidance accompanying the Kering Standards – p.186
Guidance for Circularity – p.187
Guidance for Innovation – p.210
Guidance for Sustainability Claims – p.223

Appendices – p.233
Summary of Kering Chemical Management Policy – p.234
Summary of Kering Animal Welfare Policy – p.239
Social Compliance and Enforcement of the Kering Code of Ethics in
Supply Chain – p.243
Kering Alert System – p.249
Environmental Profit & Loss Account – p.251

FAQ – p.255
Glossary – p.257

Overview

OVERVIEW
4Overview“We are redesigning our business to continue to thrive and prosper
sustainably into the future, while at the same time helping to transform theluxury sector and contributing to meet the significant social andenvironmental challenges of our generation.”

François-Henri Pinault, Chairman and Chief Executive Officer, Kering

Kering believes that luxury can have a significant
contribution to creating a more sustainable world. Kering
cares about our impact on the planet and on people, andviews embedding sustainability as a responsibility and an
opportunity to reinvent our business and the luxury sector.
Kering has been a leader in sustainable business for several
years and we will continue to lead through responsibility,
accountability, and transparency in order to catalyzetransformational change.
To achieve our vision and set the highest standards of bestpractices in the luxury sector, Kering announced the next
phase of our sustainability strategy across the Group’s
brands in January 2017. The strategy includes ambitious
goals for reducing Kering’s environmental impacts,
advocating social welfare inside and outside the Group,and creating innovative, game-changing platforms. The
new strategy, ‘Crafting Tomorrow’s Luxury’, presents clear
targets to attain by 2025 under the themes Care,
Collaborate and Create, such as:• 100% traceability of key raw materials and 100%
compliance with Kering Standards• Reduction of environmental profit and loss (EP&L)
account impact by 40% including remaining carbon
emissions as well as water use, water and air
pollution, waste production and land use changes• Creation of a Kering Supplier Index of Sustainability
which will ensure each supplier’s sustainability
performance will be visible to all Kering brands• Contribution to a positive social impact across theentire supply chain, with a focus on raw material
sourcing locations
In addition to this selection of environmental and social
targets, Kering is committed to developing new businessmodels and integrating innovative approaches aroundsourcing raw materials, new technological solutions formaterials and contributing to the creation of a robust‘circular economy’.

We have estimated that such innovations will account forhalf of our EP&L reduction target (i.e., 20% of the total 40%
reduction envisioned in Kering’s Sustainability Strategy).
Key to meeting these goals by 2025 will be theimplementation of industry-leading environmental andsocial standards across Kering’s supply chains. Outlined indetail in this document, the Kering Standards and theiraccompanying suite of Guidance set the framework forcommitment and action for Kering and our brands. In
addition, they provide a way of measuring progress andoutcomes on traceability, social welfare, environmental
protection, animal welfare and chemical use. This
document is intended to give clarity and help
operationalize Kering’s overall long-term commitment tosustainability. The principles that underpin the Kering
Standards are integrity, circularity and the application of
the precautionary principles. By design, the Kering
Standards are specific, and requirement based. Thus, as areflection of our commitment, Kering is assessing all key
suppliers for adherence to our sustainability standards andworks with suppliers who have challenges in meetingcertain Kering Standards. Guidance sections have anadvisory perspective and as such, suppliers’ compliance tothem is not quantified.
Kering recognizes that a collaborative relationship with
our suppliers is key to achieving the long-term value andmutual benefits that sustainability can provide ourbusinesses. And although we are committed to excellence
and achieving our ambitious sustainability goals, we also
recognize that this takes time and that we need to set
realistic milestones to encourage and support progress
and improvements. As such, while Kering and our suppliers
make this transition together, we offer suppliers technicalsupport in the form of training and the creation of a
suppliers’ platform which promotes the Kering Standards
and share best practices. We are proud to be working withyou on incorporating our Kering Standards and Guidance
into your business.
It is our mutual commitment to sustainability and drive forinnovation that will enable us to contribute to positiveenvironmental and social impacts, while preserving
successful and thriving businesses into the future.

5

Overview

INTRODUCTIONFOR USEBY SUPPLIERS

6

Introduction for use by Suppliers

The Kering Standards are designed to support all suppliers who work withbrands within the Kering Group.
This is not a contractual document. This is an informative document providing
key information and guidance that will enable suppliers to meet Kering’s highsustainability standards.

These Kering Standards should be used in conjunction withother key guidance for suppliers including:• Compliance with all national and international laws,
conventions, and regulations• The Kering Code of Ethics, which sets out the ethicalprinciples that should be applied everywhere and by
everyone, as well as the Group’s values, what it
believes in and what it does not tolerate. Included in
the Code of Ethics is the Suppliers’ Charter which setsout in detail Kering’s specific expectations of its
business partners on ethics, social and environmental
issues• Robust and verifiable transparency across the entire
product supply chain• Kering Human Rights Policy which sets out the key
expectations in terms of human rights, fundamental
freedoms and health and safety, covering both Kering
employees and workers in the supply chain• Kering Manufacturing Restricted Substances List
(MRSL) and Kering Luxury Product Restricted
Substances List (PRSL) covers requirements forchemical use and management for manufacturing
processes• Kering Sustainability Principles (or equivalent
document from the brands) which are part of thecontractual framework with suppliers. Suppliers are
required to abide by these principles. Kering
Sustainability Principles are the contractual dual of theKering Standards. Supplier compliance with the Kering
Standards is evaluated on this basis.
Kering’s high standards of sustainability are based on thecommitment to reduce the negative environmental
impacts of its business across the supply chain and tosupport practices that create social and environmental
benefits. Additionally, Kering looks to new innovations andtechnologies to achieve best in class sustainable solutions
for its raw materials and manufacturing processes.
Specifically, any raw materials sourced and processed for
Kering need to adhere to all the following values that
underpin the Kering Standards:• Application of the precautionary principle to not use atechnique until there is a scientific consensus that it issafe for society and the environment• High standards of animal welfare in all aspects ofhandling, raising, transportation and slaughtering ofanimals• Implementation of circular approach, including
stopping single-use plastics and minimizing microfiber
leakage• Ensuring that none of Kering’s supply chains contributeto the loss of natural ecosystems or to theirdegradation – including but not limited to naturalforests (deforestation) and to those ecosystems thatmeet the criteria of Key Biodiversity Areas and High
Conservation Value Areas (including High Carbon Stockor Irrecoverable Carbon Areas)• Promoting the widespread adoption of regenerative
agricultural practices to improve and restore soil
health, soil carbon sequestration, biodiversity andwider ecosystem function on agricultural lands andrangelands and at landscape level• Commitment to reducing climate change impacts• No hazardous or potentially hazardous substancesused in production processes or finished products• Guarantee of ethical treatment of people working inthe supply chain as described in the Supplier’s Charterof the Kering Code of Ethics and the Kering Human
Rights Policy. Support for local communities andcultural practices• Incorporation, to the extent possible, of newtechnologies and innovative solutions in the sourcingof raw materials or in processing and manufacturing
techniques7Introduction for use by Suppliers

The Kering Standards and Guidance aim to take a holistic
and responsible approach to the making of products for
Kering brands accounting for each step in the supply chain
from farm or field to finished product.
The market in general and new regulatory frameworks
around the world are moving towards more sustainable
practices. Adherence to the Kering Standards andGuidance will prepare suppliers to stay ahead of the curve.
All suppliers are evaluated on their alignment with the
Kering Standards in the sustainability section of the Kering

Vendor Rating System, and the alignment of raw material
sourcing is monitored through EP&L data campaigns.
Guidance sections have an advisory perspective and assuch, suppliers’ compliance to them is not quantified. Notethat this rating system is also made visible to all Kering
brands. This should further incentivize suppliers to
implement the Kering Standards with care to potentiallyattract business across the Kering portfolio.

8Introduction for use by Suppliers

Structure of Kering Standards
Requirements for 2025 & Additional Best
Practicesto address key and overarching sustainability themes
such as:Each separate Kering Standard includes a section on“Requirements for 2025”, which a supplier must fulfill inorder to be compliant, as well as “Additional Best Practices”
and best practices that suppliers should work towards
over the coming years.

• Circularity• Innovation• Sustainability claims

Requirements for 2025
This section is designed to provide operational guidance tosuppliers to comply with the Kering Standard by 2025. If
the symbol © (critical) is shown next to a particularrequirement, it indicates that it must be met immediately.
A failure to comply might be considered as a breach of theundertaking relating to the Kering Sustainability Principles
as set forth in the supplier agreement.
Kering brands’ suppliers must already comply with most of
the requirements. Additionally, Kering brands’ suppliers
shall have a plan in place on how to align with all therequirements by 2025.
Kering expects that suppliers will communicate thesecommitments and actions to their sub-suppliers to ensurecompliance.
Note that “Requirements for 2025” gathers all the actions
previously placed in “minimum requirements” and most of
the actions of “additional conditions” of the previous
version of Kering Standards. This evolution reflects the factthat year after year, Kering raises the bar on sustainability
requirements while giving visibility to years to come.
Additional Best Practices
This section provides guidance and recommendations forbest practices for suppliers. These should be viewed asadditional to the Requirements listed above. This section
aims to give visibility to suppliers on where Kering wants
to take the Luxury Fashion practices beyond 2025.
Note that suppliers who are fully compliant with
“Requirements for 2025” and are already aligned with – atleast part of – the Additional Best Practices will receive ahigher rating in the Kering Vendor Rating System.

Guidance accompanying the Kering Standards
Starting with the publication of Version 5 of the Kering
Standards in 2022, the Standards are accompanied andcomplemented by a set of "Guidance" – which willcontinue to be updated and refined annually. They provide
general principles and a conceptual approach framework

The Guidance is not as operational as the Kering Standards,
and thus cannot be similarly broken down between“Requirements for 2025” and “Additional Best Practices”.
Just as the Kering Standards, they are updated yearly toreflect the latest improvements.

Due to their informative nature, when calculating thepercentage of “alignment with Kering Standards”, theGuidance are not accounted for.

The Appendices, FAQs and Glossary
The attached Appendices play a crucial role and should beshared with your suppliers when relevant to their activities.
These Appendices cover topics such as chemical
management, animal welfare, social compliance, theenvironmental profit and loss (EP&L) account, andsustainable innovation, offering in-depth information tocomplement the Kering Standards.
Additionally, the separate section for FAQs addresses
practical questions related to the use, terms, andconditions of the standards, as well as any additional
queries that could arise. They serve as a valuable resourcefor better understanding and implementing the standards.
To further enhance clarity and comprehension, theGlossary provides definitions for all key terms used within
the standards, ensuring that everyone involved has acommon understanding of the terminology usedthroughout the document.
The Kering Standards are reviewed annually and within
this overall framework and timeline, the brands adapt andset their own targets. Note that the Kering Standards apply
only to the production for Kering brands, not to all otherproduction at a facility or from a supplier, unless explicitly
communicated on certain aspects related to targeted
Kering Standards explained within this document.

9

Standards for Raw Materials

STANDARDS FOR
RAW MATERIALS
10

Standards for Raw Materials

INTRODUCTION TO THE STANDARDSFOR RAW MATERIALSThis introduction aims to shed light and provide a concise overview of Kering’s comprehensive
indications relating to sustainable sourcing, traceability & transparency, deforestation & conversion.
The information clarifies Kering’s perspective on these three key topics common to all raw materials
for: facilitating the operation of Kering’s sustainability commitments; expanding the indications fromraw materials to materials and applications; and calling to action brands and suppliers in acomprehensive and overarching manner. Specific preferred options and best practices for each raw
material are indicated throughout the Kering Standards.

1.

SUSTAINABLE SOURCING
Kering supports innovative approaches to sourcing raw
materials and advanced technological solutions for its
supply chains. The below indications are grouped in two
macro-categories, prioritizing Kering’s preferences when it
comes to sourcing natural and man-made materials.

2.

3.

Since Kering’s vision and high standards of best practices
are challenging, Kering primarily advocates andencourages collaborative approaches and relationships
among Kering departments, Houses, suppliers and subsuppliers to create the frameworks for sustainable actions
and achieving trilateral benefits.

Finally, natural raw materials being produced on
farms, ranches, fields or other production
landscapes that are actively converting toregenerative agriculture should also be preferred
when making sourcing decisions, to support anaccelerated transition of these practices.
See BOX 1 for information about the Kering
Regenerative Fund for Nature initiative.

Natural materials:
The indicators below refer to production of natural raw
materials such as wool, cotton, cashmere, silk, leather andother materials made of plants or animals. In this macrocategory Kering•

Prioritizes natural raw materials produced within
regenerative agriculture systems with clearly
defined, robustly monitored and evaluatedoutcomes on Nature.
Kering supports the use of regenerative agricultural
practices, which can bring about diverse ecologicaland social benefits.
These include:
o

o
o
o

o

Restoring soil health, including
sequestering additional carbon &protecting water cycles
Protecting biodiversity
Eliminating the use of synthetic inputs
Ensuring farmers receive fair payment for
improved practices and that local
communities are positively impacted
Safeguarding animal welfare

Natural raw materials from producers
supported by the Regenerative Fund for
NatureNatural raw materials from producers
following practices and ensuring outcomesthat are verified by a third-party
Natural raw materials from producers thatcan demonstrate quantified positive
outcomes and validated by the Kering
Sustainability Department and in line with
Textile Exchange’s Regenerative
Agriculture Outcomes Framework•

Requires ensuring the best treatment for animals
throughout the supply chain. As such, Kering expects
all suppliers and sub-suppliers that handle live
animals to meet the Kering Animal Welfare
Standards appropriate to the species of animal andthe location of animal production. At the very least
suppliers must meet “Bronze level” standards which
are entry level and mandatory. Suppliers must also
commit to engaging in continuous improvement of
their practices and must also be open to regularinspections to show adherence to the Kering Animal
Welfare Standards and progress towards
improvement.
Based on this, Kering expects all suppliers in the
supply chain to:oAs such, priority shall be given to:o

Be aware of and commit to respecting the
Kering Animal Welfare Standards
Support traceability in the supply chain sothat Kering can verify animal welfare
practices11

Standards for Raw Materials•
The Kering Animal Welfare Standards are the firstcomprehensive set of animal welfare standards forluxury and fashion and aim to drive positive change
in industry practices and beyond. They cover all the
species that are part of the Group’s supply chainsaround the world, namely cattle, calves, sheep, goats,
ostriches, and reptilians. For each species, thisdocument highlights specific challenges, lays down
breeding,
transportationandslaughtering
requirements, and lists benchmark certifications.
•••Supports collaborations and integration among
stakeholders for fiber-to-garment supply chains
implementing more sustainable solutions,guarantees transparency, and ensures the supply.
Kering’s departments support and collaborate withbrands, suppliers, and sub-suppliers to enable thecreation of integrated supply chains.
Encourages the usage of a broader diversity ofnatural raw materials in brands’ products and insuppliers’ offers, considering the positive impact on
biodiversity and the increased resilience of supply
chains that leverage a wider variety of materials,
particularly in the context of climate change.
Encourages the usage of fibers with a low
environmental footprint (for example linen, hemp,
kapok, etc. for plant-based fibers or yak, camel, etc.
for animal-based fibers) within brands’ products andin suppliers’ offers alongside the most commonlyused sustainable fibers blending, for example,
cotton with linen, and cashmere with fine wool.

Man-made and recycled materials
The indicators below refer to man-made raw materials andmaterials, that are: recycled materials made withprocessed cotton, wool, cashmere, silk, leather, viscoseetc., virgin man-made cellulosic fibers (e.g. viscose, cupro,
acetate, etc.), synthetics (e.g. polyester, polyamide, etc.)
and bio-synthetics. In this macro-category Kering:
•

•

•

•

TRANSPARENCY & TRACEABILITY
Kering requires suppliers to support any request related
to transparency of its supply chains and provide
information regarding the traceability of sourced
materials in order to:
•
•

•
•
•
•

Respond to forthcoming regulations on the topic;
Gather reliable data (high-level for transparency, at
product SKU level for traceability) for Kering
sustainability operational data management;
Increase visibility in Kering’s supply chains;
Improve Kering’s and its brands’ quality control
systems;
Reduce risks of sourcing from high-risk areas, interms of social and environmental impact;
Build stronger and trusted relationships among,brands, suppliers, sub-suppliers and clients.

From this premise Kering:••
Prioritizes the use of materials with recycled content(specifically preferring post-consumer recycledmaterial feedstock and secondarily pre-consumer
feedstock), and as a secondary option, prioritizes theuse of materials with bio-based content (specifically
preferring second-generation or third-generation
bio-feedstock). For the correct interpretation of“recycled content” topic, please refer to the“Guidance for Circularity” in this document;
Discourages the usage of non-renewable raw
materials, specifically carbon-based fossil content
when it comes to conventional synthetic fibers andplastic materials;
Discourages the usage of biodegradable orcompostable fibers and materials considering bothbiodegradation and composability solutions notaligned with Kering standards;
Prioritizes recyclable materials referring to recycling
processes and technologies in place and at scale;

Prioritizes recycled content textile materials fromfiber-to-fiber recycling technologies bothmechanical or chemical. Kering expresses concerns
for recycled polyester used in synthetics and plastic
materials when derived from clean packaging
circular model, like that of PET bottles - these should
be kept in a closed-loop recycling system formaterials in contact with food. Suppliers should use
recycled materials produced from feedstock which is
not used in virtuous packaging cycles. Furthermore,
Kering strongly recommends investigating emerging
fiber-to-fiber recycling processes; Kering encourages
suppliers to support all related initiatives.

••

Clearly defines how to address both transparency
and traceability, and related action frameworks, foreach material (refer to the Glossary in thisdocument for these definitions);
Requires evidence of transparency in all supply
chains and incentivizes any initiative addressing thetraceability of the product journey, from the primary
production of raw material to the final production of
the finished product. Consequently, Kering supports
the engagement of sub-suppliers and suppliers tobuild up integrated supply chains.
Recognizes the complexity of improving traceability
which may rely on chain of custody systems andrequires strong collaboration across the entire
supply chain (refer to the Glossary in this document
for chain of custody definition);
Runs internal verification programs like forensic
audit practices, on specific material categories (e.g.
organic cotton) to verify and provide consistency ofdeclared sustainable raw materials claims. Keringstrongly suggests sub-suppliers and suppliers
undertake and implement verification or testing
practices as carried out by different
certification/standard schemes.

12Standards for Raw Materials

DEFORESTATION & CONVERSION
Kering is committed to ensuring that its natural raw
material sourcing is not linked to deforestation orconversion of natural ecosystems (including land,
freshwater and marine ecosystems). This covers all natural
ecosystems, including but not limited to ancient andendangered forests, and to those ecosystems that meetthe criteria of Key Biodiversity Areas, High Conservation
Value areas, High Carbon Stock areas of Irrecoverable
Carbon areas.

materials produced in such areas cannot enter Kering’s
supply chains. This backdrop cut-off date does notsupersede earlier existing cut-off dates: in biomes orcertification schemes where an earlier cut-off date may
apply, this must be upheld. Direct suppliers must cascade
this requirement upstream to ensure that this holds true
for the entire supply chain.
Refer to Material Innovation Lab for further information
about the above topics (See BOX 2).

Kering has adopted a deforestation- and conversion-freecommitment with a cut-off date of 1st January 2020 at thelatest. This means that areas where natural ecosystems
have been cleared or degraded since 1st January 2020 are
deemed non-compliant with the commitment, and raw

13

Standards for Raw Materials

BOX 1: The Kering Regenerative Fund for Nature
Launched in January 2021, the Regenerative Fund for Nature illustrates the Group’s commitment topreserving biodiversity, which is inextricably linked to the future of the luxury industry, but more
importantly, to that of our planet.
The Regenerative Fund for Nature seeks to transform agricultural practices by sourcing raw materials
such as leather, cotton, wool and cashmere from producers that are restoring soil and ecosystems,
protecting biodiversity and improving community livelihoods.
Managed by Conservation International, the Regenerative Fund for Nature aims to transform 1 million
hectares of agricultural lands using regenerative practices by 2025.
In practice, the Fund provides grants to farming groups, project leaders, NGOs and other stakeholders
who are ready to test, prove and scale regenerative practices, which focus on working in harmony withnatural systems.
All grantees are located in one or more of the priority countries determined by Conservation
International. Within these high-priority geographies, grantees are selected by Kering using a sciencebased analysis that assesses three criteria: the importance of the material for fashion supply chains, thefeasibility of implementing sustainability projects, and the potential positive impact on biodiversity,
climate change, and soil health.

14

BOX 2: The Kering Material Innovation Lab

The Kering Material Innovation Lab (MIL) was established in 2013 in Novara, Italy, to be an operational
support to all Kering brands and in 2019 it moved to Milan.
The MIL’s objective is to support the integration of more sustainable and innovative solutions into
suppliers’ and brands’ supply chains, providing information and technical support.
The MIL collaborates with Kering’s Houses in the management of more sustainable raw materials intheir collections and, in the implementation of transparency within their supply chains.
The MIL focuses externally, by communicating the Kering Sustainability strategy to partner suppliers andinternally by partnering closely with counterparts of each of the brand’s teams.
In addition, the MIL has continuously updating a library of more sustainable and innovative solutions(textiles, trims, non-woven material, processing technologies, etc.). Products have been evaluatedagainst both internal and external sustainability standards and LCAs.

Standards for Raw Materials

HIDES & SKINS FOR LEATHERBOVINE, OVINE

15

Standards for Raw Materials – Hides and Skins for Leather

The production of leather at farm level can have significant negative environmental, social, and animal
welfare impacts. Although leather is seen as a by-product or co-product of the meat industry, Kering
is committed to ensuring that its leather is sourced in the most responsible and sustainable mannerwhere there is accountability for the reduction in negative impacts linked to livestock production.
These potential negative impacts include the direct impacts of farm production systems, such as
conversion of natural habitat to pasture, use of synthetic chemicals or impacts on animal welfare. In
addition, there can be “indirect impacts” such as feedstocks from unsustainable agricultural
production and lethal control of native wildlife, which can impact conservation efforts. Kering believes
in collaborating with its entire supply chain to ensure both traceability and sustainability over the longterm. The only way that Kering can mitigate the risks associated with social and environmental impacts
is to have traceability of leather in its supply chains. Kering acknowledges that traceability is a challenge,
but its leather suppliers must work toward improving traceability by engaging with slaughterhouses
and other parties along the supply chain. Suppliers should also be aware of the animal welfare
practices in the countries of livestock production and slaughter and must strive to source from farms
where production systems have been identified and verified as sustainable and aligned with this Kering
Standard.

This Standard delineates Kering's specifications forsourcing hides and skins used in leather, a critical raw
material with wide-ranging applications across our productportfolio—from leather goods and shoes to ready-to-wear
and accessories.
The Standard specifically applies to livestock production ofbovine leather (beef, cow, calf), ovine leather and shearling(sheep, lamb) and caprine leather (goat), and is relevant up
until the slaughter of the animals.
It provides guidance on how to mitigate the direct andindirect social, environmental and animal welfare impactsof livestock farming. Beyond its farming-related
requirements, this Standard also includes requirements ontransparency and traceability across the supply chain.
Additional Kering Standards are available for theprocessing of hides and tanning of leather (See Kering
Standard for Tanning and Kering Standard for Leather
Goods and Shoe Manufacturing).

In summary, the key principles that
underpin the Kering Standard forhides and skins for leather are:• Complying with all national andinternational laws, principles andregulations notably relating tohuman rights, fundamental
freedom, health and safety andthe environment as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Avoiding the degradation anddestruction of natural ecosystems• Ensuring the highest standards ofanimal welfare• Promoting the ecologicalsustainability of livestock
production methods

16Standards for Raw Materials – Hides and Skins for Leather

REQUIREMENTS FOR 2025

© Provide minimum information on the originof the hides© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems

Kering is committed to achieving the highest levels oftransparency within its leather supply chain. In thiscontext, leather suppliers will provide Kering withinformation when requested about the origin of the hides.
This information includes:

As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.

• Location and name of finishing tannery• Locations and names of all the tanneries upstream of
the finishing• Location (country, region) and name of theslaughterhouse• Country of origin (e.g. country of farming)

Only source from Kering preferred countries,
or from specific sources that are verified assustainable
Kering supports ongoing research by experts to:(1) evaluate the risk of sourcing hides/leather fromcountries based on farming practices, environmental
pollution, animal welfare, labor practices, etc. and (2)identify countries and, in some cases, farms where it ispreferable to source. Explanations and a list of preferredcountries are provided in BOX 1.
All suppliers are required to only source leather/ hides for
Kering from:• Either a preferred country as listed in BOX 1. Amongthese countries, certified operations listed in BOX 2 are
preferred to non-certified sources. Note that the typeof farm production system and the mitigation of direct
impacts (e.g. planned grazing, no conversion of natural
habitats and animal welfare practices) and indirect
negative impacts (e.g. locally sourced, sustainable
feedstock, wildlife friendly practices) is considered in
the evaluation of “preferred” sources
And/or from any country considered a medium risk basedon the process described in BOX 1 as long as the sourceof the hides/ leather (e.g. the farm and slaughterhouse)
are verified as sustainable.
•
Pre-existing 3rd party certifications or
standards listed in BOX 2;•
2nd party audit carried out by the food industry(or other industry if relevant);•
Kering’s own audits when necessary.

When it comes to hides and skins for leather, Kering takes
a risk-based approach to the implementation of thiscommitment for leather: we map our leather supply
chains at least to the slaughterhouse as detailed in earlier
sections and prioritize sourcing from the Indicative List ofPreferred Sourcing Countries for Leather presented in BOX
1.
Recognizing that we cannot address deforestation andconversion risks by acting alone, Kering highly values theindustry-level call to action on Deforestation-Free Leather
convened by Textile Exchange and urges its suppliers andpeers to join and actively contribute to the individual andcollective implementation of such commitments.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

© Ensure that animal welfare practices arealigned with Kering Standards
All suppliers/sub-suppliers dealing with live animals shallagree with the implementation and verification – by Keringor a third-party – of Kering’s Species-Specific Animal
Welfare Standards. These Kering Standards outline thespecific requirements for animal welfare in farms. Kering
also requires proof and verification of standards of animal
welfare in slaughterhouses. Both the Species-Specific
Animal Welfare Standards and the recommendations forslaughterhousesareavailable
upon
request.
See Appendix: Animal Welfare.

17

Standards for Raw Materials – Hides and Skins for Leather

ADDITIONAL BEST PRACTICES

Use best efforts to provide additional
information on the origin of the hides

Ensure the use of regenerative agriculture
practices

Kering is committed to achieving the highest levels oftransparency within its leather supply chain. In thiscontext, leather suppliers should use their best efforts toprovide Kering with additional information whenrequested about the origin of the hides. This additional
information includes:

As mentioned in the Introduction section to Standards for
Raw Materials, Kering is committed to prioritizing raw
materials produced within regenerative agriculture
systems with clearly defined, robustly monitored, andevaluated outcomes for nature.

• Location (country, area) of the farms (from finishing
farm to breeding farm)

Use best efforts to provide full traceability of
the hides
Kering expects to have full traceability of hides up to thefarm level, supported by physical and digital traceability
mechanisms and verification. This will require
collaboration within the entire leather supply chain.
Leather suppliers are strongly encouraged to work withexisting traceability systems such as ICEC (Istituto diCertificazione della Qualità per l’Industria Conciaria), LWG
traceability or CSCB (Certificaçao de Sustentabilidade do
Couro Brasileiro). See BOX 3: Recommended certifications
for traceability.
There may be additional certifications in the future thatwill be recommended by Kering, and suppliers will be
notified about these. It is important to note that having a
traceability certification in place doesn’t mean fullcompliance with the Kering Standards if the otherrequirements listed thereafter (including animal welfare)aren’t met as well.

When it comes to leather, priority is given to natural raw
materials from•
Producers supported by the Regenerative Fundfor Nature.
•
Producers following practices and ensuringoutcomes that are verified by a third-party suchas Ecological Outcome Verification (EOV) by
Savory Institute’s Land to Market program orRegenerative Organic Certified by the
Regenerative Organic Alliance18Standards for Raw Materials – Hides and Skins for Leather

BOX 1: Indicative List of Preferred Sourcing Countries for Leather
Kering supports ongoing research to evaluate the risk of sourcing leather from different countries. Using
the best available information, we maintain a list of low-, medium- and high-risk countries for leather
sourcing, which takes into consideration the following risks:• Risk of conversion of sensitive ecosystems (notably natural forests and grasslands) into grazing lands
for farming• Risk that farming practices are not ecologically sustainable (e.g., significant water pollution, highgreenhouse gas emissions, etc.)• Risk of forced labor or child labor• Risk of occupying land disputed by indigenous groups or areas protected by federal, state ormunicipal legislation• Risk of poor animal welfare due to weak regulatory frameworks, or inadequate local practices• Traceability-related risk (lack of specific food chain certification, no governmental regulation, etc.)
The table below lists the sources favored by Kering because they are lower risk with respect to the issues
above. This list reflects the best knowledge available to Kering when writing this document, and thismay change with additional research and information. We encourage suppliers to give Kering feedbackon their knowledge of the different risks in sourcing countries.

Leather type

Bovine Leather(including beef, cow,
calf)

Sourcing Country• Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Slovenia,
Spain, Sweden, Switzerland, UK• New Zealand

Ovine Leather(including sheep, goat,lamb)• Europe: France, Germany, Greece, Iceland, Ireland, Italy, The Netherlands,
Portugal, Spain, Sweden, Switzerland, UK• New Zealand

19

Standards for Raw Materials – Hides and Skins for Leather

BOX 2: Recommended Certifications for Sustainability
Kering encourages suppliers to source skins c from farms with voluntary certifications listed in the table
which verify criteria for sustainable farming such as animal welfare, biodiversity conservation andecological farming practices.

Name

Standard or
Organization

Logo

Geographic Scope

CATTLE: BEEF, COW, CALF, VEAL, BUFFALO

EU Organic
Certification
Regulation 2018/848
and 889/2008

EU Organic
Certification

GlobalBeter Leven(Beef cattle, Calves)

Dutch Society for theProtection of Animals

The Netherlands

Label Rouge Viandes(Cattle, Calf)

Label Rouge Viandes

FranceCertified Animal
welfare approved by
AGW

A Greener World
standards

GlobalCertified Grassfed by
AGW

A Greener World
standards

GlobalCertified Humane

Humane Farm Animal
Care

GlobalAnimal Welfare
Certified

Global AnimalPartnership

GlobalRSPCA Assured – forBeef cattle

RSPCA welfare
standards

UK

Le Veau sous la mère

Comité
Interprofessionnel
Veau sous la Mère

France20

Standards for Raw Materials – Hides and Skins for Leather

CATTLE: BEEF, COW, CALF, VEAL, BUFFALO (continued)

Classyfarm

Centro di Referenza
Nazionale per il
Benessere Animale(Italy)Italy

Pasture for Life

Pasture Fed Livestock
Association

UK and Ireland

American Humane
Certified

American Humane

USA

SPCA Certified Beef
CattleSPCA (New Zealand)

New Zealand

Regenerative Organic
CertifiedRegenerative Organic
Alliance

GlobalEcological Outcomes
Verification (EOV)

Savory Institute’s Land
to Market program

Global21

SMALL RUMINANTS: SHEEP, LAMB, MUTTON, GOAT

EU Organic
Certification
Regulation 2018/848
and 889/2008

EU Organic
Certification

GlobalLabel Rouge Viandes
AgneauLabel Rouge Viandes

FranceCertified Animal
welfare approved by
AGW

A Greener World
standards

GlobalCertified Grassfed by
AGW

A Greener World
standards

GlobalCertified Humane

Humane Farm Animal
Care

GlobalStandards for Raw Materials – Hides and Skins for Leather

SMALL RUMINANTS: SHEEP, LAMB, MUTTON, GOAT (continued)

Animal Welfare
Certified

Global AnimalPartnership

GlobalRSPCA Assured
Standards for SheepRSPCA welfare
standards

UK

Certified Karoo Meat

Karoo Development
Foundation/Karoo
Lamb Consortium

South Africa

Pasture for Life

Pasture Fed Livestock
Association

UK and Ireland

SPCA Certified [Meat]
Sheep

SPCA (New Zealand)

New Zealand

Regenerative Organic
CertifiedRegenerative Organic
Alliance

Global22

Ecological Outcomes
Verification (EOV)

Savory Institute’s Land
to Market program

GlobalStandards for Raw Materials – Hides and Skins for Leather

BOX 3: Recommended Certifications for Traceability

Name

StatusCertifier

Scope

LWG

PrivateStandard

Leather Working
Group

Applicable internationally

ICEC

PrivateStandard

Institute of Quality
Certification for the
Leather Sector

Applicable internationally, started withtanneries in Italy

23

CSCB

National
Standard

Certificaçao desustentabilidade do
Couro Braisileiro

Focuses on practices in Brazilian
tanneries

Standards for Raw Materials

PRECIOUS SKINS
24

Standards for Raw Materials – Precious Skins

Precious skins from several species of animals are used in some of Kering’s brands’ products. Kering iscommitted to strictly ensuring that these skins are sourced according to the highest standards ofanimal welfare, ecological sustainability and working conditions. Regarding animal welfare,maintaining the highest standards in the way the animals are managed, handled, harvested,transported and slaughtered is fundamental to Kering’s principles and, more broadly, to the long-term
success of the precious skin trade. Additionally, it is imperative that these supply chains are managed
so that there is no risk of any negative impacts on wild animal populations or their habitats.
For those species listed on the CITES Appendices, suppliers need to be diligent in their adherence to
all CITES procedures. For both CITES and non-CITES species, information on the source of the animals
is mandatory. Kering acknowledges that ongoing research and data collection from the supply chain
will be necessary to meet the Kering Standards and ensure sustainability.

The Kering Standard for Precious Skins sets out stringent
criteria for sourcing skins from the following categories of
species:• Crocodilians (crocodiles, caiman & alligators)• Snakes (e.g., pythons, anacondas, etc.)• Lizards (e.g., tejus, varanids, etc.)• Birds (e.g., ostrich)• Other (e.g., fish, including salmon and sturgeon)
It applies to all products that may be made using precious
skins, such as bags, watches and accessories.
This Standard focuses on strict, animal welfare,traceability, environmental sustainability, and human rights
and social requirements. It applies to both farmed and wildharvested animals.
Additional Kering Standards are available for theprocessing of hides and tanning of leather (See Kering
Standard for Tanning, which applies to leather and precious
skins).

In summary, the key principles that
underpin the Kering Standard for
Precious Skins are:• Complying with all national andinternational laws, principles andregulations notably relating tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Ensuring the highest standards ofanimal welfare• Ensuring that there are no
detrimental impacts on wild
populations and their habitat

25

Standards for Raw Materials – Precious SkinsREQUIREMENTS FOR 2025

© Do not source any species that aretraded/trafficked illegally for Kering or any
other client
Suppliers must commit not to trade in illegal animal
products or support wildlife trafficking at any time and inany way. All precious skins must be sourced and tradedlegally according to national and international laws andconventions.

© Do not source any species that are
threatened with extinction
Suppliers shall not source any legally traded species thatare near threatened, vulnerable, endangered, or criticallyendangered (as identified on the IUCN red Data List). The
only exception to this is if the species is listed on the CITES
Appendices according to the conditions below:• Species listed on the CITES Appendix I must not beused• Species listed on CITES Appendix II and Appendix III canbe used by suppliers as long as CITES procedures arestrictly adhered to and as long as suppliers are willing
and able to share certain information about theirsourcing (see “Ensure complete traceability of allskins”)
Suppliers shall use their best efforts to avoid sourcing fromcountries/operations where there is a risk that theoperations are non-compliant with CITES (e.g. Laos).
For snakes reptiles and crocodilians, Kering doesn't allow
sourcing of non-CITES. For birds, fish and other species, it
is possible to source non-CITES. However, in such cases,
Kering requires extreme caution and suppliers to provide
the following: detailed information on the location(country/region) of the source (farm or wild caught) andon animal welfare practices in advance for verification.
Animals that are on the US Endangered Species Act and/or that are restricted by the European Union (EU Wildlife
Trade Regulations) should not be sourced unless alignedwith the restrictions and requirements of theseregulations and, further, detailed traceability andverification by Kering. Suppliers also need to adhere to allimport conditions of these species.
Suppliers must ensure that their sub-suppliers have thesame commitment and can verify this commitment.
Kering and/or its brands may request a written
engagement from a supplier that outlines theircommitment to the above sourcing standards for species
threatened by trade.

Source from Kering preferred countries andoperations
Suppliers should only source from Kering preferredcountries and operations (please see BOX 1: Indicative listof preferred sources for precious skins). Kering will provide
regularly updated information on recommended
countries/sources, which will also include the operations
where suppliers are currently working after they havebeen approved by Kering. Kering preferred operations/facilities will have the appropriate management practices
in place to ensure there is no detriment to wild
populations and there are verifiable high standards foranimal welfare.
Sourcing through Kering preferred operations/facilities
will ensure that suppliers meet all Kering’s Requirementsfor 2025 to meet the Kering Standards. This means that
there will be no sourcing through re-export permits orfrom sources that cannot identify and verify the original
source of the animal.

© Ensure complete traceability of all skins
Suppliers will ensure complete traceability of all skins(CITES and non-CITES) back to wild source and/or captive
operations. This traceability will need to be verified
through the provision of information on the source of skins
as required. This information will include:• Species scientific name• Source country (country of wild harvest/farm/ ranch
and in the case of ranching operations the source
country for hatchlings and/or eggs needs to be
specified)• Processing facility• Type of source (captive, ranched or wild)• Location of the different tanning steps
Systems need to be put in place by suppliers who canverify the original source of the precious skins. These
include some type of physical traceability (e.g. plastic tags,
RFID tags, blockchain, DNA tracing, etc.) through the
supply chain as well as good document management
systems to back up physical traceability. Suppliers shallagree to second or third-party verification of traceability
and sourcing claims.
Note that sourcing from countries that “re-export” under
CITES (such as Singapore) should be avoided due to thehigher risk of potential loss of integrity in the supply chain.

26

Standards for Raw Materials – Precious SkinsREQUIREMENTS FOR 2025

© Ensure that animal welfare practices arealigned with Kering Standards
Suppliers must be aware of Kering’s Species - Specific
Animal Welfare Standards.
All suppliers/sub-suppliers dealing with live animals (e.g.
farm and processing facilities) will agree to theimplementation and verification by Kering or a third-partyof Kering’s Species-Specific Animal Welfare Standards,
which outline the specific requirements for management
practices in place to ensure there is no detriment to wild
populations as well as animal welfare in farms, ranches,
processing facilities and for wild harvest. For Crocodilians,
this includes the new International Crocodile Farmers
Association (ICFA) standards and requirements for farmed
crocodiles and alligators, and for farmed ostriches, theSouth African Ostrich Business Chamber (SAOBC). The
Southeast Asian Reptile Conservation Alliance (SARCA) isan example of another certification that is in development
and that may meet Kering Standards for reptilians. See
Appendix: Animal Welfare.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

27

Standards for Raw Materials – Precious Skins

BOX 1: Indicative List of Preferred Sources for Precious Skins
This table lists the sources for key species that are preferred by Kering as they are most likely to fulfill therequirements for 2025 for precious skins. This list reflects the best knowledge available to Kering when writing
this document. This list may evolve in the future based on third-party auditing at farms and/or processing
facilities. Every source of precious skin, whether on the list below or not, will need to be verified against the
Kering Standards.

Common Name

Scientific Name

SourceLocation

Source TypeCITES
Certificate
required?

OSTRICH

Struthio camelus

South Africa

FarmedNo, but need
SAOBC
certification

USA (Lousiana,
Georgia)

Captive Bred

USA

Wild

Venezuela

Wild

Argentina

RanchedBolivia

Captive Bred

Bolivia

Wild Tacana
harvestprogramRanched,Captive Bred

Yes, Appendix II

Yes, Appendix II

AMERICAN
ALLIGATOR

SPECTACLEDCAIMANYACARECAIMAN

Alligator
mississippiensis

Caiman crocodilus

Caiman yacare

Yes, Appendix II

NILE
CROCODILE

Crocodylus niloticus

Madagascar,
South Africa,
Zimbabwe

YELLOW
ANACONDA

Eunectes notaeus

Argentina

Wild

BURMESEPYTHON

Python molurus
bivittatus

Vietnam

Captive Bred

RETICULATEDPYTHONLIZARD,WATER
MONITOR

Yes, Appendix II

Yes, Appendix II
ThailandCaptive Bred

Indonesia,
Malaysia

Wild

Python reticulatus

Varanus Salvator

Yes, Appendix II

Yes, Appendix II
Thailand,
Vietnam

Captive Bred

Indonesia

Wild

Yes, Appendix II

28

Standards for Raw Materials

FAKE FUR
29

Standards for Raw Materials – Fake Fur

Kering brands no longer use fur in their collections. By “fur” we mean animal pelts where the hair is left on the
animal’s processed skins, from animals being raised, trapped or hunted primarily for their pelt. This includes –without being restricted to – foxes, mustelids (e.g. mink, weasel, ermine, etc.), rodents (e.g. orylag, rabbit, beaver,nutria, etc.), kangaroo, deer, possum. Note that shearling and other fur from livestock are covered in the Kering
Standard for Hides and Skins for Leather.
Brands’ decisions and legal considerations, such as certain cities banning the sale of fur, are increasingly leading
to a demand for “fake fur” or fur alternatives that do not use animal- based sources. Note that the terms “fakefur” or “eco fur” have to be carefully used, as such references are not allowed by law in several countries.
Fake fur is a type of textile fabric manufactured to replicate genuine animal fur. Over the past decade their
popularity has increased as a result of growing concerns over the environment and animal rights. Fake furs wereintroduced in the fashion industry in 1929 and were made of alpaca, in order to offer a more affordable andavailable solution to real fur. But the low quality and dull colors pushed the industry to create synthetic fibersthat allowed fake furs to be much lighter and more accurately imitate real fur.
Fake furs are manufactured using yarn circular knitting or sliver circular knitting machines. The backing of thefabrics is coated to reduce fiber leakage during product manufacturing and use. Different fur effects can beachieved combining natural, cellulosic and synthetic fibers to create “fur like” options such as:• Long straight fur effect similar to fox generally uses synthetic fibers (polyester, modacrylic, acrylic)• Short type fur effect similar to shearling generally uses natural (wool, mohair, alpaca) and cellulosic (viscose,lyocell) fibers
Such fur alternatives also have sustainability considerations since most fur alternatives are composed ofsynthetic fibers such as acrylic, modacrylic, and polyester, which are petroleum-based. Kering recommends that
suppliers take a cautionary approach to sourcing fur alternatives.

The requirements outlined below for the Kering Standard for
Fake Fur focus on the various materials involved in theirproduction, considering that Fake Fur is a type of textile
structure, not a specific material category, and encompass therelated textile processing steps.
Additional Kering Standards are available for Textile
Processing and for the sourcing of Synthetics, Cellulosic
Fibers, Cashmere, Wool, Silk, and Other Raw Materials.

In summary, the key principles that
underpin the Kering Standard for
Fake Fur are:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment as
set out in the Suppliers’ Charter ofthe Kering Code of Ethics• Maximizing ecological sustainability:
supporting natural fiber productionthat does not degrade natural
ecosystems but rather restores andprotects soil plants and wildlife• Ensuring high standards of animal
welfare when it comes to animal
fibers• Advocating the use of recycledcontent• Phasing out hazardous substances in
product use and manufacturing
through a Product Restricted
Substances List (PRSL) and
Manufacturing Restricted Substances
List (MRSL)• Improving resources efficiency levels
throughout the textile processes

30

Standards for Raw Materials – Fake Fur

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving the highest levels oftransparency within its product supply chains. In thiscontext, suppliers will provide Kering with a set of
information from raw materials to related products. This
information includes:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting
manufacturer• Country of origin of natural fibers (i.e., country of farm)• Country of origin of synthetic polymer producer (e.g.
chips producer)• Country of cellulosic pulp producer(s)Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source materials for fake
fur from sources with certifications listed in each chapter
of Kering Standards for materials and recapped in BOX 1.
Suppliers shall refer to single chapter of Kering Standards
when sourcing materials used in fake fur textile products
such as:• For all indications on wool refer to Kering Standard for
Wool• For all indications on cashmere refer to Kering
Standard for Cashmere• For all indications on silk refer to Kering Standard for
Silk• For all indications on alpaca and mohair refer to Kering
Standard for Other Raw Materials• For all indications on cellulosic refer to Kering Standard
for Cellulosic Fibers• For all indications on synthetics refer to Kering
Standard for Synthetics© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.
When it comes to fake fur, this applies to any material
used to produce it. Please refer to the appropriatematerial-specific sections of these Standards forrecommendations on what standards can ensurecompliance.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

31

Standards for Raw Materials – Fake Fur

REQUIREMENTS FOR 2025

Use materials with recycled content
Kering supports the use of material with recycled content
of natural fibers such as wool, cashmere, silk, mohair,alpaca. When using recycled content in a product, therecycled content of the material should be at least 20%.
Please be aware and align with any national and local
legislation about recycled natural fibers. Where possible,
Kering recommends the use of post-consumer waste
feedstock.
• For information on how to source recycled wool referto the dedicated chapter in Kering Standard for Wool
• For information on how to source recycled cashmere

refer to the dedicated chapter in Kering Standard for
Cashmere• For information on how to source recycled silk refer tothe dedicated chapter in Kering Standard for Silk
• For all information on how to source recycled alpaca
and mohair refer to the dedicated chapter in Kering
Standard for Other Raw Materials
Kering encourages the use of cellulosic fibers made fromrecycled materials, agricultural residues or other nonwood sources, to reduce dependence on natural
resources and associated environmental and social
impacts. The recycled content of the material should be atleast 20%, and ideally higher wherever possible. Thisshould increase to a minimum of 50% after 2025. Where
possible, Kering recommends the use of post-consumer
waste feedstock. For information on how to source
recycled cellulosic refer to the dedicated chapter in Kering
Standard for Cellulosic Fibers.

• Require suppliers to use best efforts to establish aclosed-loop chemical management system, so thatchemicals that are used and produced during thetransformation of wood pulp to cellulosic filament andthe production of synthetic fibers, do not escape into
the environment and also potentially harm workers. A
closed-loop chemical management system means
preventing and reducing chemical air emissions,decreasing water consumption, minimizing chemical
impacts and phasing out and eliminating hazardous
waste• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure that the chemicals used are verified against
the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber and microplastic leakage pollution,
for further indications refer to “Avoid microfiber
leakage throughout the products’ lifecycle” paragraphin Guidance for Circularity chapter.
For additional information about requirements for raw
material processing, please refer to Kering Standard for
Textile Processing.

Do not use modacrylic in Kering products
Kering supports the use of material with recycled content
for synthetic fibers. Suppliers should propose preferredsources over conventional fossil-based synthetics
materials with the highest possible recycled content (aimfor 100%). Kering has concerns over ‘recycled polyester’used in synthetics and plastic materials when thefeedstock is from post-consumer clean packaging,specifically PET bottles. PET bottles should be kept in aclosed loop recycling systems for materials that are incontact with food. For information on how to source
recycled synthetics refer to the dedicated chapter in
Kering Standard for Synthetics.

Ensure best environmental practices of raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:

Modacrylic polymers are copolymers obtained by (ISO2076) the reaction of acrylonitrile, accounting for at least
50% and less than 85% by mass, and halogen comonomers
that can be polyvinyl chloride or polyvinylidene chloride.
Due to the usage of these comonomers, modacrylic poses
potential environmental and health threats, mainly at its
end of life. Beyond the carcinogen risk for workers, if thecomonomers are not carefully handled during the
production process, modacrylic poses threats for its
pyrolysis behavior during its disposal through incineration
emitting dioxin. Thermal processes (such as pyrolysis) orchemical recycling of these materials, do not permit theextraction (valorization) of basic chemical components likeother polymers. Finally, modacrylic doesn’t offer any
recovery opportunity by mechanical recycling. For thesereasons, Kering brands aim to phase out modacrylic fromtheir collections and products by 2025.

32

Standards for Raw Materials – Fake Fur

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency of
supply chains• Ensuring farmers receive fair payment for improved

Kering is committed to achieving the highest levels oftransparency within its fake fur supply chains. In thiscontext, suppliers will provide Kering with a set of
information from raw materials to related products. This
information includes in addition to the Requirements for2025:

As such, raw materials from producers supported by the
Regenerative Fund for Nature, should be prioritized.
Whenever possible, practices and outcomes that areverified by a third-party are preferred. This includes the
Ecological Outcome Verification (EOV) by Savory
Institute’s Land to Market program.

• For transparency requirements on cashmere refer toFinally, materials produced on farms, ranches, fields orother production landscapes that are actively converting
to regenerative agriculture should also be preferred when
making sourcing decision, to support an accelerated
transition to these practices.

the dedicated chapter in Kering Standard for Cashmere• For transparency requirements on wool refer to thededicated chapter in Kering Standard for Wool
• For transparency requirements on silk refer to thededicated chapter in Kering Standard for Silk
• For transparency requirements on alpaca and mohairrefer to the dedicated chapter in Kering Standard for
Other Raw Materials• For transparency requirements on cellulosic refer tothe dedicated chapter in Kering Standard for Cellulosic
Fibers• For transparency requirements on synthetics refer tothe dedicated chapter in Kering Standard for Synthetics

practices• Safeguarding animal welfare

Use materials with higher recycled content
For natural and cellulosic fibers, the recycled content
should be at least 50%. Kering requires that suppliers
prioritize the highest possible use of post-consumer waste
feedstock.
• For additional information on recycled wool refer to

Use best efforts to ensure full traceability of
products
Kering expects to have full traceability of fake fur from raw
material production level supported by physical and digitalsystems (platforms, tools, programs, etc.), preferably
third-party verified.
Traceability consists of the ability to follow products ortheir components through all stages of the supply chain,starting at the raw material production stage. Improving
traceability may rely on a range of tools and activities togather evidence on the production history and requires
collaboration across the entire supply chain.

Ensure the use of regenerative agriculture
practices for natural fibers
Kering requires suppliers to engage in farming practices
that improve and restore ecosystem function on the farm.
Kering supports the use of regenerative agricultural
practices which can bring about diverse ecological andsocial benefits. This includes:• Restoring soil health & sequestering additional carbon• Protecting biodiversity• Eliminating the use of synthetic inputs

the dedicated chapter in Kering Standard for Wool
• For additional information on recycled cashmere referto the dedicated chapter in Kering Standard for
Cashmere• For additional information on recycled silk refer to thededicated chapter in Kering Standard for Silk
• For additional information on recycled alpaca andmohair refer to the dedicated chapter in Kering
Standard for Other Raw Materials• For additional information on recycled cellulosic referto the dedicated chapter in Kering Standard for
Cellulosic Fibers• For synthetics fibers Kering require suppliers toprioritize materials using the highest possible postconsumer recycled content coming from emerging
fiber-to-fiber recycling processes and feedstock notrelated to circular economy clean packaging (e.g. PET
bottles). As second option, suppliers shall use
materials with the highest possible bio-based content
aiming for at least 70%. For additional information on
recycled synthetics refer to the dedicated chapter in
Kering Standard for Synthetics.

33

Standards for Raw Materials – Fake Fur

ADDITIONAL BEST PRACTICES

Ensure best environmental practices of the fake
fur processes
Several sustainable options might be implemented atprocessing level and production techniques in order tolower environmental impact and microfiber leakage.
There are two main knitting techniques, from fibers (sliver
knitting), from yarns (yarns knitting). Sliver knitting
generates more fiber leakage than yarn knitting as textile
construction is looser. Yarn knitting with tightly
constructed yarns generate less fiber leakage.
Manufacturing with an in-line vacuum system foreliminating of loose fibers via air filtration and exhaustion,is preferred. Please refer to the Guidance for Circularity forfurther info about microfiber leakage.
Sustainable options to lower the environmental impact of
fur dyeing exist depending on the raw material, e.g.:• Natural fibers: natural dyeing or no dyeing can be

viable options mainly for alpaca and mohair• Synthetic fibers: dope dyeing shall be used wherever

possible• Polyester fibers (virgin, recycled or bio-based): water-

efficiency dyeing technologies
Closed-loop dyeing process where chemicals and water
are recovered and reused in production is an option thatcan be adopted by manufacturers producing all types ofalternative fur. GRS and GOTS certified dyeing andfinishing are available for alternative fur-like organic andrecycled textiles.

34

Standards for Raw Materials – Fake Fur

BOX 1: Recommended Certifications for Sustainability
Kering encourages suppliers to source natural, cellulosic and synthetic fibers carrying the voluntary
certifications listed in each chapter of Kering Standards for materials and recapped in BOX 1.
These certifications verify sustainability criteria such as animal welfare, biodiversity conservation andecological farming practices for virgin material and third-party verification of recycled content.
Kering encourages suppliers to source synthetics carrying the voluntary certification listed in the table which
provide third-party verification of recycled and bio-based carbon content.

Fiber TypeKering Raw Materials
Standards

List of Standards or Certifications

NATURAL VIRGIN MATERIAL

Cashmere

Cashmere• EU Organic Certification Regulation
2018/848 and 889/2008• Global Organic Textile Standard(GOTS)• The Good Cashmere Standard® (GCS)
by AbTF• Kering Regenerative Cashmere
Program (Since 2022, the South Gobi
Project is now called the Kering
Regenerative Fund for Nature)• Sustainable Cashmere certification by
S3C (AVSF)• EU Organic Certification Regulation
2018/848 and 889/2008• Global Organic Textile Standard(GOTS)• Responsible Wool Standard (RWS)• ZQ• ZQRX• NATIVA™
• New Merino Standards for
Responsible Wool Production inAustralia• Sustainable Cape Wool Standard• Abelusi Wool Audit Standard• Ecological Outcomes Verification
(EOV)

Wool

Wool

Mohair / Alpaca

Other Raw Materials• Responsible Mohair Standard (RMS)• Responsible Alpaca Standard (RAS)

Silk

Silk

• Global Organic Textile Standard(GOTS)

35

Standards for Raw Materials – Fake Fur

NATURAL RECYCLED CONTENT

Cashmere, Wool,
Mohair, Alpaca, Silk

Cashmere, Wool, Other
Raw Materials, Silk

• Global Recycled Standard (GRS)CELLULOSIC VIRGIN MATERIAL (continued)

Cellulosic

Cellulosic• Forest Stewardship Council’s (FSC) forest
management certification FSC 100% or FSC
Mix 70% and above• Canopy Hot Button Report: sourcing fromsuppliers scoring 30 points or more

CELLULOSIC RECYCLED CONTENT

Cellulosic

Cellulosic• Recycled Claim Standard (RCS)• FSC Recycled

SYNTHETIC BIO-BASED MATERIAL

Synthetic

Synthetics• Biobased by DIN CERTCO• OK Biobased by TUVSYNTHETIC RECYCLED CONTENT
Synthetic

Synthetics• Global Recycled Standard (GRS)36

Standards for Raw Materials

CASHMERE
37

Standards for Raw Materials - Cashmere

Goats producing cashmere are mostly found in Central Asia, including Mongolia and Inner Mongolia,
although some cashmere is also produced in India, Afghanistan and Iran. China currently produces
about 75% of global cashmere, mostly in ‘farming’ systems. In Mongolia, by contrast, cashmere ismainly produced by small-scale, traditional nomadic herders and these herding families typically own
between 100 and a few thousand goats. They need to move around the vast grasslands to find enoughpasture for the goats, which has been a practice for many centuries. One of the most critical issues
with cashmere production in Mongolia is the environmental degradation that has occurred over thelast 2-3 decades. With increased access to global markets, nomadic, cashmere herders in Mongolia
increased their herd size (over a 4-fold increase in total goats in the past 20 years). In turn, this has led
to overgrazing and extensive degradation of the fragile grasslands, biodiversity impacts, and areduction in productivity. Additionally, environmental consequences such as widespread dust storms
fueled by significant soil erosion have had negative health and air quality impacts. Yet given the large
proportion of people dependent on cashmere for their livelihoods, and the fact that it is a criticalsource of GDP, Mongolia is in the midst of implementing substantial measures to improve thesustainability of the industry.
The Kering Standard for Cashmere is designed to promote and encourage sourcing of cashmere fromproduction systems that respect social and cultural values, support local livelihoods and drive moresustainable grazing practices and high standards of animal welfare.

This Standard outlines Kering's criteria for sourcing
cashmere, a key raw material in Kering’s brands portfolios.
Cashmere refers to the fine, luxurious textile fiber derived
from the soft undercoat of cashmere goats.
The Standard applies to all product categories that may
contain cashmere, primarily fashion items and accessories.
The main focus of this document is the raw material
production stage of cashmere, spanning activities from goat
herding to the dehairing of the cashmere goat to obtain the
cashmere fiber. It sets out requirements for environmental,social, and animal welfare, while also emphasizing
transparency and traceability across the supply chain andencouraging the use of a certain level of recycled content.
Additional Kering Standards are available for theprocessing of dehaired cashmere further down the supply
chain (See Kering Standard for Textile Processing).

In summary, the key principles that
underpin the Kering Standard for
Cashmere are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Maximizing ecologicalsustainability: support cashmere
production that does not degrade
natural ecosystems but rather
restores and protects soil, plants
and wildlife• Ensuring the highest standards ofanimal welfare• Encouraging the use of a certain
percentage of recycled content

38

Standards for Raw Materials - Cashmere

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving transparency within its
cashmere supply chains. In this context, suppliers will
provide Kering with a set of information from raw
materials to related production. This information includes:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting

manufacturer• Country of origin of cashmere (i.e., Mongolia)• For recycled content, country of origin of recycled fiber

producer

Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source cashmere for
Kering from sources with certifications listed in BOX 1.
These certifications cover both virgin and recycledmaterials. Note that the type of farm production systemand the mitigation of direct impacts (e.g. planned grazing,no conversion of natural habitats and animal welfare
practices) and indirect negative impacts (e.g. locallysourced, sustainable feedstock, wildlife friendly practices)
are considered in the evaluation of “preferred” sources.

© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or the conversion of natural ecosystems in
its supply chains.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships. Therefore,

suppliers must adopt and implement sourcing practices
which include high expectations regarding the social andlabor conditions of the workers in the supply chain, in
accordance with the principles set out in the Kering Codeof Ethics and its Suppliers’ Charter. See Appendix: Social
Compliance and Enforcement of the Kering Code of Ethics
in Supply Chain.

© Ensure that animal welfare practices arealigned with Kering Standards
All suppliers/sub-suppliers dealing with live animals shallagree with the implementation and verification – by Keringor a third-party – of Kering’s Species-Specific Animal
Welfare Standards. These Kering Standards outline thespecific requirements for animal welfare in farms. Kering
also requires proof and verification of standards of animal
welfare in slaughterhouses. Both the Species-Specific
Animal Welfare Standards and the recommendations forslaughterhouses are available upon request. See Appendix:
Animal Welfare.

Use cashmere material with recycled content
where possible
Kering supports the use of material with recycled content
for cashmere, alongside regenerative sourcing. Bothoptions (regenerative and recycled) are aligned with
Kering Standards. The recycled contents can be either preconsumer or post-consumer or a combination of the two.
Where possible, Kering recommends the use of postconsumer waste feedstock thereby reducing the demandfor virgin cashmere and the associated environmental andsocial impacts. For recycled cashmere, GRS certification isrequired.
When using recycled content in a product, the recycledcontent of the material should be at least 20%.
Please be aware and align with any national and local
legislation for recycled cashmere.

39

Standards for Raw Materials - Cashmere

REQUIREMENTS FOR 2025

Ensure best environmental practices of the raw
material processes
Cashmere processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure the chemicals used are verified against the

Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Manufacturing
Processes section of these standards.
40

Standards for Raw Materials - Cashmere

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
the supply chain
Kering is committed to achieving the highest levels oftransparency within its cashmere supply chains. In thiscontext, suppliers will provide Kering with a set of
information from raw materials to production. This
information includes, in addition to Requirements for2025:• Name and location of livestock farmer (herders,

Pasture User Groups and/or cooperatives)• Name and location of sorting and/or dehairing

manufacturer• Name and location of processor and/or spinner• For recycled content, name and location of recycled

fiber producer

Use cashmere material with higher recycledcontent
Kering supports the use of material with recycled content
for cashmere. This type of cashmere can be either preconsumer or post-consumer cashmere or a combinationof the two. Kering requires that suppliers prioritize thehighest possible use of post-consumer waste feedstock
thereby reducing demand for virgin cashmere and theassociated environmental and social impacts. For recycled
cashmere, GRS certification is required. As an additional
requirement, the recycled content of the material should
be at least 50%.
Please be aware and align with any national and local
legislation for recycled cashmere.

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability of
cashmere from raw material to production level, relying
on a chain of custody supported by physical and digitalsystems (platforms, tools, programs, etc.), preferably
third-party verified.

Ensure the use of regenerative agriculture
practices
As mentioned in the Introduction section to Standards for
Raw Materials, Kering is committed to prioritizing raw
materials produced within regenerative agriculture
systems with clearly defined, robustly monitored andevaluated outcomes on Nature.
When it comes to cashmere, priority is given to natural
raw materials from producers supported by the
Regenerative Fund for Nature.

41

Standards for Raw Materials - Cashmere

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source cashmere carrying the voluntary certifications listed in the table
which verify sustainability criteria such as animal welfare, biodiversity conservation and ecologicalfarming practices for virgin material and third-party verification of recycled content

NameStandard or
Organization

Logo

Geographic
Scope

Notes

VIRGIN MATERIAL

EU Organic
Certification
Regulation
2018/848 and889/2008

GlobalOrganic
TextileStandard(GOTS)The Good
CashmereStandard®
(GCS) by
AbTF
KeringRegenerative
Cashmere
Program

Sustainable
Cashmerecertification by
S3C

EU Organic
Certification

Global Organic
Textile Standard(GOTS)The Good
CashmereStandard® (GCS)
Regenerative
Fund forNature, Good
GrowthCompany

AVSF, S3C

GlobalGlobalChina

Mongolia

Mongolia

RECYCLED CONTENT

GlobalRecycled
Standard(GRS)

TextileExchange

In countries where thenational organic
standard (at farm level)
does not include criteria
on animal welfare andland management/
grazing, GOTS must not
be used on its own. In
such cases, GOTS must
be associated otherrelevant certifications
available.

GlobalSince 2022, the South
Gobi Project is called theKering Regenerative
Fund for Nature42

Standards for Raw Materials

WOOL
43

Standards for Raw Materials - Wool

Wool is produced in extensive farming systems in over 100 countries around the world, but the highest
quality and quantity of wool fiber comes from Australia, New Zealand, South America and South Africa.
Wool production can be considered more or less sustainable depending on the impact of the farming
system and on animal welfare issues, with a particular focus on the practice of mulesing (i.e., theremoval of skin from the breech and/or tail of a sheep using mulesing shears). The methods used toclean or scour the raw (greasy) wool can also be a factor in assessing the sustainability of a source. The
relative impacts and significance of farming systems, animal welfare and scouring methods varies bycountry and region.
The factors contributing to the environmental impacts of the farming system include the conversionof land from natural ecosystems, the degradation of pastureland, and the chemical treatment of
pasture and sheep. Wool production in countries such as Australia, New Zealand, UK and Europe has
been carried out for a long time, sometimes centuries, and thus the conversion of land from natural
ecosystems (grasslands and forests) to agricultural land in these areas is less of an issue. However,partly due to this longevity there is often increased levels of degradation of the pasture and ecosystems
in and around farms. Additionally, sheep farming is relying more and more on chemical inputs (e.g.
petroleum-based fertilizers) for the maintenance of pasture condition. In addition, in some areas, wool
growers also rely heavily on chemical applications to manage sheep pests like lice and blowflies. Most
chemicals used to treat these external parasites bind to the wool grease rather than the fiber itself andare removed during the initial cleaning of the wool (“scouring”) resulting in contaminated scour
effluent. In other countries, the issue of conversion of natural ecosystems is still a concern because
sheep production is on natural grasslands that are being degraded through overgrazing. Anotherimportant aspect of sheep farming to consider is the way that farmers live with and/or manage native
animals and whether they are regarded as “pests” (e.g. some predators) or other grazing animals (e.g.
kangaroos).

This Wool Standard outlines Kering's specifications for sourcing
wool, a key natural fiber in our product portfolio. The Standard
covers wool's various applications across the full spectrum of
Kering's offerings, including ready-to-wear garments, accessories,
and to a lesser extent, packaging. Wool has the potential to be avery sustainable natural raw material if the chemical inputs arelimited, the scouring process is well managed and sustainablegrazing practices are put in place.
The primary focus of this Standard is on the raw material stage –specifically, from sheep farms to the scouring or combing phases.
"Scouring" refers to the process of washing raw wool to remove
natural impurities such as grease, sweat, and soil. This step iscritical for preparing the wool for subsequent manufacturing
processes. "Combing" is the practice of aligning wool fibers in aparallel manner to create a continuous strand, making it easier tospin into yarn.
Additional Kering Standards are available for the processing ofwool further down the supply chain (See Kering Standard for
Textile Processing).
This Standard considers environmental, social, and animal welfare
considerations. It also includes requirements on transparency andtraceability across the supply chain and encourages the use ofrecycled wool.

In summary, the key principles that
underpin the Kering Standard for
Wool are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety and theenvironment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Maximizing ecological sustainability:
supporting wool production that
does not degrade natural
ecosystems but rather restores andprotects soil, plants and wildlife• Reducing chemical inputs: wool
production with limited use of toxic
chemicals• Ensuring high standards of animal
welfare• Using water efficiently andresponsibly at farm level andscouring level

44

Standards for Raw Materials - Wool

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving transparency within its
wool supply chains. In this context, suppliers will provide
Kering a set of information from raw materials up to
production. This information includes:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting

manufacturer• Country of origin of wool (i.e., Australia)• For recycled content, country of origin of recycled fiber© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

producer

Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source wool for Keringfrom sources with certifications listed in BOX 1. Thesecertifications cover both virgin and recycled materials.
Note that the type of farm production system and themitigation of direct impacts (e.g. planned grazing, noconversion of natural habitats and animal welfare
practices) and indirect negative impacts (e.g. locallysourced, sustainable feedstock, wildlife-friendly practices)
are considered in the evaluation of “preferred” sources.

© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or the conversion of natural ecosystems in
its supply chains.
When it comes to wool, this can be ensured throughcertifications such as:•••

Responsible Wool Standard (RWS)
ZQ and ZQRXNativaWool certified to these standards is therefore fullycompliant with this deforestation- and conversion-freecommitment.

© Ensure that animal welfare practices arealigned with Kering Standards
All suppliers/sub-suppliers dealing with live animals shallagree with the implementation and verification – by Keringor a third-party of Kering’s Species-Specific Animal Welfare
Standards. These Kering Standards outline the specificrequirements for animal welfare in farms. Kering also
requires proof and verification of standards of animal
welfare in slaughterhouses. Both the Species-Specific
Animal Welfare Standards and the recommendations forslaughterhouses are available upon request. See
Appendix: Animal Welfare.

Use wool material with recycled content where
possible
Kering supports the use of material with recycled content
for wool, alongside regenerative sourcing. Both options(regenerative and recycled) are aligned with Kering
Standards. The recycled contents can be either preconsumer or post-consumer or a combination of the two
thereby reducing the demand for virgin wool and theassociated environmental and social impacts. For recycledwool, GRS certification is required.
When using recycled content in a product, the recycledcontent of the material should be of at least 20%.
Please be aware and align with any national and local
legislation for recycled wool.

45

Standards for Raw Materials - Wool

REQUIREMENTS FOR 2025

Ensure best environmental practices for raw
material processing
Wool processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure that the chemicals used are verified against

the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Manufacturing
Processes section of these standards.
46

Standards for Raw Materials - Wool

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency ofthe supply chain••

Kering is committed to achieving the highest levels oftransparency within its wool supply chains. In this context,
suppliers will provide Kering a set of information from raw
materials up to production. This information includes, inaddition to Requirements for 2025:• Name and location of livestock farmer (cooperatives,

sheep farms)• Name and location of sorting and/or cleaning/scouring
manufacturer• Name and location of processor and/or spinner• For recycled content, name and location of recycled
fiber producer

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability ofwool from raw material to production level, relying on achain of custody supported by physical and digital systems(platforms, tools, programs, etc.), preferably third-party
verified.

Ensure the use of regenerative agriculture
practices
As mentioned in the Introduction section to Standards for
Raw Materials, Kering is committed to prioritizing raw
materials produced within regenerative agriculture
systems with clearly defined, robustly monitored andevaluated outcomes on Nature.
When it comes to wool, priority is given to natural raw
materials coming from:

Producers supported by the Regenerative Fund for
Nature.
Producers following practices and ensuringoutcomes that are verified by a third-party such as
Ecological Outcome Verification (EOV) by Savory
Institute’s Land to Market program or ZQRX by The
New Zealand Merino Company

Use wool material with higher recycled content
Kering supports the use of material with recycled content
for wool. This type of wool can be either pre-consumer or
post-consumer wool or a combination of the two. Where
possible, Kering recommends the use of post-consumer
waste feedstock thereby reduce the demand for virginwool and the associated environmental and social impacts.
For recycled wool, GRS certification is required. As an
additional requirement, the recycled content of thematerial should be at least 50%.
Please be aware and align with any national and local
legislation for recycled wool.

47

Standards for Raw Materials - Wool

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source wool carrying the voluntary certifications listed in the table which
verify sustainability criteria such as animal welfare, biodiversity conservation and ecological farming
practices for virgin material and third-party verification of recycled content.

NameStandard or
Organization

Logo

Geographic
Scope

Notes

VIRGIN MATERIAL

EU Organic
Certification
Regulation
2018/848 and889/2008

EU Organic
Certification

GlobalGlobal Organic
TextileStandard(GOTS)

Global Organic Textile
Standard (GOTS)

Responsible
Wool Standard(RWS)

Textile Exchange

GlobalZQ

The New ZealandMerino Company

GlobalZQRX

The New ZealandMerino Company

GlobalNATIVA™

Chargeurs Luxury
Materials

GlobalGlobalIn countries where
the national organic
standard (at farmlevel) does notinclude criteria on
animal welfare andland management/
grazing, GOTS mustnot be used on its
own. In such cases,
GOTS must be
associated otherrelevant
certifications
available.

48

Standards for Raw Materials - Wool

VIRGIN MATERIAL (continued)

New MerinoStandards for
Responsible
Wool
Production inAustralia

New Merino

Australia

Sustainable
Cape Wool
Standard

Cape Wools SA NPC

SouthAfricaAbelusi Wool
Audit Standard

Segard Masurel

South
AfricaEcological
Outcomes
Verification(EOV)

Savory Institute’s Land
to Market program

Global

RECYCLED CONTENT

Global Recycled
Standard (GRS)

Textile Exchange

Global49

Standards for Raw Materials

SILK
50

Standards for Raw Materials - Silk

As a versatile and luxury fiber, silk has been widely used and cherished around the world for centuries
due to its soft quality, elegant drape, lightness and comfort, warmth retention and tensile strength.
Silk primarily comes from silkworms, which are the larvae or ‘caterpillars’ of moths. There are manykinds of silk with differing characteristics based on the species of moths and the ways in which the silk
is produced (see below). There are over 30 countries that produce these different types of silk; Chinais the largest producer, followed by India and Japan. Most of the silk used in the luxury sector comesfrom the Bombyx mori species of moth which are fed mulberry leaves cultivated on farms. The larvaethat hatch from the eggs of the moth produce a single long filament of protein fiber (silk) of around
one thousand meters in length that they use to create a cocoon to completely enclose themselves fortheir next stage of metamorphosis into a chrysalis. The filament is stuck together with a gum known
as sericin that is also produced by the silkworm. It is important to note that Bombyx mori used in mostsericulture have been domesticated over thousands of years and have been selected throughgenerations of breeding programs. It is entirely dependent on farming systems for survival and could
not survive in the wild. Silk has several inherent sustainable attributes: it is a natural, biodegradable
fiber and the mulberry tree leaves used for feed grow well on land of little agricultural value and their
deep roots can prevent soil erosion. In addition, compared to many other bio-based fibers, less water
is used in farming mulberry trees. However, in silk production there are important sustainability issues
to consider including: water consumption, chemical use, which type of energy is used, how the land istreated and the resulting impacts on natural ecosystems, and, significantly, the conditions andlivelihoods of the silk farmers. These are all issues in the silk supply chain that Kering is focused on andcommitted to ensuring best practices via the Kering Standard for Silk.

The Kering Standard for Silk is focused on the commercial
production of “mulberry silk”, derived from the Bombyx
mori moths, which accounts for around 95% of global silk
production. The production of mulberry silk is a complex
and multi-step process, and this Standard addresses theinitial steps of silk production (known as “sericulture”),
including:
1. Cocoon cultivation: This covers the breeding ofsilkworms from eggs, the cultivation of mulberry trees,
and the production of cocoons.
2. Filature operations: This includes the sorting of
cocoons, steam or hot air treatment to terminate thelarvae, de-gumming with a soap solution to loosen thesericin, and reeling, which is the extraction andcombination of silk filaments.
This Standard considers environmental and social impact,
supply chain transparency and traceability, as well as
recycled content.
Please note that the subsequent stages in the silk production
process, including spinning/twisting, the use of silk
schappe, as well as dyeing and finishing, are covered in the
Kering Standard for Textile Processing.

In summary, the key principles that
underpin the Kering Standard for
Silk are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety and theenvironment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Maximizing ecological sustainability:
supporting silk production that does
not degrade natural ecosystems but
rather restores and protects soil,
plants, and wildlife• Reducing chemical inputs: silk
production with no use of toxic
chemicals including synthetic
pesticides and fertilizers in mulberry
cultivation and chemicals in theinitial stages of sericulture
processing• Using water and renewable energy
efficiently and responsibly at thefarm level and in the filatureprocess51

Standards for Raw Materials - Silk

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving transparency within its
silk supply chains. In this context, suppliers will provide
Kering with a set of information from raw materials to
production. This information includes:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting

manufacturer• Country of origin of silk
• For recycled content, Country of recycled fiber

producer

Use silk material with recycled content where
possible
Kering supports the use of material with recycled content
for silk, alongside organic sourcing. Both options (organicand recycled) are aligned with Kering Standards. The
recycled contents can be either pre-consumer or postconsumer silk or a combination of the two. Where
possible, Kering recommends the use of post-consumer
waste feedstock thereby reducing the demand for virginsilk and the associated environmental and social impacts.
For recycled silk, GRS certification is required.
When using recycled content, the recycled content of thematerial should be at least 20%.

Only source from Kering preferred sources thatare verified as sustainable

Please be aware and align with any national and local
legislation about recycled silk.

All suppliers are required to only source silk for Keringfrom sources with certifications listed in BOX 1. Thesecertifications cover both virgin and recycled materials.
Note that the type of farm production system and themitigation of direct impacts (e.g. no conversion of natural
habitats) and indirect negative impacts (e.g. locallysourced, wildlife friendly practices) is considered in theevaluation of “preferred” sources.

Ensure best environmental practices of the raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for water© Ensure that no sourcing activities are linked
with deforestation or conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains. When it
comes to silk, this commitment is particularly relevant tothe cultivation of mulberry trees.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

and energy efficiency• © Ensure that the chemicals used are verified against

the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Manufacturing
Processes section of these standards.

52

Standards for Raw Materials - Silk

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
the supply chain
Kering is committed to achieving the highest levels oftransparency within its silk supply chains. In this context,
suppliers will provide Kering with a set of information fromraw materials to production. This information includes, inaddition to Requirements for 2025:• Name and location of silkworm rearing facilities• Name and location of reeling manufacturer• Name and location of processor and/or twister and/or

spinner• For recycled content, name and location of recycled

fiber producer

Use silk material with higher recycled content
Kering supports the use of material with recycled content
for silk. This type of silk can be either pre-consumer or
post-consumer or a combination of the two. Kering
requires that suppliers prioritize the highest possible useof post-consumer waste feedstock thereby reducing thedemand for virgin silk and the associated environmental
and social impacts. For recycled silk, GRS certification isrequired. As an additional requirement, the recycledcontent of the material should be of at least 50%.
Please be aware and align with any national and local
legislation for recycled silk.

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability ofsilk from raw material to production level, relying on chainof custody supported by physical and digital systems(platforms, tools, programs, etc.), preferably third-party
verified.
53

Ensure the use of regenerative agriculture
practices
As mentioned in the Introduction section to Standards for
Raw Materials, Kering is committed to prioritizing raw
materials produced within regenerative agriculture
systems with clearly defined, robustly monitored andevaluated outcomes on Nature.
When it comes to silk, this particularly applies to the land
where the mulberry trees, the leaves of which are used tofeed the silkworms, are grown. Priority is given to silkcoming from producers who can demonstrate quantified
positive outcomes from regenerative practices
implemented in the mulberry fields, which should be inclose geographic proximity to the silkworm rearing
facilities.

Standards for Raw Materials - Silk

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source silk carrying the voluntary certifications listed in the table which
verify sustainability criteria such as animal welfare, biodiversity conservation and ecological farming
practices for virgin material and third-party verification of recycled content.

NameStandard or
Organization

Logo

Geographic Scope

VIRGIN MATERIAL

Global Organic
Textile Standard(GOTS)

Global Organic Textile
Standard (GOTS)

Global

RECYCLED CONTENT

Global Recycled
Standard (GRS)

54

Textile Exchange

GlobalStandards for Raw Materials

COTTON55

Standards for Raw Materials - Cotton

Cotton is an important basic raw material for Kering’s brands’ products. Globally, approximately 24
million tons of cotton are grown each year, in about 100 countries, on over 30 million hectares (around
2% of global arable land). Cotton represents about 22% of the global fiber production. Most of thecotton grown in the world is grown with the use of vast quantities of pesticides and fertilizers.
Compounding the obvious environmental and human health impacts of this synthetic chemical use, isthe unsustainable water use for much of this cotton cultivation. Additionally, cotton supply chainsrepresent significant ethical challenges with examples of forced labor and child labor in cotton
cultivation. A very small proportion of cotton production is truly sustainable: for example, only 1.4%of the global production of cotton is estimated to be organic. Examples of sustainably produced cotton
include regenerative or organic and/or Fairtrade certified production, where the cultivation is done
without synthetic chemicals, water use is reduced, soil health is restored, and social/labor conditions
are well-managed. Going above and beyond organic growing, Kering also places central importance insupporting the wider adoption of regenerative practices in cotton production – to protect and restore
biodiversity (soil biodiversity, and biodiversity of plant and animal species, both on- and off-farm), tobuild measurable improvements in soil health (assessed through proxies such as the capacity of soil toretain water, and soil carbon content, which can be enhanced by maintaining year-round vegetative
cover on all cultivated land, using crop rotations or minimizing soil disturbance, for example), and toensure farmers are fairly rewarded for their adoption of such regenerative practices. Both social andenvironmental considerations are driving Kering’s strong commitment to using only traceable andsustainably cultivated cotton in its supply chains, and to foster a transition towards regenerative cotton
production.

This Standard outlines Kering's requirements for sourcing
cotton, a key raw material. It covers all cotton’s possible
applications across Kering’s product range, including ingarments, accessories and packaging, but also to a lesser
extent in leather goods or shoes.
This Standard serves as an operational guide for our
suppliers, focusing on a range of material topics, from theenvironmental and social impacts of cotton cultivation torecycled content and the transparency and traceability of
our entire supply chain.
Additional Kering Standards are available for processing
fabrics and chemical management (See Kering Standard for
Textile Processing and Appendix: Summary of Kering
Chemical Management Policy).

In summary, the key principles that
underpin the Kering Standard for
Cotton at the farm/cultivation levelare:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Ensuring high standards of laborand working conditions for farmworkers• Reducing the environmental andhealth impacts of synthetic
chemicals• Using water efficiently andresponsibly• Restoring soil biodiversity andensuring no damage to natural
ecosystems

56

Standards for Raw Materials - Cotton

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving the highest levels oftransparency within its cotton supply chains. In thiscontext, suppliers are required to provide Kering with key
information to enable an assessment of potential sourcing
risks -- from the origin of the raw materials to the finishedproducts. This must include:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.
When it comes to cotton, Regenerative Organic
Certification, which has a cut-off date of January 1st, 2015
(earlier therefore than our backdrop cut-off date ofJanuary 1st, 2020), ensures full compliance with thisdeforestation- and conversion-free commitment.

manufacturer• Location (country, area) of origin of the cotton (i.e.,

U.S.A. / California)• For recycled content, country of recycled fiber

producer© Do not source cotton from high-riskcountries
No cotton should be sourced from Uzbekistan, Syria,
Turkmenistan or from other countries that are considered“high risk” for child labor or forced labor systems of cotton
production. Kering will aim to update suppliers asnecessary on sourcing countries that are considered “highrisk”. Kering is a signatory to the Pledge Against Forced
Child Labor in Uzbekistan Cotton and the Pledge against
Forced Labor in the Cotton Sector of Turkmenistan and isfirmly opposed of the use of forced labor and/or childlabor in the cotton supply chain.
Suppliers should also be prepared to show evidence of
their compliance and the compliance of their subsuppliers (i.e., show documentation of chain of custody tocountry or countries of origin).

Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source cotton for Keringfrom sources with certifications listed in BOX 1. Thesecertifications cover both virgin and recycled materials.
Note that the type of production system and themitigation of direct and indirect impacts (e.g. use of covercrops, low to no-till farming, composting, crop rotation,intercropping) is considered in the evaluation of“preferred” sources.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

57

Standards for Raw Materials - Cotton

REQUIREMENTS FOR 2025

Use cotton material with recycled content
where possible

Ensure best environmental practices of the raw
material processes

Kering supports the use of material with recycled content
for cotton, alongside organic & regenerative sourcing. All
three options (organic, regenerative and recycled) arealigned with Kering Standards. The recycled contents canbe either pre-consumer or post-consumer cotton, or a
combination of the two. Where possible, Kering
recommends the use of post-consumer waste feedstock.
Thereby enabling the reduction of the demand for virgin
cotton and the associated environmental and social
impacts. For recycled cotton, GRS certification is required.

Cotton processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:

When using recycled content in a product, the recycledcontent of the material should be at least 20%.
Please be aware and align with any national and local
legislation for recycled cotton.

• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure that the chemicals used are verified against

the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Kering Standards
for Manufacturing Processes section of these standards.
58

Standards for Raw Materials - Cotton

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
the supply chain
Kering is committed to achieving the highest levels oftransparency within its cotton supply chains. In thiscontext, suppliers must provide Kering with key
information to enable an assessment of potential sourcing
risks - from the origin of the raw materials to the finishedproducts. This information must include, in addition to
Requirements for 2025:• Name and location of the cotton farmers• Name and location of sorting and/or ginning

manufacturer• Name and location of processor and/or spinner• For recycled content, name and location of recycled

fiber producer

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability of
cotton from raw material to production level, relying on achain of custody supported by physical and digital systems(platforms, tools, programs, etc.), preferably third-party
verified.

Ensure the use of regenerative agriculture
practices
As mentioned in the Introduction section to Standards for
Raw Materials, Kering is committed to prioritizing raw
materials produced within regenerative agriculture
systems with clearly defined, robustly monitored andevaluated outcomes on nature.
When it comes to cotton, priority is given to natural raw
materials coming from:•
Producers supported by the Regenerative Fund for
Nature.
•Producers following practices and ensuringoutcomes that are verified by a third-party such as
the Regenerative Organic Certified™ certification by
the Regenerative Organic Alliance (ROA) and theEcological Outcome Verification (EOV) by Savory
Institute’s Land to Market program

Support in-conversion / transitional organicand regenerative cotton programs
Cotton being produced on farms that are actively
converting to organic and regenerative practices should
also be prioritized to support an accelerated adoption ofthese practices. Currently, less than 1.4% of cotton isorganically grown; and the percentage of “regenerative”
cotton is much lower. To increase this percentage in the
future, it is particularly important to help support
programs and farmers that are making this transition. The
conversion process takes about three years and cansometimes mean that farmers see a drop in yields in thefirst couple of years while their crops adjust to organic andregenerative farming practices. However, long-term
benefits outweigh this possibility. Kering encourages
suppliers and brands to source from verified inconversion/transitional cotton programs to ensure arobust supply of organic and regenerative cotton for the
future. For more information on potential sources of inconversion cotton, please ask the Kering Materials
Innovation Lab.

Use cotton material with higher recycledcontent
59
Kering supports the use of material with recycled content
for cotton. Kering requires that suppliers prioritize thehighest possible use of post-consumer waste feedstock.
For recycled cotton, GRS certification is required. As
additional best practice, the recycled content of thematerial should be at least 50%.
Please be aware and align with any national and local
legislation for recycled cotton.

Standards for Raw Materials

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source cotton carrying the voluntary certifications listed in the table below,
which verify sustainability criteria such as biodiversity conservation and ecological farming practices for virginmaterial and third-party verification of recycled content.

NameStandard or
Organization

Logo

Geographic Scope

VIRGIN MATERIAL

Global Organic
Textile Standard(GOTS)

Global Organic Textile
Standard (GOTS)

GlobalRegenerative
Organic Certified™
(ROC)

Regenerative Organic
Alliance

GlobalEcological Outcomes
Verification (EOV)

Savory Institute’s
Land to Market
programGlobalOEKO-TEX ®
Organic

OEKO-TEX ®

GlobalOrganic Content
Standard (OCS) 100,with 100%organically grownmaterial1

Textile Exchange

GlobalCOMBINED CERTIFICATIONSRegenagri with 100%organically grownmaterial (combinedwith GOTS or OCS
100)
Fairtrade with 100%organically grownmaterial (combinedwith GOTS or OCS
100)

Regenagri

GlobalFairtrade
International

Global

RECYCLED CONTENT

Global Recycled
Standard (GRS)

Textile Exchange

Global1 Where possible, we encourage a combination of GOTS certified and Organic Content Standard (OCS) certified organic cotton (i.e., products

can have GOTS certification through to yarn or fabric and OCS certification for all other processes such as dyeing, finishing, etc.) for the final
product. This will ensure the integrity of the organic cotton at each level of the supply chain.

60

Standards for Raw Materials

PAPER & WOOD
61

Standards for Raw Materials – Paper & Wood

The degradation and destruction of forests and other natural ecosystems leads to the significant lossof important biodiversity and ecosystems that offer a range of “services” that are essential for survival,
including regulating the climate. The unsustainable expansion of plantations and the extraction ofwood for paper and pulp production is a significant driver of deforestation and of the loss ordegradation of other natural ecosystems, particularly in tropical countries.
Kering is committed to ensuring that its sourcing does not contribute to the loss or degradation or
destruction of forest ecosystems and that opportunities for sustainable forest management are
maximized. The Kering Standard for sourcing paper and wood-based products is grounded on acommitment to source from sustainably managed forests, as well as a commitment to reduce Kering’s
need for forest-based natural resources through increasing the amount of recycled content of paper
and packaging.

The requirements for the Kering Standard for Paper andWood apply to paper as a raw material for production, as
well as finished paper products such as office paper,
shoeboxes, shopping bags, etc.
This Standard focuses on a range of topics from supply
chain transparency to environmental and social
considerations, also including the prioritization to use
recycled paper and wood.

In summary, the key principles that
underpin the Kering Standard forPaper and Wood are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Reducing pressure on forest
ecosystems by decreasing theamount of paper and packaging
we use, where possible, andprioritizing the use of recycledcontent and next-generation
feedstocks (including agriculturalresidues)• Preferring virgin wood products
from certified sustainably
managed forests• Ensuring no forced labor in
making forestry products• Complying with Kering Chemical
Management policies to control
dangerous substances

62

Standards for Raw Materials – Paper & WoodREQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving high levels oftransparency within its paper and wood supply chains, toachieve and demonstrate full alignment with theseStandards. In this context, suppliers of paper and woodmust provide Kering with key information to enable anassessment of potential sourcing risks. This must include:• Proof of certification (FSC or Blue Angel for recycled

paper or wood- based products)• For virgin materials, country of origin of the pulp orwood© Do not source any tree species that are
threatened with extinction
For any wood sourced, suppliers are required to provide
the scientific names of the species used.
If sourcing from the wild, wood and any other materials
obtained from species that are listed on the IUCN Red List
as “near threatened”, “vulnerable” or “endangered” or“critically endangered”, or on CITES Appendix I cannot besourced under any circumstances.
If sourcing from plantations, Kering requires extreme
caution any species which are listed as “near threatened”,“vulnerable”, “endangered” or “critically endangered” on
the IUCN Red List, or on CITES Appendices II or III. Suppliersmust ensure that any such materials come fromplantations with 100% FSC certification, with full supply
chain transparency.

Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source paper and woodfor Kering from sources with certifications listed in BOX 1– with particular attention to zero illegality, zerodeforestation or conversion of natural ecosystems, and to
the exclusive use of either products from sustainably

managed forests or recycled/reclaimed (under aninternationally recognized certification scheme).
The certification that Kering requires is from the Forest
Stewardship Council (FSC). An essential feature ofcertification is that it can provide traceability of the raw
material.
Having confidence in the traceability of Kering’s raw
materials and therefore the ability to verify thesustainability of the material is critical for Kering. FSC
certification is in line with Kering’s commitment tosustainable management and also avoids the mostdestructive forestry practices: illegal logging, naturalforest conversion to other land uses, liquidation of highconservation value forests, civil rights violations, andgenetic modification of forest species. It also guarantees
adequate stakeholder management principles such as theright of Indigenous People and rural communities to giveor withhold their Free, Prior and Informed Consent (FPIC)
before undertaking forestry management activities.
FSC Recycled is the preferred certification, followed by FSC
100%, which is preferred to FSC Mix. See BOX 1:
Explanation of FSC Labels.
The Program for the Endorsement of Forest Certification(PEFC) is not the preferred certification for Kering as it is
not as strong as the FSC certification in terms oftraceability.

© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains. When it
comes to paper and wood, the cut-off date associated withthis commitment is November 1994. Sourcing FSC
certified material ensures full compliance with thisdeforestation- and conversion-free commitment.

63

Standards for Raw Materials – Paper & WoodREQUIREMENTS FOR 2025

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics

Ensure best environmental practices of the raw
material processes• © Wood-based products must comply with the Kering

Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

Use recycled paper and wood
Kering is committed to reducing its dependency on
primary (“virgin”) raw materials, and therefore supports
the use of recycled or reclaimed paper and wood. The
recycled contents can be either pre-consumer or postconsumer, or a combination of the two. Kering requiresthat suppliers prioritize the highest possible use of postconsumer waste feedstock.
As a requirement for 2025, recycled content should begreater than 50% and up to 100%, especially for products
such as office paper, B2B packaging and hangtags andlabels.
For recycled paper and wood-based products, Forest
Stewardship Council (FSC) recycled and Blue Angel are thepreferred certifications.
Please be aware and align with any national and local
legislation for recycled paper and wood.

Product Restricted Substances List (PRSL). Compliancewith the PRSL is requested for all wood-based
products, whether a raw material, component or
finished product. Compliance with the PRSL must be
ensured by the supplier through product testing andeach Kering supplier must guarantee PRSL complianceof its brands’ products. Moreover, Kering oversees aninternal testing program of the products as anadditional auditing measure. The PRSL is an appendix
to your supplier agreement (contract or purchasing
terms and conditions) with Kering brands. Moreinformation is available in the Appendix: Summary of
Kering Chemical Management Policy• © Comply with the Kering Manufacturing Restricted
Substances List (MRSL), and in particular, make surepaper and paper products are processed withoutchlorine. Kering is committed to eliminating all
hazardous chemicals from its brands’ processes andproducts. To this end, Kering has adopted a
Manufacturing Restricted Substances List (MRSL).
Suppliers will be required to ensure that all chemicals
listed in the Kering MRSL are not intentionally used in
the various process steps of production. This is thecase whether the processing takes place under the
suppliers’ control or upstream in the supply chain with
sub-suppliers. When chlorine is used to bleach paper,
the process can result in the formation of harmful
chemicals such as dioxins and furans which are known
to cause cancer in humans. It is recommended tosource paper that has been produced using a bleachingprocess that has been verified as totally chlorine-free(TCF) or process chlorine- free (PCF)• Engage with the ‘Clean by Design’ program for waterand energy efficiency
For additional information about requirements for raw
material processing, please refer to the Kering Standards
for Manufacturing Processes section of these standards.

64

Standards for Raw Materials – Paper & Wood

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
supply chain

Use paper and wood with higher recycledcontent, as well as next-generation feedstocks

Kering is committed to achieving high levels oftransparency within its paper and wood supply chains, toachieve and demonstrate full alignment with theseStandards. In this context, suppliers of paper and woodmust provide Kering with key information to enable anassessment of potential sourcing risks. This should include,in addition to Requirements for 2025:

Kering is committed to reducing its dependency on
primary (“virgin”) raw materials, and therefore supports
the use of recycled or reclaimed paper and wood. The
recycled contents can be either pre-consumer or postconsumer, or a combination of the two. Kering requires
suppliers to prioritize the highest possible use of postconsumer waste feedstock.

• Name and location of finished product manufacturer• Name and location of any intermediate suppliers,

As an additional best practice, recycled content should begreater than 70% and ideally 100%, for all paper-based
products. For recycled paper and wood-based products,
Forest Stewardship Council (FSC) recycled and Blue Angelare the preferred certifications.

including pulp producer if relevant• Species and country of origin of each forest source

going into the finished product (paper or wood)• Proof that all wood/pulp has been legally harvested

and in compliance with Kering’s requirements on no
deforestation, conversion or degradation of natural
ecosystems – by demonstrating the source• Chain of custody certificates for all products supplied

Kering also supports the use of next generation fibers fromagricultural residues, like wheat straw, hemp and flax, thathave a significantly lower environmental impact comparedto virgin wood fiber. Kering will work with its suppliers tosource products made using these fibers, where possible.

Use best efforts to ensure full traceability of
products

Please be aware and align with any national and local
legislation for recycled paper and wood.

As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability of
paper and wood products from raw material to productionlevel, relying on a chain of custody supported by physicaland digital systems (platforms, tools, programs, etc.),
preferably third-party verified.

Preferentially source FSC-certified wood fromsmallholders
Sourcing FSC-certified wood can support ecologicalsustainability and livelihoods, but there may be
opportunities to do more by supporting certified
sustainable small-scale forestry operations. Where
possible, Kering recommends that suppliers seek to source
wood products made from FSC-certified “small and low
intensity forest management systems” and/ or FSCcertified community-managed forestry production.

65

Standards for Raw Materials – Paper & Wood

BOX 1: Explanation of FSC Labels

FSC 100%: Containing nothing but fiber from FSC certified forests. FSC certified forests have been
independently audited to meet FSC’s 10 Principles and Criteria for Forest Management.
FSC Mix: The timber or fiber in the product is a mixture of some/all of the following:• Timber or fiber from an FSC-certified forest• Reclaimed timber or fiber• Timber or fiber from other controlled sources

FSC Recycled: All the timber or fiber in the product is reclaimed material. This represents both preand post-consumer recycled material.

66

Standards for Raw Materials – Paper & Wood

BOX 2: Recommended Certifications for Sustainabilit yKering encourages suppliers to source paper and wood carrying the voluntary certifications listed in thetable below, which provide third-party verification on sustainable forest management or recycledcontent.

Name

Standard or
Organization

Logo

Geographic Scope

VIRGIN MATERIAL

Forest StewardshipCouncil’s (FSC)
forest management
certification: FSC
100%

Forest StewardshipCouncilGlobalForest StewardshipCouncil’s (FSC)
forest management
certification: FSC
Mix

Forest StewardshipCouncilGlobal67

RECYCLED CONTENT

Forest StewardshipCouncil’s (FSC)
forest management
certification: FSC
Recycled

Forest StewardshipCouncilGlobalBlue Angel

German Federal
Government

GlobalStandards for Raw Materials

PLASTICS68

Standards for Raw Materials – Plastics

Plastic is a versatile and important material that may be irreplaceable for some purposes. However,plastic presents sustainability challenges across its lifecycle. Plastic is mainly made from nonrenewable fossil fuel resources, whose extraction can have major environmental impacts.
Production of plastic can also cause environmental and health impacts through the release of
toxic chemicals during manufacturing. Perhaps most importantly, plastic can have a very shortlifespan and over half of plastic products are thrown away after a single use even though plastic ispermanent and does not biodegrade. About 10% of plastic ends up in the ocean where it forms
large “islands” or is eaten by marine life with devastating impacts, and it can eventually end up in
the human food chain.
Kering is focused on reducing its use of plastic and moving to more sustainable, bio-based materials.
The Kering Standard for Plastics is grounded in the commitment to minimize use and release of
toxic substances during manufacturing and to entirely avoid the most hazardous types of plastic (i.e.,ban of PVC). Kering supports efforts to understand the life cycle impacts of different sustainable
plastic options.

The Kering Standard for Plastics applies to all plastic types
used in products, packaging, and visual merchandising.

In summary, the key principles that
underpin the Kering Standard for
Plastics are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Not using PVC• Avoiding the most damaging
substances in product use andmanufacture through a ProductRestricted Substances List (PRSL)
and Manufacturing Restricted
Substances List (MRSL)• Encouraging the use of recycledcontent plastics, or bio-based
plastics as a second choice, rather
than virgin• Addressing the end-of-life ofplastics

69

Standards for Raw Materials – Plastics

REQUIREMENTS FOR 2025

© Do not use PVC (Polyvinyl Chloride) in
Kering’s brands products and packaging

chemicals. Ensure that these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for water

PVC poses several environmental and health threats. The
chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and the burningof products containing PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,the environment, and wildlife more broadly.
Because of these risks, Kering set a public target in 2012 of
eliminating PVC from collections and products.
Moreover, plasticizers must be added to PVC polymer toachieve softness and flexibility, properties needed in
textile products, these usually belonging to the category ofphthalates. The amount of phthalates used is generally
between 30% and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from PVC
materials to those who come into contact with the user of
the PVC product. For these reasons phthalates have been
included in the Kering MRSL since its first release and are
expected not to be used in any stage of the production
processes for Kering Brands products and in any
connected activities relating to Kering brands.

© Ban oxo-degradable plastics
Oxo-fragmentable plastics are not proven to biodegrade
and the fragments could increase the level of microplastics
in the oceans and hence their environmental benefits arequestionable. Consequently, Kering banned the use of
oxo-fragmentable plastics.

Discourage the use of biodegradable andcompostable plastic
The environmental benefits of biodegradable andcompostable plastics have not been proven and might beconsidered a false promise. Thus, Kering does not promote
the use of biodegradable and compostable plastic, but theuse of recyclable plastics.

Ensure best environmental practices of the raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water use, energy use andand energy efficiency• © Ensure that the chemicals used are verified against

the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL. Thisrequirement does not apply to packaging supplier• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Kering Standards
for Manufacturing Processes section of these standards.

© Apply the precautionary principle fornanotechnologies
Kering follows the precautionary principle and will not use
any nanotechnology applications unless such applications
are analyzed and proved to have no potential impact onhuman health and the environment, including anevaluation of end-of-life impacts. Suppliers are requested
to proactively share information on nanotechnology usesin their manufacturing. More information is available inAppendix: Summary of Kering Chemical Management
Policy.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

70

Standards for Raw Materials – Plastics

REQUIREMENTS FOR 2025

Prioritize the use of recycled plastics first andbio-based plastics second
Suppliers should choose recycled plastics and bio-based
plastics over conventional fossil-based plastics. These
alternative plastics can have different features (e.g. biocontent, recycled content). These features are listed
below with a decreasing level of importance for Kering.
• Choose plastics made with recycled content andcertified (GRS is the preferred certification), ideallypost-consumer recycled material feedstock and thenpre-consumer feedstock, aiming to achieve material
with 100% recycled content• If not possible, source plastics with bio-content, i.e.,
without any fossil/petrol content, and certified (OKBiobased)
At the moment, plastics with bio-content comprise a mix
of fossil fuel content and bio-content. When sourcing thistype of plastic, suppliers should maximize the percentage
of non-fossil fuel content and inquire about the feedstockthat goes into producing the biological component of theplastic (crops, organic wastes, proteins, etc.).
Prefer second-generation plastics (using feedstock that is
not a food source but the non-edible parts of plants,
resources from forestry, proteins from discarded sources,etc.) or third-generation plastics (using feedstocks from
non-land-based crops such as biomass derived from algae,
fungi and bacteria). See Kering Guidance for Innovation for
more information on alternative feedstock.
Ask your supplier of plastics for information on the biocontent of their products.
Try to ensure the feedstock is not a genetically modified
organism (GMO). Kering does not support GMO in thiscontext.
Suppliers should use an official test method to assess thepercentage of bio-content (i.e., method ASTM D8666) andshould be able to provide test results that assess thepercentage of bio-content.

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Standards for Raw Materials – Plastics

ADDITIONAL BEST PRACTICESMinimize amount of critical ingredients

Address the end-of-life of plastics

Choose plastics with minimal amount of plasticizers andchlorine.

Prefer plastics that are recyclable.
See Kering Guidance for Circularity.

Minimize plastic leakage
Every year in Europe, 41,000 tonnes of unprocessed
plastic granules, beads or flakes end up in theenvironment. To avoid this, the processes of plastics
producers, processors and transporters need to beadapted, with equipment and procedures in place toprevent loss and leakage of this material that can poison
living organisms. The installation of filters or systems tocontain and collect granules are examples of actions thatwould prevent the risk of dispersion.
Operation Clean Sweep® (OCS), a project initiated in 2015,
aims to disseminate and systematize good practices during
production, transport and processing operations.

Prioritize the use of recycled plastics fromclosed-loop recycling processes
Kering is concerned about ‘recycled polyester’ used insynthetics and plastic materials when the feedstock isfrom post-consumer clean packaging circular systems,
specifically PET bottles. In these situations, PET bottles
should be kept in closed loop recycling systems formaterials that are in contact with food and drinks.
Suppliers should choose recycled plastic from emerging
fiber-to-fiber recycling processes (or other closed loop
recycling processes).

72

Standards for Raw Materials – Plastics

BOX 1: Plastics and bio-plastics, definitions
Plastic
Plastic is a chemically modified polymer. According to this definition: biodegradable plastics are
considered plastics just like the other plastic resins (PLA,…), coatings varnishes and laminates. However,NOT considered plastic are:• Paints, inks and adhesives• Natural polymers that have not been chemically modified (e.g. lyocell, viscose)
Types of plastics: PET, PP, HDPE, LDPE, PS, PVC, PVOH, PHA, PLA, recycled or biobased PET, PP and PE
etc. (non-exhaustive list)
Bioplastics refer to two types of plastics:• Plastics with bio-content, also called bio-based polymers can be partially made from renewablebiomass such as cornstarch, woodchips, vegetable oil, food waste, etc. The resulting polymers can be
starch-based, cellulose-based, protein-based, etc.
• Biodegradable plastics

Some plastics can be both bio-based and biodegradable.
A biodegradable plastic is a plastic that can be broken down by microorganisms (bacteria or fungi) into
water, gases (carbon dioxide and methane) and biomass. Biodegradability depends strongly on theenvironmental conditions in which they are placed such as temperature, presence of microorganisms,
presence of oxygen and water.
A recyclable plastic is a plastic that can potentially be reprocessed after the initial use phase into newmaterials and objects. Nearly all types of plastics are in theory recyclable, but in reality, only a few types
are recycled as recycling in different regions depends on economic, logistics and technical factors.
A compostable plastic is a plastic that can break down in composting conditions. The disintegration of
the plastic must take place in a composting process for organic waste within a certain time period. The
result of the decomposition must be indistinguishable in the compost and cannot leave any toxic
material behind. Composting is a specific form of recycling, sometimes referred to as ‘organic recycling’.
All biobased plastics are not biodegradable. Some petrol-based plastics are biodegradable.
All compostable plastics are biodegradable, but not all biodegradable plastics are compostable.

73

Standards for Raw Materials

DOWN
74

Standards for Raw Materials – Down

Down comes from different species of farmed geese and ducks and is most often a by-product of thefood industry. The major consideration when sourcing down is animal welfare, from the parent birds
through to the down/feather producing birds. While all aspects of animal welfare need to be at thehighest standards (including housing, handling, nutrition, etc.), the key issues are ensuring there is noforce-feeding of the animals and that there is no live plucking of the feathers. Kering is wholly against
these practices and committed to ensuring they do not occur in its supply chain.

This Kering Standard for Down covers down from geeseand ducks used in any product. Kering only accepts downthat is from certified and verified sources. This Standard
also includes requirements for supply chain transparency
and traceability, and a preference to use recycled content.
See the Appendix: Animal Welfare for more information.

In summary, the key principles that
underpin the Kering Standard for
Down are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Understanding the origin of down
and working towards fulltraceability• Preferring down that is certified tomeet Kering’s Animal Welfare
Standards

75

Standards for Raw Materials – Down

REQUIREMENTS FOR 2025

© Provide full transparency of supply chain
Kering is committed to achieving the highest levels oftransparency within its down supply chains. In this context,
suppliers will provide Kering with a set of information fromraw materials to production. This information includes:• Name and location of finished product manufacturer• Name and location of down processors• Location (country, region) and name of theslaughterhouse• Country of origin

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction to Standards for Raw
Materials, Kering expects to have full traceability of downfrom raw material to production level, relying on a chainof custody supported by physical and digital systems(platforms, tools, programs, etc.), preferably third-party
verified.

Only source from Kering preferred sources thatare verified as sustainable
All suppliers are required to only source down for Kering
brands from sources with certifications listed in BOX 1.
Note that the type of farm production system and themitigation of direct impacts (e.g. planned grazing, noconversion of natural habitats and animal welfare
practices) and indirect negative impacts (e.g. locallysourced, sustainable feedstock, wildlife friendly practices)
is considered in the evaluation of “preferred” sources.

© Ensure that no sourcing activities are linked
with deforestation or conversion of natural
ecosystems
As mentioned in the Introduction section to Standards for
Raw Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

© Ensure that animal welfare practices arealigned with Kering Standards
All suppliers/sub-suppliers dealing with live animals shallagree with the implementation and verification – by Keringor a third-party – of Kering’s Species-Specific Animal
Welfare Standards. These Kering Standards outline thespecific requirements for animal welfare in farms. Kering
also requires proof and verification of standards of animal
welfare in slaughterhouses. Both the Species-Specific
Animal Welfare Standards and the recommendations forslaughterhouses are available upon request. See
Appendix: Animal Welfare.

76

Standards for Raw Materials – Down

REQUIREMENTS FOR 2025

Use recycled down content
Kering supports the use of material with recycled content
for down. The recycled down contents can be either preconsumer or post-consumer or a combination of the two.
Where possible, Kering recommends the use of postconsumer waste feedstock. This would lead to a reductionin the demand for virgin down and the associatedenvironmental and social impacts. For recycled down, GRS
certification and Neøkdun is required. The recycledcontent of the material should be at least 50%.
Please be aware and align with any national and local
legislation for recycled down.

Ensure best environmental practices of the raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water and energy use andchemicals. Ensure these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure that the chemicals used are verified against

the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Kering Standards
for Manufacturing Processes section of these standards.
77

Standards for Raw Materials – Down

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source down carrying the voluntary certifications listed in this table which
verify sustainability criteria such as animal welfare, biodiversity conservation and ecological farming
practices for virgin material and third-party verification of recycled content.

NameStandard or
Organization

Logo

Geographic Scope

VIRGIN MATERIAL

Responsible Down
Standard (RDS)

Textile Exchange

GlobalGlobal Traceable
Down Standard(Global TDS)NSF International

Global

RECYCLED CONTENT

Global Recycled
Standard (GRS)

Textile Exchange

GlobalNeøkdun

NVP Traceability
Standard

Global78

Standards for Raw Materials

CELLULOSIC FIBERS
79

Standards for Raw Materials – Cellulosic Fibers

The Kering Standard for Cellulosic Fibers covers man-made cellulosic fibers (MMCF) from forestry sources,
including viscose, rayon, lyocell, modal, acetate, and other trademarked brands of these fibers. Forestry iswhere the risks are the highest in terms of environmental and social aspects. One of the main issues withthese fibers is the wood pulp that may be sourced from endangered forests such as the Canadian andRussian Boreal Forests, Coastal Temperate Rainforests of British Columbia, Alaska and Chile, and thetropical forests and peat lands of Indonesia, the Amazon and West Africa. Kering is supporting approaches
and systems that do not use ancient and endangered forests in MMCF. Another key issue of cellulosic fibers
occurs from the production process during which the cellulose of the wood pulp is turned into a liquid fromwhich the fiber is then extruded. Numerous chemicals are used to dissolve the pulp and obtain a finishedfilament; the chemical substances and gases produced during this process can potentially harm theenvironment and the workers.
This Kering Standard for Cellulosic Fibers is aligned with, and builds on, the work of not-for-profit
organization Canopy, which collaborates with brands and retailers to ensure that their supply chains arefree of ancient and endangered forests as part of the CanopyStyle Initiative.

Kering is aware that both the wood feedstock for cellulosic fibers
and chemicals used to turn that feedstock into fiber must be
considered in order to improve the total sustainability of cellulosic
fibers including viscose. By design, Kering has split these issues
across two Standards: 1) the Kering Standard for Cellulosic Fibers,
which focuses on sourcing wood pulp from sustainably managed
forests, as well as investigating new feedstocks that may be moresustainable, and 2) the Kering Standard for Textile Processing.
This Standard operationalizes Kering’s commitment toimproving the environmental and social impact of the cellulosic
supply chain. It includes requirements applying to:••

The sustainability performance of direct and indirect
suppliers (e.g., requiring that pulp suppliers be highly
rated by CanopyStyle, an initiative seeking to eliminate
the use of ancient and endangered forests in the
production of viscose and rayon textiles, and topromote a fully sustainable and transparent cellulosic
supply chain)
The feedstock used to produce the cellulosic fibers(e.g., requiring sustainability certifications; andencouraging the use of recycled materials and/or
agricultural residues for “next-generation” cellulosic
fibers).

Please note that, non-wood cellulosic fibers (e.g., cupro) could
have differences in supply chain and impacts depending on thefeedstock used (cotton linters, agri-waste, cellulosic-based fibers,etc.).
Additional Standards are available for the processing of fabrics
and chemical management (See Kering Standard for Textile
Processing and Appendix: Summary of Kering Chemical
Management Policy).

In summary, the key principles that
underpin the Kering Standard for
Cellulosic Fibers are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Eliminating controversial supply
chains that may negatively impact
forest resources or endangered
species habitats• Ensuring that the processes usedduring fiber production do nothave negative impacts on theenvironment or on the health offactory workers• Relying on third-party
methodologies to select the best
managed forest resources• Exploring alternative raw
materials (i.e., recycled,
agricultural residues)

80

Standards for Raw Materials – Cellulosic Fibers

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving the highest levels oftransparency within its cellulosic fiber supply chains. In thiscontext, suppliers are required to provide Kering withinformation to enable an assessment of potential sourcing
risks -- from the origin of the raw materials to the finishedproducts. This information must include:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting

manufacturer• Name and location of fiber producer• Country of pulp producer(s)• Company name and country of recycled fiber producer

Only source from Kering preferred sources thatare verified as sustainable
With regards to tree fibers, suppliers are required to only
source cellulosic fibers for Kering from sources withcertifications listed in BOX 1. For virgin fibers, this includes
Forest Stewardship Council certified fibers and fibers
made from verified sustainable feedstock meeting the
CanopyStyle audit expectations (sourced from producers
that are verified to be aligned with these expectations).
Forest Stewardship Council’s (FSC) forest management
certification is in line with Kering’s commitment tosustainable management and avoiding destructive
forestry practices such as illegal logging, natural forest
conversion to other land uses, destruction of highconservation value forests, civil rights violations, andgenetic modification of forest species standards. Suppliers
should request fibers sourced from forests that are

certified to FSC forestry standards when sourcing virgin
tree cellulosic fibers. Please note that this forestry
practices standard is different from the FSC chain-ofcustody certification, which applies to businesses that
manufacture or sell forest products and confirms that FSCcertified material is handled and tracked correctly
throughout the entire supply chain.
It is best to opt for FSC 100% certification, to guaranteethat the entirety of the product is aligned with the FSC
standards. If FSC 100% is not available, FSC Mix is
acceptable.
As suppliers move towards FSC-certified sourcing, pleaserefer to the Kering Materials Innovation Lab for updated
information.

© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction to Standards for Raw
Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.
When it comes to cellulosic fibers, the cut-off dateassociated with this commitment is November 1994.
Sourcing from pulp suppliers having achieved “dark green
shirt” rating in Canopy’s latest Hot Button report, as wellas ensuring FSC certification of the feedstock, can ensure
full compliance with this deforestation- and conversionfree commitment.

81

Standards for Raw Materials – Cellulosic Fibers

REQUIREMENTS FOR 2025

© Source from producers that are committed toprotecting ancient and endangered forests
Suppliers must put in place sourcing policies committing
to not source cellulosic fibers from ancient andendangered forests or controversial sources. Suppliers will
work with their supply chain to eliminate cellulosic fibers
from controversial supply chains that do not comply withnational and international laws on legal trade, humanrights and the protection of endangered forests.
In accordance with Kering’s commitment to ensure that it
does not source from endangered forests, suppliers ofviscose, rayon and other cellulosics will use best efforts toeliminate all sourcing of fibers made with dissolving pulp
from:• Companies that are logging forests illegally, from tree

plantations established after 1994 through theconversion or simplification of natural forests, fromareas being logged in contravention of indigenous
people’s rights, or from other controversial suppliers.
Kering requests that its suppliers acknowledge theright of Indigenous People and local communities togive or withhold their Free, Prior and Informed Consent(FPIC) before new logging rights are allocated orplantations are developed. Kering requests that its
suppliers resolve complaints and conflicts, andremediate human rights violations through atransparent, accountable, and agreeable dispute
resolution process• Endangered species habitats and ancient andendangered forests areas such as the Canadian andRussian boreal forests, coastal temperate rainforests,
tropical forests and peatlands of Indonesia, theAmazon and West Africa

Source from producers that evaluate their
supply chain according to the CanopyStyle
methodology
Kering requests its suppliers to evaluate their own supply
chain against the CanopyStyle methodology and aim forcontinuous improvement. This means sourcing only fromthe highest-ranked producers and supporting current
producers to improve their practices further. Producers
must score 30 points/”buttons” or more (a “dark green” tshirt score) in Canopy’s yearly Hot Button Report to beeligible.

© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

Use cellulosic fibers made from recycledmaterials or agricultural residues
Kering encourages the use of cellulosic fibers made fromrecycled materials, agricultural residues, or other nonwood sources, in order to reduce dependence on natural
resources and associated environmental and social
impacts. The recycled contents can be either preconsumer or post-consumer fibers or a combination of thetwo. Where possible, Kering recommends the use of postconsumer waste feedstock. Today, several initiatives offer
cellulosic materials with recycled contents, for example
through textile-to-textile chemical recycling processes,
using a variety of sustainable feedstocks, including
production scraps. For recycled cellulosic fabrics, Recycled
Claim Standard (RCS) certification is required. As cellulosic
sources from agricultural waste become available, we will
investigate new certifications to address any potential
sustainability risks and verify positive impacts.
We encourage our suppliers to participate in trials, R&D
and investments to accelerate the commerciallycompetitive availability of these next generation cellulosic
alternatives.
The recycled content of the material should be at least
20% - and more wherever possible. This will increase to aminimum of 50% before 2025.
Please be aware and align with any national and local
legislation about recycled fibers.

82

Standards for Raw Materials – Cellulosic Fibers

REQUIREMENTS FOR 2025

Ensure best environmental practices of raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:• Require suppliers to use best efforts to establish aclosed-loop chemical management system, so thechemicals that are used and produced during thetransformation of wood pulp to cellulosic filament do
not escape into the environment and also potentiallyharm workers. A closed-loop chemical management
system means preventing and reducing chemical air
emissions, decreasing water use, minimizing chemical
impacts and phasing out and eliminating hazardous
waste• Engage with the ‘Clean by Design’ program for waterand energy efficiency• © Ensure that the chemicals used are verified against
the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL
• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure• Address microfiber leakage pollution
For additional information about requirements for raw
material processing, please refer to the Kering Standards
for Manufacturing Processes section of these standards.

83

Standards for Raw Materials – Cellulosic Fibers

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
the supply chain
Kering is committed to achieving the highest levels oftransparency within its cellulosic fiber supply chains. In thiscontext, suppliers will provide Kering with informationfrom raw materials to product produced. This information
includes, in addition to Requirements for 2025:• Name and location of processor and/or twister and/or

spinner• Name and location of pulp producer(s)• For virgin fibers, location of plantation(s)• For cellulosic from cotton linters, Location (country,area) of origin of the cotton (i.e., U.S.A. / California)• For recycled content, name and location of recycled

fiber producer

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction to Standards for Raw
Materials, Kering expects to have full traceability ofcellulosic fibers from raw material to production level,
relying on a chain of custody supported by physical anddigital systems (platforms, tools, programs, etc.),
preferably third-party verified.

Use cellulosic fibers made from recycledmaterials or agricultural residues
Kering supports the use of cellulosic fibers made fromrecycled materials and agricultural residues to reduce
dependence on natural resources and associatedenvironmental and social impacts. The recycled contents
can be either pre-consumer or post-consumer fibers or a
combination of the two. Kering requires that suppliers
prioritize the highest possible use of post-consumer waste
feedstock. Today, several initiatives offer cellulosic
materials with recycled contents, for example throughtextile-to-textile chemical recycling processes or using avariety of sustainable feedstocks, including production
scraps. For recycled cellulosic fabrics, Recycled Claim
Standard (RCS) certification is required.
As an additional requirement, the recycled content of thematerial should be at least 50%.
Please be aware and align with any national and local
legislation for recycled fibers.

84

Standards for Raw Materials – Cellulosic Fibers

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source cellulosic fibers carrying the voluntary certifications or risk
verification tools listed in the table below, which verify sustainability criteria such as the protection ofancient and endangered forests and sustainable forest management practices for virgin material andthird-party verification of recycled content.
Please note that the CanopyStyle Audit assesses cellulosic fiber producers’ practices rather than thefiber itself. A CanopyStyle Audit is not a certification, but a risk verification tool which feeds into Canopy’s
Hot Button Report.

NameStandard or
Organization

Logo

Geographic Scope

VIRGIN MATERIAL

Forest StewardshipCouncil’s (FSC)
forest management
certification: FSC
100% or FSC Mix

Forest StewardshipCouncilGlobal85

Canopy Hot Button
Report: sourcing
from suppliers
scoring 30 points or
more2

Hot Button Report

CanopyGlobal

RECYCLED CONTENT

2

Forest StewardshipCouncil’s (FSC)
forest management
certification: FSC
Recycled

Forest StewardshipCouncilGlobalRecycled Claim
Standard (RCS)

Textile Exchange

GlobalTo be aligned with the Kering Standards, any man-made cellulosics sourced must be at the same time (1) sourced from a supplier scoring
30 points or more at Canopy’s annual Hot Button report (“dark green shirt” rating), AND (2) certified, either FSC 100, FSC Mix or certified
recycled – with FSC Recycled or RCS.

Standards for Raw Materials

SYNTHETICS
86

Standards for Raw Materials – Synthetics

Unlike natural fibers, such as cotton, wool and silk, which are cultivated from plants or animals, synthetic
fibers are manmade. They are created through polymerization, which is the process of chemicallycombining monomers, or building block molecules, that can bind together creating polymer chains.
Conventional synthetics such as nylon, acrylic, polyester, and elastane are produced using by-products ofpetroleum and/or natural gas. The manufacturing process of synthetic yarns includes chemical
polymerization, drying into chips, and the liquification of the chips prior to a melt spinning process.
Synthetic yarns developed from petrochemicals were commercially introduced in the early to mid-20th
century and created new alternatives to natural fiber-based fabrics with different performance attributes.
Synthetic fibers currently account for approximately 64% of the total worldwide fiber use and polyester
accounts for over 54% of all synthetic fibers. Synthetic fibers provide valuable performance attributes suchas strength, abrasion resistance, stretch and recovery, as well as other important characteristics like flame
resistance. There are several sustainability issues associated with conventional synthetic fibers, including
the use of fossil fuels as their raw material feedstock (a non-renewable resource), the amount of carbon
emissions released during production, as well as chemical, energy and water use. Furthermore, synthetic
fibers do not biodegrade and shed microplastics.
Recognizing these issues, the Kering Standard for Synthetics supports the use of recycled synthetic fibers
and also bio-derived feedstock to avoid the dependency on virgin fossil fuel feedstock. Recycled materials
include both pre- and post-consumer waste and bio-derived synthetic fibers include those from sugars,
starches, and lipids, which are becoming more readily available and can be indistinguishable fromconventional synthetic fibers from a processing and performance perspective.

The Kering Standard for Synthetics comprises synthetic
fibers from petroleum (fossil fuels), recycled materials andbiobased feedstock. The fibers covered in the Kering
Standard for Synthetics include polyester, polyamide(nylon), acrylic, modacrylic, elastane (spandex),
polyurethane, metallic yarns (i.e., Lurex) and othertrademarked brands associated with these fabrics. Kering isaware that synthetic feedstocks and chemicals used to turnthose feedstocks into fabrics must be addressed to improve
the total sustainability of its synthetic fabrics. By design,
Kering has split these issues across two Kering Standards:
1) the Kering Standard for Synthetics, which focuses onsourcing feedstock from recycled or bio-based materials
and extrusion of the fiber and 2) the Kering Standard for
Textile Processing.
Additional Kering Standards are available for theprocessing of fabrics and chemical management (SeeKering Standard for Textile Processing and Appendix:
Summary of Kering Chemical Management Policy).

In summary, the key principles that
underpin the Kering Standard forSynthetics are:87

• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety and theenvironment, as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Phasing out hazardous substancesin product use and manufacturing
through a Product Restricted
Substances List (PRSL) and
Manufacturing Restricted
Substances List (MRSL)• Advocating the use of recycledcontent as the first choice, biobased materials as the second
choice, and virgin materials only
when necessary• Addressing the end-of-life ofsynthetics fibers

Standards for Raw Materials – Synthetics

REQUIREMENTS FOR 2025

© Provide minimum information on supply
chain transparency
Kering is committed to achieving the highest levels oftransparency within its synthetic supply chains. In thiscontext, suppliers will provide Kering with a set of
information from raw materials to finished products. This
information includes:• Name and location of finished product manufacturer• Name and location of textile dyeing manufacturer• Name and location of textile weaving/knitting

manufacturer• Country of origin of synthetic polymer producer (chips)• Country of origin of recycled fiber producer• Country of origin of bio feedstock

Prioritize the use of materials with recycledcontent
Suppliers should propose recycled over conventional
fossil-based synthetics materials with the highest possible
recycled content (aim for 100%). It’s recommended to:• Prioritize synthetics with recycled content oversynthetics with biobased content• Use, when possible, materials with recycled contentsfrom post-consumer waste feedstock• Choose synthetics that are recyclable

Kering has concerns over recycled polyester used insynthetics and plastic materials when the feedstock isfrom post-consumer clean packaging virtuous circles,
specifically PET bottles. In these circular models, PET
bottles are fit to be kept in closed loop recycling systems
for use in materials used for food/drink containers.
Suppliers should choose recycled materials from emerging
fiber-to-fiber recycling processes.

As second option - prioritize the use ofmaterials with biobased content
Suppliers should propose synthetics materials with thehighest possible bio-based content (at least 30%) rather
than conventional fossil-based ones.
Synthetics with bio-content in today’s market are often
composed of a mix of fossil fuel content and bio-content.
When sourcing these types of synthetics, suppliers should
maximize non-fossil fuel content in yarns and fabrics andinquire about the origin of the feedstock that goes into
producing the biological component of the synthetics (i.e.,
crops, organic wastes, proteins, etc.).
Choose second-generation or third-generation synthetics
using feedstock that is not a food source but from nonedible parts of the plant, resources from forestry, proteinsfrom discarded sources, biomass derived from algae, fungi
and bacteria, etc. Ask the supplier of synthetics for
information about the bio-content of their products.
Make all efforts to ensure that the feedstock is not fromgenetically modified organisms (GMO). Kering does notsupport GMO.
Suppliers should use an official test method to assess thepercentage of bio-content, such as ASTM D8666 method(American Society of Testing and Materials) or EN 167851:2015 and should be able to provide test results of thepercentage of bio-content.
More information on terminology for synthetics isavailable in the Glossary.

Only source from Kering preferred sources thatare verified as sustainableAs for recycled and biobased materials, all suppliers are
required to only source synthetics from sources withcertifications listed in BOX 1. Considering that thesecertifications verify only the recycled and bio-basedcarbon content of materials, suppliers should provide
Kering brands whenever possible, with any additional
information and/or certifications about the biomass
feedstock management. In particular, Kering does not
accept synthetic materials produced from coal or oilsourced from conflict-affected regions.

88Standards for Raw Materials – Synthetics

REQUIREMENTS FOR 2025

© Ensure that no sourcing activities are linked
with deforestation or the conversion of natural
ecosystems
As mentioned in the Introduction to Standards for Raw
Materials, Kering has committed to ensuring no
deforestation or conversion in its supply chains.
When it comes to biosynthetic fibers, this applies to any
natural feedstocks used. Compliance for these feedstocks
can be ensured through certifications such as:•••

Roundtable for Sustainable Biomaterials
International Sustainability & Carbon Certification(ISCC+)
Forest Stewardship Council (FSC) for forest-derived
feedstocks

pyrolysis behavior during the disposal throughincineration emitting dioxins. Thermal processes (such as
pyrolysis) or chemical recycling of these materials do not
permit the extraction (valorization) of basic chemicalcomponents like other polymers. Consequently,
modacrylic cannot be mechanically recycled. Kering aims
to phase out modacrylic from its collections and products
by 2025.

Ensure best environmental practices of the raw
material processes
Fiber processing can have a significant impact on theenvironment mostly due to water use, energy use andchemicals. Ensure that these impacts are monitored andminimized. In particular:• Engage with the ‘Clean by Design’ program for waterand energy efficiency© Source from producers respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, suppliers must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of the workers in the supply
chain, in accordance with the principles set out in the
Kering Code of Ethics and its Suppliers’ Charter. See
Appendix: Social Compliance and Enforcement of theKering Code of Ethics in Supply Chain.

Do not use modacrylic in Kering products
Modacrylic polymers are copolymers obtained by thereaction of acrylonitrile, accounting for at least 50% andless than 85% by mass, and halogen comonomers that canbe polyvinyl chloride or polyvinylidene chloride (ISO 2076).
Due to the use of these comonomers, modacrylic poses
potential environmental and health threats mainly at its
end of life. Beyond the carcinogen risk for workers, if thecomonomers are not carefully handled during the
production process, modacrylic poses threats for its• Require suppliers to use their best efforts to establish aclosed-loop chemical management system, so thatchemicals that are used and produced during the
production of synthetics fibers do not escape into theenvironment and potentially harm workers. A closedloop chemical management system means using few
chemicals, preventing and reducing chemical air
emissions, decreasing water consumption, minimizing
chemical impacts and phasing out and eliminatinghazardous waste• Address microplastic leakage pollution• © Ensure that the chemicals used are verified against
the Kering Manufacturing Restricted Substances List
(MRSL). See Appendix: Summary of Kering Chemical
Management Policy for more info on the MRSL. In
particular for synthetics, chemical categories ofconcern include aromatic and aliphatic VOCs, azo dyes,
ortho-phthalates, PAH, heavy metals, flame retardants,
alkylphenols and organotins• © Ensure compliance with the Kering ProductRestricted Substances List (PRSL). Compliance with the
PRSL must be ensured by the supplier through producttesting and each Kering supplier must guarantee PRSL
compliance of its products. Moreover, Kering willoversee an internal testing program of the products as
an additional auditing measure89Standards for Raw Materials – Synthetics

ADDITIONAL BEST PRACTICES

Use best efforts to provide full transparency on
supply chain
Kering is committed to achieving the highest levels oftransparency within its material supply chains. In thiscontext, suppliers will provide Kering with a set of
information from raw materials to finished products. This
information includes in addition to Requirements for2025:• Name and location of processor and/or twister and/or

Use best effort to ensure the use of synthetic
materials with higher recycled and biobased
content
Regarding synthetics with recycled content, Kering
requires suppliers to prioritize materials using the highest
possible post-consumer recycled content coming fromemerging fiber-to-fiber recycling processes and feedstock
not related to clean food or drink packaging (e.g. PET
bottles). As a second option suppliers shall choosematerials using the highest possible biobased content.

spinner• Name and location of polymer producer (chips)• For recycled content, name and location of recycled

fiber producer

Use best efforts to ensure full traceability of
products
As mentioned in the Introduction section to Standards for
Raw Materials, Kering expects to have full traceability ofsynthetic fibers from raw material to production level,
relying on a chain of custody supported by physical anddigital systems (platforms, tools, programs, etc.),
preferably third-party verified.
90

Standards for Raw Materials

BOX 1: Recommended Certifications for Sustainabilit yKering encourages suppliers to source synthetics carrying the voluntary certification listed in the table
which provide third-party verification.
Standard or
Organization

Name

Logo

Geographic Scope

BIO-BASED CONTENT

Biobased

DIN CERTCO

Global

OK Biobased

TUV

GlobalCERTIFICATION (INC. LAND MANAGEMENT) FOR BIO-MASS MANAGEMENT

Roundtable on
Sustainable
Biomaterials (RSB)

RSB

GlobalInternational
Sustainability &Carbon Certification(ISCC+)ISCC

GlobalForest StewardshipCouncil (FSC) (forforest-derived
feedstocks)

FSC

GlobalFSC 100 preferred; FSC
Mix accepted
RECYCLED CONTENT

Global Recycled
Standard (GRS)

Textile Exchange

Global91

Standards for Raw Materials

GOLD

GOLD

92

72

Standards for Raw Materials – Gold

Several Kering brands use gold in their jewelry and watches and in the metallic accessories of leather
goods. Gold is mined in many countries around the world and on every continent except Antarctica,
with China being the largest producer with over 450 tons of pure gold mined each year. The global
average production of gold over the past ten years is around 4000 tons per year, 66% coming frommining and the remaining 34% from recycling. The mining of gold can be associated with social issues
linked to the difficult working conditions of miners and to environmental damage of the natural zones
where mining occurs. Most of the gold used by the Kering brands comes from recycled sources
transformed by refiners; however, Kering’s sustainability strategy also includes sourcing new gold frommines that operate under good environmental and social conditions. Millions of miners worldwide
depend on gold mining, with 80% of them working in Artisanal and Small-Scale Mines (ASM) andproducing less than 20% of newly mined gold. The remaining 80% of newly mined gold is extracted byLarge-Scale Mining operations (LSM), mostly in large open-pit surface mines.

Kering brands can source responsible gold according to the
Kering Standards through the Kering Precious Metals
Platform (PMP). Sourcing options within the platform
include Fairmined and Fairtrade gold, verified artisanal gold,
verified 100% e-waste recycled gold and RJC Chain-ofcustody (CoC) certified 100% recycled gold from e-waste
and jewelry.
This Standard applies both to gold sourced directly fromselected refiners, as well as to gold sourced indirectly
through components or finished products suppliers.
Strategically, Kering focuses its sourcing of gold within two
possible streams: (1) recycled gold and (2) artisanal, smallscale mined gold.
Kering recognizes the potential of recycled gold as anenvironmentally friendly alternative to mined gold and iscommitted to rigorously verifying the authenticity ofrecycled gold sources to avoid unknowingly endorsing
unethical practices. Our due diligence ensures that any
recycled gold used is responsibly sourced, and genuinely
originates from recycled e-waste or jewelry. In parallel,
Kering is also strongly committed to supporting artisanal
small-scale gold mining (ASM) communities to transition
towards more sustainable practices. ASM represents asignificant proportion of global gold production and serves
as a lifeline for many impoverished communities. However,these activities often face challenges linked to health andsafety, human rights, and environmental degradation. Kering
sources ethically mined gold from ASM and provides
financial aid to these communities through the Kering
Precious Metals Platform, further underscoring ourcommitment to a more sustainable and ethical gold industry.

In summary, the key principles that
underpin the Kering Standard for goldare:
• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedoms, healthand safety and the environment, as
set out in the Suppliers’ Charter ofthe Kering Code of Ethics• Ensuring conflict-free sourcing• Facilitating the sourcing of
responsible gold by its brands
through the Kering Precious Metals
Platform (PMP)• Supporting the social developmentof artisanal and small-scale miners,
and their communities by sourcing
gold through social programs such as
Fairtrade and Fairmined schemes,
and from other eligible initiatives
that have been verified by Kering.
• Guaranteeing due diligence in the
supply chain, in accordance with theOECD Due Diligence Guidance

93

93Standards for Raw Materials – GoldREQUIREMENTS FOR 2025
© Source gold through Kering approved
suppliers within the Kering Precious Metals
Platform (PMP) framework
Kering brands can source gold directly or indirectly from
Kering approved and selected refiners, following the
Kering Precious Metals Platform (see BOX 1). This platform
has been developed to create an innovative way to source
gold and other precious metals (silver, platinum andpalladium) in an ethical, responsible and transparent
manner. The platform enables Kering brands to source
responsible gold directly from selected refiners, orindirectly through components or finished products
suppliers. The platform is designed to fit both sourcing
avenues.
Written agreements have been developed to clearly
define this innovative sourcing framework for refiners andto provide access to Kering’s customized Responsible GoldMix to suppliers of components and finished products
containing gold. Kering requires gold suppliers to support
the PMP and to facilitate its expansion within their own
supply chains.
The types of gold allowed under the platform include:
Fairmined and Fairtrade Gold:
Kering recognizes the valuable contribution that Fairmined(FM) and Fairtrade (FT) certification standards are playing
in improving the working conditions of artisanal and smallscale miners, positively developing their local communities,
as well as encouraging extractive practices that limit andcontrol the use of hazardous chemicals like mercury andcyanide.
Some FM/FT mines may also offer mercury-free and/or“ecological gold”, which goes a step further by avoiding
the use of mercury/cyanide in their extractive processes(e.g., water centrifugation and gravimetric techniques).
This is strongly encouraged and supported within the
Kering Precious Metals Platform (PMP), as mercury andcyanide contamination represent a major global healthand ecological problem.
Gold from artisanal, small-scale mines (ASM) verified by
Kering:Additionally, gold may be purchased from artisanal, smallscale mines (ASM) that are aligned with robust standards,
such as the CRAFT code of practice. In this case, additionalverification from Kering is mandatory to ensure improved
environmental, social impact, and integrity of the chain ofcustody at least from cooperative mining level.
100% e-waste recycled gold, verified by Kering
Kering wishes to promote the use of verified recycled gold
from e-waste, which represents a significant breakthroughtowards a more sustainable and responsible gold industry.
Discarded electronic devices like smartphones andcomputers represent a rapidly growing waste stream that
often contains precious metals including gold. Tapping
into this reservoir offers the dual benefit of reducing thedemand for newly mined gold and addressing theescalating global e-waste problem. Through rigorous
verification processes, we can ensure that the gold
sourced from e-waste is genuinely recycled andresponsibly sourced, thereby circumventing theassociated social and environmental risks prevalent inconventional mining. Moreover, it provides a chance topromote circular economy principles, transforming waste
into a valuable resource. This practice could also stimulate
the creation of green jobs in the e-waste recycling sector,
thereby driving socio-economic growth. Sourcing recycledgold from e-waste, therefore, presents a potent
combination of environmental stewardship, ethicalsourcing, and economic opportunity.
Gold from verified recycled e-waste sources is one of theapproved and encouraged sourcing options under the
Kering Precious Metals Platform. This must be sourced
through suppliers and sub-suppliers who have beenassessed and approved by Kering, ensuring theircompliance with rigorous due diligence and audit
standards.
RJC CoC certified recycled gold from e-waste and jewelry
The Precious Metals Fund also allows the use of 100%
recycled gold with RJC CoC certification, originating fromboth e-waste and former jewelry sources, and verified tobe genuinely recycled.
It is important to note that Kering does not accept“grandfathered gold” as a permissible source of recycledgold (even with RJC CoC certification). This term refers togold that was mined or acquired before theimplementation of current regulations or standards.
Because this gold wasn't subject to the same stringent
sourcing and ethical criteria, its use can potentiallyperpetuate environmental damage and social injusticeassociated with historical mining practices. Therefore, it is
not compatible with the drive toward a more responsible
and transparent gold industry. Suppliers of gold to Kering
brands must therefore ensure that any RJC CoC-certified
recycled gold supplied does not contain grandfathered
gold.

© When purchasing gold outside of the Kering
Precious Metals Platform (PMP), strictly
follow these Standards
The preferred gold sourcing route for Kering brands is thePrecious Metals Platform (PMP). In the exceptional
eventuality that purchasing through the Kering Precious
Metals Platform (PMP) is not possible, suppliers must
purchase gold through refineries that fully meet theseStandards and provide evidence of alignment to Kering
Standards.

94

Standards for Raw Materials – GoldREQUIREMENTS FOR 2025

© Source gold in a way that meets all legal
requirements (See BOX 2)
Kering eschews corruption in all its forms. As such, gold
suppliers will:• Comply with all relevant laws in all of their activities,

including (but not limited to) those relating to anticorruption, anti-money laundering and counterterrorist financing;• Fully implement the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas;• Never knowingly supply gold or products containing
gold to Kering or its brands that have been subject toor involved in any form of bribery or corruption;• Actively avoid any conflict of interest or the exercise ofillegitimate influence when doing business with Keringand its brands, including as a result of payments andgifts made or received, pre-existing relationships orother means;• Inform Kering as soon as the supplier becomes awareof any incident in which it has not met, or is not likely
to meet, these requirements.

© Ensure human rights are respected in theentire gold supply chain
Kering is committed to respecting internationallyrecognized human rights, both in its own businessactivities and through its business relationships. Goldsuppliers will:• Never knowingly supply Kering or its brands with goldor products in gold that they know have been
associated with human rights abuses during theirmining, trading, refining and manufacturing phases• Confirm that all the gold and products in gold that they
supply to Kering are free from association with humanrights abuses at all stages of the value chain andprovide relevant evidence to support their statement.

© Allow inspection and auditing
Gold suppliers will:• Allow Kering, its brands and their representatives tocheck the supplier’s adherence to this Kering Standard
for Gold, including by physical and documented
inspections• When requested, provide, if applicable, their RJC,
Fairtrade, Fairmined or any other applicablecertifications’ latest reports and Codes of Practice,including major and minor non-compliances sections• Correct any identified instances of non-compliancewith this Kering Standard for Gold and enhance•• existing practices, where Kering and its brands haveidentified non-conformities but have decided not toexercise their resulting right to terminate contractual
relations.

© Achieve transparency in the brands’ gold
supply chains
Kering is committed to achieving the highest levels oftransparency within its gold value chain. In this context,
gold suppliers will:• Work in constructive, pragmatic and mutually

beneficial partnerships with Kering to continuously
improve transparency within gold supply chains,
working towards industry best practices• Provide Kering with information when requested about
the origin and the journey of the gold that they supply
to Kering brands. This information may include but is
not limited to:ooooWhere gold is mined and by whom
Who has traded gold and where
Who has refined gold and where
What social and environmental standards orinitiatives have been applied to mining
operations and to entities that handle gold
during each step of the supply chain (e.g.
RJC certifications, Fairmined or Fairtradecertifications, OECD Guidance andSupplement on Gold applications, CRAFT orother relevant standards and initiatives suchas the LBMA, IRMA and RBA-RMI programs).

Suppliers must be able to provide documentation thatverifies the information above, including for instancetransaction certificates, audit reports, or other forms ofthird-party verification.

Actively participate in the W&JI2030
As one of the two founders of the Watch & Jewellery
Initiative 2030 (W&JI2030), Kering expects that all
suppliers to its brands align with the initiative's mission
and actively participate in it. The primary objective of thiscollaboration is to make significant contributions toward
establishing a completely sustainable supply chain forwatches and jewelry. This objective will be pursued
through the implementation of three core pillars: building
climate resilience, preserving resources and fostering
inclusiveness. Through stringent supplier adherence tothese action pillars, Kering aims to galvanize the entire
industry towards sustainable transformation.

95

Standards for Raw Materials – Gold

ADDITIONAL BEST PRACTICESMinimize the negative environmental impact
of gold mining

Promote energy transition in mining andrefining

Kering wishes to phase out the use of highly hazardous
chemicals such as mercury and cyanide in gold mining, andcurrent technological developments make this possible.
Some Fairmined / Fairtrade-certified mines already offer
mercury-free and/or “ecological gold”, which limits andeventually prohibits the use of mercury/cyanide in their
extractive processes (e.g., water centrifugation andgravimetric techniques). Suppliers must use best efforts tosource this gold when using FM/FT sources.

Artisanal and small-scale mining and first-stage processing
activities often occur in isolated areas with no connection
to the electric grid and use diesel to fuel not only vehicles
but also electricity. Kering encourages its brands and their
suppliers to support the development of off-grid
renewable energy solutions and systems, such as solar,
possibly coupled with batteries, to reduce reliance on
fossil fuels for extraction activities.

Kering supports actions, technologies and initiatives that
aim to better manage the use of water, reduce water
consumption in areas where it is scarce and avoid
environmental impacts caused by the use of water in
extractive and processing activities.
Gold refining includes energy-intensive processes. Keringand its brands positively value efficient production
processes and the use of renewable and green energies,
with the goal of reducing GHG emissions and lowering theimpact on climate change.

Encourage and develop closed-loop recycling
Kering encourages suppliers to develop new ways of
maximizing closed-loop recycling of responsible gold frome-waste, from the jewelry sector and/or other sectors.
Newly mined gold is predicted to reach high scarcity levels
within a few decades. Kering foresees this evolution as achallenge but also as an opportunity to develop innovative
ways of recycling gold while keeping full traceability of ametal that has been sourced responsively when it enteredsupply chains. New refining processes ought to be definedin partnership with proactive refiners and manufacturers
in order to offer the segregation of recycled responsible
gold all the way into new products.

Investigate innovative traceability solutions
Suppliers shall investigate advanced traceability solutions,using technologies such as blockchain or other digitaltracking systems to increase transparency and ensure fulltraceability in the gold supply chain.

In refining activities, suppliers are recommended to selfproduce clean energy or to source renewable energy fromthe grid.

Restore biodiversity and natural ecosystems
post-extraction
Kering advocates for the restoration of biodiversity andnatural ecosystems following gold extraction activities,
prioritizing the rehabilitation of mined landscapes andendorsing a ‘leave-no-trace’ approach – and even aiming
to achieve a net positive impact on local ecosystems. This
may involve recontouring land, replacing topsoil, andreplanting indigenous vegetation to not only recover thephysical landscape but also to foster a conducive
environment for local fauna and flora to thrive. Such
activities should take into account the natural cycles andecological complexity of the regions to ensure effective
rehabilitation, taking inspiration from the principles of
biomimicry. In addition, Kering encourages the use oftechnologies that can monitor and ensure the success ofthese restoration efforts. Kering has supported such a
restoration program for several years in former alluvial
mining sites in collaboration with Solicaz and Forest
Finance in French Guiana and expects suppliers to engage
in and expand similar initiatives.

96

Standards for Raw Materials – GoldBOX 1: Kering Precious Metals Platform (PMP)The Kering Precious Metals Platform has been developed to create an innovative and smart way tosource gold and other precious metals in an ethical, responsible and transparent manner at a businessacceptable cost for the brands.
Through the platform, Kering has established a list of approved refiners that have been meticulously
vetted, audited and selected by the group. These suppliers have successfully undergone due diligenceprocedures and meet the necessary criteria. They have also entered into contractual frameworkagreements, thereby ensuring their compliance with the Kering Standards.
Selected refiners under the Platform engage in supplementing verified recycled gold with input fromartisanal, small-scale (ASM) mines, supported by Kering and its brands.
The Platform has two aims:
1. Ensuring that Kering brands and suppliers are able to purchase responsible goldaligned with the Kering Standards (including payment of premiums anddevelopment fees for approved schemes)
2. Financing sustainability projects linked to gold sourcing, including:o On-the-ground sustainability projects in artisanal, small-scale mines(ASMs), both Fairmined and/or Fairtrade, or to ASM communities working
towards responsible mining, under programmes verified by Keringo Innovative schemes to produce gold with significantly lower impact (e.g., ewaste recycling, solar energy for off-grid mines).
The PMP is administrated by a Responsible Gold Steering Committee, composed of collaborators from
Kering and from the brands, who meet at least once a year to support sustainable projects targeted at
ASM communities as well as sustainable innovators.

97

Standards for Raw Materials – GoldBOX 2: Reference - Regulations and OECD Guidelines
International regulations
Kering and its brands commit to respecting and implementing all international regulations applicable to gold
supply chains.
Section 1502 of the U.S. Dodd-Frank Act
Section 1502 of the U.S. Dodd-Frank Act requires U.S. listed companies to disclose whether they use “conflictminerals” (tin, tungsten, tantalum and gold) and whether these minerals originate in the Democratic Republicof the Congo and/or adjoining countries. In such case, companies must submit a “Conflict Minerals Report”
in order to describe the measures taken to exercise due diligence.
The EU Conflict Minerals Regulation
This EU regulation took effect on January 1st, 2021. It covers the same “3TG” minerals as the U.S. Dodd-Frank Act:tin, tungsten, tantalum and gold. Its aim is to ensure that 3TG EU importers adhere to international responsible sourcing
standards, set by the Organization for Economic Co-operation and Development (OECD). It is designed to promoteresponsible sourcing from global and EU smelters and refiners of 3TG, to help break the link between conflict andthe illegal exploitation of minerals, and to combat the exploitation and abuse of local communities, including
mine workers, while supporting local development. The regulation requires EU companies in the supply chain toensure they import these minerals and metals from responsible and conflict-free sources only.
OECD Due Diligence Guidance, Supplement on Gold, and Practical actions for companies to identify andaddress all forms of child labor in mineral supply chains
First published in 2011 and updated in 2016, The OECD Due Diligence Guidance for Responsible Supply Chains ofMinerals from Conflict-Affected and High-Risk Areas framework provides detailed recommendations to help
companies respect human rights and avoid contributing to conflict through their minerals purchasing decisions
and practices. The Due Diligence Guidance is for use by any company potentially sourcing minerals or metals
from conflict-affected and high-risk areas. It is recognized by the SEC as fulfilling the criteria of the Dodd-FrankAct implementation.
The Supplement on Gold included in this Guidance was developed to tackle the unique challenges for carryingout due diligence on gold, and namely its intrinsic high-value and fungible nature, the non-linear structure ofits supply chain, and the multiple downstream uses of gold, depending on whether it is used for investment
purposes, jewelry or in some other industrial product.
The OECD also developed a guide on practical actions for companies to identify and address all forms of child laborin minerals supply chains. It was developed to build on the due diligence framework of the OECD Due Diligence
Guidance and was released in 2017. This guidance is particularly helpful in its recommendation to design andimplement a strategy to respond to identified risks. Kering and its brands believe in the long-term benefits ofsourcing gold in an ethical and responsible way, all along the complex supply chains of the luxury sector. These
guidelines and principles reflect Kering’s vision for sustainable business and Kering aims to share it as widely as
possible with its brands, their suppliers and their partners.
CRAFT (Code of Risk-mitigation for ASM engaging in Formal Trade)
The CRAFT Code has been developed with a focus on improving artisanal and small-scale miners’ access toformal markets and supporting their progressive improvement of environmental and social practices. CRAFT isa tool that facilitates the comprehension, application, and commitment to due diligence by all stakeholders
in artisanal supply chains. It provides a step-by-step risk assessment and management system that miners,
local exporters, and international buyers can use to meet the due diligence requirements of the OECD andother entities. CRAFT enables the identification and mitigation of risks existing in the artisanal and small-scale
mining (ASM) sector and supports progressive improvement in environmental and social performance.

98Standards for Raw Materials

BOX 3: International organizations covering various aspects of the precious metals
industry
London Bullion Market Association (LBMA)The London Bullion Market Association (LBMA) is an independent authority renowned for ensuringleadership, integrity, and transparency in the global precious metals industry. Founded in 1987, it upholds
the highest standards and continually develops market solutions to maintain and enhance the industry's
efficiency and credibility.
One of the LBMA's significant contributions to the precious metals industry is the establishment andenforcement of the "Good Delivery" standard. This benchmark guarantees the quality of gold and silver bars
that are traded in the Loco London Market, an integral hub for international bullion transactions. The Good
Delivery standard provides assurance of the metals' integrity and purity, thus enhancing market liquidity andefficiency.
Another key initiative by the LBMA is the Global Precious Metals Code. This code serves to promote a robust,
fair, effective, and appropriately transparent market. It provides a set of guiding principles and standards that
all market participants should abide by, reinforcing best practices in the precious metals market.
In addition, the LBMA has set up a Responsible Sourcing programme which is mandatory for all Good Delivery
refiners wishing to trade with the London Bullion market. This programme includes specific guidance for gold,
silver, platinum and palladium, focusing on ethics, governance, compliance and risk management,
information sharing, and business conduct. The Responsible Sourcing programme and guidance thereinclosely follow the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas.
World Gold Council (WGC)
The WGC is the market development organization for the gold industry. In 2019, the WGC published the
Responsible Gold Mining Principles that set out expectations for investors and downstream users as to what
constitutes responsible gold mining and addresses the key environmental, social and governance issues forthe gold mining sector. The principles are not intended to become a new standard but implementing
companies will be required to publicly disclose their conformance with these Principles and receive
independent assurance on their disclosure. Assurance will be required both at corporate and at mine-sitelevel.
International Council on Mining and Metals (ICMM)
The ICMM is an international organization dedicated to a safe, fair and sustainable mining and metals industry.
The ICMM program is a list of principles specific to Mining and Metals companies. Membership in the ICMM
requires a commitment to ICMM’s 10 Principles (ethics and corporate governance, sustainable development,
human rights and working conditions, effective risk management strategies, health and safety, environmental
performance, biodiversity conservation and land-use planning, responsible design use, re-use and recycling,social performance, stakeholder engagement) and its 7 Position Statements (https://www.icmm.com/engb/members/member-commitments/position- statements). Member companies are required to obtain
annual third-party assurance of their sustainability performance.

Standards for Raw Materials

SILVER & OTHER PRECIOUS
METALS

Standards for Raw Materials – Silver & Other Precious Metals

Several Kering brands use silver and other precious metals including platinum and palladium in theirjewelry, watches, metallic accessories of handbags and ready-to-wear. This represents several tons ofprecious metals used by the Group each year. This Standard focuses primarily on silver, but most of its
content also applies to platinum and palladium. Globally, silver demand is significantly greater forindustrial uses than for jewelry, coins or silverware. Around 30% of silver production is from primarysilver mines, while the remaining 70% is obtained as a by-product from base metal operations like lead,zinc and copper (57%) and gold mining (12%). Silver-bearing ores are mined by open-pit orunderground methods mostly in large and medium sized industrial operations, while artisanal andsmall-scale silver mining is negligible. In the case where silver is a by-product, the other more important
metal is processed and refined first, and the silver is then extracted and refined from the final residueof the primary metal.
The mining and refining of silver can be associated with environmental issues such as damages to thenatural zones where mining occurs, use of toxics and chemicals, and water contamination, as well associal issues around labor and tensions with the local communities over access to land and water
quality. Attention to sustainability in silver is mainly a result of campaigns in the gold and jewelry
industry, however, the formulation of a set of sustainability standards that are generalizable isextremely challenging, which explains why silver-specific initiatives such as standards and certification
systems are much less developed than they are for gold. The assurance that the silver purchased by
the Group comes from sustainable and responsible sources is key and in lieu of industry-wide accepted
standards, the Kering Standard for silver was developed to set a high benchmark to ensure bestpractices are met in its silver supply chain.
101

The silver, platinum and palladium used by Kering brands
comes from third-party providers of semi-finishedproducts and, to a lesser extent, directly from refiners.

In summary, the key principles that
underpin the Kering Standards forsilver are:Kering brands can source responsible silver, platinum andpalladium according to the Kering Standards through the
Kering Precious Metals Platform (PMP). Sourcing
options within the platform include:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment, as
set out in the Suppliers’ Charter ofthe Kering Code of Ethics• Ensuring conflict-free sourcing• Facilitating the sourcing of
responsible precious metals by thebrands via the Kering Precious
Metals Platform (PMP)• Guaranteeing due diligence in the
supply chain, in accordance with theOECD Due Diligence Guidance• Supporting best practices in theindustrial precious metals mining
industry and the development ofother eligible initiatives that havebeen verified by Kering-

Recycled silver, platinum and palladium from RJC
CoC certified suppliers
Fairtrade or Fairmined silver and platinum

Standards for Raw Materials – Silver & Other Precious Metals

REQUIREMENTS FOR 2025

© Source silver, platinum and palladium
through Kering approved suppliers within the
Kering Precious Metals Platform (PMP)framework

is approved within the Kering Precious Metals Platform(PMP). These are usually artisanal small-scale mines thatmeet high standards of social and environmental
responsibility through the Fairtrade and Fairmined
standards.

Kering brands and their suppliers can comply with the
Kering Standard for Silver & Other Precious Metals by
sourcing their silver, platinum and palladium through the
Kering Precious Metals Platform (PMP) (see BOX 1 under the
Kering Standard for Gold above). This framework has beendeveloped to create an innovative way to source silver,
gold, platinum and palladium in an ethical, responsible
and transparent manner. Kering brands have the option
to source responsible silver, platinum and palladium
directly from approved refiners, or indirectly throughcomponents or finished products suppliers. The Kering PMP
is designed to fit both sourcing avenues.

Silver from artisanal, small-scale mines (ASM) verified by
Kering:Additionally, silver, platinum and palladium may bepurchased from artisanal, small-scale mines (ASM) thatare aligned with robust standards, such as the CRAFT codeof practice. In this case, additional verification from Kering
is mandatory to ensure improved environmental, social
impact, and integrity of the chain of custody at least fromcooperative mining level.

Written agreements have been developed to clearly define
this innovative sourcing framework for suppliers and toprovide access to Kering’s eligible sources to suppliers ofbrand components and finished products containing silver.
Kering encourages silver suppliers to support the Kering
PMP and to facilitate its expansion within their own supply
chains.
Eligible sources of silver, platinum and palladium under the
Kering Precious Metals Platform include:
Recycled precious metals from RJC CoC certified
suppliers
Kering encourages the sourcing of certified recycled silver,
platinum and palladium from RJC CoC certified suppliers.
This fosters environmental responsibility by promoting thereuse of precious resources but also guarantees the
ethical sourcing of these materials. RJC CoC certification
ensures that the recycled metals have been handledwith integrity throughout its lifecycle.
It is important to note that Kering does not accept“grandfathered” precious metals as a permissible sourceof recycled precious metals (even with RJC CoC
certification). This term refers to precious metals thatwere mined or acquired before the implementation ofcurrent regulations or standards. Because these metals
weren’t subject to the same stringent sourcing and ethicalcriteria, their use can potentially perpetuateenvironmental damage and social injustice associated withhistorical mining practices. This is therefore notcompatible with the drive toward a more responsible andtransparent jewelry industry. Suppliers of precious metals
to Kering brands must therefore ensure that any RJC CoCcertified recycled metals supplied do not containgrandfathered metals.
Fairtrade or Fairmined silver and platinum
Sourcing from Fairmined and/or Fairtrade-certified mines© When purchasing silver, platinum or
palladium outside of the Kering Precious
Metals Platform (PMP), strictly follow theseStandards
The preferred precious metals sourcing route for Kering
brands is the Precious Metals Platform (PMP). In the
exceptional eventuality that purchasing through the
Kering Precious Metals Platform (PMP) is not possible,
suppliers must purchase precious metals throughrefineries that fully meet these Standards and provide
evidence of alignment to Kering.

© Achieve transparency in the brands’
precious metals supply chains
Kering is committed to achieving the highest levels oftransparency within its precious metals value chain. In thiscontext, suppliers will:• Work in constructive, pragmatic and mutually

beneficial partnerships with Kering to continuously
improve transparency within their supply chains,
working towards industry best practices• Use best practices in due diligence of their supply chainin accordance with the OECD Due Diligence Guidance.
• Provide Kering with information when requested about
the origin and the journey of the precious metals thatthey supply to Kering brands, and the due diligencesystem applied. This information may include, but is
not limited, to:
o
o

o
o

The nature of the precious metals used tosupply Kering brands: recycled or mined.
Whether it is primary silver, platinum or
palladium and/or a by-product (i.e.,
identification of the parent mineral).
Where the base metal is mined (mine oforigin) or extracted and by whom.
Who has refined and where (including
for supply of components and semi-102

Standards for Raw Materials – Silver & Other Precious Metalsofinished products) – including ensuringthat they hold RJC CoC certification.
What ethical standards or initiatives
have been applied to the mining andrefining of the silver, and for the people
who handle the silver during each step of
the supply chain (e.g., RJC certification,
OECD DD Guidance, or other relevant
standards and initiatives such as the
LBMA, IRMA, ICMM and Cyanide Codeaudit and certification programs).

Suppliers must be able to provide documentation thatverifies the information above, including for instancetransaction certificates, audit reports, or other forms ofthird-party verification.

© Source silver, platinum and palladium in a
way that meets all legal requirements© Allow inspection and auditing
Precious metals suppliers will:• Allow Kering, its brands and their representatives tovalidate the supplier’s adherence to this Kering
Standard for silver and other precious metals, including
by physical and documented inspections.
• When requested, provide, if applicable, their RJC
certifications, or any other applicable certifications’latest reports, including major and minor noncompliances sections.
• Correct any identified instances of non-compliancewith this Kering Standard within a case- by-casedetermined timeline and enhance existing practices,where Kering and its brands have identified violations
but have decided not to exercise their resulting right toterminate contractual relations.

Actively participate in the W&JI2030
Kering eschews corruption in all its forms. As such,suppliers will:• Comply with all relevant laws in all their activities,

including (but not limited to) those relating to anticorruption, anti-money laundering and counterterrorist financing.
• Never knowingly supply precious metals or products
containing precious metals to Kering or its brands thathave been subject to or involved in any form of bribery
or corruption.
• Actively avoid any conflicts of interest or the exercise
of illegitimate influence when doing business with
Kering and its brands, including as a result of payments
and gifts made or received, pre-existing relationships
or other means.
• Inform Kering as soon as the supplier becomes awareof any incident in which it has not met, or is not likely
to meet, these requirements.

© Ensure human rights are respected in theentire supply chain
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its own
business activities and through its business relationships.
Precious metals suppliers will:• Never knowingly supply Kering or its brands with

precious metals or products derived from them that
suppliers know have been associated with humanrights abuses during their mining, trading, refining andmanufacturing phases.
• Guarantee that all the silver, platinum and palladium –as well as products containing them –that suppliers
provide to Kering are free from any association withhuman rights abuses at all stages of the value chain
and provide relevant evidence to support theirstatement.

As one of the two founders of the Watch & Jewellery
Initiative 2030 (W&JI2030), Kering expects that all
suppliers to its brands align with the initiative's mission
and actively participate in it. The primary objective of thiscollaboration is to make significant contributions toward
establishing a completely sustainable supply chain forwatches and jewelry. This objective will be pursued
through the implementation of three core pillars: building
climate resilience, preserving resources and fostering
inclusiveness. Through stringent supplier adherence tothese action pillars, Kering aims to galvanize the entire
industry towards sustainable transformation.

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Standards for Raw Materials – Silver & Other Precious Metals

ADDITIONAL BEST PRACTICESMinimize the environmental impacts of silver
sourcing

Promote energy transition in mining andrefining

Lead and zinc mining from which silver, platinum andpalladium are extracted are some of the primary sourcesof metals pollution in the environment. Water bodies close
to projects extracting these metals are at risk of pollution
from wastewater associated with mining (ore-dressing)and smelting. Soil and crop pollution, along withdeleterious health effects, have all been linked to lead andzinc mining and smelting activities.

Artisanal and small-scale mining and first-stage processing
activities often occur in isolated areas with no connection
to the electric grid and use diesel to fuel not only vehicles
but also electricity. Kering encourages its brands and their
suppliers to support the development of renewableenergy systems such as solar, eventually coupled withbatteries, to reduce reliance on fossil fuels for extraction
activities. Large-scale mining operations should also
reduce GHG emissions through use of renewable energy
and efficiency programs. In refining activities, suppliers arerecommended to self-produce clean energy or to source
renewable energy from the grid.

Mitigating these impacts is crucial and Kering believes thatemerging technological developments will allow silver,
platinum and palladium (whether as a primary or by-product)
to be mined with a reduced use of hazardous chemicals, forexample with non-cyanide leaching extraction methods.
Incorporating these innovations in silver supply chains ishighly encouraged. Kering also supports initiatives
targeted at safeguarding biodiversity and natural habitats
potentially affected by mining operations. Remediation
and rehabilitation of natural flora and fauna will beconsidered, in future supply chain developments, as a key
criterion in Kering brands’ sourcing decisions.
Furthermore, silver, platinum and palladium refining
include energy-intensive processes. Kering and its
brands positively value efficient production processes
and the use of renewable and green energies, with thegoal of reducing GHGs emissions and lowering theimpact of climate change.

Encourage and develop closed-loop recycling
Kering encourages its brands and their suppliers todevelop new ways of maximizing closed-loop recycling of
responsible silver, platinum and palladium from thejewelry sector and/or other sectors. Kering encourages thedevelopment of innovative ways of recycling silver,
platinum and palladium while keeping the full traceabilityof the metals, ensuring that they have been sourced
responsibly when they entered the supply chain. New
refining processes should be defined and developed inpartnership with proactive refiners and manufacturers inorder to offer segregation of recycled responsible precious
metals all the way into new products.

Investigate innovative traceability solutions
Suppliers shall investigate advanced traceability solutions,using technologies such as blockchain or other digitaltracking systems to increase transparency and ensure fulltraceability in the precious metals supply chains.

Restore biodiversity and natural ecosystems
post-extraction
Kering advocates for the restoration of biodiversity andnatural ecosystems following mining activities, prioritizing
the rehabilitation of mined landscapes and endorsing a‘leave-no-trace’ approach – and even aiming to achieve a
net positive impact on local ecosystems. This may involverecontouring land, replacing topsoil, and replanting
indigenous vegetation to not only recover the physicallandscape but also to foster a conducive environment for
local fauna and flora to thrive. Such activities should take
into account the natural cycles and ecological complexityof the regions to ensure effective rehabilitation, taking
inspiration from the principles of biomimicry. In addition,
Kering encourages the use of technologies that canmonitor and ensure the success of these restoration
efforts.

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Standards for Raw Materials – Silver & Other Precious Metals

BOX 1: International organizations covering various aspects of the precious metals
industry
Responsible Jewellery Council (RJC)
The RJC is a non-profit standards-setting and certification organization, composed of over 1000 member
companies spanning from mine to retail. Members commit to and are independently audited against the RJC Codeof Practice, which is an international standard on responsible business practices for diamonds, colored
gemstones, gold, silver and platinum group metals. The Code of Practice addresses human rights, labor rights,
environmental impact, mining practices, product disclosure and other important topics in the jewelry supply
chain.
The RJC works with multi-stakeholder initiatives on responsible sourcing and supply chain due diligence. The
RJC’s Chain-of-Custody certification for precious metals supports these initiatives and can be used as a tool todeliver broader member and stakeholder benefits.
The RJC is a globally recognized organization that has set standards for the watch and jewelry industry. As
such, their work requires continuous improvements.
Initiative for Responsible Mining Assurance (IRMA)
The IRMA was founded in 2006 by a coalition of non-governmental organizations, businesses purchasing
minerals and metals for resale in other products, affected communities, mining companies, and labor unions.
IRMA’s approach to responsible mining is to certify social and environmental performance at mine sites
globally using an internationally recognized standard that has been developed in consultation with a wide
range of stakeholders. In 2018, IRMA published its Standard for Responsible Mining v1.0, which defines goodpractices for what responsible mining should look like at the industrial scale. It provides the list of expectations
that independent auditors will use as the benchmark for responsible mines. In mid-2019, IRMA began theirauditing program of mine sites against this Standard.
International Cyanide Management CodeThe International Cyanide Management Code for the Manufacture, Transport, and Use of Cyanide in the
Production of Gold (Cyanide Code) was developed by a multi-stakeholder steering committee under theguidance of the United Nations Environmental Program (UNEP) and the then International Council on Metals
and the Environment (ICME). The Cyanide Code is a voluntary industry program for gold and silver mining
companies. The objective of the Cyanide Code is to improve the management of cyanide used in gold and silvermining and assist in the protection of human health and the reduction of environmental impacts. It focuses
exclusively on the safe management of cyanide and cyanidation mill tailings and leach solutions. Companies
that adopt the Cyanide Code must have their mining operations that use cyanide to recover gold and/or silver
audited by an independent third party to determine the status of Cyanide Code implementation. The Cyanide
Code applies to mining industries and the producers and transporters of the cyanide used in gold and silvermining. It is intended to complement an operation’s existing regulatory requirements and focuses exclusively
on the safe management of cyanide that is produced, transported and used for the recovery of gold and silver,
and on mill tailings and leach solutions. Gold and silver mining companies and the producers and transportersof cyanide used in gold and silver mining can become signatories to the Cyanide Code.

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Standards for Raw Materials

DIAMONDS

Standards for Raw Materials – Diamonds

Several Kering brands use diamonds in their jewelry and in watches. Diamonds are the most renowned
precious stones in the world, bearing high financial and symbolic values. Diamond mining has been in
the media spotlight in the past few years, mainly because of risks linked to corruption, conflicts, anddangerous working conditions in mines. Today, 70%-80% of all diamonds are mined by several
important industrial mining companies, which operate mainly in developed countries and in extremely
capital-intensive ways. The remaining estimated 20%-30% come from artisanal and small-scale minesthat are often located in developing countries and where working conditions can sometimes be very
challenging. Traceability is a key challenge in this trade: rough diamonds travel the world to be cut andpolished in different hubs, depending on the quality and sizes of the stones; cut and polished diamonds
are sold in trading cities like Antwerp, New York, and Tel Aviv, but also by individual diamond traders
around the world; and a diamond can change hands one hundred times before being set in a piece ofjewelry.
In recent years, the jewelry industry has undergone significant changes, with the emergence oflaboratory-grown diamonds as a new category. The environmental impact of these diamonds can vary
based on the production method employed – either Chemical Vapor Deposition (CVD) or High-Pressure,High-Temperature (HPHT) – but are typically lower than those associated with the extraction of natural
diamonds. This evolution presents both challenges and opportunities for Kering brands as theynavigate this new aspect of the industry.

Kering brands are actively encouraged to engage with
their diamond suppliers towards transparency, traceability
and improved environmental and social impact, both for“center” stones and for “mêlées” stones.

In summary, the key principles that
underpin the Kering Standard for
diamonds are:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment, as
set out in the Suppliers’ Charter ofthe Kering Code of Ethics• Kering suggests its brands to engage
only with suppliers that are RJC Codeof Practices (COP) certified and/or
certified to Kering-approved
certification schemes• Ensuring that all diamonds
purchased come from legal sources
certified by the Kimberley Process, a
program whose mission is to prevent
conflict diamonds from entering themarket• Collaborating with all actors of the
diamond supply chain to develop
and implement full traceability of thestones from the mine to the store• Guaranteeing due diligence in the
supply chain, in accordance with theOECD Due Diligence Guidance.

107Standards for Raw Materials – Diamonds

REQUIREMENTS FOR 2025

© Ensure chain of custody
In their commercial relationships with diamond suppliers,
brands will ask for the RJC Code of Practices (COP)
certification of their direct diamond suppliers, with the aimof investigating upstream levels of the supply chain. The
RJC COP certification of indirect upstream suppliers (tier 2 orabove) is positively valued, ideally all the way to extractionlevels.

© Implement the Kimberley Processcertification scheme and World DiamondCouncil system of warranties (see BOX 1)
Kering recognizes the valuable contribution that the
Kimberley Process has played in excluding conflictdiamonds from the global diamond trade. As such, alldiamond suppliers will:• Only supply diamonds that have been sourced fromcountries that are participants in the Kimberley Process
and that have been legally exported under a relevant
Kimberley Process certificate• Only supply diamonds that are accompanied by an
invoice containing a written World Diamond Council
warranty statement, as part of the System of
Warranties (i.e., “The diamonds herein invoiced havebeen purchased from legitimate sources not involvedin the funding of conflict, in compliance with United
Nations Resolutions and corresponding national laws
{where the invoice is generated}. The seller hereby
guarantees that these diamonds are conflict-free andconfirms adherence to the WCD SoW Guidelines.”)

chain. The repercussions of these risks are not limited tothe oceanic environment but extend to global climate
regulation as well, as oceans play a critical role in carbon
sequestration.
In addition, these operations often lack stringent oversightand can obscure the true origins and journey of diamonds,
resulting in significant transparency challenges.
Therefore, sourcing diamonds from deep seabed mining
operations is inconsistent with Kering's commitment toenvironmental
sustainability
andbiodiversity
preservation.

© Improve transparency of the diamond supply
chain
Kering is committed to achieving the highest levels oftransparency within its diamond value chain, both for“center” and “mêlée” stones.
In this context, Kering requires its diamond suppliers to:• Work in constructive, pragmatic and mutually-

beneficial partnership with Kering to continuously
improve transparency within their diamond supply
chains• Provide Kering with information about the diamond
origin, starting from the rough dealers. This means
providing information about:oo© Do not source deep seabed-mined diamonds
Diamonds derived from deep seabed mining are notpermitted in Kering’s brands’ supply chains.

oDeep seabed mining poses a significant threat to oceanic
ecosystems, disrupting the delicate balance of marine life.
The process can destroy the habitats of numerous species,
some of which have not yet been fully studied or
discovered, leading to potentially irreversible biodiversity
loss.

o

The activity also stirs up sediment plumes – once
disturbed, these plumes can spread over large areas,
smothering marine life and reducing the ability for light topenetrate the water column, affecting photosynthesis inmarine plants and phytoplankton – the foundation of themarine food web.
Moreover, deep-sea mining releases toxic substances
trapped in the seabed into the water column, leading topotential bioaccumulation of harmful substances inmarine life, which can have a cascading effect up the food

Identity of the rough dealer(s) for“center” stones
Country of origin of the rough (at thispoint, we accept a mix of countries,
provided that all countries in the mix are
acceptable to Kering)Names of the cutter(s), polisher(s) andany other suppliers providing treatments
for “center” stones
Evidence ensuring application of
ethical standards or initiatives
throughout the supply chain (e.g., theKimberley Process, the World DiamondCouncil System of Warranties, RJC
certifications, the De Beers Best
Practice Principles or other relevant
standards and private initiatives suchas the CanadaMarkTM or the
Forevermark).

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Standards for Raw Materials – Diamonds

REQUIREMENTS FOR 2025

Investigate emerging traceability solutions© Allow inspection and auditing

Emerging technologies are paving the way for higher
traceability in the diamond industry, at least from cut andpolishing stages (not always back to the mine). Techniques
using unique identifiers can be applied to diamonds at
different stages of the supply chain, confirming theirprovenance. Advanced scanning techniques and data-based
platforms can trace the entire journey of a diamond, providing
accurate and reliable information about its origin andownership throughout its lifecycle. Blockchain technology is a
powerful tool which can offer secure and private ways to track
and authenticate diamonds across the supply chain, often
backed by independent audits.

Diamond suppliers will:

Such technologies have transformed the industry, and Kering
very much encourages suppliers to adopt these advanced
methods and set new benchmarks for accountability andtransparency in their operations.

© Comply with Kering business ethics
Kering eschews corruption in all its forms. As such,diamond suppliers will:• Comply with all relevant laws in all their activities,

including (but not limited to) those relating to anticorruption, anti-money laundering and counterterrorist financing• Never knowingly supply diamonds or diamondproducts to Kering or its brands that have been subject
to – or involved in – any form of bribery or corruption• Actively avoid any conflicts of interest or the exercise
of illegitimate influence when doing business with
Kering and its brands, including as a result of payments
and gifts made or received, pre-existing relationships
or other means• Inform Kering as soon as it becomes aware of any
incident in which it has not met or is not likely to meetthese requirements.

© Make sure human rights are respected in theentire diamond supply chain
Kering is committed to respecting internationallyrecognized human rights, both in its own businessactivities and through its business relationships.
Diamond suppliers commit to continuously provide Keringand its brands only with diamonds (including diamonds
contained in products) that are not associated with humanrights abuses during mining, trading and cutting/polishing.
Suppliers commit to provide appropriate evidence tosupport these claims.

• Allow Kering, its brands and their representatives tocheck the supplier’s adherence to the Kering Standard
for diamonds, including by physical and documented
inspections• When requested, provide, if applicable, their latest RJC
Certification reports, including major and minor noncompliances sections• Correct any identified instances of non-compliancewith the Kering Standard for diamonds and enhanceexisting practices where Kering and its brands haveidentified non-conformities but have decided not toexercise their resulting right to terminate contractual
relations

Actively participate in the W&JI2030
As one of the two founders of the Watch & Jewellery
Initiative 2030 (W&JI2030), Kering expects that all
suppliers to its brands align with the initiative's mission
and actively participate in it. The primary objective of thiscollaboration is to make significant contributions toward
establishing a completely sustainable supply chain forwatches and jewelry. This objective will be pursued
through the implementation of three core pillars: building
climate resilience, preserving resources and fostering
inclusiveness. Through stringent supplier adherence tothese action pillars, Kering aims to galvanize the entire
industry towards sustainable transformation.

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Standards for Raw Materials – Diamonds

ADDITIONAL BEST PRACTICES

Improve traceability one step further
Suppliers commit to work with Kering and its brands toensure sourcing from supply chains with the highest levelof standards and traceability verification. This includes
working towards strict requirements applying at
strategic levels of the supply chain.
From 2025, diamond suppliers will provide Kering withall the information hereunder, additional to the list in in theparagraph “© Improve transparency of the diamond supply
chain” under “requirements for 2025”:• Country of origin of the rough (at single country level,

not a mix of countries)• Exact name of the mine and information about theirenvironmental and social practices

the potential of lab-grown diamonds. In this evaluation,
Kering requires detailed information about production
processes, including energy use, chemical usage, andproduction locations.

Minimize the environmental
diamond industry

impactsof

Kering supports all initiatives targeted at safeguarding
biodiversity and the natural habitat potentially affected bymining operations. Remediation and rehabilitation ofnatural flora and fauna will be considered, in future supply
chain developments, as a key criterion in Kering brands’
sourcing decisions.
Additionally, Kering expects suppliers to present theirdecarbonization roadmaps based on scientific approaches
such as SBTi.

• For all the cutter(s), polisher(s) and any other suppliers

providing treatments for “center” stones: their nameand exact location, their environmental and social
impact• The traceability system shall be available at the
granularity of each stone, so that a single diamond canbe associated with an environmental and social
protocol along the value chain.

Explore lab-grown diamonds
Lab-grown diamonds are a relatively recent developmentin the gemstone industry. These diamonds, first producedin the 1950s for industrial purposes, are now becoming
increasingly prevalent in the jewelry sector. They are
created through two primary methods: High-Pressure
High Temperature (HPHT) and Chemical Vapor Deposition(CVD). The HPHT method replicates the natural conditions
under which diamonds form in the Earth's mantle, while
CVD grows diamonds in a vacuum chamber filled withcarbon-rich gases.
These diamonds hold considerable appeal because they
possess the same physical, chemical, and opticalproperties as mined diamonds, yet their production has
the potential of being more environmentally and socially
responsible. Creating diamonds in a lab eliminates theneed for environmentally damaging mining processes andsidesteps issues related to worker exploitation and conflictdiamonds.
However, the environmental footprint of lab-growndiamonds can vary depending on the production method
and the source of energy used. As a general rule, CVD
tends to be less energy-intensive than HPHT. Some labs
are powered by renewable energy and strive to minimize
their carbon emissions, while others may not prioritize
sustainability to the same extent. Therefore,
understanding the environmental impact of each labgrown diamond producer is crucial.
In response to these developments, Kering is evaluating

Investigating recycled diamonds
Kering is interested in investigating potential
opportunities in the realm of recycled diamonds. We
recognize that using diamonds that have already been
extracted and exist on the market could be a strategic
way to reduce the environmental footprint associatedwith diamond sourcing, given how resource-intensivemining is.
However, it is also particularly challenging in the context
of diamonds to verify the history of the stones, which canlead to a variety of issues with quality and authenticity, as
well as lack of transparency on potential environmental
and social impact. In addition, restricting sourcing torecycled diamonds would significantly lower the possible
selection (sizes, types, quality) available to our brands, andpossibly also limit their quality. The lack of a chain ofcustody also makes it difficult to guarantee that recycled
diamonds have not been linked to unethical practices atsome point in their history; and given their value, thepotential for fraud is significant.
In this context, Kering wishes to explore appropriate
solutions to tackle this problem and possibly enable
brands to responsibly source recycled diamonds.

110Standards for Raw Materials – Diamonds

ADDITIONAL BEST PRACTICES

Avoid sourcing shallow water-mined diamonds
Recognizing the unique challenges and higher
environmental risks associated with shallow water mining,
Kering requires suppliers to demonstrate a higher standardof due diligence, transparency and traceability for any
diamonds obtained through shallow water mining.
Shallow water mining, though not as immediately
destructive as its deep-sea counterpart, still posesconsiderable threats to marine ecosystems. The constantdisturbance caused by such operations can negatively
impact coastal habitats, potentially leading to habitat
destruction and erosion and disrupting the habitats ofspecies both known and yet undiscovered. This process canhave long-term effects on local biodiversity and ecosystembalance.
Moreover, mining in these environments can disturb the
sediment on the seabed, which can create plumes that canspread over large distances, suffocating marine life andreducing light penetration into the water. This disturbancecan significantly affect photosynthesis in marine plants andphytoplankton, vital for maintaining the health and functionof the marine food web.
For these reasons, Kering mandates a comprehensive
evaluation process for any diamonds sourced throughshallow water mining. This process must include a complete
mapping of the entire supply chain, encompassing every
stage from mining to cutting, polishing, and any trading
steps. Critically, it involves assessing the ecologicalimplications of shallow water mining at the specific sites
where the diamonds used are extracted, with support froman independent third-party expert.
Sourcing diamonds derived from shallow water mining will
only be permissible if evidence of this comprehensive
evaluation can be provided. This must include the results ofthe ecological assessment and documentation of measurestaken to mitigate any potential negative impacts at mining
level.

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Standards for Raw Materials – Diamonds

BOX 1: International organizations covering various aspects of the diamonds industry
Responsible Jewellery Council (RJC)
The RJC is a non-profit standards setting and certification organization, composed of over 1000 member
companies spanning from mine to retail. Members commit to and are independently audited against the
RJC Code of Practices – an international standard on responsible business practices for diamonds, gold andplatinum group metals.
The RJC works with multi-stakeholder initiatives on responsible sourcing and supply chain due diligence.
The RJC Code of Practices (COP) defines the responsible ethical, human rights, social and environmental
practices that all certified RJC members must adhere to.
The RJC is a globally recognized organization which has set standards for the watch and jewelry industry. As
such, their work requires continuous improvements.

Kimberley Process
The Kimberly Process (KP) is a joint governmental, industry and civil society initiative to stem the flow ofconflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate
governments.
• The Kimberly Process started when Southern African diamond-producing states met in Kimberley, South

Africa, in May 2000, to discuss ways to stop the trade in conflict diamonds and ensure that diamondpurchases were not financing violence by rebel movements and their allies seeking to undermine
legitimate governments.
World Diamond Council (WDC)
The primary objective of the WDC is to represent the diamond industry in the development andimplementation of regulatory and voluntary systems to control the trade in diamonds embargoed by theUnited Nations or covered by the Kimberley Process Certification Scheme. The WDC:
• Has established the System of Warranties which extends the effectiveness of the Kimberley Process

beyond the export and import of rough diamonds• Assists the Kimberley Process by managing the resources of the diamond industry to provide technical,

financial and other support• Represents the industry in the Kimberley Process, the committees of the Kimberley Process and otherrelevant forums• Serves as the central point of communication regarding the actions taken to ensure compliance with theregulatory and voluntary systems to prevent the trade in conflict diamonds

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Standards for Raw Materials

113

COLORED GEMSTONES

Standards for Raw Materials – Colored Gemstones

Several Kering brands use colored gemstones in their jewelry and watches. Colored gemstones aresome of the most renowned precious stones in the world, with both high financial and symbolic values
attributed to them. According to the United Nations, the colored gemstones’ global industry accounts
for $10-12 billion USD per year in trade. Furthermore, colored gemstone jewelry is estimated torepresent around 10% of the total value of jewelry sales. Colored gemstones come in many
classifications, varieties and colors, with different quality and value. They are cut, treated, and thensold in different hubs around the world, and, during this period, they can change hands several times
before being set within a piece of jewelry. On the mining and production side, this takes place in atleast 47 countries and on all continents, excluding Antarctica, and 80% of colored gemstones are
extracted by artisanal and small-scale miners according to UN estimates. The extraction process ismostly informally accomplished, with limited governance and in challenging working conditions. The
remaining estimated 20% of colored gemstones come from industrial mining companies.
The colored gemstones industry has been in the media spotlight in the past few years, mainly becauseof risks linked to human rights abuses and labor issues, environmental impacts, political risks andcorruption, commercial risks, and association with conflicts. The diverse, opaque and largely
unregulated nature of the colored gemstones industry makes it very difficult for brands to obtain fulltraceability on the origin of the colored gemstones they use in their jewelry, and this is a criticalchallenge that must be overcome. The Kering Standard for colored gemstones has been developed toaddress this need and in order to ensure a sustainable and responsible colored gemstones supply chain
for the Group.

Kering suppliers are actively encouraged to engage with
their colored gemstone supply chain on greatertransparency and improved environmental and social
impact, both for center stones and also for “mêlées”
colored gemstones.
This Standard covers emeralds, rubies, sapphires(although generally referred to as precious stones), and allother ornamental or transparent stones (e.g., citrine,
quartz, aquamarine, onyx, amethyst, etc.).
Although most of the gemstones used by Kering brands
are natural, the provisions in this Standard also apply to
any lab-grown colored gemstones used.
This Standard does not cover natural diamonds, which arecovered by the Kering Standard for Diamonds.

In summary, the key principles that
underpin the Kering Standard for colored
gemstones are:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment, as
set out in the Suppliers’ Charter ofthe Kering Code of Ethics.
• Ensuring that all colored gemstones
purchased by the brands come fromlegal and responsible sources andhave not been used to fuel conflict.
• Implementing best practices for thedue diligence process across thecolored gemstones supply chain,including beyond primary suppliers
to identify the different layers of the
supply chain, and assess the risks.
This includes following the OECD Due
Diligence Guidance for Responsible
Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas• Collaborating with all actors of thecolored gemstones supply chain todevelop and implementtransparency systems across thevarious tiers of the supply chain,from mine to store

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REQUIREMENTS FOR 2025
© Ensure alignment with a robust code ofpractices for emeralds, sapphires, and rubies
In their commercial relationships with colored gemstones
suppliers, brands will require the RJC Code of Practices(COP) certification from their direct suppliers of emeralds,
sapphires, and rubies, with the aim of ensuring responsible
practices across the supply chain. For other colored andtransparent gemstones, Kering will actively collaborate with
the Colored Gemstones Working Group to evaluate anddevelop improved frameworks and certifications thatenable responsible sourcing.

© Implement due diligence within colored
gemstones supply chains
Kering believes that the path to a responsible andtransparent supply chain starts with an appropriate anddetailed due diligence process. The due diligence process
must be adapted to the specificities of the supply chain
and the players involved (nature, size, location, etc.). Due
diligence is designed to reduce risks for Kering’s brands’
supply chains, particularly in relation to regulatory
requirements, human rights violations, child labor,
health and safety, environmental impact and criminal orconflict activity. Kering brands will implement best practices
in their colored gemstones’ due diligence process incompliance with the OECD Due Diligence Guidance and the
RJC recommendations. Kering brands will also encourage
their suppliers to implement due diligence in their supply
chains. Therefore, primary suppliers will be required tocarry out similar due diligence exercises on their
suppliers and agree to share the results with Kering andits brands as requested.

Develop transparency of the colored
gemstones supply chain
Kering is committed to achieving transparency within its
colored gemstone value chain. In this context, colored
gemstones suppliers will:• Work in constructive, pragmatic and mutually-

beneficial partnership with Kering to continuously
improve transparency within their colored gemstone
supply chains.
• Make all reasonable efforts to provide Kering withinformation when requested about the origin and thejourney of the colored gemstones that they supply to
Kering brands, and the due diligence system applied.
This information may include, but is not limited, to thefollowing examples:o© Who has supplied the stone (this applies
both to directly and indirectly sourced stones,i.e., direct purchases from stone suppliers, andpurchases of finished products containingcolored gemstones)oo

Who has cut and polished the colored gemstones
and where.
What ethical standards or initiatives have been
applied to the mining and processing of thecolored gemstones and for the people who
handle them during each step of the supply
chain (i.e., RJC COP certification or otherrelevant standards and private initiatives as
the case may be).

© Comply with Kering business ethics
Kering eschews corruption in all its forms. As such,colored gemstones suppliers will:• Comply with all relevant laws in all their activities,

including (but not limited to) those relating to anticorruption, anti-money laundering and counterterrorist financing.
• Never knowingly supply colored gemstones or
products containing colored gemstones to Kering or its
brands that have been subject to or involved in any
form of bribery or corruption.
• Actively avoid any conflicts of interest or the exercise
of illegitimate influence when doing business with
Kering and its brands, including as a result of payments
and gifts made or received, pre-existing relationships
or other means.
• Inform Kering as soon as the supplier becomes awareof any incident in which it has not met, or is not likely
to meet, these requirements.

© Ensure human rights are respected in theentire colored gemstones supply chain
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its own
business activities and through its business
relationships. Colored gemstone suppliers commit to
only providing Kering and its brands with colored
gemstones, and including colored gemstones containedin products, that are not associated with any humanrights abuses during mining, trading, treatment andcutting/polishing. Suppliers commit to providing
appropriate evidence to support these claims.

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REQUIREMENTS FOR 2025

© Allow inspection and auditing

Actively participating in the W&JI2030

Colored gemstones suppliers will:

As one of the two founders of the Watch & Jewellery
Initiative 2030 (W&JI2030), Kering expects that all
suppliers to its brands align with the initiative's mission
and actively participate in it. The primary objective of thiscollaboration is to make significant contributions towards
establishing a completely sustainable supply chain forwatches and jewelry. This objective will be pursued
through the implementation of three core pillars: building
climate resilience, preserving resources and fostering
inclusiveness. Through stringent supplier adherence tothese action pillars, Kering aims to galvanize the entire
industry towards sustainable transformation.

• Allow Kering, its brands and their representatives tocheck the supplier’s adherence to the Kering Standard
for colored gemstones, including by physical anddocumented inspections.
• When requested, provide, if applicable, their latest RJC
Certification reports, including major and minor noncompliances sections.
• Correct any identified instances of non-compliancewith the Kering Standard for colored gemstones withina case-by-case determined timeline and enhanceexisting practices where Kering and its brands haveidentified violations but have decided not to exercise
their resulting right to terminate contractual relations.

Minimize the environmental impacts ofcolored gemstones extraction
Kering supports all initiatives targeted at safeguarding biodiversity and natural habitat potentially affected by mining
operations. Colored gemstone mining can have harmfulenvironmental impacts such as:• Soil erosion and land degradation• Decline in water quality, spills, floods and destructionof aquatic ecosystems• Effects on wildlife and biodiversity (habitat loss, spreadof disease to animal species, population decline)
Land reclamation and rehabilitation (restoring topsoil,
eliminating harmful waste), and remediation andrehabilitation of natural flora and fauna (planting
appropriate vegetation and native plants) will beconsidered in future supply chain developments as a key
criteria in Kering brands’ sourcing decisions.

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ADDITIONAL BEST PRACTICES

Improve transparency and traceability one stepfurther

Investigate innovative, circular materials withstone-like qualities

Suppliers commit to work with Kering and its brands toensure sourcing from supply chains with the highest levelof standards and traceability verification. This includes
working towards strict requirements applying at
strategic levels of the supply chain.

Kering actively seeks to explore innovative materials
that can be repurposed from industrial by-products into
precious materials, exhibiting properties akin toprecious stones (e.g., transparency, brilliance, luster,fire, fluorescence, hardness, quality, etc.). This
exploration is grounded in our dedication to theprinciples of circular economy, where potential waste
streams from various industries (e.g., automotive,
pharmaceutical, food, construction) are valued andrepurposed as precious materials for jewelry
applications. A case in point is Boucheron’s recent
groundbreaking initiative to use Cofalit, using a material
typically used in motorway embankments. Thistransformation of Cofalit into a bold, precious jewel
element in the Maison’s collections showcases ourcommitment to innovative material exploration andrehabilitation, simultaneously breathing new life into
otherwise underutilized resources.

From 2025, colored gemstones suppliers will provide
Kering with all the information hereunder, additional to thelist in in the paragraph “Develop traceability transparency ofthe colored gemstones supply chain” under “requirements for2025”:• For all the cutter(s), polisher(s) and any other suppliers

providing treatments: their name and exact location,
their code of practice certification(s)• Country of origin of the rough (a mix of countries is
acceptable if an individual country origin is notpossible)
Emerging technologies are enabling greater traceability ofcolored gemstones supply chains. Kering actively
encourages suppliers to investigate such technologies totrace the gemstones across different steps of the supply
chain.

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Standards for Raw Materials – Colored Gemstones

BOX 1: International organizations covering responsible sourcing applicable to thecolored gemstones industry
The following are standards, initiatives and international organizations applicable to various aspects of thecolored gemstones industry which are considered the most likely to fulfill the Minimum Requirements andAdditional Conditions of the Kering Standard for Colored Gemstones. Please note that this list will be
periodically reviewed and updated.
Responsible Jewellery Council (RJC)
The RJC is a non-profit standards setting and certification organization, composed of over 1000 member
companies spanning from mine to retail. Members commit to and are independently audited against the
RJC Code of Practice – an international standard on responsible business practices for colored gemstones,
gold, silver and platinum group metals.
The RJC works with multi-stakeholder initiatives on responsible sourcing and supply chain due diligence.
The RJC Code of Practices (COP) defines the responsible ethical, human rights, social and environmental
practices that all certified RJC members must adhere to.
The RJC is a globally recognized organization which has set standards for the watch and jewelry industry. As
such, their work requires continuous improvements.
The World Jewellery Confederation (CIBJO)
The primary objective of the CIBJO (Confédération Internationale de la Bijouterie, Joaillerie et Orfèvrerie) is
to encourage harmonization, promote international cooperation in the jewelry industry, and to consider
issues that concern the trade worldwide. It represents the interests of all individuals, organizations andcompanies earning their livelihoods from jewelry, gemstones and precious metals. To advance the goal ofuniversal standards and terminology in the jewelry industry, CIBJO developed its Blue Book system which
includes the CIBJO Gemstone Book. This involves a definitive set of standards for the grading, methodology
and nomenclature of diamonds, colored gemstones, pearls and other organic materials, precious metals andgemological laboratories.
The American Gem Trade Association (AGTA)
The AGTA is an association of United States and Canadian trade professionals dedicated to promoting the longterm stability and integrity of the natural colored gemstone and cultured pearl industries. The association pursues
its goals through the combined use of educational programs, publicity, industry events, government andindustry relations, and printed materials for both the trade and consumer.
The International Colored Gemstone Association (ICA)The ICA is a non-profit organization, specifically created to benefit the global colored gemstone industry’s global
network. It works to develop a common language for promotion and consistent business standards necessary
to improve international communication and trade of colored gemstones.

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Standards for Raw Materials

OTHER RAW MATERIALS

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Standards for Raw Materials – Other Raw Materials

Although the following materials are sometimes present in Kering supply chains, they are used in small
quantities and therefore are not included as individual ‘stand-alone’ standards. Nevertheless, Kering
expects adherence to the following principles and requirements.
NOTE: Kering has a strict ban on sourcing any wild species that appear on the IUCN Red List, and arelisted as near-threatened, vulnerable, endangered, or critically endangered.
All materials must come from producers respecting human rights and social requirements as set out inthe Kering Code of Ethics. No sourcing activities should be linked with deforestation, the conversion ordegradation of natural ecosystems.

MohairPlatform for Sustainable Natural Rubber (GPSNR) andthe Forest Stewardship Council (FSC)• Synthetic rubber shall follow the same guidelines as
outlined in the Kering Standard for Synthetics• Choose mohair that carries the RMS certification

Bamboo and Cork

Animal-based Materials(Responsible Mohair Standard)• Alignment with Kering Animal Welfare Standards for
Goats• Preference for mohair with recycled content, certified
according to the GRS certification• Choose alpaca that carries the RAS certification(Responsible Alpaca Standard)• Alignment with Kering Animal Welfare Standards• Preference for alpaca with recycled content, certified
according to the GRS certification• Bamboo and Cork shall strictly follow the samerequirements as outlined in the Kering Standard forPaper and Wood regarding chemical management, useof recycled materials and commitment to sustainable
management through FSC-certified products. Althoughbamboo is a plant and not a tree, it can follow thesame recommendations as the wood and paper
standard. Recycled bamboo exists, and FSC
certification applies to bamboo (and is quite common).
Thus, Kering expects bamboo to follow the samerequirements of the Kering Standard for Paper andWood

All other animal-based materials

Linen• Alignment with the fundamental principles for Animal
Welfare as outlined in the Kering Animal Welfare
Standards, throughout all the different phases of ananimal’s life (catching, maintaining, breeding, raising,transporting, handling, and slaughtering)• Kering will require information about the origin of thematerial such as: name of farms or herding
cooperative, name of abattoir (if applicable), name ofprocessing facility (if applicable)• Kering will evaluate certifications or standards if
available and as needed• Horns from farmed animals (cattle, goats, etc) should
only originate from sources that are aligned with the
Kering Animal Welfare Standards• Whether conventional or organic, linen has aninherently very low environmental footprint and Kering
brands are encouraged to increase their use of linen(for example in blends) as much as possible, to improve
the sustainability of their products. Availability oforganic certified linen is currently very low – flax is a
short-cycled rotation crop and to obtain organic
certification farmers need to be aligned with thestandard for all the crops in the rotation. Wherever
possible, sourcing GOTS certified linen is preferred but
difficulties in sourcing certified linen should not be areason not to source it; even conventional linen is apreferred material• There are key regenerative practices in flax cultivationthat farmers should be encouraged to adopt andcompanies along the supply chain should communicate
these expectations and support their implementation:

AlpacaPlant-based Materials
Rubber/Latex• Whenever possible, natural rubber shall follow thesame sourcing principles described in the Kering
Standard for Paper and Wood. More specifically Kering
will choose suppliers actively engaged with the Globalo Dew retting (preferred to water retting, which
requires water and wastewater treatment)o Diversified crop rotationo Cover cropping, using a diversity of species
o Low to no tillage

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o Preserving/restoring hedges and permanent
meadows in the landscapeo Eliminating chemical fertilizer and pesticide use –while increasing uptake of regenerative practices(including the ones above) to improve soil and plant
health and using organic certified intrants during thetransition where they may be needed. Where
possible, organic certification is preferable
o Collaborating with other companies and sectors to
support the uptake of organic certified andregenerative practices at farm level – covering all
crops in the rotation, beyond flax alone

paid to the maximum sustainable yield of the oysterfarm• Suppliers might also be requested to provide
information on how the farms stimulate thepearl-formation process, and whether the pearls aretreated with any bleach or chemicals• Suppliers must ensure that pearl farms adhere to safe
working conditions and provide fair wages to regularand seasonal workers• Kering has a preference for sourcing from pearl
producers who have attained MSC (or ASC)certification, such as the Pearl Producers Association ofAustralian South Sea Pearls

Pearls and Mother of Pearl

Other marine and freshwater products• When sourcing pearls, suppliers may be required toprovide information on the pearl farm to ensure thefarms (a) respect local regulations, (b) manage waterflows (and potential effluent) sustainably, (c) manage
potential disease risk in a manner that does notdamage surrounding ecosystems. For farms thatharvest and ‘seed’ wild oysters strict attention must

• Preference for products that carry Marine StewardshipCouncil (MSC) or Aquaculture Stewardship Council(ASC) certification• Given the precarious status of corals around the world,
and their critical role in ensuring proper marine
ecosystem functioning, Kering bans the use of coralStandards for Raw Materials – Other Raw Materials

STANDARDS FORMANUFACTURING
PROCESSES

Standards for Manufacturing Processes

TANNING123

Standards for Manufacturing Processes – Tanning

Although leather is often considered a natural product since it is derived from animals, the chemicals
used in tanning can add potentially hazardous substances to the natural hides. These substances
combined with wastewater must be properly managed in order to avoid environmental and healthimpacts. Continuous monitoring conducted by Kering in Italy showed that at least 5% of chemical
products used in tanneries still contain hazardous substances that can be toxic, carcinogenic, or disrupt
hormonal systems in people/animals; and greener alternatives exist for tanning. Additionally, tanning
is a process that uses large amounts of water and energy, often in larger quantities than needed when
optimally managed tanning process requirements. Kering is tackling this issue by encouraging suppliers
to adopt best available technologies using processing equipment and management and by requestingthat suppliers provide environmental Key Performance Indicators (e-KPIs) for their production
processes. Waste produced during tanning is another issue and Kering expects suppliers to ensure
waste is properly managed - to recycle as much waste as possible, to properly segregate and treat
chrome containing waste and hazardous wastes. Furthermore, the tanning process has a high potential
for health and safety risks in all steps of the tanning process from raw material storage to finishing andeffluent treatment. Risks related to chemicals, machinery, workplace conditions and generalemergencies must be reduced. Kering works with suppliers to audit all facilities to assess adherence tothe Kering Standards.

The requirements outlined below for the Kering Standard
for Tanning are focused on the different tanning steps
leading to wet-blue/wet-white, crust and finished leather.

In summary, the key principles that
underpin the Kering Standard for
Tanning are:

Additional Kering Standards are available for the sourcingof hides (See Kering Standard for Hides and Skins for
Leather and Kering Standard for Precious Skins).

• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Eliminating the use of potentiallyhazardous chemicals• Adopting best practices foroccupational health and safety for
employees• Improving energy and water
efficiency levels, and being able tomeasure them throughout theprocesses• Properly treating waste andwastewater• Promoting recycling and upcyclingof waste and residues• Adopting environmental andsocial certification schemes

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REQUIREMENTS FOR 2025

© Comply with national legislation
It is legally mandated that tanneries strictly comply withnational and local legislation, in particular regarding theenvironment as well as health, safety and the welfare ofpermanent and occasional workers at the facility.

© Comply with human rights and social
expectations as set out in the Kering Code of
EthicsKering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
To this end:
• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to be audited forcompliance with the Kering Suppliers’ Charter which
covers key ethical, social, environmental and security
aspects in line with International Standards. The audits
are conducted by the Kering Supply Chain Audit Team
(KSCAT) at Kering brands’ suppliers. These audits, inaddition to supplier engagement activities, areintended to provide a risk management framework toassess and address key sustainability concerns in the
supply chain. Suppliers are required to pass the audit
or address non-compliances in a reasonable
timeframe. More information is available in Appendix
Social Compliance and Enforcement of the Kering Codeof Ethics in Supply Chain.

© Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested for all finishedleather from suppliers who have full responsibility for the

product, as well as for possible contaminations occurring
up-stream in the production process. All Kering suppliersmust guarantee PRSL compliance of their products andensure this through product testing. Moreover, Kering
oversees an internal testing program of products as anadditional auditing measure.
The PRSL is an appendix to your supplier agreement(contract or purchasing terms and conditions) with Kering
brands. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

© Do not use leather coming from unknown
tanneries and ensure traceability through thetanning process up to the origin of the hides
Kering aims to have full visibility of its leather supply chain
to minimize risks related to environmental and social
aspects like water/soil pollution, improperly managed
waste, and forced labor. Kering is working with its
suppliers to progress, step by step, towards moretransparency. For this reason, Kering brands shall notpurchase finished leather and skins from traders unable orunwilling to disclose where the hides and skins are sourced(upstream traceability as far as the country of origin).
Traceability must be ensured upstream of the tannery(See: Kering Standard for Hides and Skins for Leather) andthrough the whole tanning process. Tanneries shall ensure
full traceability from the raw hide or skin to the finishedleather, whether all processes occur onsite or if
manufacturing processes occur off-site. Traceability
should be pursued, from the first stage to the last:• By lot (bulk purchase), even for lots containing

different origins (mass-balance)• By skin, when considered particularly at risk, including

split leather
Externally verified traceability procedures are preferable
to self-declarations. Certification schemes for traceability
preferably ICEC and the Leather Working Group (see BOX
2). For recommended schemes on traceability upstream
from the tannery, see Kering Standard for Hides and Skins
for Leather.

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REQUIREMENTS FOR 2025

Apply the precautionary principle fornanotechnologies
Kering follows the precautionary principle and will not use
any nanotechnology applications unless such applications
are analyzed and proved to have no potential impact onhuman health and the environment, including anevaluation of end-of-life impacts. Suppliers are requested
to proactively share information on nanotechnology usesin their manufacturing. More information is available inAppendix: Summary of Kering Chemical Management
Policy.

© Scale-up offer of metal-free tanned products
Kering is pushing towards a decrease of metal tanning in
an increasingly broad variety of products. Kering supports
using alternative tanning techniques that:• Enable products to be considered as “metal-free”

and/or “chrome-free” according to EN 15987:2015• Have a lower environmental impact on the whole

product life cycle than conventional chrome tanning
Suppliers shall recommend to Kering brands alternativetanning techniques that comply with the above
expectations with no compromise to the technical,
aesthetic and economic performance of the final product.
Kering can support this process by carrying out a life-cycle
assessment (LCA) of the alternative tanning technique incase a LCA is not yet available.
Kering is committed to having all leather products metalfree by 2025, and suppliers for Kering brands shall work
towards this.
Tanneries are expected to progressively convert theirfacilities and grow the percentage of metal-free articles toreach 100% metal-free production.

© Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring that all hazardous
chemicals have been eliminated from production
processes. To this end, Kering has adopted a
Manufacturing Restricted Substances List (MRSL). As ofJanuary 1st, 2020, suppliers must ensure that thechemicals listed in the MRSL are not intentionally used in
the different process steps of production, should thisprocess step be taking place at the supplier’s location or
upstream in the supply chain. To this extent, suppliers shall

implement a chemical management system andinvestigate their supply chain to ensure compliance.
Furthermore, the supplier should work towards
conformance to new releases of the MRSL, in order tomeet new MRSL requirements by the communicatedtransition period. The latest release is MRSL V.3.0. Please,refer to the Appendix: Summary of Kering Chemical
Management Policy.
For tanneries in particular the main recommendations are:
• Implement a strong chemical management program inorder to identify and substitute potential chemical
products containing MRSL substances• Identify finishing products containing intentional use of
MRSL VOCs and substitute them with MRSL compliant
alternatives, if necessary, cooperate with chemical
suppliers to identify or implement effective
alternatives that do not contain VOCs included in the
Kering MRSL
• Identify or implement alternatives fortetrachloroethylene-based degreasers• Through good chemical management, routinely screendyes and replace any dyes identified as non-MRSL
compliant with dyes that conform to the Kering MRSL
• Substitute all chemical products containing PFC’s© Provide Environmental Key Performance
Indicators (e-KPIs)
Kering is monitoring its environmental impact across its
supply chain. For this reason, suppliers shall provide Keringwith e-KPIs specific to their production. This means
working on measuring and monitoring the use ofresources of their tannery, including energy and water
consumption, water quality and waste production. Since
2021 Kering established it vendor portal, 3C, where
suppliers are requested to indicate the main
environmental KPIs for their processes, as well as the bestpractices they use.

© Improve the environmental performance ofthe facility
Facilities are expected to build on the e-KPIs (as mentioned
above) and implement systems in order to improve theirenvironmental performance (e.g. LCAs on specificproducts, continuous energy measuring in selected
departments, etc.).

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REQUIREMENTS FOR 2025

Minimize wastewater and align with thehighest wastewater quality standards
Suppliers shall be able to provide Kering with informationon the quality of their wastewater. In all cases, wastewater
quality shall align with local regulations and with thestandard set by Zero Discharge of Hazardous Chemicals(ZDHC) in their ZDHC Wastewater Guide. Please, refer tothe Appendix: Summary of Kering Chemical Management
Policy. Kering encourages suppliers to improve
wastewater management in three areas by:
1. Reducing the amount of water and chemicals usedthrough the processes and integrating measuresindicated above
2. Improving the effectiveness of wastewater treatment
in cleaning water from the pollutant load
3. Improving the reuse and recycling of water towards afully circular loop of industrial water and, where
possible, also of additives

Aim for the best certification schemes
All tanneries producing wet-blue, pickled and/or finishedleather need to have some verification of theirenvironmental performance. Kering prefers third-party
certifications but, as of today, there is no accredited global
scheme that is specific for tanneries.
Today, the most common scheme is the Leather Working
Group (LWG) (see BOX 2 LWG audit protocol). We
encourage the tanneries to be verified against LWG
standards until there is an accredited verification schemethat could guarantee the most efficient use of resources(water, energy, chemicals, etc.) at processing level and amore standardized approach to harmonizing theimplementation of audits at global level. Tanneries shall beready to share the audit report upon request from Kering.
Additionally, tanneries should work to achieve a thirdparty verified environmental management system with
ISO 14001 certification, an energy management systemwith ISO 50001 certification, a health and safety
management system with ISO 45001 certification andSA8000 certification for social responsibility.

© Work with Kering & brands on phasing out
single use plastics
Plastic is a versatile and important material that may be
best for some purposes. However, plastic presents
sustainability challenges across its lifecycle as described in
the Kering Standard for Plastics. Packaging uses plastics
too much and by default. This is increasing awareness that
this must change and as companies are unable to monitor
where plastic packaging may end up, and as it takes a very
long time to degrade and decompose, there is also a riskthat discarded plastic packaging pollutes the environment
or oceans.
For these reasons, Kering is actively working on stopping
all single use plastics in its value chain, such as inpackaging, protection and transport.
Suppliers shall work on:• Removing all unnecessary plastic• Using natural materials such as certified cardboards,

paper or organic cotton instead of plastics where
possible (see Kering Standards for Raw Materials)• If plastic cannot be replaced, and only for packaging
and protection that are not consumer facing, use 100%
recycled content plastic and ensure the plastic is
recyclable.

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ADDITIONAL BEST PRACTICES

Set a Science Based Target for climate

Target 100% renewable energy

Suppliers are invited to adhere to the Science Based
Targets initiative (SBTi) initiative a partnership between
CDP, the United Nations Global Compact, World
Resources Institute (WRI) and the Worldwide Fund for
Nature (WWF). Through this initiative, companies willingto play their part for Climate Change, commit to a path of
reduction of their Scope 1 and Scope 2 emissions, withclear intermediate and final targets aimed at reducing
their greenhouse gases emissions. The SBTi recently
developed a streamlined pathway for Small and Medium
Enterprises that corresponds with the size of many Kering
suppliers, and provides external recognition of the efforts
made by suppliers.

Suppliers are encouraged to aim for 100% renewableenergy. In processing, such a target can be achieved by:

Implement best available techniques fortanning
Environmental performance is key for more sustainabletannery operations. At the European level, the Best
Available Techniques (BAT) Reference Document for theTanning of Hides and Skins gives a benchmark fortanneries’ environmental performance. It also explains
how to integrate the control of air, water and soil pollution
caused by the tanning of hides and skins.
To optimize their environmental performance, tanneries
shall:• Measure and monitor environmental impacts throughe-KPIs• Evaluate environmental performance against the BAT

framework and take corrective actions if performancelevels are low compared to BAT Standards• For all new equipment, ensure installation complies
with BAT Standards• Use grey water or rainwater sources (rainwater, civil
wastewater, etc.) to limit the use of blue water whenpossible• Installing solar systems on the rooftops and parking

lots of the factory• Setting up a renewable energy contract with the utility

provider or buying and canceling Energy AttributeCertificates covering the total electricity consumption• Electrifying all energy uses where this makes sense. A
fully electric HVAC system based on reversible heatpumps is cost-competitive with conventional fuelboilers. At the same time, hot process water and air for
drying up to 80 °C can be conveniently produced withelectric heat pumps instead of using steam produced
by a steam boiler

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BOX 1: Best available technologies and best practices in tanning

Kering encourages suppliers to continue optimizing technologies and techniques they use to improve
the process both from an environmental and a financial point of view, as indicated in the BREFs (BestAvailable Technologies Reference Documents) on tanning and energy efficiency and proven by specificbest practices. To this aim, several practices and techniques are recommended and Kering encourages
tanneries, where possible, to:• Implement an environmental management system• Install automated dosing systems for chemicals and water, and monitoring systems for water andenergy• Use short floats, reducing water use per batch• Source fresh hides rather than salt-preserved ones, when possible• Conduct fleshing operation in “green” after soaking rather than on limed hides• Apply hair-save dehairing process rather than the standard hair-burn process• Split hides at the limed stage rather than after tanning• Use CO2 in deliming to substitute, partially or totally, the use of ammonium salts• Optimize water consumption in washing phases• Optimize processes through improved control to minimize energy, water and chemicals use• Phase out steam use in favor of hot water• Optimize waste management with waste streams recovery as by-products for other industries• Convert solvent-based finishing formulations into water emulsions ones
• Use HVLP spraying equipment as well as roller coating when applicable to reduce bounce-backwaste and improve transfer efficiency in finishing129

Standards for Manufacturing Processes – TanningBOX 2: Leather Working Group audit protocol

The Leather Working Group (LWG) auditing protocol evaluates the environmental performance oftannery operations and rates the level of raw material traceability. LWG sets guidelines forenvironmental performance of leather manufacturers using a medal rating system with four
performance levels: Gold (85%), Silver (75%), Bronze (65%), and Audited (50%).
LWG audits and certification are conducted by authorized auditors for the LWG environmental / Leather
manufacturer audit protocol.
The LWG Protocol has been developed and reviewed by a multi-stakeholder group including footwear
leather manufacturers, brands, and industry experts. It is peer reviewed by NGO’s including
Greenpeace, NWF, WWF (US) and sustainability and academic institutions. This multi-stakeholder groupaims to develop and maintain a protocol that evaluates tanners' environmental compliance andperformance capabilities and promotes sustainable and appropriate environmental business practices
within the leather industry.
The LWG Protocol is based on a two-day audit by an approved auditor. The audited leather
manufacturer receives a summary report plus detailed audit notes. In addition, the leather
manufacturer becomes a member of the LWG once audited and can give input to the LWG. Key itemsof the audit include:• Subcontracted operations• Social audits• Operating permits• Environmental management systems• Traceability (incoming, outgoing)• Restricted substances, Compliance, CrVI management• Chemical management• Energy consumption• Water usage• Air & noise emissions• Waste management• Effluent treatment• H&S, Emergency plans

130Standards for Manufacturing Processes

TEXTILE PROCESSING
SPINNING, WEAVING, DYEING, PRINTING AND FINISHING

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Despite being considered a “light” industry, the textile industry is a huge consumer of water, energy
and chemicals. Presently, it is regarded as one of the top five most polluting industrial sectors globally.
The main environmental issues in the textile sector are largely concentrated in dyeing and printing,where the largest consumption of water, energy, and chemicals use occur. Spinning and weaving
require significant amounts of energy, such as electricity, and may include the use of chemicals that
require special care and can give rise to significant waste streams.
The program “Clean by Design,” implemented by Kering and the NGO Natural Resources Defense
Council (NRDC) at textile mills in Italy, shows that there are opportunities for reducing consumption ofenergy and water in an economically viable way (an average reduction of 19% by mill, with a return on
investment in less than three years). Rather than imposing specific technological solutions, Kering
encourages suppliers to improve their process knowledge and control through environmental Key
Performance Indicators (e-KPIs) and certifications.
Health and safety issues in the textile industry are extensive and require constant monitoring andmanagement. These issues can include exposure to chemicals, noise, pollution, dangerous substances,and dangerous machinery. Each stage of the process including production of materials, finishing,coloring and packaging contains hazards and impacts that must be mitigated to meet Kering’s
expectations.

132

The Kering Standard for Textile Processing outlined
below is focused on the main textile processing steps.
Additional Kering Standards are available for the sourcingof Cotton, Cellulosic Fibers, Cashmere, Wool, Silk and
Synthetics.

In summary, the key principles that
underpin the Kering Standard for
Textile Processing are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety and theenvironment as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Adopting occupational health andsafety best practices for employees• Improving energy and water
efficiency levels, and measuring
them throughout the process• Properly treating waste andwastewater• Promoting recycling and upcyclingof waste and residues• Adopting environmental and social
certification schemes

Standards for Manufacturing Processes – Textile Processing

REQUIREMENTS FOR 2025

© Comply with national legislation
It is legally mandated that Kering’s suppliers strictly
comply with national and local legislation, in particularregarding environmental issues, as well as health, safety
and welfare of permanent and temporary workers at thefacility.

© Comply with human rights and social
expectations as set out in the Kering Code of
EthicsKering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
To this end:
• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to be audited forcompliance with the Kering Suppliers’ Charter which
covers key ethical, social, environmental and security
aspects in line with International Standards. The audits
are conducted by the Kering Supply Chain Audit Team
(KSCAT) at Kering brands’ suppliers. These audits inaddition to supplier engagement activities are intended
to provide a risk management framework to address
key sustainability concerns in the supply chain. The
suppliers are required to pass the audit or address
non-compliances in a reasonable timeframe. Moreinformation is available in Appendix Social Complianceand Enforcement of the Kering Code of Ethics in Supply
Chain© Do not use PVC (Polyvinyl Chloride) in
Kering’s brands products and packaging
PVC poses several environmental and health threats. From,the chlorine contained in the polymer itself which may
cause the formation of harmful chlorine containing byproducts (e.g. dioxins) during the manufacturing of PVC tothe burning of products that contain PVC. Chlorine byproducts are carcinogenic and extremely dangerous tohuman health, wildlife and the environment.
Because of these risks, Kering set a public target in 2012 of
eliminating PVC from collections and products.
Furthermore, plasticizers have to be added to PVC
polymer to achieve softness and flexibility, properties
needed in textile products and plasticizers commonly
belonging to the category of phthalates. The amount ofphthalates is generally between 30% and 50% by weight ofthe polymer. Phthalates are chemicals with disrupting
hormone characteristics. The toxicity of phthalates on
reproductive systems, as well as other dangerous
endocrine effects, has been known for many years. It isalso well known that phthalates are substances which canmigrate from the PVC materials and come in contact withthe user of the PVC product. For these reasons phthalates
have been included in the Kering MRSL since its firstrelease and are expected not to be used in any stage of the
production processes for Kering Brands products and inany connected activities relating to Kering brands.

© Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring that all hazardous
chemicals have been eliminated from production
processes. To this end, Kering has adopted a
Manufacturing Restricted Substances List (MRSL). As ofJanuary 1st, 2020, suppliers must ensure that thechemicals listed in the MRSL are not intentionally used in
the different process steps of production, whether at the
supplier’s location or upstream in the supply chain.
To this extent, suppliers shall implement a chemical
management system and investigate their supply chain toensure compliance.
Furthermore, the supplier should work towards
compliance with new releases of the MRSL. The latest
version is MRSL V.3.0. Please refer to Appendix: Summaryof Kering Chemical Management Policy for details.

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REQUIREMENTS FOR 2025

© Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested from the
supplier who has the full responsibility of the product, as
well as for possible contamination occurring upstream in
the production process. Each Kering supplier must
guarantee PRSL compliance of its products and ensure thisthrough product testing. Moreover, Kering oversees aninternal testing program of the products as an additional
auditing measure.
The PRSL is an appendix to your supplier agreement(contract or purchasing terms and conditions) with Kering
brands. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

© Work with Kering & brands on phasing out
single use plastics (SUP)
Plastic is a versatile and important material that may be
best for some purposes. However, plastic presents
sustainability challenges across its lifecycle as described in
the Kering Standard for Plastics. Packaging uses too muchplastic and as awareness of the issues has increased, thismust change. Companies are unable to monitor whereplastic packaging may end up, and as it takes a very longtime to degrade and decompose, there is a risk that
discarded plastic packaging pollutes the environment oroceans.
For these reasons, Kering is actively working on removing
all SUP in its value chain, such as in packaging, protection
and transportation.
Suppliers shall work on:• Removing all unnecessary plastic• Using natural materials such as certified cardboards,

paper, or recycled cotton instead of plastics where
possible (see Kering Standards for Raw Materials)• If plastic cannot be replaced, and only for packaging
and protection that are not consumer facing, use 100%
recycled plastic and have a recycling solution for thisplastic

Minimize wastewater and align with highest
wastewater quality standards
Suppliers shall be able to provide Kering with informationon the quality of their wastewater. In all cases, wastewater
quality shall align with local regulation and with thestandard set by Zero Discharge of Hazardous Chemicals(ZDHC) in their ZDHC Wastewater Guidelines. Please, referto the Appendix:
Management Policy.

Summaryof

KeringChemical

Kering encourages suppliers to improve wastewater
management in three areas by:
1. Reducing the amount of water and chemicals usedthrough the processes and integrating the measuresindicated above
2. Improving the effectiveness of wastewater treatment
in cleaning water from the pollutant load
3. Improving the reuse and recyclability of water,
towards an industrial water closed loop and, where
possible, doing the same with additives (see BOX 1).

© Provide Environmental Key Performance
Indicators (e-KPIs)
Kering is monitoring its environmental impact across its
supply chain. For this reason, suppliers shall provide Keringwith e-KPIs specific to their production. This means
working on measuring and monitoring the use ofresources of their facility, including energy and water
consumption, water quality and waste production. In 2021
Kering put in place its vendor portal, 3C, where suppliers
are requested to indicate the main environmental KPIs fortheir processes, as well as the best practices they use.

© Improve the environmental performance ofthe facility
Suppliers are expected to build on the e-KPIs (asmentioned above) and implement systems in order toimprove their facilities’ environmental performance (e.g.:
LCAs on specific products, continuous energy measuring inselected departments, etc.).

Minimize microfiber leakage
Implement mitigation measures to reduce microfiber
leakage at the manufacturing phases, such as:• Prefer continuous and/or reinforced fibers• Use dyeing, finishing, and cutting processes that

preserve fiber yarn strength and reduce fiber
irregularities• Choose washing process that allow the reduction of
microfiber leakage (close-loop or microfiber filters)• Increase pre-washing and filtering of finished productin the manufacturing facility

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REQUIREMENTS FOR 2025

Apply the precautionary principle fornanotechnologies
Nanotechnology generally refers to the engineering ormanipulation of a tomsor molecules for the production of
microscale products or materials. Currently and in general,nanotechnologies can be used in some coatings on fabrics.
However, little is currently known of the environmental
and health impacts of nanotechnology and associatednanomaterials.
Kering follows the precautionary principle and will not use
any nanotechnology applications unless such applications
are analyzed and proved to have no potential harmful
impacts on human health and the environment, including
an evaluation of end- of-life impacts. Suppliers arerequested to proactively share information on
nanotechnology used in their manufacturing.

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ADDITIONAL BEST PRACTICES

Aim for the best certification schemes
Suppliers are encouraged to have a certification of theirprocesses. Assessment by a third-party of the supplier
and/or the product is preferred to self-assessments or
self-declarations.
Suppliers are encouraged to obtain certification of theirproducts and/or processes, meaning recognizedcertification at global, regional or national level regarding
environmental and social responsibility. Certifications
regarding the sourcing of the materials such as GOTS or
GRS-recycled are detailed in the Kering Standards for Raw
Materials (cotton, viscose, etc.). Regarding processes, only
choose the schemes highlighted in BOX 2. Note that the
Kering Materials Innovation Lab (see BOX 1 in the
Introduction Standards for Raw Materials) can help
suppliers understand the benefits of certification.
Mills are encouraged to obtain and maintain the following
certifications:• The use of biodegradable or bio eliminable lubricants

and additives, and of enzyme catalyzed finishingprocesses• In bleaching processes, use the preferential ozone
process and, if not feasible, hydrogen peroxide withlimited use of stabilizers (or of sodium chlorite for flax
and bast fibers) towards the phase out of sodium
hypochlorite• Advanced water and energy efficient water-based
techniques such as cold-pad batch dyeing and spundyeing for cellulosic fibers, low liquor ratio dyeing, etc.
• Use ultrasonic treatments to improve the dispersion ofdyestuffs and auxiliaries• Use of plasma technologies• Develop waterless dyeing, using supercritical CO2 as asolvent, and experiment with its use for otherprocesses involving the use of perchloroethylene orother solvents
When it comes to denim and coated fabrics and their
specific textile processing, please refer to BOX 4 for denim
and to BOX 5 for coated fabrics.

• ISO 14001 certification for their environmental

management system• ISO 50001 certification for their energy management• ISO 45001 certification for HSE (Health, Safety andEnvironment)• SA8000 certification for social responsibility

Implement best available techniques of textile
processing
Environmental performance is key to a more sustainabletextile industry. At European level, the Best Available
Techniques (BAT) Reference Document for the Textile
Industry gives a benchmark for environmental
performance.
To optimize their environmental performance, textile mills
shall:• Measure and monitor environmental impacts throughe-KPIs• Evaluate environmental performance against the BAT
framework and take corrective actions if performancelevels are low compared to BAT Standards (see BOX 3)• For all new equipment, ensure that the installation
complies with BAT Standards
Kering also promotes the development of advanced,
disruptive techniques allowing large reductions in the useof energy, water, and chemicals. Including:

Implement best available techniques in
auxiliary systems
A large part of the energy and, to a lesser extent of thewater, used in the textile industry depends more on
auxiliary systems rather than on the core processes.
At the European level, the Best Available Techniques (BAT)
Reference Document for Energy Efficiency gives a set ofbenchmarks and good practices for auxiliary equipment.
Kering encourages mills to enter the Clean by Design
program (see BOX 6).
Kering encourages suppliers to install innovative,
disruptive technologies also in auxiliary systems, such as:• Installing reverse osmosis systems for process andsteam water• Using innovative, energy efficient heat pumps insteadof boilers• Installing innovative heat recovery systems for waste

gas and water flows

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ADDITIONAL BEST PRACTICES

Aim for closed loop in textile use: minimize
waste in production, use recycled materials andavoid blended fabrics where possible
Kering encourages all efforts to make the continual
recycling of textiles a sustainable reality. This includes:• Decreasing the amount of textile materials wasted

during the different textile production processes anddivert the waste from landfill• Segregating and reusing the pre-consumer waste as
raw materials for textile products or other productcategories such as padding, wadding, etc.
• Using recycled raw materials such as recycled
cashmere, recycled cotton, etc.
• Discouraging the use of blended fabrics thatcompromise material recyclability, e.g. natural fibers(e.g. cotton) with synthetics (e.g. Elastane orPolyester), for further indications refer to “Checklist forrecyclability” paragraph in Guidance for Circularity
chapter.
• Developing innovative techniques to collect postconsumer textile waste, and turn it into yarn to be
spun into new fabric creating a “circular resource
model” for textiles
Kering expects its suppliers to be part of the transition of
the textile industry towards a circular resource model.

Set a Science Based Target for climate
Suppliers are invited to adhere to the Science Based
Targets Initiative (SBTi), a partnership between CDP, theUnited Nations Global Compact, World Resources Institute(WRI) and the World Wide Fund for Nature (WWF).
Through this initiative, companies willing to do their parton Climate Change commit to a path of reducing theirscope 1 and scope 2 emissions, with clear intermediate
and final targets aimed at reducing their greenhouse gases
emissions. The SBTi recently developed a streamlined
pathway for Small and Medium Enterprises; the size ofmany of Kering brands’ suppliers and provides external
recognition for the efforts made by suppliers.

Target 100% renewable energy
Suppliers are encouraged to source 100% renewableenergy. In processing such a target can be achieved by:• Installing solar systems on the rooftops and parking

lots of the factory• Setting up a renewable energy contract with the utility

company or buying and canceling Energy AttributeCertificates covering the total electricity consumption• Electrifying all energy uses where this makes sense. A
fully electric HVAC system based on reversible heatpumps is cost-competitive with conventional fuelboilers. At the same time, hot process water and air for
drying up to 80 °C can be conveniently produced withelectric heat pumps instead of using steam produced
by a steam boiler.

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Standards for Manufacturing Processes – Textile Processing

BOX 1: Towards closed-loop water use and zero wastewater discharge

Several water streams can already be reused and recycled (see BOX 2) and the degradability of specificwastewater streams can be improved by keeping them separated before the dedicated cleaning
processes are applied. This helps to abate their polluting load.
The big step forward for water reduction is the installation of a reverse osmosis system at the end of
the wastewater treatment process. This transforms most of the wastewater flow into high quality water,
re-feeding the plant to pursue a circular water management scheme. This intervention, together withthe technological accessory and management changes in the plant, make such a system economicallyand technically viable and allows the reuse of about 90% of the water used. Further additional steps
may include systems to recover sodium chloride and sodium sulphate, as well as a large part of theremaining water. The result for the plant will be a considerable reduction of water use, a decrease insalts used and the elimination of liquid discharge; the final effluent being a solid mix of salts andadditives used.

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Standards for Manufacturing Processes – Textile Processing

BOX 2: Recommended Certifications for Textile Processing
Kering encourages suppliers to adopt comprehensive certification processes that cover both social andenvironmental aspects, such as chemical management and water stewardship programs.

NameStandard or
Organization

Logo

Headquarters

Notes

SwitzerlandStandard for
production sites
covering chemical
stewardship

SwitzerlandStandard for
production sites
covering chemical
stewardshipTEXTILE PROCESSING
Bluesign
BlueSign

OEKO TEXSTeP

OEKO TEX“Standard 100plus” (100 and
STeP)

technologies ag

OEKO-TEX
Service GmbHOEKO-TEXSwitzerlandStandard 100(Certification onmaterial and final
product) and OEKOTEX STeP (Standard
for production sites)

U.S.A. / The
Netherlands

Certification
program applies tomaterials, subassemblies, andfinished products

Italy

Protocol coveringchemicalstewardship

Service GmbH

Cradle to Cradle
Cradle to
CradleProducts
Innovation
Institute Inc.

4Sustainability
CHEM
Protocol

Process Factory

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BOX 3: Best Available Technologies in textile plants
Kering encourages suppliers to continue optimizing technologies and techniques they use in order toimprove processes both from an environmental and financial point of view, as indicated in the BAT
Standards. The key areas of improvements are:• Management, knowledge, and training of personnel• Quality and purity of process water, chemicals used and incoming textile fibers• Chemicals: automatic dosing selection and substitution, reduction of the number of products used
• Phase out overflow washing and selection of water-efficient washing equipment• Reduce flow rate of cooling water in the dyeing batches in order to reduce water use and increase
its final temperature for more convenient reuse

BOX 4: Coated fabrics

Coated fabrics are an increasingly important category of materials for Kering as they are increasingly
used especially in accessories and shoes. The correct application of the Kering Standards for thesematerials covers current requirements and additional expectations. The fabric component shall satisfy
the current requirements and possibly the additional expectations for the fiber(s) it is made of in termsof materials, and information in this section for the processing and the fabric itself. Regarding thecoating component, the most common materials on the market are either Polyvinylchloride (PVC) or
Polyurethane (PU) based. Requirements:
1. The coating material must be PVC-free
2. Coated fabrics must meet PRSL requirements
3. Chemical products must meet MRSL requirements
4. Manufacturing processes must have a closed-loop chemical management system whereby thechemicals/solvents used are recovered and reused in the production process and are not released
into the environment or harm workers
In addition to these mandatory requirements, there are additional recommendations:
1. Choose products with a high percentage of bio-based fibers (see Guidance for Innovation for more

information about biobased feedstock)
2. Investigate and use suitable safer alternatives to hazardous chemicals

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BOX 5: Denim products

Denim products
The denim product category is important for Kering as the denim industry often anticipates trends intechnological development of dyeing and finishing it is strategic to provide some indications, especiallyas regards additional expectations. Denim products generally use a type of twill fabric in which yarns
are dyed using indigo and sulphur and garments are treated so as to obtain finishes.
The denim production cycle consists of dry and wet processes and is one of the most natural resource
intensive textile processes comprising many production processes (up to 33). The two most intensive
steps in the production cycle are considered yarn dyeing and garment finishing where the largest
consumptions of water, energy, chemicals, material waste occurs, and the risk of unsafe labor conditions
is high. These two steps should be developed together when designing denim products to reduce impact
and reduce risk along the whole production process. Suppliers are encouraged to adopt science-basedtargets measuring and monitoring environmental issues during all steps of denim production as well as
following national and pan-national OSH regulations to regulate labor practices and meet welfare
standards of permanent and temporary workers at the facility.
FibersThe most widely used fiber in denim is cotton. Other fibers used to blend with the cotton are elastane,
PET Polyester, Polyamide, MMCF (e.g. Lyocell, Viscose, Modal). These secondary fibers when blended
with cotton can constitute a barrier for end-of-life recycling opportunities for both fabrics and garments.
For details of how to source raw materials for denim fabrics please refer to Kering Standards for Raw
Materials (cotton, synthetics, cellulosic fibers).
Yarn dyeing
Regarding indigo yarn dyeing, Kering recommends choosing resource efficient dyeing technologies that
aim to reduce:• Water reducing the number of indigo dye baths used for washing after dyeing and prioritizing

technologies that enable color penetration during the dyeing process.
• Energy optimizing technologies and techniques to reduce the number of dyeing batches andprioritizing innovative from heating and power systems• Wastewater implementing technologies and techniques that reduce indigo dyeing batches, reduceand recycle wastewater used in washing and dyeing processes (e.g. using waterless foam indigo
dyeing technologies)• Waste materials by promoting initiatives to reduce and recycle yarn waste generated at the
beginning and end of indigo dye batches• Chemicals by reducing hazardous chemicals, including salt generators in wastewater and final
effluents and prioritize pre-reduced indigo produced in safe chemical facilities over indigo granules
reduced in dyeing facilities that can lead to salts formation and aniline content in water effluents
Synthetic and natural indigo production is under investigation to understand which options can beconsidered safer for the user and linked to reductions of impact throughout the manufacturing
processes.

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BOX 5: Denim products (continued)

Garment finishing
Regarding garment finishing, Kering recommends the adoptions of emerging technology able to reduce
impacts through saving energy, water, chemicals for example:• Laser use for producing color and wear effects. These machines mitigate the use of permanganate,of stone washing and the use of large amounts of water traditionally used
• Ozone uses for discoloration. This creates interesting wear and color effects uses less water andavoids using permanganate and other bleaching agents• Spray dyeing. This technique uses 90-95% less water for dyeing finished garments, with additionalsavings of energy (water used in conventional dyeing is hot)
Kering is working with suppliers to regulate the use and find safer alternatives for chemicals not yet
regulated in Kering’s MRSL such as:• Potassium Permanganate is a powerful oxidant agent that must be handled and applied according to
specified instructions from Official Chemical Authorities• Sodium Hypochlorite is a bleaching agent that requires safe handling by and the levels ofconcentration in wastewater shall be monitored• Alternative chemicals evaluated shall align with Kering’s MRSL/ZDHC and PRSL list of chemicals.
• Sandblasting poses potential health threats for the workers due the use of silica dust in the processthat is linked to respiratory issues. Consequently, Kering is eliminating sand blasting from brand’s
collections and products by 2025
Please refer to the Kering Material Innovation Lab for updated information.

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BOX 6: Clean by Design

The specific aim of the Clean by Design (CbD) program is to optimize the auxiliary systems at thepremises of Kering’s suppliers. Results of the program in Italy are excellent: average savings in theparticipating mills in terms of water, energy and CO2 emissions are between 10 and 20% for most of thefactories, with peaks up to 50% through interventions having payback times from 0 to 2 years typically.
Kering started running the Clean by Design program in Italy in 2013. From 2021, Kering partnered withother brands and the Apparel Impact Institute and Legambiente to scale up the program. Clean by
Design is based on easy to implement, zero or low-cost interventions with short pay- back time. The
program is based on the following 10 best practices and is valid worldwide:
1. Measuring energy and water consumption and finding leaks, then repairing them
2. Recovering and reusing steam condensates
3. Reusing cooling water
4. Reusing process and grey water streams
5. Recovering heat from hot wastewater
6. Improving boiler efficiency
7. Maintaining steam traps and the steam system
8. Improving thermal insulation
9. Recovering heat from stacks and thermal oil
10. Optimizing the compressed air system

In the work done by Kering with its Italian suppliers, further additional measures were found to be
implementable such as: direct production heat where it is used, improvement of lighting efficiency,
electric motors and HVAC systems optimization and self-production of energy.

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LEATHER GOODS
AND SHOE MANUFACTURING

144

Standards for Manufacturing Processes – Leather Goods and Shoe Manufacturing

Kering brands’ production of leather goods and shoes requires highly specialized craftsmanship andmanufacturing is largely concentrated in Italy. Most of the environmental impact of leather production
is at the sourcing and tanning stages, and the production of shoes and leather goods can give rise towaste streams. The management of these waste streams, especially regarding chrome tanned leather,can significantly impact the environment. Other challenges regarding the use of chemicals are glues
and paints in particular, as some components within them may be hazardous and solvents can cause
Volatile Organic Compound (VOC) emissions. Energy and water use in leather goods and shoe
manufacturing is less of a challenge compared to other industry segments. However, since energy ismostly used for lighting, heating, ventilation, and air conditioning (HVAC) systems, inefficiencies andimprovement margins are often significant. To this end, Kering encourages its suppliers to improvetheir practices in building construction, renovation and operations and provide Kering with e-KPIs. Also,in the final processing stages, Kering promotes traceability, compliance and sustainability certification
schemes of products, processes and suppliers.
Health and Safety issues in the shoe industry can be extensive and require consistent management ofrisks to ensure the safety of workers in the supply chain. The number of processes and machines
involved in the manufacturing of shoes increases the likelihood of exposure to chemicals and excessive
noise as well as dangerous substances.

145

The Kering Standard for Leather Goods and Shoe
Manufacturing outlined below focuses on the main
manufacturing steps. Additional Kering Standards areavailable for the sourcing of hides and skins and fortanning.

In summary, the key principles that
underpin the Kering Standard for
Leather Goods and Shoe
Manufacturing are:• Complying with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment as set out in the
Suppliers’ Charter of the Kering
Code of Ethics• Reducing the use of potentiallyhazardous chemicals and avoiding
hazardous chemicals for whichalternatives have been identified• Adopting occupational health andsafety best practices for
employees• Improving energy and water
efficiency levels, and being able tomeasure them throughout theprocesses• Promoting recycling and upcyclingof waste and residues• Implementing certifications

Standards for Manufacturing Processes – Leather Goods and Shoe Manufacturing

REQUIREMENTS FOR 2025

© Comply with national legislation
It is legally mandated that Kering’s suppliers strictly
comply with national and local legislation, in regarding theenvironment, as well as health, safety and the welfare ofpermanent and temporary workers at the facility.

© Comply with human rights and social
expectations as set out in the Kering Code of
EthicsKering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
To this end:
• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to be audited forcompliance with the Kering Suppliers’ Charter which
covers key ethical, social, environmental and security
aspects in line with International Standards. The audits
are conducted by the Kering Supply Chain Audit Team
(KSCAT) at Kering brands’ suppliers. These audits, inaddition to supplier engagement activities, areintended to provide a risk management framework toaddress key sustainability concerns in the supply chain.
The suppliers are required to pass the audit or address
non-compliances in a reasonable timeframe. Moreinformation is available in Appendix: Social Complianceand Enforcement of the Kering Code of Ethics in Supply
Chain.

© Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested for all finishedleather from suppliers who have full responsibility of the
product, as well as for possible contamination occurring
up- stream in the production process. Each Kering suppliermust guarantee PRSL compliance of its products andensure this through supplier product testing. Moreover,Kering oversees an internal testing program of the
products as an additional auditing measure.
The PRSL is an appendix to your supplier agreement(contract or purchasing terms and conditions) with Kering
brands. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

© Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring that all hazardous
chemicals have been eliminated from production
processes. To this end, Kering has adopted a
Manufacturing Restricted Substances List (MRSL). As ofJanuary 1st, 2020, the supplier must ensure that thechemicals listed in the MRSL are not intentionally used in
the different process steps of the production, should thisprocess step take place at the supplier’s location or
upstream in the supply chain. Furthermore, the suppliershould work towards conformance with new releases ofthe MRSL in order to meet new MRSL requirements by thecommunicated transition period. The latest version is
MRSL V.3.0
For leather goods and shoe manufacturers, the main
recommendations are:• Making sure the MRSL is respected upwards in the

supply chain• Implementing robust chemical management in order

to identify and substitute chemical products containing
MRSL substances (Kering can provide additional
guidance on specific risks)• Identifying products containing intentional use of MRSL
VOCs and substituting them with MRSL compliant
alternatives and, if necessary, cooperating withchemical suppliers to identify or implement effective
alternatives that do not contain VOCs included in the
Kering MRSL
• Through good chemical management routinely screen
glues, paints and finishing products to ensure they
comply with the Kering MRSL

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REQUIREMENTS FOR 2025

© Do not use leather from unknown tanneries
and obtain information about the origin of theleather you buy
Kering aims to have full visibility of its leather supply chain
to minimize risks related to environmental and social
aspects (water pollution, improperly managed waste,
forced labor, etc.). Kering is working with its suppliers toprogress, step by step, towards more transparency. For
this reason, Kering suppliers shall not purchase tannedskins from traders unable or unwilling to disclose where
the skins are sourced and must obtain information on themain processing steps of the leather (tanning andslaughtering countries).

© Do not use PVC (Polyvinyl Chloride) in
Kering’s brands products and packaging
PVC poses several environmental and health threats. The
chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and burning
products that contain PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,wildlife and the environment.
Because of these risks, in 2012 Kering publicly declared
eliminating the use of PVC from brands’ collections andproducts.
Moreover, plasticizers must be added to PVC polymer toachieve softness and flexibility properties needed in textile
products; plasticizers commonly belong to the category ofphthalates. The amount of phthalates is generally
between 30% and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from the
PVC materials and come in contact with the user of the
PVC product. For these reasons phthalates have been
included in the Kering MRSL since its first publication andare expected not to be used in any stage of the production
processes for Kering Brands products and in any activities
relating to Kering brands’ productions.

© Work with Kering & brands on phasing out
single use plastics
Plastic is a versatile and important material that may be
best for some purposes. However, plastic presents
sustainability challenges across its lifecycle as described in
the Kering Standard for Plastics. Packaging uses too muchplastic. There is an increasing awareness that this mustchange and as companies are unable to monitor whereplastic packaging ends up, and as it takes a very long time
to degrade and decompose, there is also a risk that
discarded plastic packaging pollutes the environment oroceans.
For these reasons, Kering group is actively working on
phasing out all single use plastics in its value chain
including in packaging, protection and transport.
Suppliers shall work on:• Removing all unnecessary plastic• Using natural materials such as certified cardboards,

paper or organic cotton instead of plastics where
possible (see Kering Standards for Raw Materials)• If plastic cannot be replaced, and only for packaging
and protection that are not consumer facing, use 100%
recycled plastic and have a recycling solution for thisplastic© Provide Environmental Key Performance
Indicators (e-KPIs)
Kering is monitoring its environmental impact across its
supply chain. For that reason, suppliers shall provide
Kering with e-KPIs specific to their production. This means
working on measuring and monitoring the use ofresources of their facility, including energy and water
consumption, water quality and waste production. Since
2021 Kering put in place its vendor portal, 3C, where
suppliers are requested to indicate the main
environmental KPIs for their processes, as well as the bestpractices they use.

© Improve the environmental performance ofthe facility
Facilities are expected to build on the e-KPIs (as mentioned
above) and implement systems in order to improve theirenvironmental performance (e.g.: LCAs on specificproducts, continuous energy measuring in selected
departments, etc.).

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ADDITIONAL BEST PRACTICES

Implement best practices

Set a Science Based Target for climate

The most significant environmental impact in the
production of leather goods and shoes relates to waste
production. Energy use in domestic activities (heating,cooling, ventilation, and lighting) is more impactful thanprocess machinery energy use. Water use is also limited,mainly for non-manufacturing.

Suppliers are invited to adhere to the Science Based
Targets initiative (SBTi) a partnership between CDP, theUnited Nations Global Compact, World Resources Institute(WRI) and the World Wide Fund for Nature (WWF).
Through this initiative, companies willing to do their partin Climate Change, commit to a path of reduction of theirscope 1 and scope 2 emissions, with clear intermediate
and final targets aimed at reducing their greenhouse gases
emissions. The SBTi recently developed a streamlined
pathway for Small and Medium Enterprises suitable for thesize of Kering suppliers and providing external recognition
for the efforts made by suppliers.

Therefore, the focus should be on waste management as
the production of leather goods and shoes can poseenvironmental risks when not properly managed. The
largest amount of waste comes from materials that can besegregated and recycled. In particular, clean leather scrap(unpolluted by glues and separate from other materials)
should be collected separately and recycled for bonded
leather production; whereas, pure textile, plastic or rubber
waste streams should be recycled within the same supply
chain. Several other waste streams can be used as fuels in
specific applications (metal processing, cement
production, etc.) Suppliers with high qualitative andquantitative recycling rates will be prioritized. See BOX 1:
Recovery of leather scraps.
At the European level, the Best Available Techniques (BAT)
Reference Document for Energy Efficiency provides abenchmark for environmental performance.

Aim for the best certification schemes
All suppliers are encouraged to have a third-party verified
environmental management system ISO 14001
certification, an energy management system ISO 50001
certification, a health and safety management system ISO
45001 certification and SA8000 certification for social
responsibility.

Target 100% renewable energy
Suppliers are encouraged to target 100% renewableenergy. Reaching this target can be relatively easily
achieved by:• Installing solar systems on the rooftops and parking

lots of the factory• Setting up a renewable energy contract with the utility
company, or buying and canceling Energy AttributeCertificates covering the total electricity consumption• Electrifying all energy uses where this makes sense. A
fully electric HVAC system based on reversible heatpumps is cost-competitive with conventional fuelboilers. At the same time, hot process water and air for
drying up to 80 °C can be conveniently produced withelectric heat pumps instead of using steam produced
by a steam boiler.

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BOX 1: Recovery of leather scraps• Sent to municipal, urban waste landfills• Sent to industrial landfills• Recycled for fertilizer production

149• Recycled for regenerated bonded leather (salpa) production

The use of municipal landfills should be avoided since uncontrolled pH changes may give rise to
Chromium VI. The transformation of leather scraps for fertilizer production is preferable to landfilling
leather scrap since the waste material becomes a resource. However, there are some concerns about
the long-term effect of the accumulation of chrome in soils. At present, the use of scraps for producing
a new material, such as regenerated leather, appears to be the best solution in environmental terms.
This solution has some limits since it cannot be applied for all types of scraps, but it allows the conversionof waste into a product that has a market and use. Thus, Kering encourages leather cutting centers,
leather goods makers and shoe factories to implement this solution. Be aware that chrome free tanningmakes leather waste easier to deal with because in most cases this waste is treated as organic material.

Standards for Manufacturing Processes

CUT-MAKE-TRIM

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Standards for Manufacturing Processes – Cut-Make-Trim

Kering brands’ production of ready-to-wear requires a skilled workforce, production occurs between
handicraft very small businesses and industrial production sites predominantly in Italy. Most of theenvironmental impact of ready-to-wear happens in the wet production stages upstream (dyeing,
printing and finishing) and sometimes downstream (washing, denim finishing) of cut, make and trim
activities, whose environmental impacts are mainly related to waste production and consumer use.
The management of these waste streams can significantly impact the environment and is the focus ofEuropean Union legislation which will impose their recycling by 2025. This obligation anticipated in
2022, is already in place in Italy. Chemicals are used in small quantities, although stain removers are
an area of concern as they may contain very persistent, bio accumulative substances potentially
included in Kering’s MRSL. Energy and water use in cut, make and trim activities is not as much of achallenge compared to other industries. However, since energy is mostly used for lighting, heating,ventilation, and air conditioning (HVAC) systems, inefficiencies and improvement margins are often
significant. Ironing facilities, often present in garment production laboratories, are often serviced bysteam boilers that are over-dimensioned in respect to the real needs, causing significant consumptionof fuels that should be phased out. Kering encourages its suppliers to improve their practices inbuilding construction, renovation and operations and provide Kering with e-KPIs. Also, in the final
processing step, Kering encourages traceability, compliance and sustainability certification schemes of
products, processes and suppliers.
Health and Safety, as well as social issues in garment production can be extensive and requireconsistent management of risks to ensure the safety of workers in the supply chain. Common issues
include workplace, overcrowding, thermal discomfort from ironing facilities (often left on even when
non used), and insufficient capacity of ventilation and air conditioning.
151

The Kering Standard for Cut, Make and Trim outlined
below focuses on the main manufacturing steps.
Additional Kering Standards are available for Textile
Processing: spinning, weaving, dyeing, printing, andfinishing.

In summary, the key principles that
underpin the Kering Standard for Cut,
Make and Trim are:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment as set
out in the Suppliers’ Charter of theKering Code of Ethics• Promoting recycling and upcycling ofwaste• Reducing the use of potentiallyhazardous chemicals and avoiding
hazardous chemicals for whichalternatives have been identified• Adopting occupational health and safety
best practices for employees• Improving energy and water efficiency
levels, and being able to measure themthroughout the processes• Implementing certifications• Implementing the use of renewableenergyStandards for Manufacturing Processes – Cut-Make-Trim

REQUIREMENTS FOR 2025

© Comply with national legislationinternal testing program of the products as an additional
auditing measure.

It is legally mandated that Kering’s suppliers strictly
comply with national and local legislation regarding theenvironment, as well as health, safety and welfare ofpermanent and temporary workers at the facility.

The PRSL is an appendix to your supplier agreement(contract or purchasing terms and conditions) with Kering
brands. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

© Comply with human rights and social
expectations as set out in the Kering Code of
Ethics© Comply with Kering Manufacturing
Restricted Substances List (MRSL)

Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
To this end:
• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to be audited forcompliance with the Kering Suppliers’ Charter which
covers key ethical, social, environmental and security
aspects in line with International Standards. The audits
are conducted by the Kering Supply Chain Audit Team
(KSCA) at Kering brands’ suppliers. These audits inaddition to supplier engagement activities are intended
to provide a risk management framework to address
key sustainability concerns in the supply chain. The
suppliers are required to pass the audit or address
non-compliances in a reasonable timeframe. Moreinformation is available in Appendix: Social Complianceand Enforcement of the Kering Code of Ethics in Supply
Chain© Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested for all finishedfabrics and garments from the supplier who has the full
responsibility of the product, as well as for possible
contamination occurring up- stream in the production
process. Each Kering supplier must guarantee PRSL
compliance of its products and ensure this throughsupplier product testing. Moreover, Kering oversees an

Kering is committed to ensuring that all hazardous
chemicals have been eliminated from production
processes. To this end, Kering has adopted a
Manufacturing Restricted Substances List (MRSL). As ofJanuary 1st, 2020, the supplier must make sure that thechemicals listed in the MRSL are not intentionally used in
the different process steps of the production, should thisprocess step be taking place at the supplier’s location or
upstream in the supply chain. Furthermore, the suppliershould work towards conformance to new releases of the
MRSL in order to meet new MRSL requirements by thecommunicated transition period. The latest release is
MRSL V.3.0.
In particular for cut, make and sew suppliers the main
recommendations are:• Making sure the MRSL is respected upwards in the

supply chain• Implementing strong chemical management in order to

identify and substitute chemical products containing
MRSL substances (Kering can provide additional
guidance on specific risks)• Identifying products containing intentional use of MRSL
VOCs and substituting them with MRSL compliant
alternatives and, if necessary, cooperating withchemical suppliers to identify or implement effective
alternatives that do not contain VOCs included in the
Kering MRSL
• Through good chemical management routinely screen
glues and especially stain removers to make sure thatthey comply with the Kering MRSL

Ensure traceability of all components you use
Kering aims at having full visibility of its supply chain tominimize risks related to environmental and social aspects(water pollution, improperly managed waste, forced labor,etc.). Kering is working with its suppliers to progress stepby step towards more transparency. For that reason,
Kering suppliers shall not purchase materials (fabrics,
leather…) and other components (zips, buttons, studs etc.)from traders unable or unwilling to disclose where theseskins are sourced and must gather information on themain processing steps, in particular for of the leather(tanning and slaughtering countries).

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REQUIREMENTS FOR 2025

© Do not use PVC (Polyvinyl Chloride) in
Kering’s brands products and packaging

Suppliers shall work on:

PVC poses several environmental and health threats. The
chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,wildlife and the environment.

paper, or organic cotton where possible (see Kering
Standards for Raw Materials)• If plastic cannot be replaced, and only for packaging
and protection that are not consumer facing, use 100%
recycled plastic

Because of these risks, Kering set a public target in 2012 toeliminate PVC from collections and products.
Moreover, plasticizers have to be added to PVC polymer
to achieve softness and flexibility, properties needed in
textile products, and plasticizers commonly belong to thephthalates category. The amount of phthalates is generally
between 30% and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from the
PVC materials and can come in contact with the user of the
PVC product. For these reasons phthalates were includedin the first Kering MRSL and must not be used in any stageof the production processes for Kering Brands products
and in any connected activities relating to Kering brands’
productions.

© Work with Kering & brands on phasing out
single use plastics
Plastic is a versatile and important material that may be
best for some purposes. However, plastic presents
sustainability challenges across its lifecycle as described in
the Kering Standard for Plastics. Packaging uses too muchplastic and there is increasing awareness that this mustchange as companies cannot monitor where plastic
packaging ends up. It takes a very long time for plastic todegrade and decompose; there is also a risk that discarded
plastic packaging pollutes the environment or oceans.
For these reasons, Kering group is actively working on
phasing out all single use plastics in its value chain, such asin packaging, protection and transport.

• Removing all unnecessary plastic,• Using natural materials such as certified cardboards,© Provide Environmental Key Performance
Indicators (e-KPIs)
Kering is monitoring its environmental impact across its
supply chain. For this reason, suppliers shall provide Keringwith e-KPIs specific to their production. This means
working on measuring and monitoring the use ofresources of their facility, including energy and water
consumption, water quality and waste production. In 2021
Kering put in place its vendor portal, 3C, where suppliers
are requested to indicate the main environmental KPIs fortheir processes, as well as the best practices they use.

© Improve the environmental performance ofthe facility
Facilities are expected to build on the e-KPIs (as mentioned
above) and implement systems in order to improve theirenvironmental performance (e.g.: LCAs on specificproducts, continuous energy monitoring in selected
departments, etc.).

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Standards for Manufacturing Processes – Cut-Make-Trim

ADDITIONAL BEST PRACTICES

Implement best practices

Set a Science Based Target for climate

The most important environmental impact in cut, makeand trim relates to waste production. Energy use that is
typical of tertiary activities where heating, cooling,
ventilation, and lighting are used is more impactful thanenergy used by machinery. Ironing facilities may use
significant electricity. Water use tends to be limited,mainly for non-manufacturing.

Suppliers are invited to adhere to the Science Based
Targets initiative (SBTi), a partnership between CDP, theUnited Nations Global Compact, World Resources Institute(WRI) and the World Wide Fund for Nature (WWF).
Through this initiative, companies willing to play their partin Climate Change commit to reducing their scope 1 andscope 2 emissions, with clear intermediate and final
targets aimed at reducing their greenhouse gases
emissions. The SBTi recently developed a streamlined
pathway for Small and Medium Enterprises that is suitable
for the size of Kering suppliers and provides external
recognition for the efforts made by suppliers.

Priority should be given to waste management The largest
amount of waste comprises materials that can besegregated and recycled. In particular, clean fabric offcuts(unpolluted by glues and separate from other materials)
should be used for smaller batch production (waste
minimization), and if that is not possible, be sorted bymaterial type (and by color if possible), collected andrecycled for fiber production. Lower grade textiles can beused for insulating and in construction materials. Metal
and plastic components can go into separate
reuse/recycling streams. Several other waste streams canbe used as fuel in specific applications (metal processing,cement production, etc.) Suppliers with high qualitativeand quantitative recycling rates will be prioritized.
Cut, Make and Trim suppliers can often find opportunities
to reduce their energy consumption through efficient
lighting, insulation of their building, efficient HVAC, proper
calibration of steam supply for ironing (often 5 to 10 times
larger than needed), and in better controlling energy
services.
At European level, the Best Available Techniques (BAT)
Reference Document for Energy Efficiency provides abenchmark for environmental performance.

Aim for best certification schemes
All suppliers are encouraged to have a third-party verified
environmental management system ISO 14001
certification, an energy management system ISO 50001
certification, a health and safety management system ISO
45001 certification and SA8000 certification for social
responsibility.

Target 100% renewable energy
Suppliers are encouraged to use 100% renewable energy.
Such a target can be relatively easily reached in cut-maketrim activities by:• Installing solar systems on the rooftops and parking

lots of the factory• Setting up a renewable energy contract with the utility
provider, or buying and canceling Energy AttributeCertificates covering total electricity consumption• Electrifying all energy uses. A fully electric HVAC
system based on reversible heat pumps is costcompetitive with conventional fuel boilers. Similarly, it
is often more convenient to install small electric steam
generators close to the ironing facilities rather than use
large, centralized fossil fuel fired steam boilers.

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Standards for Manufacturing Processes – Cut-Make-Trim

STANDARDSFOR NONMERCHANDISING

155

Standards for Non-Merchandising

PACKAGING

156

Standards for Non-Merchandising – Packaging

Packaging, which is largely single use, contributes substantially to global waste. This pollution can bevisible, like the plastic that washes up on ocean shores, or it can be invisible, for example airborne
microplastics. Additionally, most packaging is not recycled even if it is technically recyclable. This cancause detrimental impacts, not only in its disposal but also in its production and the extraction ofnatural resources used to make packaging.
Through the Fashion Pact, Kering committed to significantly reducing the negative impacts that it hason the ocean, in collaboration with other existing leading initiatives. These impacts can be linked to
packaging and, accordingly, Kering committed to eliminate single use plastic in packaging by 2025.
The Kering Standard for Packaging encompasses all materials used for packaging and labeling along a
product’s entire lifecycle. It includes shipping packaging, storage packaging, hang tags, hangers,
garment bags and anything that protects, holds, or travels with the product.

The Kering Standard for Packaging refers to B2C
packaging as the packaging that is offered to the final clientwith the product, and B2B packaging for all other types ofintermediary packaging used during the preparation andtransportation.
The Standard covers primary, secondary and tertiary
packaging as defined in BOX 1: Types of Packaging.
It is focused on the design and use of packaging. It should
be read in conjunction with Kering Standards for raw
materials which provide comprehensive details on
packaging (See Kering Standard for Plastics, Kering
Standard for Wood and Paper, Kering Standard for Cotton,
etc.)

In summary, the key principles that
underpin the Kering Standards for
Packaging:• Comply with all applicable laws,
conventions and regulations• Comply with the Kering ProductRestriction Substance List
• Reduce the amount of packaging
used• Review the packaging flow andimprove capacity of cartons• Not use PVC in packaging• Not use plastic in BtoC packaging• Not use virgin plastic in BtoB
packaging• Maximize the use of recycled orcertified content• Ensure packaging is designed forrecycling157

Standards for Non-Merchandising – Packaging

REQUIREMENTS FOR 2025

© Comply with Kering Product Restricted
Substances List (PRSL)© Do not use PVC (Polyvinyl Chloride) in
Kering’s packaging

Compliance with the PRSL is requested for packaging.
Compliance with the PRSL must be ensured by the supplierthrough product testing and each Kering supplier must
guarantee PRSL compliance of its brands’ products.
Moreover, Kering oversees an internal testing program ofthe products as an additional auditing measure.

PVC poses several environmental and health threats., The
chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,wildlife and the environment.

The PRSL is an appendix to the supplier agreement(contract or purchasing terms and conditions) with Kering
brands. More information is available in the Appendix:
Summary of Kering Chemical Management Policy.

Reduce the amount of packaging used
Kering brands are encouraged to discuss with suppliers
more efficient designs, including reducing or eveneliminating components. Together they shall assess whatis necessary for product protection, and measure andmanage the package-to-product ratio and carton
efficiency.

Review the packaging flow and improve
capacity of boxes
The most efficient packaging reduction is usually achievedby reviewing the use of packaging alongside the productlife, from production to distribution and reducing theamount of intermediary packaging.
In particular, Kering brands shall review the process ofquality check (for make and buy production) in order toreduce the amount of waste generated from unpacking
and repacking activities. When designing primary
packaging, make every effort to optimize capacity andavoid oversized boxes to reduce empty space, thus
enabling more efficient packing operations for shipping.

Because of these risks, Kering set a public target in 2012 toeliminate PVC from collections and products.
Moreover, plasticizers have to be added to PVC polymer
to achieve softness and flexibility, properties needed in
textile products, and plasticizers commonly belong to thephthalates category. The amount of phthalates is generally
between 30% and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from the
PVC materials and can come in contact with the user of the
PVC product. For these reasons phthalates were includedin the first Kering MRSL and must not be used in any stageof the production processes for Kering Brands products
and in any connected activities relating to Kering brands’
productions.

Do not use plastic in BtoC packaging
Plastic is a versatile and important material that may be
irreplaceable for some purposes. However, plastic
presents sustainability challenges across its lifecycle as
described in the Kering Standard for Plastics. Packaging
uses too much plastic and awareness is increasingthat thismust change as companies are unable to monitor whereplastic packaging ends up. It also takes a very long time forplastic to degrade and decompose and there is also a riskof discarded plastic packaging polluting the environment
or oceans.
For these reasons, use natural materials such as certified
cardboards, paper or organic cotton instead of plastics for
BtoC packaging (see BOX 2). For these materials, refer tothe section Kering Standards for Raw Materials.

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Standards for Non-Merchandising – Packaging

REQUIREMENTS FOR 2025

© Maximize the use of recycled or certified
content

Ensure packaging is designed for recycling
A packaging is recyclable if:

Whether it is for BtoB packaging or BtoC packaging, allmaterials used shall follow the Requirements for 2025 of
the Kering Standards for Raw Materials
These features are listed here with a decreasing level ofimportance for Kering.
• Choose materials made with recycled content andcertified (GRS is the preferred certification), prioritizing
post-consumer recycled material feedstock and if notavailable pre-consumer feedstock, aiming to achievematerial with 100% recycled content.
• If not possible, source material with bio-content, i.e.,
without any fossil/petrol content, and certified (OKBiobased or FSC, …)
For B2B plastic packaging, specifically, by 2025 the content
must be (See BOX 2):• Made of 100% recycled content• Contain at least 30% of post-consumer recycledcontent.

© Respect decoration guidelines
Packaging designed and produced must strictly comply
with the EuPIA exclusion list for plastic inks and with thepositive list from AFEI and not use mineral oils forpaper/cardboard inks.

• The packaging design is proven recyclable ‘in practiceand at scale’ achieving a 30% post-consumer recycling
rate in multiple regions and collectively representing atleast 400 million inhabitants (Source: Ellen Mac Arthur
Foundation, New plastics economy global
commitment, 2020).
• Its main components, together representing more than

80% of the entire packaging weight, are recyclable
according to the above definition and if the remaining
minor components are compatible with the recycling
process and do not hinder the recyclability of the main
components. (See BOX 3)

Ensure BtoB packaging waste is sorted andrecycled at all stages of transportation
At all points of product transportation, from supplierproduction to the warehouse and stores, there shall be inplace a sorting system for packaging. Additionally, allsorted packaging shall be directed to a recycling stream.
For B2B plastic packaging, specifically, the waste collectionin practice and at scale must achieve a 50% post-consumer
recycling rate by 2024. (See BOX 2)

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Standards for Non-Merchandising – Packaging

ADDITIONAL BEST PRACTICESDesign for re-use
Packaging must be designed taking into account its endof-life. Before recyclability, preference is given to re-use
for the same purpose: packaging must be designed to be
used multiple times and for which an arrangement is inplace to make reuse possible (according to requirementsfrom packaging reuse standards (i.e., Packaging – Reuse
Standards EN 13429:2004)).
Re-use is particularly relevant for transport packaging suchas:Favor packaging that is part of circular
economyTo have packaging part of circular economy, theproduction must be decoupled from raw material
extraction:• Use 100% recycled content, with preference given to

post-consumer content• Ensure minor components are recyclable within thesame recycling process, in order to ensure thepackaging is 100% recyclable (see BOX 3)• Ecommerce packaging• Pallet wrappings and straps for stabilization andprotection of products on pallets during transportation• Grouped packaging in the form of boxes (excluding

cardboard)• Goods sold using pallets, crates, and foldable boxes.

to comply with the upcoming European regulation on
packaging and packaging waste (PPWR), expected mid2024.

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Standards for Non-Merchandising – Packaging

BOX 1: Types of packaging

A glossary of wording used for different categories of packaging.
BtoB packaging and BtoC packaging• BtoB packaging: this is the transport packaging, or logistics packaging. It includes cardboard boxes,
transport boxes, plastic films, polybags, hangers, and any protective items.
• BtoC packaging: this is the packaging customer/client receive. It includes shopping bags, luxury
boxes, suit covers, watch/jewelry boxes, shoe boxes, etc.
Primary, secondary and tertiary packaging definitions• Primary packaging: this is the packaging, in direct contact with the product itself, often referred to as“retail packaging.” Its main goals are to protect the product.
• Secondary packaging: this is the outer wrapping used to group a certain number of products tocreate a stock-keeping unit (SKU) and to ship products already in primary packaging. This packaging
also assists in displaying, storing, protecting products and provides branding/identification during
shipping.
• Tertiary packaging: this the combining of products used most often by warehouses for shipping,storing and hauling secondary packaging, often also referred to as bulk or transit packaging. This
type of packaging makes it easier to transport large and/or heavy loads safely and securely. An
example of tertiary packaging is a stretch-wrapped pallet containing a quantity of cardboard boxes(secondary packaging). Secondary packaging can overlap with tertiary packaging
When creating a packaging strategy, remember that all three levels of packaging will affect the overall
product’s environmental footprint. Changing primary packaging can heavily impact on secondary andtertiary packaging and lower saturation level. The complete system of primary, secondary and tertiary
packaging must be considered holistically so that reductions to one component are notovercompensated for by an increase in another component.

1: Types of161

Standards for Non-Merchandising – Packaging

BOX 2: Kering SUP elimination strategy

Focus on Circular Plastic for B2B

162

Post-consumer

Generated by households or bycommercial, industrial and institutional
facilities in their role as end users of the
product, wherethat material can no longer
be used for its intended purpose.
In most cases, post-consumer material isof lower quality than pre-consumer
material.

External – Production ‘waste’ from anotherindustrial facility.
Preconsumer

Internal – Production waste’ from our own
facilities. In this case,it is not possible to claim
recycled content because it isexcluded from ISO
14021.

Standards for Non-Merchandising – Packaging

BOX 3: Packaging recyclability guidelines
Packaging is recyclable if:• The packaging design is proven recyclable ‘in practice and at scale’ achieving a 30% post-consumer

recycling rate in multiple regions and collectively representing at least 400 million inhabitants (Source:
Ellen Mac Arthur Foundation, New plastics economy global commitment, 2020).
• Its main components, together representing more than 80% of the entire packaging weight, arerecyclable according to the above definition and if the remaining minor components are compatible withthe recycling process and do not hinder the recyclability of the main components.
Main recyclable packaging materials: paper & cardboard, aluminium, steel, glass and certain types of plastic
resin (see below). More information on Circpack
Paper packaging

Paper and cardboard packaging are not - automatically recyclable in the paper and cardboard recycling
stream. Composition & design might impact the packaging recyclability1. This is the reason why, to berecyclable, paper & cardboard packaging must be:
1. Designed to be recycled, following ecodesign guidelines, such as Circpack by Veolia, or
CEREC by Citeo.
Furthermore, certification can be obtained on “Design for recyclability”:
o Perform paper & cardboard packaging recyclability tests, according to EN 13430:
https://www.webctp.com/en/packaging-recyclability-testo Or Circpack by Veolia certification
2. Collected & recycled in practice and at scale, achieving a 30% post-consumer recyclingrate.
1 Source: https://www.cerec-emballages.fr/content/uploads/2022/11/220901-brochure-cerec-compressed.pdf

Plastic packaging
Plastic packaging is not automatically recyclable. Composition, format & design might impact the packaging’s
recyclability. This is the reason why, to be recyclable, plastic packaging must be:
1. Designed to be recycled, following eco design guidelines, such as Recyclass, or COTREP by Citeo
Furthermore, certification can be obtained on “Design for recyclability” from organizations such as:
COTREP or Recyclass
2. Collected & recycled in practice and at scale, achieving a 30% post-consumer recycling rate

163

Standards for Non-Merchandising – Packaging

BOX 4: Design tips for more sustainable packaging

Hangers
B2C
•
•
•
•

B2B

No plastic
Maximize the use of recycled or certified content
Offer the client not to have the hanger
Recyclability or reusability
o See BOX 3 – Recyclability guidelines
o Encourage monomaterial solutions andavoid the use of velvet to help
recyclability.
o Avoid the use of logo or iconic patterns
to make reuse or recycling easiero Choose suppliers with a global
collection system for used hangers - forreuse or recycling

•
•

•
•

Avoid “seasonality”: customers won’t see thesehangers, so keep them neutral and in use forseveral seasons
Maximize the use of recycled or certified content. If
plastic, only recycled plastic can be used – See
BOX 2
Reusability: Design a hanger with a long lifespanand for which arrangements are in place to makereuse possible for re-use.
Recyclability
o See BOX 3 – Recyclability guidelines
o Main requirements for plastic hangers:
Avoid metal hooks when the hanger ismade of plastic
100% monomaterial (PET, PP, HDPE, PS,or alternatives materials);
Black color should be avoided
164

Polybag
B2C
•
•
•
•

B2B

No plastic
Maximize the use of recycled or certified content
Reusability: test reusable polybag for ecommerce
Recyclability: See BOX 3 – guidelines•••

Maximize the use of recycled or certified content
Reusability: Design a polybag that can be usednumerous times and for which arrangements are inplace to make reuse possible
Recyclability
o See BOX 3 – Recyclability guidelines
o Main requirements if plastic polybag:
Use only recycled and transparent
plastic, preferring LDPE materials
Limit printing to compulsory
information only

Paper/Cardboard•••

Maximize the use of recycled or certified content (FSC, Blue Angel)
Reusability: Re-use corrugated cartons several times
Recyclability
o See BOX 3 – Recyclability guidelines
o Requirements:
Avoid colored paper packaging in pulp as this significantly reduces the chance of recycling due tothe very low quality of the secondary raw material that cannot be re-sold.
Use monomaterial solutions and try to avoid mixing paper with other materials
Do not laminate paper packaging, this prevents recyclability.

Standards for Non-Merchandising

VISUAL TOOLS165

Standards for Non-Merchandising – Visual Tools

Visual tools, also referred to as “visual merchandising”, are important components for brand identityand also for the customer in-store. They are often temporary decorations available to display products,
used for a season or two before being replaced by new ones. In this regard, the disposal of visual tools
is not fundamentally sustainable. Visual tools can also include advertising banners displayed around acity and in retail store windows, showcasing items for sale. While Kering recognizes the need for visual
tools to reinforce brand identity and store locations, the focus of the Kering Standard for Visual Tools
is to implement best practices and limit the end-of-life of visual tools.

For Kering, visual tools include:• Window displays• Movable store decorations• Mannequins• Retail hangers• Point of sale displays• Seasonal displays• Event decorations• Advertising banners/canvas• Trunk Show materials• Etc.
The Kering Standard for Visual Tools is focused on thedesign and use of visual tools. It should be read in
conjunction with Kering’s standards for raw materials thatcover the details for materials used to make visual tools(see Kering Standard for Plastics, Kering Standard forWood and Paper, Kering Standard for Cotton, etc.).

In summary, the key principles that
underpin the Kering Standards for
Visual Tools are:• Comply with all applicable laws,
conventions and regulations• Rethink visual merchandising to
improve disposability andenhance circularity• Promote circular design bydesigning for reuse or repurpose
and consider recycling as a last
option• Not use PVC• Prioritize durable, long-lastingmaterials that enable multiple
reuses166

Standards for Non-Merchandising – Visual Tools

REQUIREMENTS FOR 2025

Review visual merchandising approach
Most efficient reduction of the environmental impact ofvisual tools can be achieved by reviewing the visualmerchandising approach and questioning the necessity for
temporary / disposable items. In particular, brands shallwork with store/event designers on these questions andconsider:• Favoring rented equipment that can be reused as
opposed to creating single-use equipment or
decoration• Reusing / repurposing existing visual tools• Using recycled materials whenever possible (recycled
metal, wood, plastics, etc.)• Reducing, when possible, the weight of the visual tools

Give a second life to all visual tools
Disposal of visual tools is not accepted. All visual tools
should be given a second life. By order of preference,
Kering encourages brands to:
1. Include them in private sales for employees
2. Donate them to associations such as the ones
described in BOX 1: Giving a second life to Visual Tools
3. Dismantle and recycle the parts© Follow Kering critical requirements on raw
materials used for visual tools
When choosing materials for visual tools, refer to therelevant sections of the Kering Standards (e.g. plastics,
wood, cotton) and follow the Requirements for 2025.

Design for dismantling and anonymizing
Visual tools that can be easily dismantled and anonymized(i.e., where it is not possible anymore to recognize thebrand) can be more likely given a second life.
Therefore, brands are encouraged to do so by:• Having removable logos on visual tools• Considering the whole lifecycle of the visual tools
including end of life.
See Guidance for Circularity© Do not use PVC (Polyvinyl Chloride) invisual tools
PVC poses several environmental and health threats.
Chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,the environment, and wildlife.
Moreover, plasticizers have to be added to PVC polymer
to achieve softness and flexibility properties needed in
textile products, plasticizers commonly belonging to thecategory of phthalates. The amount of phthalates isgenerally between 30 and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from the
PVC materials, and to come in contact with the user of the
PVC product. For these reasons phthalates are included in
the Kering MRSL since its first release and are banned fromuse in any stage of the production processes for Kering
Brands products and in any connected activities relating toKering brands’ productions.
Because of these risks, Kering aims to phase out PVC fromvisual tools by 2025. In particular, Kering expects suppliersof advertising banners/ canvas to work on innovative
solutions to replace PVC.

167

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ADDITIONAL BEST PRACTICES

Kering additional best practices on raw
materials use for visual tools

Consider single-material 3D printing for
producing visual tools

When choosing materials for visual tools, refer to therelevant sections of the Kering Standards (ex: Plastics,
Wood, Cotton) and follow the 2025 Requirements the
Additional best practices.

3D printing (Additive manufacturing) provides excellent
opportunities for producing small batches of items,
moreover production uses a single material, potentiallyrecycled plastics and therefore often easily recyclable
when the item is no longer needed. The use of 3D printing
is therefore recommended.

168

Standards for Non-Merchandising – Visual Tools

BOX 1: Giving a second life to Visual Tools

Kering is keen to ensure that its brands’ visual tools have a second life, with a focus on reuse first or
selling items at internal private sales. A third possibility is donating items to partners, such as toorganizations specializing in the circular economy. Outlined below are examples of partners as such:• La Reserve des Arts: located in Paris and Marseille, France• Spazio Meta: located in Milan, Italy• Artstock: located in Blajan (near Toulouse), France• Co-recyclage: located in Paris, France• Matériuum: located in Geneva, Switzerland• EcoSet: located in Los Angeles, California• Remidia: located in Reggio Emilia, Italy• Materials for the Arts: located in New York, USA• Miniwizz: located in Taipei, Taiwan and in Milan, Italy
Social cooperatives, charities and local associations could re-use non-merchandising elements (benches,chairs, shelves etc).

169

Standards for Non-Merchandising – Visual Tools

STANDARDS
FOR LOGISTICS

170

Standards for Logistics

WAREHOUSING

171

Standards for Logistics - Warehousing

The Kering Standard for Warehousing applies to warehouses and warehousing activities directly
managed by Kering, Kering brands and also by Kering’s direct suppliers, which includes third-party
logistics partners (3PL), forwarders, or other direct suppliers managing these activities and their subsuppliers working at the sites associated with Kering. Under the standard, warehousing activities
include the reception, storage and shipping of goods, as well as packing/ unpacking activities and, often,
quality checks. Furthermore, it incorporates the common situation of road vehicles stopping forseveral hours in the yards surrounding warehouses, which occupy significant urbanized areas.
There are a number of environmental impacts related to these activities. The main environmental
footprint of warehousing is linked to packaging and waste management. At Group level, logistics are
directly responsible for more than 86% of the waste produced at Kering sites, and indirectly
responsible for the majority of the waste generated at stores. This waste is largely related to packaging,with another minor, but important, stream related to products, which are typically stored inwarehouses before being moved to their final destination. Greenhouse gas emissions and air pollution
from warehouses are significant, especially at a local level where logistic centers are primary
generators of road traffic. Although when compared to transportation, this is relatively small, there
are various opportunities to minimize these impacts through eco design, installation of solar
photovoltaic systems and electrification of all energy uses. Water and wastewater management at
logistic centers are relatively limited but can also be significantly reduced.

172

The Kering Standard for Warehousing applies to allwarehousing activities directly operated by Kering, by any
direct supplier of Kering and any of their sub-suppliers
working at sites associated with Kering. This includes:• Reception, storage, and shipping of goods• Packing/unpacking activities• Quality checks• Design and physical features of logistic sites• Operation activities at logistic sites

In summary, the key principles that
underpin the Kering Standard for
Warehousing are:• Compliance with all national andinternational laws, principles andregulations notably related tohuman rights, fundamental
freedom, health and safety andthe environment• Properly managing waste,
promoting reduction, recycling
and reuse aiming at zero logistic
waste• Optimizing packaging• Promoting energy efficiency andself-production aiming at net
positive buildings• Promoting electrification in
warehousing and transportation

Standards for Logistics - Warehousing

REQUIREMENTS FOR 2025

© Comply with national legislation
It is legally mandated that logistic companies working with
Kering strictly comply with national and local legislation, inparticular regarding the environment as well as health,safety and the welfare of permanent and temporary
workers at the facility.

© Comply with human rights and social
expectations as set out in the Kering Code of
EthicsKering is committed to respecting internationallyrecognized human rights, both in its activities and throughits business relationships.
To this end:
• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to comply with the
Kering Suppliers’ Charter which covers key ethical,
social, environmental and security aspects in line with
International Standards.

Ensure appropriate conditions and well-being
for workers
Kering is committed to respecting and ensuring goodworking conditions for workers in its supply chains. Thisapplies for warehousing activities, too, where suppliers arerequested to ensure high standards of well-being at workin terms of ergonomics, proper shift duration, appropriate
number of breaks and a safe and healthy working
environment. Certification frameworks regardingorganizations and sites, such as ISO 45001 for Health,
Safety and Environment (HSE), SA8000 for Corporate
Social Responsibility and WELL for well-being at work in
new buildings are not considered a requirement for 2025
but provide a solid reference framework for ensuring
workers’ wellbeing.

© Contribute proactively to the delivery of theGroup sustainability strategy, defining clear
objectives for warehousing activities
The requirements of the Kering Standard for Warehousing
apply to all suppliers related to both B2B and B2C
distribution (see BOX 1).
As a prerequisite for collaboration, any 3PL partner or
Kering supplier is expected to be able to engage inencouraging waste production reductions, recycling andreuse targets and is requested to contribute proactively inthe building of the sustainability strategy, proposing aneffective waste management plan.
Providers are also requested to contribute to the Group’s
annual environmental reporting, sharing a periodical
carbon footprint report according to international
standards and in line with its local and international
regulations, or the data on fuels and energy use thatenable Kering to calculate the carbon footprint.

Comply with Kering Standard for Packaging
Packaging, which is largely single use, seriously contributes
to global waste. Kering committed to significantly reducing
the negative impacts of packaging, especially for plastic. In
particular:• © Comply with the Kering Product restriction
substance list
• Reduce the amount of packaging used
• Review the packaging flow and improve saturation of
cartons• © Not use PVC in packaging• Not use virgin plastic in BtoB Packaging• © Maximize the use of recycled or certified content• Ensure packaging is design for recycling
For additional information about requirements for raw
material processing, please refer to Kering Standard for
Packaging.

173

Standards for Logistics - Warehousing

REQUIREMENTS FOR 2025

Implement a circular waste management
systemThe circular economy is the basis of the development
model that Kering is aiming for. Suppliers are therefore
requested to implement a comprehensive waste
management system in order to enable separate
collections of all the different materials that are disposedof and to divert them to the correct recycling channels,
according to suppliers’ local regulations and theinfrastructure set up for recycling. Non-recyclable
materials shall be avoided or substituted with recyclable
ones with a detailed substitution plan.
Particular care shall be taken in reconditioning areas andquality control stations when handling plastic packaging
waste, in particular polybags and covers. Several solutions
can be implemented:• Challenge the functionality of the packaging, andeliminate if unnecessary• Develop a closed-loop recycling model that involves
both recycling companies and suppliers
Now, the target of 80% waste diverted to recycling is theminimum requirement. The aim is to achieve 95% by 2025
for zero waste production in logistic activities.

Adopt sustainable cleaning initiatives forobsolete items
Obsolete items of both merchandise and nonmerchandise stocked in warehouses must be carefully
taken under control and specific cleaning initiatives
implemented in order to virtuously manage their end-oflife. Actions shall be put in place in accordance to ahierarchy that prioritizes reuse first (internal sales, resale
platforms, sales to stock lists, donations) and thenrecycling. As far as recycling is concerned, processes mustprioritize keeping as much value of the material.
Upcycling/ remaking are therefore preferred to recycling,
and downcycling must be a last resort. When recycling or
downcycling, closed loop or semi-closed loop approaches
should be considered. (See Kering Guidance for
Circularity).

Design and operate sustainable logistic sites
In 2021, Kering issued detailed guidelines to be followed
for new logistic projects directly managed and operated by
the Group. This was developed as a result of the creationof the Group’s logistic hubs in Wayne (USA) and Trecate(Italy).
Aside from optimized packaging, waste reduction, reuse
and recycling, it is recommended that all warehouses
make their best efforts to reduce energy and water use as
well in reducing the environmental footprint of the site’s
design, construction and operation. This means:• Undergo a sustainability certification like LEED or
equivalent for new developments or renovations,targeting a high rating• Implement energy-efficient equipment andmanagement practices• Use solar energy by covering roofs and parking lotswith PV systems• Develop new sites on brownfield areas• Phase out boilers, switch to heat pumps• Design and implement zero irrigation green areas• Use green, permeable solutions for parking areas• Promote the use of soft mobility and public
transportation for employees

Ban idling
The internal combustion engine use is the main source ofboth air pollution and greenhouse gas emissions in logistic
operations. Logistic centers are the source and/or
destination of logistic flows and a concentration ofvehicles, and thus pollution. Banning idling, leaving
vehicles with the engine running during stops, is a simple
and effective way to avoid pollution in logistic centers. This
practice shall thus be banned at logistic centers managed
by Kering and its logistic suppliers with a specificawareness (including posts) and control program on the
site.

174

Standards for Logistics - Warehousing

REQUIREMENTS FOR 2025

Develop solutions for sustainable e-commerce
Kering is always striving to implement innovations in its
supply chain, and this extends to warehousing as well. In
particular, as the share of online sales continues toincrease and become a more prominent part of
distribution channels, sustainable solutions for ecommerce operations are to be continuously sought anddeveloped. Kering and its brands’ suppliers need to keep aflexible and open mindset with regards to disruptive
activities in logistics, such as reverse logistics and reusable
packaging.

© Provide Environmental Key Performance
Indicators (e-KPIs)
Kering closely monitors its environmental impacts acrossits supply chain on an annual basis. For this reason,
suppliers shall provide Kering with e-KPIs specific to theiractivities including periodical environmental reporting tocomply with and contribute to the Group’s legal
requirements of non-financial accounting (see BOX 1:
Environmental Reporting List of KPIs).

175

Standards for Logistics - Warehousing

ADDITIONAL BEST PRACTICES

Achieve zero waste production in logistics
Implement a circular waste management system with theaim to become zero-waste and achieve the target of 100%by 2030 for zero waste production in logistic activities.

Net energy positive logistic sites
The requirements for sustainable logistic sites will be
gradually increased including:• Producing renewable energy onsite that equals or
surpasses the warehouse energy needs• Achieving 100% zero emission fleets of vehicles usedwithin the logistic site
• Substituting diesel gensets with batteries• Providing docks and parking lots with vehicle charging
plugs.

and/or of the product is preferred to self-assessments or
self-declarations. The ISO 14001 certification scheme isrecognized as a clear added value and guarantees theimplementation of an appropriate environmental
management system. Beyond the environmental aspects,
the ISO 9001 certification for quality management
systems, ISO 45001 certification for HSE (Health, Safety
and Environment) and SA8000 certification for social
responsibility are highly recommended. In regard tobuildings, it is encouraged to achieve LEED Certification
with a Gold or Platinum rating.

Propose new packaging in line with bestpractices
Packaging, which is largely single use, seriously contributes
to global waste. Kering aim to implement best practices for
packaging. In particular:• Reuse scheme• Packaging fully part of circular economy

Aim for best certification schemes
Suppliers are encouraged to have a recognizedcertification for their processes at global, regional or
national levels regarding sustainability and social
responsibility. Assessment by a third-party of the supplier

For additional information about requirements for raw
material processing, please refer to Kering Standard for
Packaging.

176

Standards for Logistics - Warehousing

BOX 1: Environmental Reporting List of KPIs
General data
Site surface - Warehouses [m2]Opening months in the year [ xx/12]
Full Time Equivalent - Warehouses [FTE]Managed pieces
Does your site have any sustainability certification? If so, please specify
Paper consumption
Office paper consumption from sustainably managed forest sources [T]Office paper consumption, recycled [T]Office paper consumption, other [T]Waste Production
Non-hazardous waste:
Recycled or reused paper and cardboard [T]Recycled or reused pallet and other wooden waste [T]Recycled or reused plastic [T]Other non-harmful waste recycled or reused [T]Non-harmful waste used for thermal recovery [T]Non-harmful waste, neither recycled or reused nor used for thermal recovery [T]Hazardous waste:
Reused or recycled electric or electronic waste (WEEE) [T]
Reused or recycled batteries [T]Recycled or reused ink cartridges [T]Recycled or reused neon lights and bulbs [T]Other harmful waste recycled or reused [T]Harmful waste used for thermal recovery [T]Harmful waste, neither recycled or reused nor used for thermal recovery [T]Energy consumption
Do you have any LED lighting? Please indicate what percentage
Conventional energy consumption - Warehouses [kWh]Purchase costs for energy, VAT and taxes excluded [EUR]
Purchased green certificates (REC, iREC, GO)
Renewable energy consumption [kWh]Renewable energy produced and used onsite [kWh]Renewable energy produced onsite and resold to the energy network/electricity grid [kWh]Light fuel consumption - Warehouses [m3 light fuel]Purchase costs for light fuel - VAT and taxes excluded [EUR converted by the tool from local currency]
Natural gas consumption - Warehouses [kWh]Purchase costs for natural gas - VAT and taxes excluded [EUR converted by the tool from local value]
Steam consumption - Warehouses [kWh]Purchase costs for steam [EUR converted by the tool from local value]
Is the conditioning of the site fed by an urban cool water system?
Water consumption
Domestic water consumption [m3]Purchase costs for domestic and/or industrial water, VAT and taxes excluded [EUR converted by the tool from local
currency]
People transport
Is the fuel consumption of the pool cars available?
Average emission factor of the pool cars [g CO 2e/T.km]
Petrol fuel consumption of pool cars [l]Diesel fuel consumption of pool cars [l]177Standards for Logistics

TRANSPORTATION

178

Standards for Logistics - Transportation

The Kering Standard for Transportation applies to the transportation of goods, either B2B or B2C, directly
managed or contracted by Kering. Due to the typical speed requirements for delivery in the Luxury sector,
the majority of transportation activities are carried out by air, which is the most significant fuel and CO2
intensive means of transportation, and thus contributes to the largest share of greenhouse gas (GHG)
emissions associated with Kering’s activities. For example, in 2020, 81% of the emissions generated by theGroup’s operations were due to transportation activities, including emissions directly or indirectly from theGroup’s direct operations and related to energy consumption from the Group’s sites and from B2B and B2Ctransportation. In order to comply with the European Non-Financial Reporting Directive (NFRD), Kering
reports its annual GHG emissions associated with transport in its Universal Registration Document.
The type of transportation used for the Group’s activities includes mainly air (in Europe) and road freight(in Europe) and with little rail and sea freight, due to locations and time constraints. Around 60% of Kering’s
brands’ volumes are distributed by road freight, however approximately 95% of the emissions linked totransportation relate to air freight and, consequently, this is where Kering focuses its main efforts. However,even though the Group’s emissions caused by road freight are limited, it is important to highlight that thismainly occurs in city centers. Generally, the last mile of deliveries requires particular care as it is linked tonegative externalities, such as air pollution, noise, accidents and congestion, as well as respiratory issues
that can impact people’s health and everyday lives.
Kering’s ambitious climate strategy includes a science-based target around reducing its GHG emissions inline with a 1.5° pathway and the Paris Agreement, with a commitment to achieving a 40% reduction in its
GHG emissions, covering scope 1, 2 and 3 by 2035 in absolute value. The Group committed to reduce scope
3 of its GHG emissions (including not only transportation but mainly associated with the production of raw
materials - their transformation into products and the related processes) by 70% per unit of value added by
2030, from a 2015 base year. Particular attention must be paid to Kering’s transportation strategy whereby
synergies with Kering’s brands’ suppliers is key. Adequate emissions reduction planning is necessary andthe implementation of actions to make distribution more and more sustainable is essential.

The Kering Standard for Transportation outlined below
applies to transportation including: all Kering brand’s
related shipments from various consolidation centers tocentral distribution centers; the distribution from central toregional warehouses; the last mile deliveries to stores andto final customers; and the intercompany and reverse flows
related to returns for both B2B and B2C, including ecommerce.

In summary, the key principles that
underpin the Kering Standard forTransportation are:• Complying with all national andinternational laws, principles andregulations notably related to humanrights, fundamental freedom, healthand safety and the environment as set
out in the Suppliers’ Charter of theKering Code of Ethics• Developing and sharing a sustainability
strategy and a GHG emissions
reduction roadmap by suppliers• Precisely reporting GHG emissions
generated from transportation
activities• Optimizing routes• Reducing the carbon intensity oftransportation used by selecting themost efficient transportation meansand promoting model shifts• Developing sustainable initiatives

179Standards for Logistics - Transportation

REQUIREMENTS FOR 2025

© Comply with national legislation
It is legally mandated that transportation companies
working with Kering strictly comply with national and local
legislation, in particular regarding the environment as wellas health, safety and welfare of permanent and temporary
workers at the facility.

© Comply with human rights and social
expectations as set out in the Kering Code of
Ethicstransportation. Suppliers are also requested to contributeto the Group’s annual environmental reporting, sharing agreenhouse gas emission report as per the international
standard EN16258, or in line with the regulations.
The requirements for the Kering Standard forTransportation applies to all couriers and freight
forwarders of Kering shipments relating to both B2B andB2C distribution (see BOX 1), except for outbound orreverse shipments for indirect customers with ex-works
delivery terms.

Comply with Kering Standard for Packaging
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships. To thisend:

Packaging, which is largely single use, seriously contributes
to global waste. Kering committed to significantly reducing
the negative impacts of packaging, especially for plastic. In
particular:• Kering has extended its Alert System to external andtemporary employees working for any serviceprovider/ supplier or external partner with whom theGroup and/or its brands maintain contractual
relationships. Therefore, Kering expects its direct
suppliers to refer to the Group Ethics Committees (bymail or through an external hotline) when in doubt orin the event of any potential wrongdoing relating to
the principles set out in the Kering Code of Ethics and
its Suppliers’ Charter. See Appendix: Kering Alert
System• Kering requires its brands’ suppliers to comply with the
Kering Suppliers’ Charter, which covers key ethical,
social, environmental and security aspects in line with
International Standards. Kering requires that breaktimes are strictly respected for drivers and thatworkers for urban deliveries are permanently
employed by contractors or benefit from the sameworking conditions and benefits as permanent
employees in the same country.

© Contribute proactively to the achievement of
the Group sustainability strategy, defining aclear roadmap for GHG reductions relating totransportation
As a prerequisite for collaboration, any freight forwarder
is expected to be able to engage in stretching emissions
reduction targets according to the Group’s commitments
and is requested to contribute proactively to building thesustainability strategy. This includes proposing an effective
CO2e reduction plan; adopting initiations aimed atincreasing optimization and efficiency; shifting to moresustainable fuels; and using electric vehicles and means of• © Comply with the Kering Product restriction
substance list
• Reduce the amount of packaging used
• Review the packaging flow and improve saturation of
carton• © Do not use PVC in packaging• Do not use virgin plastic in BtoB Packaging• © Maximize the use of recycled or certified content• Ensure packaging is design for recycling
For additional information about requirements for raw
material processing, please refer to Kering Standard for
Packaging.

© Assess GHG emissions
Suppliers are expected to periodically share with Kering,
their environmental performance in terms of their chosenmeans of transportation, identification of the best
available routing and average emissions generated, withparticular attention to airfreight.

Improve environmental impacts of youractivities
Couriers and freight forwarders are requested to identify
and select the best solutions available on the market. They
are asked to choose the best performing means oftransportation with the lowest emissions generated(threshold for airplanes: 600 gCO2/t.km; threshold fortrucks and vans: EURO 6 or equivalent) and to reduce thedistance for each delivery.

180

Standards for Logistics - Transportation

REQUIREMENTS FOR 2025

Adopt best distribution model to decrease yourcarbon footprint© Provide Environmental Key Performance
Indicators (e-KPIs)

An effective way to reduce CO2e emissions fromtransportation can be achieved for Kering brands byadopting best distribution models and highlighting theenvironmental impacts to the drivers making thedecisions.

Kering requests that suppliers provide a carbon footprint
report as per international standard EN16258 and in linewith the regulation (see BOX 2) in order to monitor andanalyze the CO2e emissions related to the distribution
flows and to take relevant actions when trends are not inline with Kering’s targets. On an annual basis, this data will
feed into the Group’s environmental reporting andcontribute to the fulfillment of the Group’s legal
requirements for non-financial accounting.

Kering brands shall choose greener logistics solutions foritems for which the delivery time is not critical, prioritizing
sea and rail when possible. The same approach is highly
recommended for reverse logistics and should be taken
into consideration for slow movers and/or carry-overitems.

Offer green last mile deliveries
Last mile deliveries to stores for B2B or to the final
customer for B2C can often be affected by constraints andrestrictions (e.g. heavy traffic in densely populated areas,
restricted traffic zones) relevant to the urban areas where
they take place. To contribute to improve the conditionsof urban areas and communities, reduce negative effects
and overcome restrictions that can limit the quality andthe timeliness of the service, the suppliers are strongly
encouraged to implement green delivery services withelectric vehicles and other greener alternatives wheneveris possible.

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Standards for Logistics - Transportation

ADDITIONAL BEST PRACTICES

Achieve measurable emissions reductions andcompensation
Defining a roadmap for GHG accounting and reductions isa critical requirement for all Kering’s transportation
activities and services, achieving measurable reductions orproperly accounting for emissions is an additional bestpractice that will be gradually focused on, prioritizing:
1. Avoiding and reducing emissions, throughoptimization of routes, electrification oftransportation, model shifts, increasing fuel efficiency
for lorries and airplanes
2. Innovation around ways of avoiding and reducing
emissions, such as rolling out Sustainable Aviation
Fuels programs
3. Off-setting “hard to abate” emissions through robust
initiatives. These should be reviewed by Kering toevaluate if they align with their standards.

Propose new technologies and business models
aimed at reducing environmental impacts
Suppliers are requested not only to implement the best
available options for traditional logistics services but are
asked to be more disruptive and identify alternativetransport solutions and business models. Innovation is a
key lever, in particular for the Group’s omnichannel
strategy. Couriers and freight forwarders are expected to
manage an agile business and be able to satisfy the needsof customers whilst paying attention to the environment.
The proposal of a customized sustainable service,especially for e-commerce, offering full visibility for thedifferent green options, such as deliveries with bikes,
drones or self-driving delivery robots, eco-delivery options
on longer hauls alternative to one-day service, packaging
collection from the final customer, and so on, is especiallyinteresting.
Additionally,business
intelligence
technologies and digital infrastructures, such as electronic
proof of delivery and intelligent consolidation of orders to
reduce the number of deliveries or route optimization, arefundamental to quickly respond to the opportunities ofthe digital market and to provide the Group with updated,transparent, and reliable data.
Kering expects suppliers to propose technical innovation
solutions (e.g. SAF, last mile deliveries), test them andeventually implement them at scale.

Aim for best certification schemes
Suppliers are encouraged to have a recognizedcertification of their processes at global, regional, or
national level regarding sustainability and social
responsibility. The ISO 14001 certification scheme isrecognized as a clear added value and guarantees theimplementation of an appropriate environmental
management system. Beyond the environmental aspects,
the ISO 9001 certification for quality management
systems, ISO 45001 certification for HSE (Health, Safety
and Environment) and SA8000 certification for social
responsibility are highly recommended.

Propose new packaging in line with bestpractices
Packaging, which is largely single use, seriously contributes
to global waste. Kering aims to implement best practices
for packaging. In particular:• Reuse scheme• Packaging that is part of circular economy
For additional information about requirements for raw
material processing, please refer to Kering Standard for
Packaging.

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Standards for Logistics - Transportation

BOX 1: B2B, B2C and omnichannel

The below definitions often occur in logistics:
B2B (business-to-business)
In B2B, products are shipped directly to a business or other retailer. Quantities are high and can involvea large number of pallets and parcels. When discussing B2B distribution, the Group refers to thereplenishment of its stores with the products needed for day-to-day operations.
B2C (business-to-consumer)
183

In B2C, orders are sent directly to the end customer. This usually consists of small quantities and single
parcels. B2C distribution refers to the flows relating to e-commerce (online orders) that allow thedelivery of the goods directly to the final customers in accordance to their order requests and theselected delivery service.
Omni-channel
The growth of the e-commerce business has led to a convergence of B2B and B2C traffic into omnichannel supply chains. Omni-channel is a sales approach driven by consumer demand for enhanced
convenience and online and offline shopping experiences where the borders between the real and thedigital world blur. An omni-channel strategy implies a combined approach with multiple customized
delivery services (e.g. home delivery or in-store click-and-collect) and various interchangeable
distribution settings (e.g. fulfill orders from different warehouses or directly from stores) to satisfy thecustomer and their evolving needs.

Standards for Logistics - Transportation

BOX 2: Carbon footprint reporting

In order to promote standardized, accurate, credible and verifiable information and effectively
contribute to the Group’s environmental reporting, Kering refers to the EN 16258 standard - a common
methodology for the calculation and declaration of energy consumption and GHG emissions relating to
any transport service whether freight, passenger or both. Kering asks all suppliers for a monthly report
to monitor the GHG emissions from all inbound and outbound shipments. The report shall contain atleast, for each single shipment information on the brand, origin and destination country, shipping mode,characteristics of the means of transportation (aircraft type, cargo/pax, 20ft/40ft container, etc.),
number of pieces, volume, gross weight, chargeable weight, distances, t.km (included pickup anddelivery), tons of CO2 equivalent well-to-wheel (including pre-/on-carriage). The complete reference
format with all mandatory requirements is included in the Kering contract with logistics services
providers.

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Standards for Logistics - Transportation

GUIDANCE
ACCOMPANYING
THE KERING
STANDARDS

185

Guidance for Circularity

GUIDANCE FOR CIRCULARITY

186

Guidance for Circularity

Moving away from the conventional "take-make-waste" model is about rethinking the way we
produce, use, and extend the life of resources and products. A combination of extended product lifeand reduced production volumes, decreases dependence on virgin resources and avoids thedestruction of materials. To promote a circular economy, managing the highest functionality of
products at all stages of their life cycle helps to enable their subsequent transformation into new raw
materials and products through reuse, repair, and recycling. Since 2020, Kering has included productuse and end-of-life in its analysis as part of its enhanced EP&L methodology to capture theenvironmental impact of consumers' product care and disposal behavior for luxury products. This
expanded scope of the EP&L enables the Group to understand and quantify the full life cycle of its
products from cradle to grave. In 2021 Kering published its Circularity Ambition ‘Coming Full Circle’, towhich this guidance is aligned.
This guidance is designed to promote circular economy principles and applies to finished products, aswell as pre-consumer and post-consumer resources. For instance, pre-consumer resources include
scraps, semi-finished and damaged products, production leftovers, and post-consumer resources
include products, packaging, and visual tools. Please note that specific recommendations are given for
packaging and visual tools in the dedicated section of the Kering Standards.
The principles in the Kering Guidance for Circularity do not restrict innovation but accompany it,
reflecting Kering’s creativity, exceptional know-how, quality, and longevity. They should be read in
conjunction with the ‘Checklist for Durability’ and the ‘Checklist for Recyclability’. All the definitions of
the relevant terms can be found in BOX 5, or in the Glossary at the end of the Kering Standards.
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Guidance for Circularity
This ‘Guidance for Circularity’ is based on the following
three pillars, in line with the Kering Circularity Ambition‘Coming Full Circle’:
1.
2.
3.

Ensure circular sourcing and clean production
Craft luxury that lasts
Make luxury to be recrafted•(1) Ensure circular sourcing and clean production

Align with the principles of circular sourcing
Kering believes that the circular economy starts withmaterials. Not only should they be of high quality, which
can be achieved by following the intrinsic durability
protocol (See Checklist for Durability), but they should also
be grown in a way that restores and respects nature.
Circular sourcing aims to reduce reliance on conventionalvirgin materials and avoid waste generation. Virginmaterials are sourced from regenerative agricultural
practices that comply with the Kering Standards (see therelevant guidelines in the material-focused chapters inthese Standards). Reclaimed materials, include fibers ormaterials from the recovery of post-consumer clothing or
pre-consumer resources such as scraps, semi-finishedproducts, damaged products, and production leftovers
that are reintegrated into the supply chain through varioustransformation processes, resulting in upcycled or
recycled content.

Choose post-consumer waste feedstock or preconsumer waste feedstock such as scraps, forrecycled content in products.
Recycling processes transform a product or component
into its basic materials or substances and process theminto new materials known as “recycled material” orcontaining “recycled content”. A product containing
recycled materials is not automatically recyclable. As
embedded energy and value are lost in the recycling
process, recycling should be considered as a last resort inthe circular economy (See BOX 1).
Requirements:••

In summary circular sourcing comprises:••

Materials from regenerative agriculture and withregenerative content
Reclaimed materials which are transformed into
upcycled or recycled content

When upcycling materials, prioritize:••

Post-consumer waste feedstock, such as usedgarments, used uniforms, …
Pre-consumer waste, such as scraps, semi-finished,
damaged, and unsold products

Upcycling these materials will avoid the destruction ofthese materials and the extraction of virgin materials.
Please note:•

Sourcing post-consumer garments as material
complicates compliance (REACH, PRSL, Kering

Prioritize materials with recycled content over biobased content
Prioritize materials with recycled content using (inorder of priority):o Post-consumer waste feedstock, such as
used garments, used uniforms, …
o Pre-consumer waste, such as scraps,
damaged & semi-finished products

Please note:•

Choose post-consumer waste feedstock when
designing upcycled products
Upcycling refers to a process in which materials that would
have otherwise been disposed of as waste, aretransformed into “new” products with a higher value sothat they can re-enter the textile supply chain (closedloop). Various techniques can be used for this, such as
deconstruction, re-dyeing, and re-printing. The final
product will contain upcycled content and certifications
can be used (see Guidance on claims) to prove this.

Standards) and requires rigorous testing protocols.
This process can be facilitated by using garmentsfrom the brand itself, which have been collected
through a closed-loop scheme.
Kering does not consider the use of unusedmaterials (from previous collections) as upcycling.
Stock optimization is considered the main priority
for brands before sourcing new materials.

•

There is currently no adequate certification formaterials produced from pre-consumer unused
products. Although these could be used to create“new” products, these cannot claim to be made with“recycled materials” (See Guidance on claims)
Recycled materials produced from recycled
packaging, like PET bottles, should only beconsidered as an intermediary step in asustainability journey, and not as part of the circular
economy.

Please consult “Section 3: Luxury to be Recrafted” in the“Guidance for Circularity” or the dedicated “Checklist for
Recyclability” for additional guidelines on recycling.

Align with the principles of clean production
In clean production processes, waste and pollution are
eliminated. This includes saving water and energy,
reducing chemical inputs, and improving overall efficiency.
A methodology to achieve this has been provided by the
NGO “Clean by Design”. Furthermore, the ProductRestricted Substances List (PRSL) provides guidance tosuppliers and product manufacturers on complying with
Kering’s requirements for the manufacturing and sale ofproducts that are safe, and free of harmful, toxic, andhazardous chemicals.

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Guidance for Circularity

Avoid microfiber leakage throughout the
products’ lifecycle
Fashion supply chains can have an impact on marine
biodiversity through the leakage of micro-fibers (including
microplastics) into waterways and oceans. This also causes
pollution of the soil, the exact consequences of which arestill unknown. This pollution can occur during the
manufacturing of yarn and fabrics, as well as during theconsumer use phase of products. Knowing thatmicrofibers shed from clothing during their complete life
cycle, including end-of-life, Kering has concerns about thepossible pollution of both synthetic and natural fibers.
Pre-consumer preventative actions to limit potential
impacts of microfibers include:•

Adoption of eco-design principles: implement
standardized testing methods and research into theshedding behaviors related to various production
parameters (i.e., such as those developed by The
Microfibre Consortium).

Kering refers also to The Microfiber Consortium
indications for reducing the formation and emissions of
microfiber in wastewater and waterways. The indications,developed with ZDHC, are addressed to brands andmanufacturers, and include:(actions for reducing formation)•
Usage of dyeing/laundry machines with low
abrasion.
•
Usage of process bath lubricants that reduce
fiber-to-fiber and fiber-to-metal friction.
•
Reduction of process times.
•
Usage of clean yarns and implement singeing
rather than biopolishing.
(actions for reducing emissions)•
Minimization of water consumption to increase
dwell times in the effluent treatment plant andspecifically in gravitational settlement.
•
If flocculation is used to remove color –examine options that can potentially aggregate
other solids including microfibers.
•
Ensure clarifier exits are clear and perfectly
horizontal to avoid channeling, a situation
where localized high flow rates carry solids outof the clarifier.
•Consideration of ultrafiltration, nanofiltration
or reverse osmosis to remove all solids(consider MBR design with integral filtration for
new build effluent treatment plants). And
consider on-machine filtration.
•
Avoidance of land spreading of sludge.
Raise consumer awareness about preventative actions
during the usage phase to limit potential impacts of
microfibers:

3

https://inthewash.co.uk/laundry-and-ironing/what-spin-speedshould-you-use/

•

•
•
•
•

Wash clothing and home textiles less, preferably at a
low temperature (30 degrees) and using a
programme with a low spin cycle of 400 – 600 RPM3
(for reference: 400 revolutions per minute fordelicates, while a programme for cotton is usually
1400 revolutions per minute).
Use a front-loading washing machine where
possible.
Install a filter on washing machines to capture
microfibers.
Washing bags reduce the number of microfibersthat may enter waterways and oceans fromwashing.
Line-dry instead of using a tumble dryer.

Post-consumer preventative actions to limit potential
impacts of microfibers:••

Extend eco-design principles to include the end-oflife phase.
Work towards a sustainable downstream supply
chain, as most microplastic leakage occurs when aproduct reaches its end-of-life (Plastic Leak Study by
Quantis).

Limiting the impact of microfibers once they are in theenvironment is not an option, and filtration systems
should be put in place to prevent microfiber release.
Biodegradable or compostable fibers cannot be seen as apotential solution to the microfiber issue.

Ensure just working conditions
Just conditions encompass a wider spectrum than social
only and covers the global landscape in which thefragmented supply chain of fashion brands is positioned. If
the social dimension of a circular transition is neglected,
we risk repeating negative patterns present in the current
linear system. “Just Transition” is a principle, a process anda practice. It assumes that a healthy economy and a clean
environment can and should co-exist. The process torealize this vision should be fair and not cost workers'
health, the environment, jobs or residents' economic
assets. Recently, various stakeholders have sought tocombine the principles of the circular economy with thoseof just transition to find ways to achieve a just circulartransition in the textile and fashion industry. This meansthat a circular economy must go beyond recycling, waste
management and technological “fixes” and also consider
social transformation."(2) Craft luxury that lasts

Implement a holistic approach to sustainability:
designproducts
withhighintrinsic
sustainability and organize your collection to
maximize extrinsic sustainability

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Guidance for Circularity
The Ellen MacArthur Foundation has found that the
average useful life of garments has decreased by 36%
compared to 2005, while garment consumption has
continued to increase. To enable a circular transition, longlasting garments are needed to counteract the throwaway
culture seen in the current linear system. This should go
hand in hand with adjusting consumption patterns andreducing production volumes. The industry’s growinginterest in durability has led to various research projects inwhich Kering is actively involved. The first is a scientificpublication in October 2022: “Different dimensions of
Durability in the luxury fashion industry: An analysis
Framework to Conduct a Literature Review” (Vanacker etal., 2022).
Based on these findings, durability should be consideredholistically for both the intrinsic and extrinsic dimensions
throughout the life cycle of materials and finishedproducts.
••

The intrinsic dimension refers to how a productresists wear and tear. It can be quantified throughintrinsic durability tests on both materials andfinished products.
The extrinsic dimension refers to external changes
that influence user preferences. Long-term productattachment is directly affected by societal changes,
fashion trends, and user experiences personal to thewearer, which includes body changes that affect fit.
Due to its subjective nature, it is harder to quantify
this dimension than the intrinsic one.

For more detailed guidelines, please consult thecomplementary “Checklist for Durability”.

the Trinary Interrelationship through an Integrative
Literature Review’ (Vanacker et al., 2023).

Adopt a culture of repair: design for reparability& repair services
On an intrinsic level, the repairability of products shouldbe optimized (See BOX 2), taking into considerationcommon garment malfunctions from the start at thedesign stage (See BOX 3). On an extrinsic level, after-care
and access to repair services should be an integral part ofthe circularity approach of brands. Therefore, it isextremely important to Kering to ensure that items are
kept in use by offering qualitative repair services,
providing clear information to customers regarding what
repairs are possible, the price of repairs and the process
they should follow. Furthermore, this allows products toretain a higher value for resale and increases the chancesof reuse.

(3) Make luxury to be recrafted

Consider recycling as the last solution after
reuse and prefer closed-loop recycling
Kering encourages its brands to create products that will
last as long as possible. While the recyclability of a productand its materials, which include fabrics and trims, should
be considered, recycling is only a last resort and not a goalin itself.
•

Respect the hierarchy of principles to support design
decisions.
Luxury should be crafted to last, which can happen
through different approaches, while always respecting thishierarchy (See BOX 1):(1) Reuse, the best option(2) Repair, a service to enjoy garments for longer•

To ensure materials retain the highest value
possible, closed-loop recycling within a specificindustry is the preferred option to stimulate design
for recyclability, material innovation, and increase
the demand for recycled inputs. Where finishedproducts are recycled into materials for otherindustries or applications (semi-closed and openloop), these should be designed to be recyclable.
Before choosing a material, fabric, or packaging,brands and suppliers should consider their end-oflife (See BOX 4), with the aim of avoiding theirdestruction. By destruction, we mean:

Enable reuse: durable products and innovative
business modelsooOptimizing both intrinsic and extrinsic durability will create
long-lasting garments, possibly with multiple users. Please
consult the “Checklist for Durability” for further guidelines.
Promoting alternative business models like reselling andrental further increases the opportunities for reuse andproduct life extension. Regarding the latter, various
communities in the Global South are leading by example
by continuously and successfully integrating indigenous
knowledge into small and larger-scale circular systems.
Therefore, durability strategies should put people at theheart, as the principles of just transition demand. You canread more about the intersection of garment durability,
circular economy and just transition in a second scientificpublication to which Kering contributed: ‘Circularity,
Garment Durability, and Just Transition: UnderstandingoSolid Recovered Fuels (SRF)
Incineration, even if an output is energy
recoveryEnding up in landfill

Please see BOX 5 for the different steps implied in “FromGarment to a Circular Material” and the accompanying“Checklist for Recyclability”.

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Guidance for Circularity

Discourage the promotion of biodegradable orcompostable fibers
In a circular economy, designing for recycling comes withthe advantage of keeping the value of the material in theeconomy, which is preferred to designing for composting.
Depending on the material, composting can be consideredeither a waste disposal process or a waste recovery
process (biological recycling). Composting is only arecycling process if the biological nutrients of the productor packaging it contains that would otherwise have been
lost provides a mechanism to return to the soil, as fertilizer
or soil improvers. For example, composting vegetablewaste is a form of recycling that allows carbon to be stored
in the soil and provides organic matter for the soil.
Whereas composting biodegradable plastics turns theminto water and CO2 Consequently, the plastic is no longer
available to be reused, nor does it add any nutrients to thesoil. Composting compostable plastic is not recycling.

Furthermore, compostable material needs to go hand inhand with the appropriate collection and composting
infrastructure in order to be composted. Composting cantake place in an industrial facility using a controlled
process managed by professionals, or at home, where theprocess depends on an individual’s knowledge or ability to
be able to do this.
Both biodegradability and composability depend on very
specific environmental conditions in terms of temperatureand moisture, which may not exist in all environments
where microfibers end up. As such, while a fiber may beconsidered ‘biodegradable’ or ‘compostable’ this might
not occur easily in certain environmental (i.e., deep sea,
extreme cold climates etc.).
Finally, during any biodegradable or composting process
textile chemicals may be released into the environment;these can include, but are not limited to, pigments anddyes (which may be synthetic), or coatings and finishes.

191

Guidance for Circularity

BOX 1: Hierarchy of principles supporting design decisions

192

BOX 2: Guidance on improving intrinsic repairability

Guidance for Circularity

BOX 3: Repairability requirements based on common garment malfunctions
Blind
hem
T-shirtBrokenseam

Buttons

Glued
pockets

Seam
tape

Snaps/
studs

Zip

X

Shirts & blouses

X

X

Sweaters & mid-layers

X

X

X

Jackets and coats

X

X

X

X

X

Trousers and shorts

X

X

X

X

Dresses, skirts &jumpsuits

X

X

X

X

Leggings, tights &
socks

X
193

Underwear

X

Swimwear

X

Apparel accessories

X

Garment failures are based on the PEFCR for Apparel and Footwear Category Rules (V1.3)

Guidance for Circularity

BOX 4: Prioritization of actions

Upcycling before Recycling

Upcycling before Recycling

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Guidance for Circularity

BOX 5: From garment to circular materials

1. DISMANTLING OF THE FINISHED PRODUCTManualPreserves the materials of the garment; reclaim
or recycle them as such that a homogenous
quality is achieved.

MechanicalOften less precise than manual, which causes alower percentage of materials to be recycled. It
can result in a mix of different fibers thereby
affecting the final quality obtained.

2. PROCESSES TO PRODUCE RECLAIMED MATERIALS
Upcycle, remake
Simple transformation of the
product to create a ‘newproduct’ from it or fromcomponents. E.g., throughredyeing and reprinting.
These can then be used tocreate upcycled materials.

RecycleReduce a product back to its
basic material level,
reprocessing those materials,
maintaining the quality. These
can then be used to create
recycled materials.

Downcycle
Reduce a product back to its
basic material level but with alower quality.

195

3. DIFFERENT RECYCLING LOOPS
Closed loop
Used to replace the samevirgin material for products

Semi-closed loop
Used to replace the samevirgin material in anothersector (automotive, buildings).

Open loop
Used to replace anothermaterial in another sector(downcycling).

In the innovation space, textile-to-textile recycling solutions are available via mechanical processing but oftenwith quality standards that are compromised. Chemical recycling technologies of textiles are growing andshowing potential as they begin to enter the market.

Guidance for Circularity

Checklist for durability
This checklist accompanies the overarching ‘Guidance for Circularity’ and is supplemented by a ‘Checklist for Recyclability’. The
aim is to clarify the concept of durability and its different dimensions: intrinsic and extrinsic. It is based on scientific research(Vanacker et al., 2022), which highlights the complexity of the concept. For the sake of accessibility, this summary presents thecontent in a simplified manner without limiting its accuracy and comprehensiveness.

Address durability holistically
Durability is a complex topic, based on constantinteractions with its wearer(s) and the environment. It iscomprised of two different dimensions (See BOX 1):

Kering is working closely with its Technical Innovation Lab
in Italy. A protocol has been developed for both woven(See BOX 2) and knitted materials (See BOX 3).
Production phase: Implement a garment testing protocol

Intrinsic refers to how a product resists wear andtear and can be quantified through intrinsic
durability tests on both the material and product.
Extrinsic refers to external changes that influence
user preferences. Long-term product attachment isdirectly affected by societal changes, fashion trends,
and user experiences personal to the wearer, which
includes body changes that affect fit. Due to its
subjective nature, it is harder to quantify thisdimension than the intrinsic one.

Construction methods that are adapted to the appropriate
garment use, enhance a product’s lifetime. Assembly
requires the craftsmanship, which is inherently present in
all Kering brands products and in which further
investments should be made. As a first step, Kering
encourages brands to conduct the garment tests
mentioned in the durability testing protocol on continuity
lines. Please see BOX 4 for intrinsic durability testing
specifications for finished garments.

This means that when a garment is treasured, which falls
under the extrinsic dimension of durability, the user wants
to wear it repeatedly. Therefore, it must be able towithstand prolonged wear, and be intrinsically durable.
This illustrates how both dimensions are inextricably
linked with each other and both should be addressed.

How the user takes care of garments affects their lifespan.
Therefore, Kering brands should cautiously choose
accurate care instructions. Optimizing these is a quick win
to assure sustainable care practices, and also maximizes
resale value.
When product failures occur during use, Kering brands
must optimize the customer repair journey. Repair
services should be accessible and Kering brands urge
suppliers to provide the needed repair documentation andspare parts to facilitate the process (See BOX 5 in the‘Guidance for Circularity’). Furthermore, investments inreverse supply chain logistics, like return or closed-loop
schemes, should be considered.

••

Improve the intrinsic durability
Design phase: Consider intrinsic durability from the start
According to the Environmental Coalition on Standards, up
to 80% of product environmental impacts are determinedat the design and development stages. Design for intrinsic
durability includes:•••

Using high-quality materials that align with the
Kering intrinsic durability testing protocol (See BOX
2, BOX 3 and BOX 4 for concrete tests and values).
Using functional finishes to help avoid stains, odor,
or humidity.
Reinforcing heavily stressed parts through various
techniques, that are more appropriate depending on
the garment (for example, adding double stitching
to a pocket opening to avoid tearing).

Material phase: Implement a material testing protocol
Changes in garment appearance due to wear and tearoften cause a decreased value for the wearer. Therefore,
Kering brands commits to only using materials of thehighest quality that comply with our intrinsic durability
testing standards. To identify what tests should be carriedout and what respective thresholds should be attained,

Use phase: provide care guidelines & repair services

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Guidance for Circularity

Improve the extrinsic durability
Distribution phase: Adopt virtuous sales practices
Different Kering brands participated in a pilot to develop amultiplier for extrinsic durability, developed by the French
association En Mode Climat and the Alliance for European
Flax-Linen & Hemp. As customer data is subjective andhard to generalize robustly, the approach focuses onbrand behavior and its impact on product attachment.
Kering brands are urged to consider the four criteria to
optimize virtuous sales practices (See BOX 5)especially as
the upcoming Product Environmental Footprint for
Apparel and Footwear legislation will most likely include
the extrinsic dimensions of durability in its calculations.
The obtained extrinsic durability score is an indication to
guide brands on how to make further improvements andensures that not solely the intrinsic dimension is taken into
account. While this indicator is not perfect, it is the firstattempt to quantify a dimension of durability that isheavily linked to personal and individual customer
behavior. The latter makes it hard to identify and develop
scalable parameters that are general, while still relevant.
Through further engagement with the Kering brands andexternal partners, the chosen criteria, thresholds, andcalculation methods will be challenged and optimized over
time.
197

Guidance for Circularity

BOX 1: Hollisitcal durability definition

198

Guidance for Circularity

BOX 2: Protocol for intrinsic durability tests – woven materials
PARAMETER(Requirements
valid forLength/Width)

Tensile strength(Grab method)

Tear resistance(tube to trouser)

TEST METHODSINDICATIVEREQUIREMENTS

USE / TYPE OF FABRIC

Fabrics in general≥ 180 / 130 N

Stretch fabrics≥ 90 / 90 N

Fabrics in general≥ 14 / 12 N

Fabrics ≤ 130 g/m2 (e.g., frizz,
voile)≥8/8N

Fabrics in general≥ 90 / 90 N

Fabrics ≤ 130 g/m2 (e.g., frizz,
voile)≥ 60 / 60 N

EN ISO 13934-2

EN ISO 13937-2

Slip resistance ofthe threads at theseams - (6 mmopening)

EN ISO 13936-1

Elongation andelastic recovery

ASTM D3107

Only for stretch fabrics

Elongation ≤ 2%
Recovery: ≥80%

Pilling resistance(modifiedMartindale)

EN ISO 12945-2

Fabrics in general:
500 cycles
2000 cycles≥4≥3

Fabrics in general≥ 20 000

Trouser fabrics≥ 30 000

Shirt fabrics≥ 10 000

Continuous thread fabrics≥3

Wear resistance(Martindale)

DECLAREDVALUES

EN ISO 12947-2

Snagging resistance(Snagging Test ASTM D3939
Mace)

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Guidance for Circularity

BOX 3: Protocol for intrinsic durability tests – knitted materials
PARAMETER(Requirements valid
for Length/Width)

Burst resistance

TEST METHODSEN ISO 13938-2

INDICATIVEREQUIREMENTS

USE / TYPE OF FABRIC

Fabrics > 130 g/m2

≥350kPa

Fabrics ≤ 130 g/m2

≥ 275 kPaDECLAREDVALUES≥ 175 kPa

Elasticity of fabrics(Value valid forLength/Width)

EN ISO 209321:2020-1

Elongation notrecovered after
30 min: <10%

≥3
Resistance to pilling
EN ISO 12945-1(ICI Box)

200≥3

Snagging resistance(Snagging Test ASTM D3939
Mace)

≥3

Guidance for Circularity

BOX 4: Protocol for intrinsic durability tests – garments
PARAMETER(Requirements
valid forLength/Width)

TEST METHODSUSE / TYPE OF GARMENTINDICATIVEREQUIREMENTS (AFTER DECLARED
30 CLEANING CYCLES, 5 VALUESFOR DRY-CLEANING)

Dimensional
stability &shrinkage

ISO 6330 care label
cycles ISO 5077 & Non-delicate garments
ISO 16322 Spirality

Skewness ≤ 5%
Shrinkage width ±5%

Dimensional
stability &shrinkage

ISO 3175
ISO 5077 & ISO
16322 Spirality

Delicate garments

Skewness ≤ 5%
Shrinkage width ±5%

Non-delicate garments

ISO Pilling grade replica≥3
No component failure(e.g., buttons or zippers)
ISO Greyscale Colourchange Grade ≥4
No broken seams

Fabrics in general

Grade ≥ 3-4 using ISO /AATCC greyscale forcolour change

Fabrics in general

Shade change ≥ Grade 34

ISO 105-B02, X
hours of light
exposure OR AATCC Fabrics in general
16, Op3, 20 AFU (tolight)

Blue Reference ≥ Grade
4 96 hours of light
exposure

Appearance

Visual Exam(Comprehensive)
ISO 15487

ISO 105 X12 OR
AATCC 8 (tocrocking) wet rub

ISO 105 E04 OR
Fabric colorfastness AATCC 15 (toperspiration)

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BOX 5: Extrinsic durability indicator
By evaluating the marketing practices of a company, it is possible to attribute an extrinsic durability score toa brand which can serve as a voluntary indicator to better understand its current performance and how topossibly improve it. The calculation can be based on four different criteria, which are the following:•

Length of time on sale takes into consideration the complete product range, including capsulecollections, that sold through the brand's direct sales channels, both online and in-store. It should
therefore be calculated proportionally, to understand how long a garment is available for sale on
average.

•

Average sales rate applies to all the products sold online and in-store through directly owned stores,
excluding outlets. The percentage is proportional and not absolute, thereby illustrating whatpercentage of products have been sold at a discount.

•

Product range size is defined by the number of different PRCs (Product Reference-Color) that are soldannually. A Product Reference-Color is used to identify products within the same product subcategory,with the same product model (or style), same material and same associated color.

•

Rate of unsold goods compares deadstock products with production volumes. Deadstock products aredefined as products that could not be sold in traditional sales channels, or through discount sales or
private sales (according to the SAC PEFCR V1.3). The thresholds provided have been selected bylooking at industry averages, specifically sell-through rates.
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Guidance for Circularity

Checklist for recyclability
This checklist supplements the overarching ‘Guidance for Circularity’ and is accompanied by a ‘Checklist for Durability’. The
aim is to specify guidelines to enable Design for Recyclability for both materials and finished garments.

A “Recyclable product” is a characteristic of a product,
packaging or associated component that can be diverted
from the waste stream through available processes andprograms. It can be collected, processed, and returned touse in the form of raw materials (ISO 14201). This mostly
refers to the end-of-life phase. A recyclable product does
not necessarily contain recycled content (See BOX 1).
To be called recyclable, a product should be:which has the responsibility to use the financial
contributions from the brands to divert garments andtextiles from landfills and optimize their second life.
Currently, different countries are developing an EPR
scheme, the Netherlands for example has implemented
one in July 2023.

••

A brand can manage the end-of-life of its products forexample through a take-back scheme. It collects its usedproducts from consumers to manage their end-of-lifethrough:

Designed for recyclability
Collected, sorted, and recycled in practice and at
scale

Incorporate design principles to ensure
recyclability
Design for recyclability enables garments and theircomponents to be recycled at their end-of-life. Already inthe design phase, all the components should be carefully
selected to ensure that at least 50% of the product massof the 1st generation product will be recycled.
The recycling process of finished garments is often
hampered by internal or external elements, also called
disruptors (See BOX 2). Design for recyclability considers
eliminating these disruptors to enable a product’s fullrecycling potential. On a material level, certain choices canintegrally improve the possibility of recycling and help
retain the highest possible value (See BOX 3).

Implement garment collection and recycling inpractice and at scale
Garments should be collected, sorted, and recycled inpractice and at scale, representing a post-consumer
recycling rate of 30% in multiple regions with collectively
at least 400 million inhabitants. These targets wereidentified by the Ellen MacArthur Foundation for Plastics(EMF, Global Commitment) and have been adopted by
Kering to apply to textiles as a first step. Achieving thetargets can happen through sustainable downstream
supply chain management, which encompasses collective
or individual collection schemes and recycling at scale
which can differ from one country or region to another.
EPR scheme: National level
Extended Producer Responsibility (EPR) schemes require afinancial contribution by companies, selling products, withpackaging, in a country. This should fund the end-of-life
management of the products or packaging entering thecountry. In Europe, many EPR schemes exist for packaging,
however, France was the first country to have one in place
for textiles. It is managed by the eco-organism ReFashion,

Collection schemes: Brand

•
•
•
•

Resale, which could be through their own secondhand platform
Repair, to enable resale
Remake, through upcycling techniques to create a
new product
Recycle, as a last resort

Due to the complexity of handling the above options,companies tend to collaborate with external partners fortheir downstream supply chain management. However,this limits transparency regarding the actual end-of-life of
the collected goods.
Recycling at scale
Kering encourages suppliers to support ongoing researchand efforts addressing emerging fiber-to-fiber recycling
technologies, mechanical or chemical (both for synthetics
and natural fibers) to enable scalability.

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Guidance for Circularity

BOX 1: Recycled content VS. Recyclable

205

Guidance for Circularity

BOX 2:Disruptors and enablers of garment recycling

DISRUPTORS

Any elements that have a negative impact on at least one of the recycling channels or recycling stages, canbe:•Internal, meaning they cannot be removed or eliminated from the article by cutting or separating.
They relate to the composition, the primer, the material, or the use. Types of internal disruptors
are:•External, meaning they are elements external to the fabric, directly sewn or glued onto the
product. Embellishments, are informative, have a function or are purely aesthetic. Types ofexternal disruptors are:206

Guidance for Circularity

BOX 2: Recycling disruptors and enablers of garments (continued)

ENABLERS

Elements that have a positive impact on at least one of the recycling channels or recycling stages. They help
to:
•

•

***** Homogenize products based ono Color (e.g., single colors)o Material (e.g., mono-material)o Fabric and components (e.g., trims are made from the same material as the main fabric)o External disruptors placement (e.g., buttons positioned in one place)
Facilitate the preparation stage, which is essential in the recycling process

Internal disruptors include:

External disruptors include:

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Guidance for Circularity

BOX 3: Ensure material recyclability

COTTONPOLYESTER

208

WOOL (MECHANICAL RECYCLING)

Guidance for Circularity

LEATHER (MECHANICAL RECYCLING)

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Guidance accompanying the Kering Standards

210

GUIDANCE FOR INNOVATION

Guidance for Innovation

The world of sustainable fashion innovation is a new and fast-moving one. Whereas some years ago,
there were relatively few innovators working in this space, today, there is an entire ecosystem
dedicated to it, including: innovators from startups up to large industries, accelerators, investors,
academics and government institutions. Indeed, innovation drives sustainability forward in fashion andis a key enabler for Kering to achieve its sustainability targets. Kering set an ambitious goal to reduce
its total environmental footprint, as measured by its EP&L, by 40% by 2025 and the Group is awarethat 50% of this reduction will come from implementing the Kering Standards and the other 50% willbe through adopting innovative solutions, such as alternative raw materials (i.e. mycelium-basedalternatives to leather, bio-based polyurethanes, etc.) and new ways of processing materials (i.e.
biotech dyeing solutions, etc.).
The Kering Guidance for Innovation covers new technologies and solutions for processing andmanufacturing as well as new materials that may complement or replace existing, traditional materials.
These innovations must be a new technology or a new product significatively improved in terms ofsustainability compared to existing ones: the footprint must be lower and the pressure on natural
resources less.
The Guidance helps identify key topics that need to be addressed when assessing the sustainability of
new technologies and innovations and codifies some key issues in assessing innovation impacts. It has
been developed based on the research and analysis by leading organizations, such as Kering’s key
innovation partner, Fashion For Good, as well as Textile Exchange or Kerings’ Tanneries specialists,
among others. The scope of the Kering Guidance for innovation focuses on the first half of the apparelvalue chain – alternative materials and processing technologies. Technologies enabling innovative
business models that help redefine the use of materials and processes (such as digital technologies aswell as the resale and rental markets) are also a very important area of fashion innovation, and not to
be underestimated in terms of potential positive impact. However, they are outside the scope of theKering Guidance for Innovation as they are often more closely linked with business strategy andlogistics flows, as opposed to raw material and manufacturing processes.

The Kering Guidance for Innovation refers to specific areas of “innovation” and are associated with new material
or technology that will complement or replace existing, traditional materials and processes in the supply chain.
The Kering Guidance for Innovation covers key topics such as:• Bio-feedstock• Material inputs and processing (for fibers)• Manufacturing processes and related technologies (for fabrics)• Manmade non-fiber materials• Nanotechnology• GMO
It should be noted that, depending on the proposed innovation, not all the above topics will be relevant. Also, itshould be kept in mind that, as the sustainable innovation movement in the apparel sector is relatively young,there are often differences in industry definitions and terminology. This Guidance attempts to classify such terms
based on current thinking and trends.
The Kering Guidance for innovation should be read in conjunction with Kering Standards on the relevant materials
and processes that are most closely linked with the proposed innovation (see Kering Standard for Plastics, Kering
Standard for Synthetics Fibers, Kering Standard for Textile Processing, etc.).

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GUIDANCE FOR INNOVATION

Apply the Precautionary Principle and Assess
ImpactKering fully supports the Precautionary Principle withrespect to its environmental and social impacts. The Groupis a signatory to the UN Global Compact that also supports
the Precautionary Principle and states “where there arethreats of serious or irreversible damage, lack of fullscientific certainty shall not be used as a reason for
postponing cost-effective measures to prevent
environmental degradation.” In terms of business, thismeans looking to work at the level of prevention rather
than waiting until there is a need for a cure.
Kering consistently, across all its activities, supports
innovative and sustainable approaches that do notdegrade the environment or have negative impacts on
people, now or in the future. At the same time, it is key toensure that these approaches are not in any way harmful
to the environment or society, and this becomes
particularly relevant in the case of innovation where
technologies and solutions can still be experimental andunproven. Therefore, when analyzing a new material orprocess, it is imperative to:• Ask the innovator for data, preferably an LCA (based on
ISO 1440, specifically: UNI EN ISO 14040 (2006) andUNI EN ISO 14044 (2018) to best understand thepotential impact of the innovation on the environmentand society• Many innovations are at a very early stage, andtherefore difficult to assess in terms of impact (e.g. it is
not possible to do an accurate LCA and when an
innovation is still in lab stage). If an LCA is not available
or possible to do, self- reported impact data as well as
third-party verified data are both acceptable as aRequirement for 2025
• Viable impact data that is gathered from an innovator
should be directed to the Kering Sustainability
Department to help determine its EP&L impact andpotential savings over traditional materials andprocesses.
• Prioritize innovators who have conducted third party
LCAs

Apply the Precautionary Principle when using
nanotechnology
Kering will not use any nanotechnology applications unlesssuch applications are analyzed and proven to have nopotential negative impact on human health and theenvironment, including an evaluation of end-of-life
impacts. Please see BOX 2: Nanotechnology for more
information.

Steps to take when considering a product containing nanotechnology:• If a nanotechnology is detected and necessary for thesolution to work, be sure its safety is scientificallyverified and based on scientific studies• If more information is required to determine safety of
the nanotechnology, have the supplier and/or brandtest the product using the Nano Risk Framework

Apply the Precautionary Principle when using
Genetically Engineered (GE) and Modified
Organisms (GMO)
Kering does not support genetically engineered (“GE”)
materials as raw materials for its brands’ products andpackaging. There may be occasions, however, where,
upon careful consideration, Kering brands accept somelevels of genetic engineering in processing steps to attain
more sustainable solutions. In the sustainable fashion
innovation space, it is common to see innovations
involving biotech-based solutions where micro- organisms
are used as platforms for genetic engineering (e.g.
bacteria and yeasts).
In such cases, it is acceptable for Kering brands to accept
genetic engineering in the process to create a new productor material process when impact data shows that theenvironmental or societal benefit outweighs the potential
risk. However, the final product should not contain GMO
material (i.e., the genetic material should be destroyed
and appropriately disposed of after processing and notdetectable in the final material or technology to be used).
See BOX 3: GMO/Genetic Engineering for further
explanation of GMO and GE issues.

Comply with Kering Product Restricted
Substances List (PRSL) and Material
Restricted Substances Lists (MRSL)As well as complying with all regulatory and necessary
legal requirements, compliance with the PRSL and MRSL isrequested for any new material or processing innovation.
Compliance with the PRSL and/or MRSL must be ensured
by the innovator through product testing and eachinnovator must guarantee compliance before becoming a
Kering supplier. Moreover, Kering oversees an internal
testing program of the products as an additional auditing
measure.
The PRSL and MRSL are appendices to the supplier
agreement (contract or purchasing terms and conditions)with Kering brands. More information is available in the212Guidance for Innovation

Appendix: Summary of Kering Chemical Management
Policy.

material feedstock and then pre-consumer, aiming toachieve material with 100% recycled content fromchemical recycling technologies when available.

Inquire about the source of bio-feedstock
When analyzing the potential impact of innovations basedon bio-feedstock, it is important to understand which one
is used to produce the energy, chemical reaction, ormaterial. Please see BOX 1, for a detailed explanation of
the different bio-feedstocks. For bio- feedstock:• Try to collect as much information as possible from theinnovator about the bio-feedstock used in order toassess its impact• Generally, the level of potential harmful impact of afeedstock is greatest with First Generation feedstocks(e.g. competition with food sources, land use, GMO
use, etc.) and decreases as you proceed to Fourth
Generation feedstocks. For this reason, try to avoid
innovations using First Generation feedstocks. This canbe difficult as they currently are the most commerciallyavailable• If it is not possible for an innovator to avoid using aFirst-Generation feedstock, innovators should be
encouraged to move to other sources where possible.
As solutions become more mature and ready forcommercialization, Kering brands should always
source innovations that are “best in class”. This means
that, as they become commercially available, Kering
should source innovations based on Second, Third andFourth Generation feedstocks• If there are known negative effects of an innovation’s
feedstock such as competition with local food security,
toxic chemical compound release, negative impact onwater use or quality, etc., then the innovation should
not be used
• Make all efforts to ensure that the feedstock is notgrown with genetically modified organisms (GMO).
Kering does not support GMO• Suppliers should source biobased materials that havebeen certified according to:o DIN CERTCO Biobasedo OK Bio-based TUV• These certifications verify only the biobased carbon
content in materials• Suppliers should provide Kering brands wheneverpossible, with any additional information and/or
certifications about the biomass feedstock
management. Some certifications are: RSB (for biomass
and biomaterial production and processing), ISCC
(referring to their chain of custody for biomass), FSC
and PEFC (for materials based on wood and its byproducts), RED Cert (referring to their chain of custody
regarding sustainability of the biomass). See BOX 2 forcertifications recommended by Kering.

Prioritize using materials with a higher
recycled or bio-based content
Within the innovation space, recycled content is thepriority, specifically choosing post-consumer recycled

For materials that are partially bio-based, try to obtain thehighest percentage of bio-content possible. In today’s
market, at least or above 30% should be the target. In the
future, it should be possible to have a higher percentage
of sustainable bio-based content in materials, withoutcompromising performance and quality.

Only source from Kering preferred countries,
or from specific sources that are certified assustainable
Kering supports ongoing research by experts to:(1) evaluate the risk of sourcing innovative materials fromcountries based on energy mix, farming practices,
environmental pollution, animal welfare, labor practices,
etc. and (2) identify countries where it is more favorable
to source from.
All suppliers are required to only source innovative
materials for Kering from innovators whose raw material
are certified to one of the certifications listed in BOX 2.

Ensure that no innovation activities are linked
with deforestation, conversion or degradationof natural ecosystems.
The production, sourcing and financial investments ofcompanies in Kering’s supply chains must not cause orcontribute to the loss of natural ecosystems (or conversion– including land, freshwater and marine ecosystems), or totheir degradation. This covers all natural ecosystems,
including but not limited to natural forests (deforestation)and to those ecosystems that meet the criteria of Key
Biodiversity Areas and High Conservation Value Areas(including High Carbon Stock or Irrecoverable Carbon
Areas). Please refer to the Introduction to Standards for
Raw Materials where this is covered.

Source from innovators respecting humanrights and social requirements as set out in the
Kering Code of Ethics
Kering is committed to respecting and ensuring
internationally recognized human rights, both in its
activities and through its business relationships.
Therefore, innovators must adopt and implement sourcing
practices which include high expectations regarding thesocial and labor conditions of workers in the supply chain,in accordance with the principles set out in the Kering
Code of Ethics and its Suppliers’ Charter. See Appendix:
Social Compliance and Enforcement of the Kering Code of
Ethics in Supply Chain.

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Ensure best environmental practices of theinnovative materials processes
Innovative material processing can have a significant
impact on the environment mostly due to water use,energy use and chemicals. Ensure that these impacts aremonitored and minimized. In particular:• Require innovators to use best efforts to establish aclosed-loop chemical management system, so thatchemicals that are used and produced during thetransformation of wood pulp to cellulosic filament andthe production of synthetic fibers, do not escape into
the environment and also potentially harm workers. A
closed-loop chemical management system means
preventing and reducing chemical air emissions,decreasing water consumption, minimizing chemical
impacts and phasing out and eliminating hazardous
waste• Use of resources must be managed and reduced to theminimum: water, energy and land are precious.
• Address microfiber and microplastic leakage with aninnovative approach to minimize them as much as
possible• If the manufacture of the innovative material or the
innovative process involves microorganisms, ensured
they are not harmful to the health of those handlingthem, and that they are not GMOs.
For additional information about requirements for raw
material processing and finishing, please refer to Kering
Standard for Textile Processing and tanning.

Use best efforts to provide full transparency ofthe supply chain
Kering is committed to achieving the highest levels oftransparency within its innovation supply chains. In thiscontext, innovators will provide Kering with informationfrom raw materials to finished products: the innovator
should be able to provide information about its own
suppliers.

Use best efforts to ensure full traceability of
products
Kering expects to have full traceability of innovative
processes or materials from raw material production level,
supported by physical and digital systems (platforms,
tools, programs, etc.), preferably third-party verified.

Address end-of-life by ensuring full circularity
When looking to adopt an innovation, particular attention
should be paid to the end-of-life solution. Kering promotes
recyclability rather than composability.

See Kering Guidance for Circularity: section (3) Luxury
made to be recrafted and the BOX 4: Prioritization ofactions for more information on this topic.
In the innovation space, fiber-to-fiber recycling solutions
are available by mechanical processing (the quality ofwhich might be inferior). Chemical recycling technologies
of fibers are nascent but promising and now entering themarket. Closed loop solutions should be chosen. Thermomechanical recycling is an innovative process that could beconsidered for single material shoes

Analyze material inputs and related processing
for fibers
Material inputs (synthetic or bio-based) and the way they
are processed (bioprocessing, mechanical, or chemical)
are key elements to be considered when determining theimpact of an innovation related to fiber production.
Prioritize materials that are made with recycled content
certified to the Global Recycled Standards (GRS). If this is
not possible, source materials with bio-content (nonfossil/petrol content) taking into account therecommendations in the previous paragraph.
Material inputs can be categorized as follows:
1. Natural fibers where the material inputs are plants orplant- derived (e.g. leaf, bast, seeds from agri-waste
and residues or food industry by-products) that do not
require fiber formation or reformation. The fibers areusually obtained through chemical or mechanicalprocessing and the basic structure of the fiber is kept
intact. There are also artificially produced fibers (e.g.
lab-grown fibers). Generally, these materials have a
low impact both on input and processing, but thequality needs to be improved if it is to become more
widely used.
The categories below refer to innovation of fibers
processed synthetically (Man-Made Fibers: MMF) beyond
the traditional category of cellulosic-based MMFs (e.g.
viscose, acetate, modal, etc.), and related material inputs,
chemicals and manufacturing improvements.
2. New MMFs where bio-based feedstocks (bio-synthetic MMFs) go through extensive bio- and/or
chemical processing to produce thermoplastic
polymers (e.g. PLA, PHA, bioPET, etc.). Synthetic
alternatives are also known as CCU (Carbon Captureand Utilization) technologies, which refers to theprocess of capturing carbon dioxide (CO2) and using it
as a feedstock for polymers in textile applications(e.g., CCU PLA) reducing the CO2 in the atmosphereand its negative impact. Innovations in this fiber
category are promising but at an early stage, theirtechnology readiness levels (TRLs) needs to be
improved for scaling.
3. MMFs derive from alternative natural polymers (e.g.
protein, algae, chitin, etc.). In some cases (e.g. bio
fabricated silk), the main ingredients (building blocks)214

Guidance for Innovationof the fibers, are produced by microorganism (e.g.
yeast, bacteria) through a fermentation process whichis then further mechanically or chemically processed
and transformed into fibers or spun into filaments. It
is often challenging to measure the impact or define
the sustainability assessment for these specificinnovations, even more difficult when they are in the
R&D phase. Concern may arise about using Genetically
Modified Organism (GMO) in bioreactors, as well as
for the used feedstock (e.g. sugar usually from GMO
crops) to feed the living organisms.

There are three categories of processing:
1. Chemical processing (e.g. applying chemical-based
solvents, etc.)
2. Mechanical processing (e.g. carding, shredding, etc.)
3. Bio processing (e.g. using bacteria in a fermentation
process, etc.)
Some solutions can also be the result of a mix of theabove.
When evaluating innovation, bio-based materials (with ashigh a percentage of bio-content as possible) which are bioor mechanically processed will generally have a lower
environmental impact.
• When possible, combine bio-based material with bio or
mechanical processing

Analyze manufacturing processes and related
technologies (for fabrics)• Replace conventional reagents with more sustainablechemicals (e.g. phase out of sodium hypochlorite forbleaching)• Use natural or biogenic pigments (e.g. natural indigo
from regenerative agriculture, black pigment fromrenewable resources, pigments from microbial
fermentation etc.)
Finishing, coating and treatment process• Choose efficient and less resource consuming
processes (e.g. waterless, ultrasound assisted, plasma
treatment, etc.)• Replace conventional reagents with green chemistryalternatives instead of non-renewable chemicals andchoose enzyme catalyzed finishing processes.
• Water resistant finishing should guarantee
performance avoiding PFAS.

Analyze non fiber materials
A wide range of innovative materials mimicking leather isbeing developed for the fashion industry for use in shoes,bags, watch straps and garments.
When evaluating such materials, it is important toconsider:• The physical properties of the material in terms of
mechanical resistance, durability, behavior tomoisture, size and manufacturing capacity.
• The presence of polymers that are bound to thebiomass to improve its properties. Biobased polymers
should be chosen.
These materials can be grouped as follows:

Kering promotes the development of innovative,
disruptive techniques allowing large reductions in the useof resources, the generation of wastes, and overall
environmental impact. Depending on the field of
application, such techniques must deliver at least one of
the following benefits, and Kering supports innovationthat provides as many benefits as possible.
Processing and manufacturing• Reduce the use of resources (energy, water, chemicals,
land etc.)• Use biobased lubricants and additives• Use technology that minimizes scraps or waste (e.g.
advanced defect detection technologies, knitting
innovation, additive manufacturing, bio fabrication)
Dyeing and printing• Choose technology that reduce the amount of energy(e.g. cold-pad batch dyeing, etc.), water (e.g. waterlessprocess, spun dyeing for cellulosic fibers, low liquor
ratio dyeing, etc.) and reagents used (e.g. ultrasound,plasma treatment, supercritical CO2 dyeing, ozone
process for bleaching, recycling of dyes from postconsumer textiles, etc.)

Bio based materials
Materials in this category are made of textiles coated witha polymer in which a filler is dispersed, typicallypolyurethane incorporating a biobased feedstock.
Numerous versions are available on the market, featuring
several biobased fillers and different polymers. However, Kering
is interested in even more innovative solutions. The standards
for coated fabrics are described in BOX 4 of the Kering Standard
for Textile Processing. Additionally, when a polymer coatedtextile is found, it is important to consider:• The type of fabric on which the coating is applied.
Certified, recycled, circular or organic textiles should
be chosen.
• The polymer used to coat the fabric. Biobased andwaterborne resins should be used.
• The origin of the filler dispersed in the polymericcoating. Biobased fillers should be used especially ifcoming from residues or leftovers from agro-industrial
value chains or from certified biomass feedstock
management.
Bio assembled material:
Mycelium215

Guidance for Innovation

This type of material is obtained from mycelium biomass(the vegetative part of the fungi) that is chemically andphysically processed to resemble some of thecharacteristic of animal leather. The mycelium biomass
can be obtained from different fungal strains andfermentation methods. The mycelium biomass ischemically and physically treated to improve theproperties of the material (including coating or couplingwith other materials). When evaluating such materials,
strains must be chosen wisely and carefully managed:
invasive species of microorganism are not recommended
because they can take over an ecosystem.
Bio assembled material:
Microbe-derived

Scaling innovation
Expectations must match the TRL (Technology Readiness
Levels), these are points on a scale from 1 to 9 used tomeasure the maturity level of a technology, where TRL 1 isthe lowest and TRL 9 the highest. This scale considers: thesize and nature (training, background) of the team behind
the innovation, capacity and available sample sizes,
reproducibility, current and forecasted production costs.
Ask the innovator how he plans to:•••

Kering is keen to promote nature-inspired solutions andbiomaterials, but the conditions must be well controlled,
and organisms must be managed within a limited space:invasive species of microorganism are not recommended.
In the case of bacterial cellulose, the organisms aretrapped within the final material hence all microorganisms
must be lifeless.

increase the bio-based content in the material.
determine how the product shall be treated at
the end-of-life its life
move out of First-Generation feedstock overtime

It is also necessary to check that the innovative material
has physical, chemical, and aesthetic qualities in line withthe level of quality required by each of the Group's brands.

Bio fabricated (or bio manufactured)
Lab grown tissue
Using tissue engineering techniques, it is possible to grow skinin laboratory. Currently there is no lab-grown genuine animal
hide on the market, but some companies are developing in vitro
skin prototypes. Lab-grown skin hide is the only material withthe same chemical composition and structure of leather. Whenlooking into these materials for research and development
activities, production cost should be considered as well as,
manufacturing capacity, and the size. Despite their potential
advantages, the full lifecycle of the innovative alternatives toleather must still be assessed. For this reason, possible
environmental claims related to such materials should be
supported with data or even better a LCA using the ISO 14 040
standard.

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BOX 1: Bio-feedstocks
A feedstock is a raw material used to supply or fuel a machine or industrial process. A “bio-feedstock”
refers to any unprocessed natural material (e.g. not manmade) used to supply a processing technology.
Bio-feedstocks come from biomass and are transformed from their unprocessed state to create fuel orto support a chemical reaction to create a material or process. Any natural resource might be considereda bio-feedstock. For example, petroleum is a bio- feedstock for most plastic and polyester. Algae isstarting to be used as a feedstock for textiles and dyes. Corn is a popular bio-feedstock for bio-based
plastics. When determining whether a feedstock is “sustainable” or not, it is important to understandthe bio- feedstock and how it is procured. Generally, feedstocks are classified as follows (although there
are currently differences in industry definitions):
1. Feedstock from non-renewable resources: these are obtained by mining or extracting fossil

resources from the soil which is very costly in energy. Such resources cannot be replenished at thesame speed at which are consumed. Examples are earth minerals, metal ores, coal, crude oil, andnatural gas. The use of such resources produces multiple impacts on the environment during theextraction phase, the refining treatment, and the end of life. For these reasons, the use of theseresources should be limited by:• Choosing recycled feedstocks whenever possible, and as secondary option renewable resources• Developing more efficient processing that reduces the need and waste of non-renewable resources
It is interesting to consider that land, when referring to its availability, can be considered anonrenewable resource and its use also taken into account.
2. Bio feedstock from renewable resources: these are natural resources which will grow again overtime.
• First-Generation: Sourced from food or feed crops, such as corn, wheat, sugarcane, potato, sugar
beet, rice, plant oil and fruit. Unintended consequences of using a First-Generation bio-feedstock
could be: competition with food crops, land use change, use of pesticides and GMO, reliance on
industrial monoculture, soil degradation, reduced biodiversity.
• Second Generation: bio-feedstocks that do not compete directly with food and feed crops because
they derive from biomass such as waste and agricultural residues of nonfood crops such as wheat
straw, fruit waste, or wood waste. These are an improvement over First-Generation and are
becoming available on the market today. However, they do still hold potential negative
consequences such as pesticide and GMO use, land use change and reliance on industrial
monoculture farming.
• Third Generation: These bio-feedstocks are sourced from non-land-based crops such as biomass
derived from algae, fungi, and bacteria. These are more difficult to find at a commercialized scale atthe moment, although it is a growing area. Potential negative impacts are methane production,
destruction of natural habitats in harvesting, and potential environmental contamination or leaks.
• Fourth Generation: This involves sourcing carbon from greenhouse gas emissions released byindustrial or waste management processes. This is the most promising type of feedstock in terms ofimpact as it removes harmful gases from the atmosphere. However, it is also the most experimental
and not widely available. Potential negative consequences also exist such as how to handle the endof-life of such feedstocks as well as supply chain stability and energy efficiency.
Sources: Fashion For Good, Textile Exchange (2017), McClellan, James E., III; Dorn, Harold (2006). Science andTechnology in World History: An Introduction. JHU Press. ISBN 978-0-8018-8360-6

217Guidance for Innovation

BOX 2: Recommended Certifications for Sustainabilit yKering encourages brands to source innovative materials carrying the voluntary certification listed in thistable which provide third-party verification of recycled or biobased carbon content.
NameStandard or
Organization

Logo

Geographic
Scope

RECYCLED CONTENT

Global Recycled
Standard (GRS)

Textile Exchange

GlobalCircular materials
ISCC certified

ISCC

GlobalBIOBASED CONTENT

Biobased

DIN CERTCO

Global

OK Biobased

TUV

GlobalRSB Standard

Roundtable on
Sustainable Biomaterials

GlobalBiomaterials ISCC
certifiedInternational
Sustainability & Carbon

Global

Bio-circular material
ISCC certified

International
Sustainability & Carbon

GlobalFSC

Forest StewardshipCouncilGlobalCertified PEFC

Programme for theendorsement of Forest
Certification

GlobalREDcert2

REDcertGlobal218

Guidance for Innovation

BOX 3: Nanotechnology

What is “nano”?
“Nano” is a commonly used term for the use of engineered nanotechnology, nanomaterials, andnanoparticles. These substances are incredibly small (1-100nm), much smaller than a human hair, but
exhibit many desirable properties. Nanomaterials can be found in or on many technical fabrics and onsome leathers. They are applied as thin films or coatings to fibers, are fillers or part of the fibers
themselves.
Nanomaterials are designed to change the surface and/or overall properties of the material, to achieve:• Stain and Water Repellency• Anti-microbial and Odor Protection• UV Protection• Abrasion Resistance• Anti-static• Wrinkle-free• Biomimicry• ColorCan “nano” be risky?
Nanotechnology is expanding to an ever-increasing number of products and uses, and there areuncertainties in understanding the hazards of some nanomaterials. There are early indications ofpotential adverse health and environmental effects with some nanoparticles. Certain kinds of risks tohumans from nanoparticles can be inferred from already-studied substances. The extremely small-sizeof the nanoparticles makes them potentially very accessible. For example, inhalation risks from
nanoparticles can be inferred from experience with other ultrafine particles (e.g. air pollutants). The
main concern relating to the environment is if the nanomaterial is toxic or could become toxic to living
species. Another concern is if nanomaterials are applied incorrectly as coatings or finishes but wash off
in the first wash or dry cleaning and are then discharged into the environment.

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BOX 4: GMO/GE

Genetic Engineering (GE) and Genetically Modified Organisms (GMO)For Kering, the issue of GMOs is relevant in several areas of its business:• Genetically modified fiber crops (mainly cotton)• Bio-based plastics for packaging – plastics that are made from genetically modified food crops – suchas sugarcane and maize• Bio-engineered organisms and processes used in innovations such as genetically modified bacteria
to produce enzymes used in bleaching or biotech dyes, bio-engineered collagen to produce leather
alternatives
The term genetically modified does not mean natural breeding methodology for domestic plants andanimals (something that humans have been doing for centuries) but includes genetic engineering
whereby genes are manipulated and genes from other species are inserted (transgenic genetic
engineering).

Some key considerations
The debate: The issues around GMOs are hotly debated.
• The issue of ownership of food and fiber resources and the systems to maintain profit-making
ownership• Risks include contamination and leaking of genetically engineered organisms into the wider
environment
Because of the issues surrounding GMOs and whether the benefits delivered outweigh the potential
risks, Kering uses the precautionary principle when determining whether to adopt a solution containing
genetically engineered materials and processes.

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Guidance for Innovation

BOX 5: Biomaterials
Biomaterials
Biomaterial is a general term used to describe any material that is in some way biologically derived.
Biomaterials also cover materials such as leather and cotton.
The biomass is the dry mass of a living thing. Commonly, biomass waste is taken from other industries
for new purposes. For example, agricultural biomass is the dry mass of plant waste left over fromfarming.
The below is a classification of biomaterials and you can also see the relation between the different
biomaterials:
Biobased materials are derived partly or wholly from biomass, such as from plants, animals or
microorganisms.
Biosynthetics are synthetic polymer materials comprised, in whole or in part of bio derived compounds.
These can either be made with biomass and/or using a biological process such as with a living organism.
Biomanufactured materials are produced by living cells (e.g. mammalian) and microorganisms, such asalgae, bacteria, yeast, and mycelium.
A bio assembled material is grown from living microorganisms such as mycelium or bacteria. The
organism either makes up the material (e.g. mycelium) or may still be present in the material (e.g.
bacteria), but the materials are rendered inert so the organisms cannot continue growing.

221

Resources — Biofabricate

Polymers
A polymer is a repetition of an elementary motif called a monomer. It is a large chain-like molecule madeup of smaller molecules that repeat to form the chain.
Bio-based polymers
These are polymers derived from living organisms or polymers synthesized from renewable resources.
They can be found in nature.

Guidance for Innovation

BOX 5: Biomaterials (continued)

Bio-based polymers must not be confused with synthetic biodegradable polymers which need additives
to be biodegradable.
222

Bio-based polymers are derived from biomass (native or modified organic waste). There are 3 types:- Bio-based polymers derived from living organisms:
o Plants, algae, fungi such as agar-agar, sodium alginate, starch, cellulose...
o Animals, such as collagen proteins or casein- Bio-based polymers produced by chemical polymerization: this family includes PLA, (polylacticacid).
Bio-based polymers produced by micro-organisms (genetically modified or not, are known as "wildtype"), e.g. PHA, PHV, PHBV.

Guidance accompanying the Kering Standards

GUIDANCE FORSUSTAINABILITY CLAIMS

223

Guidance for Sustainability Claims

There has been growing awareness over the past years of sustainability. Increasingly, consumers
around the world are looking for products and services with lower environmental and social impacts.
This interest has led to an increased demand for “green” products and services.
In response to this demand, companies have increased their ‘green’ product and service offerings,
however, at the same time, misleading environmental claims have also increased. Known as“greenwashing”, this is a serious obstacle to achieving a sustainable transition in the fashion industry
and in the wider world as it prevents consumers from making informed purchasing decisions.
Furthermore, it is also a form of unfair competition that can harm companies that communicate theirsustainability efforts in a more responsible and honest way. This issue is now under the spotlight with
the increasing criticism of inappropriate claims on social media and the tightening of the regulatory
framework in several countries. Highlighting the misleading nature of these claims has the potential todamage corporate and brand reputation.
At Kering, the Group encourages its brands to communicate their sustainability efforts and resultstransparently and appropriately, with data supporting statements made where possible. As vocal
leadership is needed to push the sustainability agenda forward in the fashion industry, waiting to be
perfect is not an option since sustainability, by its very nature, is a process of continuous improvement.
According to best practice guides on green claims (see BOX 1 and BOX 2), for a claim to be justified it
must be: true and relevant, clear and unambiguous, fair and without exaggeration, substantiated andverifiable, not over-using visual natural or nature-like elements, and clearly detail certifications.
Applying these principles and definitions as a benchmark, the Kering Guidance for sustainability claims
has been designed to provide support to its brands and to avoid any risk of potential greenwashingstatements.

Scope and target audiences
The Kering Guidance for sustainability claims is aimed at brands, suppliers, retailers, and consumers andrefers to product claims of products sold in-store or on the brand’s e-commerce site. The Guidance covers
claims related to all environmental and social issues, written information on the website, labeling,
advertising, etc. It does not cover mandatory information that is legally required on product labels. It does
not relate to packaging or corporate communications.
In terms of the Guidance’s scope, a sustainability claim is a representation of the environmental and/or social
impacts of a product’s raw materials, production, distribution, use and disposal. Claims can be made in many
forms, including both words and pictures and they can be either expressed or implied.

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Guidance for Sustainability Claims

GENERAL RECOMMENDATIONS

Tell the story of the product rather than making
a single isolated claim taken out of context
Because a single isolated claim can be more easily
criticized, Kering encourages its brands to continue tellingthe story of the product’s production, the craftmanship,
the exceptional quality, etc. Sincerity and transparency arekey.

Be sincere and accurate when describing the
product’s environmental or social benefits
The use of broad, generic sustainability-related
statements such as “eco-friendly”, “environmentallyfriendly” or “green” should be avoided. Such vague claims
are already forbidden in some countries (e.g. France
passed a decree in 2022 with an immediate ban of vague
environmental claims such as “eco-friendly”, “respectfulof the environment”, “protects nature”).
Visuals shall not mislead the consumer and present a
product as being “more sustainable” than it is. Without
excluding their use all together, the use of visual or soundelements associated with nature or evoking nature must
not mislead the consumer about the environmental
properties of a product.
A product’s properties shall be described using factual andaccurate details. Specific information should also be given
when making comparisons. Any statement about a lower
environmental impact or an increase of efficiency must be
precise and detailed figures and data, indicating thebaseline for the comparison provided. Any products thatare compared to show the sustainability benefits of one
over the other should meet the same needs or beintended for the same purpose.
Great care should be taken when emphasizing the absenceof a component, especially when it relates tobiobased/plastic materials (“no plastic”, “fossil-fuel free”).
An environmental claim should not emphasize theabsence of a component, ingredient, characteristic, or
impact (typified by formulations such as “without …”, or“no …” or “…-free”) when it has never been associatedwith the product, process or activity.
Regarding plastics, based on definitions by the European
Commission, all chemically modified polymers are

considered plastics. Biodegradable plastics are considered
plastics just like other plastic resins (PLA). Coating varnish
and laminates are considered plastics. If a productcontains some plastic, even a very limited amount, itcannot be considered “plastic-free”.

Provide evidence to support claims
In order to make a sustainability claim, a product has toalign with the requirements outlined by the Kering
Standards. All information declared must be proven andverified: in the case of claims or inspections,documentations must be available on request. Examplesof evidence requested:• Proof of certification (GOTS, RCS, GRS, OCS…)• Documentation proving the relative percentage ofrecycled content of the material• The Product Environmental Footprint (PEF) report• The Product Carbon Footprint report

Clearly differentiate what is related to acomponent or the overall productKering recommends that its brands and brands suppliers
clearly differentiate the component-related sustainability
claims from the product-related claims. In addition, tomake a sustainability claim, components and products
shall comply with the following recommendations:• When making a claim about a component, or a set ofcomponents, these components have to make up a
relatively large part of the product (e.g. leather in abag, sole in a shoe, etc.). Kering recommends thatthese components represent at least 50% of theweight or composition of the total product or are a key
component of products (outer, lining, upper, sole, etc.)• When making a product claim, it is important that the
majority of the product components are aligned with
Kering Standards. Kering recommends not making asustainability claim about a product if the product’s
sustainable materials don’t add up to at least 80% of
the weight or are used in a key component of products(outer, lining, upper, sole, etc.)

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Guidance for Sustainability Claims

SPECIFIC RECOMMENDATIONSStrictly follow the rules for claims associatedwith certified materials
Kering doesn’t encourage the use of certifications not on
its list of preferred certifications schemes and labels as
outlined in the Raw Materials and Manufacturing
Processes sections of Kering Standards; as they are not as
robust as the Kering approved Standards.
Rules, conditions and guidelines for product claims andlabelling associated with certified materials are defined byindividual certifying bodies, protocols or programs. These
guidelines:• Regulate how brands and suppliers shall communicate• Provide guidance on technical aspects (such as
minimum percentage of certified material in the
product), and accepted blending conditions for theremaining conventional/non-certified materials
Product labelling or claims around certifications, standards
or protocols is generally only permitted bycertified/authorized entities. The conditions andprocesses to become a certified/authorized entity are set
out by each certification organization and executed byaccredited auditing bodies.
Brands have to be careful with labelling and claims
associated with certified materials.
When labelling and communicating on products andcomponents comprising certified materials, Kering’s
brands shall first consult each certification, protocol orprograms’ labelling guideline. Generally, brands need tobe certified in order to use a certification’s logo (registeredtrademark) or mention certifications on the product andthey need to follow protocols within the certification
scheme for product labelling. Examples of productlabelling schemes include:• Textile Exchange for OCS, GRS, RCS, RDS, RWS, RMS,
RAS. All Textile Exchange Standards apply the Content
Claim Standard as the chain of custody requirements
used to track materials from the source to the final
product.
• GOTS: The Licensing and Labelling Guide specifies thelicensing conditions for companies participating in the
GOTS• If brands would like to claim specific percentages ofsustainable certified content on products (e.g. recycledcontent, sustainable wool content, etc.), they shouldverify the related transaction documentation (e.g. GRS,
RWS, etc.) on materials received by direct suppliersand determine the correct percentage (sustainable
content on overall product materials)• Additionally, there may be country specific regulations
to follow. For instance, in China, no product can becalled “organic” without having the Chinese
certification from the China National Standards for
Organic Products
Suppliers must provide all evidence to support claims forcertified materials
Thorough evidence must be collected across the supply
chain to substantiate any product sustainability claim.
Suppliers shall align with the following recommendations:• Direct suppliers must provide all necessary
documentations to demonstrate their eligibility to
manufacture and sell certified materials (e.g. Textile
Exchange Scope Certificate)• Suppliers have to provide documentation (physical ordigital) that validates direct transactions of sustainable
materials, preferably verified by third parties (e.g.
Textile Exchange Transaction Certificate). Note that
supplier self-declarations without additionalverification should not be considered a valid
verification document for certified sustainable
materials, given the high risk of counterfeiting• Suppliers are requested to issue verification
documents for each sustainable material transaction
If the direct supplier is not certified and cannot issue
verification documents, it is strongly advised tocommunicate externally only if there is strong evidence ofverification (chain of custody) at the fabric/yarn stage. , It
is not advised to communicate any claims if the evidence
exists only for the raw material .

When it comes to sustainability related
statements or claims, Kering expects
compliance with the following principles:
Recycled content

There are various certification stipulations, for instance:• Brands cannot claim to be RWS certified or label a productas RWS certified (e.g. “this jumper is RWS certified”)
neither they can communicate the use of RWS certified
wool in a product (e.g. “this product is made with RWS
certified wool”) without being RWS certified andconsulting Content Claim Standard (CCS)-section RWS

A recycled material is a material that has been reprocessedfrom recovered [reclaimed] material by means of amanufacturing process and made into a final product orinto a component for incorporation into a product. The
recovered [reclaimed] material would have otherwise
been disposed of as waste or used for energy recovery, but
has instead been collected and recovered [reclaimed] as a

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Guidance for Sustainability Claims

material input, in lieu of new primary material, for arecycling or a manufacturing process. (ISO 14021)
Only recycled content derived from post-consumer waste
recycling or brand’s external pre-consumer waste
recycling can be considered for recycled content claims(ISO 14021). This means that brands’ internal preconsumer waste is excluded from the scope of therecycled content claim, specifically material derived fromthe recycling of unsold products and/or leftovermaterials.
Where a claim of recycled content is made, the percentageof recycled material shall be stated.

The use of the Mobius loop symbol is optional and if used,
it shall include the recycled content percentage value
stated as “X %”. If the percentage recycled content isvariable, it may be expressed with statements such as “atleast X %”, or “greater than X %”.

Upcycled content
Products made from upcycled content are often referred
to as “upcycled product” or “made from upcycledmaterials.” However, this designation is not standardized
because there is currently no adequate definition formaterials derived from upcycling processes, such as
deconstruction, recoloring, and reprinting. Based on the
ISO 14021 definition of recycled content, Kering expects
adherence to the following principles:1.
Only upcycled content derived from postconsumer waste recycling or brand’s external recycling of
pre-consumer waste can be considered for upcycledcontent claims. This means:a.
Brand's Internal pre-consumer waste
is excluded from the scope of the upcycledcontent claim, in particular material obtained
from the dismantling of unsold products.
b.
Kering does not consider the use of abrand’s unused materials (from previous
collections) as upcycling or “upcycled content”.
Optimizing stock is considered good businesspractice for brands before sourcing newmaterials.
2.
The origin of the material should be specified:scraps, semi-finished products, used uniforms; forexample: “Made from used leather garments”.

3.
The percentage of upcycled material should bespecified.
The use of the Mobius loop symbol is optional and if used,
it shall include the recycled content percentage value
stated as “X %”. If the percentage recycled content isvariable, it may be expressed with statements such as “atleast X %”, or “greater than X %”.

To distinguish upcycled content from recycled content,
upcycling is often represented with an open Mobius loop.
Please note that this logo for upcycling or upcycledcontent is not official or standardized, and Kering doesn’t
support its use.
See the table in BOX 3 for a comprehensive overview of
the above topics, considering that if brands use theirinternal pre-consumer material as secondary-raw
materials, the claim recycled/upcycled cannot be used,alternatives such as, for examples, “made with brand’s
unused materials” or “made with brand’s recoverd
materials” are recommended.

Beware of end-of-life statements
Based on the Ellen MacArthur Foundation definition, it isnecessary to ensure that the end-of-life of a product has been
proven in practice and on a large scale. This is especially
important because local waste management varies from region
to region, country to country and end-of-life claims are always
complex.
In addition, Kering’s brands strive to increase the longevity of
their products by designing them with durability in mind interms of physical longevity, repairability and the possibility of asecond life. Therefore, it can be complex combining end-of-lifeclaims with this ambition.

When it comes to end-of-life statements or
claims, Kering expects compliance with thefollowing principles:
Biodegradable: a biodegradable material is capable ofbeing naturally decomposed by bacteria or other livingorganisms within a specified time and at a specified rate.
“Biodegradable” claims are illegal in several
countries/states such as France, Belgium for packaging
and California. Compliance with these regulations is
mandatory. In other countries, Kering advises against
making claims around biodegradability because it can bemisleading.
Compostable: a compostable material is a material thatcan break down in an industrial facility or at home (iffacilities exist). All compostable materials arebiodegradable, but not all biodegradable materials arecompostable. The “compostable” claim is prohibited bylaw in some countries (e.g. France) unless the material iscertified “home compostable”. In all cases, Kering advises

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Guidance for Sustainability Claims

against using this claim because it is not in line with
Kering’s ambition for product durability.
Recyclable: a recyclable product or component can bediverted from the waste stream and collected throughexisting processes and programs and reused as raw
materials or products. A general “recyclable” claim is notrecommended because recyclability varies from country
to country and because there is currently no harmonizedmethodology for ensuring that a product is recyclable.
Please note that this does not cover the mandatory
information required in France by Article 13th of the AGEC
law. Refer to the Guidance for Circularity for more details.

When it comes to climate action, mention
specific emission reduction efforts andcontributions to carbon offset programs rather
than claiming product “carbon neutrality”
Kering has chosen a scientific approach to develop an
impactful climate strategy and drive forward a realparadigm shift. For this reason, the Group has decided toalign its climate policy and structure its targets using theScience-Based Target (SBT) standards. Particular attention
needs to be paid to claims relating to climate action on
products so as not to discredit Kering's overall approachand mislead consumers.
The Science Based Targets initiative (SBTi) is a partnership
between CDP, the United Nations Global Compact(UNGC), the World Resources Institute (WRI) and theWorld Wide Fund for Nature (WWF). It firmly opposes theuse of any “carbon neutrality” claims, as it can becounterproductive and bring reputational and legal risks.
Companies should focus on drastic decarbonization efforts
as a priority, ahead of any actions to offset their emissions
outside their value chains.
Claims of “carbon neutrality” of products or services has
been strictly regulated in France since January 2023, with
the implementation of the “Climate and Resilience” Law.
Since this date, an advertiser making a claim that a productor service is "carbon-neutral", "zero carbon", "zero carbon
footprint", "climate neutral", "fully offset", "100% offset",or any other claim of equivalent meaning or significance,
shall comply with the following recommendations:• Generate a carbon footprint for the product or service
concerned covering its entire life cycle• Publish a summary report describing the carbon
footprint of the product or service and the process bywhich the greenhouse gas emissions are first avoided,
then reduced, and finally offset. This report includes
three appendices:
1. An appendix presenting the result of the carbon
footprint, along with a summary of the methodology
used to conduct the carbon footprint analysis
2. An appendix setting out the greenhouse gas
emission reduction trajectory associated with theadvertised product or service, with quantified
annual progress targets, covering at least the ten
years following the publication of the report under
this section
3. An appendix detailing the steps taken for offsetting
residual emissions, including the nature anddescription of the offsetting projects. This appendix
also provides information on their cost
Under the “Climate and Resilience” Law, this publicationmust be updated annually. The company must withdraw
the claim if it appears that the unit emissions associatedwith the product or service before offsetting haveincreased between two successive years. The French
Environmental Agency also recommends that these typesof misleading claims should not be used at all (see BOX 4).
In France and in all other countries, Kering recommends
avoiding the use of “dry” carbon neutrality claims andrespecting the “mitigation hierarchy”.
• It is essential to go beyond the purely mathematic
approach to “neutrality”, and to avoid communicating
the alleged “carbon neutrality” of any product orservice• Kering recommends communicating, in a clear andtransparent manner, about the complementary levers
that contribute to collective carbon neutrality,
especially: the reduction of the product’s carbon
emissions and the contribution to high-quality andcertified carbon offset programs with positive
outcomes
Please refer to the Kering Guidelines for high quality
carbon offsets for recommendations on carbon offsetting
programs and to the Environmental Profit and Loss [EP&L]
Appendix for recommendations on greenhouse gas
emissions calculations.

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Guidance for Sustainability Claims

BOX 1: Hard law - Regulation

Franceo Anti-waste Law (2020)
o Prohibition of the term “biodegradable”, “environmentally friendly” or any equivalent term on
product or packaging
o When the recycled nature of a product is mentioned, the percentage of recycled material usedmust be specified
o Climate and Resilience Law (2021)
o Greenwashing is recognized as a misleading commercial practiceo The use of the "carbon neutral" claim for a product or service is regulatedEUo Green Claims Directiveo In March 2023, the European Commission adopted a proposal for a Directive on Green Claims(press release, web page) to ensure consumers receive reliable, comparable and verifiable
environmental information on products. The proposal includes clear criteria on how companies
should prove their environmental claims and labels, requirements for these claims and labels to
be checked by an independent accredited verifier and new rules on governance of environmental
labelling schemes to ensure they are solid, transparent and reliable.

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BOX 2: Soft law – Green Claims Codes
Consumer protection codes
UK• Competition and Market Authority
Green Claims Code (Revised in 2021)
It sets out 6 key points to check that environmental claims are genuinely ‘green’.
USA• Federal Trade Commission
Green Guides (Revised in 2023)
They are designed to help marketeers avoid making environmental related claims that mislead
consumers.
Canada• Competition Bureau
Environmental claims and greenwashing webpage
It outlines good practices and the regulatory setting for environmental claims.
Australia• Australian Securities and Investments Commission
How to avoid greenwashing guide (published in 2022)
It outlines the current regulation for communications about sustainability-related products issued byfunds (green bonds).
New Zealand• Commerce Commission
Environmental Claims Guidelines
These guidelines aim to help traders understand their obligations when making environmental claims,
sometimes known as ‘Green Marketing’.
France• General Directorate for Competition Policy, Consumer Affairs and Fraud Control
A Practical Guide to Environmental Claims (Revised in 2023 – in French)
It defines the conditions of use of seventeen environmental claims and highlights the French
legislation for combatting greenwashing.

Self-regulation rules
International Chamber of Commerce• Advertising and Marketing Communications Code (revised in 2018)• It is a globally applicable self-regulatory framework, developed by experts from all sectors worldwide.
France• Advertising self-regulatory organization• Sustainable Development Code (revised in 2020)
It applies to all advertisements that either directly mention sustainability or include elements that are
not aligned with the objectives of sustainable development, even if they don't explicitly reference
them, and so on.

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Guidance for Sustainability Claims

BOX 3: Environmental Claims
ENVIRONMENTAL CLAIMS
TYPE

Upcycled
content

Recycled
content

Garments
Non merchandising, used uniforms

Yes

Yes

Yes

Yes

No

No

SOURCE
POSTCONSUMER

•
•

•
•
•

ScrapsSemi-finished products
Damaged products

External
PRECONSUMERInternal

Considered external, as they
are managed by suppliers(Tier 1)• Unsold products• Non merchandise,
unused uniforms, unusedmaterials

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BOX 4: Carbon Communication GuidanceInternational
Voluntary Carbon Markets Integrity Initiative (VCMI)• Claims Code of Practice (2022)
A guide for companies on how to make transparent and credible claims about their progress towards
a longer-term Net-Zero commitment.

FranceFrench Environmental Agency (ADEME)• Use of the « carbon neutrality » argument in communications (2022)
This document is intended to be used by all communication and marketing professionals who seek
to promote their organization’s stance against climate change. It includes examples of terminology
to be avoided and recommendation by ADEME, along with examples of best practice.

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APPENDICES233

Appendices

SUMMARY OF KERINGCHEMICAL MANAGEMENTPOLICY

234

Appendices – Summary of Kering Chemical Management Policy

Kering has developed a comprehensive Chemical Management Policy which defines its strategy on
chemicals that are potentially hazardous to the environment and/or people. It includes chemicals that
may not have yet been regulated. This policy serves as Kering’s Standard for chemical management towhich all Kering brands’ suppliers are required to adhere. The key objectives that underpin thesustainable and responsible use of chemicals are:• Ensuring that chemicals are managed to ambitious standards throughout the entire supply chain inorder to reduce harm to human health and the environment• Ensuring that all hazardous chemicals have been phased out and eliminated from Kering’s
production and supply chain
Regarding the elimination of hazardous chemicals in the supply chain, Kering has the following 2025
target:• 100% of eligible suppliers evaluated in the Vendor Portal on chemicals management andcompliance with the MRSL
• 100% of strategic suppliers covered by the MRSL compliance control process, which comprises audit
or certification and the ZDHC Supplier to Zero program;• Testing of wastewater in line with the ZDHC Wastewater Guidelines, for all strategic suppliers235

Appendices – Summary of Kering Chemical Management Policy© Comply with Kering Product Restricted
Substances List
The paragraph “compliance with environmental laws” inthe Kering Sustainability Principles attached to supplier
agreements (contract or purchasing terms and conditions)requests that suppliers comply with the Kering ProductRestricted Substances List and Safety Requirements(PRSL).
The PRSL provides guidance to suppliers and productmanufacturers to comply with Kering’s requirements forthe manufacturing and sale of products safe, free ofharmful, toxic and hazardous chemicals. The PRSL includes
a wide range of safety requirements, chemical substancesthat are regulated by governmental agencies andprograms from different countries around the world
where Kering products are distributed and sold (such as
REACH for Europe, GB in China, Prop65 in California, KC
Mark in Korea, etc.), as well as additional substances ofconcern to Kering. All suppliers, must as a minimum,
comply with the Kering PRSL. The Kering PRSL is available
in English, Italian and Chinese as an Appendix to the Kering
brands’ supplier agreement.
Each Kering supplier must guarantee PRSL compliance ofits products (be this a raw material, component or finishedproduct) and suppliers must ensure compliance throughproduct testing. Kering oversees an internal testing
program as an additional auditing measure. All testing
must take place early enough in the product lifecycle toallow for the proper evaluation of test results prior to
production and must be conducted by laboratories
recognized by international organizations using verified
individual test methods that are ILAC accredited. This
ensures that in situations of PRSL failure, appropriate
remedial actions can be made with minimal cost and time
impacts to the supplier(s) and the brand.
Kering’s supplier agreements include a clause stating that
products which do not meet certain requirements(including PRSL) will not be accepted by the brand, andthat the vendor is liable for loss, sales and destruction, if
necessary, of all products that do not fully comply with thelegal parameters at worldwide level. This requirement iscommonly referred to as a “no-pass/no-buy” policy.

© Carefully monitor and minimize theformation of Chromium VI
Chromium VI, known for genotoxic and carcinogenic
properties, can be formed during leather tanning if not
managed properly. By following tanning best practices,
Chromium VI formation can be minimized or eliminated.
Kering requires that all tanning suppliers have a programin place to ensure that best practices are being fully
implemented to minimize or eliminate the formation of
Chromium VI.

© Do not use PVC (Polyvinyl Chloride) in
Kering’s brand products and packaging

PVC poses several environmental and health threats., The
chlorine contained in the polymer itself may cause theformation of harmful chlorine containing by-products (e.g.
dioxins) during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products arecarcinogenic and extremely dangerous to human health,wildlife and the environment.
Because of these risks, in 2021 Kering asset a public
target of eliminating PVC from collections and products.
Moreover, plasticizers have to be added to PVC polymer
to achieve softness and flexibility, properties needed in
textile products; plasticizers commonly belong to thephthalates category. The amount of phthalates is generally
between 30% and 50% by weight of the polymer.
Phthalates are chemicals with disrupting hormone
characteristics. The toxicity of phtalates to reproductive
systems, as well as other dangerous endocrine effects, hasbeen known for many years. It is also well known thatphthalates are substances which tend to migrate from the
PVC materials, and come in to contact with the user of the
PVC product. For these reasons, phthalates have been
included in the first Kering MRSL and they must not to be
used in any stage of the production processes for Kering
Brands products and in any connected activities relating toKering brands’ production.

© Apply the precautionary principle fornanotechnologies
Nanotechnology generally refers to the engineering ormanipulation of atoms or molecules to produce micro
scale products or materials. Currently, nanotechnologies
are being used in some fabric coatings as well as
sunscreens and cosmetics. However, little is currently
known about their impacts on the environment andhealth. Kering follows the precautionary principles and will
not use any nanotechnology applications unless suchapplications are analyzed and proved to have no potential
impact on human health and the environment, including
an evaluation of end-of-life impacts. Suppliers must
proactively share information on nanotechnology used intheir manufacturing.

© Ban PFC’s in all Kering supply chain
Perfluorochemicals compounds (PFCs) are highly
persistent substances, many of them show high bio
accumulative potential and toxicity. PFCs have beenfrequently observed contaminating groundwater, surface
water and soil. Due to the strength of the carbon/fluorinebond, the molecules are chemically very stable and arehighly resistant to biological degradation; once in theenvironment they will stay there for a long time. These
compounds have been used for many industrial
applications including stain and water repellency. Kering
requires that all suppliers remove formulations containing
PFC’s from any stages of production processes, should
these process steps take place at the supplier’s facility or
upstream in the supply chain. PFCs are included in the
Kering MRSL V.3.0.

236

Appendices – Summary of Kering Chemical Management Policy© Comply with Kering Manufacturing
Restricted Substances List
The Kering Manufacturing Restricted Substances List
(MRSL) provides guidance to suppliers and productmanufacturers addressing hazardous substances that arepotentially used and discharged into the environment
during manufacturing and related processes, and not justthe substances that could be present in finished products(PRSL).
Kering has committed to ensuring that all chemicals in the
MRSL are gradually removed from any stage of the
production processes and from any connected activities
relating to its brands’ production processes since 2020.
As of January 1st, 2020, no chemicals listed in the Kering
MRSL can be intentionally used in Kering’s supply chains’production processes. There may be unintentionalpresence of impurities or trace amounts of thesesubstances whose quantities cannot in any case exceed
the chemical formulation limits specified in the MRSL. The
Kering MRSL is available as an Appendix to your supplier
agreement with Kering brands.
The Kering MRSL is regularly updated. Kering envisages a“transition period” following new releases of the Kering
MRSL, during which time suppliers can work towards
compliance with the latest MRSL release, whilst being
compliant only with the previous version. The latest
version is MRSL V.3.0.
The Kering MRSL V.3.0, is the ZDHC (Zero Discharge ofHazardous Chemicals) MRSL V.3.0 plus the additional ban
on PFC use.
Kering recognizes that it is more difficult to ensurecompliance with an MRSL than a PRSL, and that suppliersmust implement a chemical management system andinvestigate their supply chain to ensure compliance withthem. Suppliers must take the following steps:
1. Adopt a chemicals management system that:• Demonstrate the control and understanding of theorigin and chemical composition of purchasedchemical products through a review of technical andsafety data sheets. The supplier must have a copy of
the technical and safety data sheets for all chemical
products• Share Kering’s MRSL with suppliers and sub-suppliers
and require the monitoring of its implementation.
Suppliers and sub-suppliers who do not comply with
the MRSL risk termination of the relationship.
• Ensure the use and purchase of MRSL compliant
chemical products for use in production processes for
Kering brand’s products.
The ZDHC (Zero Discharge of Hazardous Chemicals)
Chemical Management System Framework and the ZDHCTechnical Industry Guide provide guidance for the

implementation of the chemical management system
required.
In addition, suppliers shall register on the ZDHC Gateway
platform as a supplier. Suppliers are recommended
enrolling in programs and training supporting theimplementation of the MRSL and a Chemical Management
System, such as the ZDHC Supplier To Zero program andthe ZDHC Academy.
2. The supplier must develop and maintain an inventoryof chemical products used in the production processesof Kering’s brands’ products that:• Documents all chemical products used in production
processes, indicating for each product the activities
for which it is used. This could include dyes, inks,
paints, solvents, primers, adhesives, surfactants,
detergents, and other chemical aides.
• Includes, for each chemical product, information on
conformance to the MRSL, identifying chemical
products containing the chemicals mentioned in the
MRSL.
Compliance with the MRSL must be documented.
Suppliers must request their chemical suppliers provide
adequate documentation to show compliance with the
MRSL. This can be done through ZDHC tools such as the
ZDHC Gateway and the ZDHC InCheck Report.
3. Suppliers must prepare and define a MRSL complianceplan that details how chemical products used in
production processes that do not comply with latest
new release of the Kering MRSL (currently the Kering
MRSL V.3.0) will be phased out and replaced by theend of the transition period. Suppliers must require
their chemical suppliers to provide adequate
documentation showing compliance with the MRSL.
This plan must be updated and indicate which steps
have already been taken and those planned in orderto reach full compliance with the MRSL by end of thetransition period.
All Kering brands suppliers must have documented
compliance with the Kering MRSL. Since 2020, Kering has
been conducting audits of suppliers’ chemical
management systems at least every couple of years.

237

Appendices – Summary of Kering Chemical Management Policy© Managing wastewater and sludge for MRSL
compliance

Enroll in the ZDHC Supplier to Zero Programand Achieve “Progressive Level”

Suppliers shall be able to provide Kering with informationon the quality of their wastewater. In all cases, wastewater
quality shall align with local regulations, while Kering
encourages suppliers to continuously improve wastewater
management.

Suppliers should enroll in the ZDHC program and training
to support the implementation of the MRSL and a
Chemical Management System: the ZDHC Supplier To Zero
program and the ZDHC Academy.

Regarding MRSL conformance, applying good practices for
output management provides suppliers with an additional
tool for monitoring the performance of their Chemicals
Management System as well as tracking progress. In
particular, suppliers shall:

Kering strategic suppliers shall achieve “ZDHC Supplier To
Zero Progressive level”. This means regularly verifying
chemical products’ conformance through the ZDHCInCheck Report and performing wastewater testing in linewith ZDHC Wastewater guidelines (Clearstream Report) atleast once a year.

• Aim to meet the highest wastewater standards such as
the ones set by Zero Discharge of Hazardous Chemicals(ZDHC) in their ZDHC Wastewater Guidelines (ZDHC
WWG)• Implement a wastewater monitoring and testing planin line with the ZDHC Wastewater Guidelines, testing
wastewater at least once a year
• In case of non-conformance detection, produce a root
cause analysis and corrective action plan with adefined completion date, in line with the ZDHC
Wastewater Guidelines.
Additionally, suppliers should publish wastewater test
result reports on the ZDHC Gateway platform and share
ZDHC ClearStream reports.

238

Appendices

SUMMARY OF KERINGANIMAL WELFARE POLICY239

Appendices – Summary of Kering Animal Welfare Policy

Kering expects all suppliers in the supply chain to:• Be aware of and commit to respecting the Kering Animal Welfare Standards• Support traceability in the supply chain so that Kering can verify animal welfare practices
Additionally, Kering expects all suppliers and sub-suppliers that handle live animals to meet the Kering
Animal Welfare Standards appropriate to the species of animal and the location of material production.
At the very least, suppliers must meet “Bronze level” entry level standards which are mandatory.
Suppliers must also commit to engaging in continuous improvement of their practices and must also
be open to regular third-party audits to show compliance with the Kering Animal Welfare Standards
and progress towards improvement. Species-specific animal welfare standards are available forsuppliers and sub-suppliers upon request.

240

Appendices – Summary of Kering Animal Welfare Policy

Kering’s commitment to animal welfare
Kering is committed to implementing and verifying thehighest standards of animal welfare across all its animalbased supply chains. As such, Kering developed andpublished in 2019 a suite of animal welfare standards
designed to be implemented at the points in the supply
chain where there are live animals (mainly at farms andprocessing facilities). Kering is also committed to driving
improvements in industry practices.
Kering also engages with industries beyond the luxury andfashion sector. To achieve meaningful results andprogress, Kering has started to work with the food industry
as the supply chain of both sectors tends to overlap. Byaligning expectations, sharing best practices, andstrengthening collaborative efforts, Kering has ambitions
to create the highest possible animal welfare standards.

Kering Animal Welfare Standards
While based in part on existing best practices of animal
welfare standards around the world, Kering’s Animal
Welfare Standards aim to be among the most stringent inorder to align with its commitment to catalyze and drive
industry improvements with more just, humane and safer
practices. The Kering Animal Welfare Standards have beendeveloped with external experts with extensive
experience in animal welfare and have been verified bythird parties.
Kering’s comprehensive Animal Welfare Standards are
publicly available on kering.com and summarize ourapproach and key requirements for all significant species
relevant to our animal-based materials. Regarding the 4
main species used for hides or fibers (calf, cattle, sheep
and goats), these standards are available upon request, as
well as Kering’s guidelines for animal welfare practices inabattoirs.
Kering’s Animal Welfare Standards focus primarily on thewelfare of animals and are designed to be specific toparticular species, as well as specific to the type of
production (i.e., farm or wild harvest) and, in some cases,
geographic location. The Standards comprise three levels(Bronze, Silver, Gold) and aim to drive continuous
improvement towards the very highest standards.
• Bronze: This is entry-level compliance for Kering
suppliers. However, some Kering brands may decidethat suppliers need to achieve Silver or Gold level.
• Silver and Gold: More stringent standards that include
the very best practices in animal welfare and additional
requirements for the management of biodiversity on
the farm
While the scope of the Kering Animal Welfare Standards
covers the entire supply chain of live animals (fromfarms/wild harvest to killing facilities), the verification of theimplementation of these standards will depend on the situation
verification through pre-existing 3rd party certification or
standards; verification through 2nd party audit carried out by

the food industry (or other industry if relevant); verification
through our own audits when necessary.
Kering recognizes that these standards set a newprecedent for animal welfare and, as such, will take timeand effort to implement. While Kering expects all its
suppliers to commit to the Kering Animal Welfare
Standards and make continuous improvements, Kering
will approach implementation of the standards in acollaborative manner with suppliers. The following
sections highlight the operational steps for suppliers inorder to align with the Kering Animal Welfare Standards.

Supply chain transparency
Supply chain transparency is a prerequisite for Kering toassess its supply chain against the Kering Animal Welfare
Standards. With this in mind, suppliers will be regularly
requested to provide information about their own supply
chain. For all animal-based material, a requirement for2025 is to provide the country of origin, wherefarming/harvesting/hunting/herding happens as well as
manufacturing information.
An additional layer of information will be requested
depending on the material type:• Hides & Skins for leather (ovine, bovine, caprine): Listof abattoirs supplying tanneries (including name &location)• Precious Skins: List of processing facilities/killing
facilities supplying tanneries (including name &location)• Cashmere: List of cleaning/dehairing processors andherding cooperative if possible• Wool: List of cleaning/scouring processors

Preferred sourcing countries
Kering recommends that suppliers take a precautionary
approach to sourcing regarding animal welfare.
Consequently, for each material type, Kering has
established a list of preferred sourcing countries, in orderto minimize risks.
For each material, the list of favored countries is specified
in the corresponding section of these standards.
These lists reflect the best knowledge available to Kering
when writing this document and may change withadditional research and information. We encourage
suppliers to share information with Kering of theirknowledge of the different risk issues in sourcing
countries.
Sourcing from countries that are not listed isn’t prohibited
per se but will require more stringent verification toensure compliance with the Kering Animal Welfare
Standards.

241

Appendices – Summary of Kering Animal Welfare Policy

Working with third-party standards andcertification
Kering has carried out an extensive review of existingregional and international standards and consequently set
an approach for the verification of suppliers e based on anumber of existing standards and certifications. These arelisted in each species’ section of our Kering Animal Welfare
Standards. Therefore, not every supplier will need to beverified against the Kering Animal Welfare Standards ifother certifications and verification procedures
recognized by Kering are in place. In some cases, theequivalent requirements of the Kering Animal Welfare
Standards and 3rd party certifications / standards might
not be fully equivalent in which case additional verification
may occur to ensure full compliance. Kering will revise thelisted certifications and standards as necessary based on
any new, relevant scientific findings, programs or
certifications.

242

Appendices

SOCIAL COMPLIANCE AND
ENFORCEMENT OF THE KERING
CODE OF ETHICS IN SUPPLYCHAINS

243

Appendices – Social Compliance and Enforcement of the Kering Code of Ethics in Supply Chain

Kering is committed to ensuring its suppliers respect human rights and the environment and to helping
its suppliers and sub-suppliers improve labor, health and safety and environmental conditions in theworkplace. This helps Kering achieve its high ethical and environmental sourcing standards. In order
to uphold its high social standards, Kering has updated its social auditing scheme to be aligned withbest practices from Smeta.
The Code of Ethics affirms Kering’s commitment to responsible business practices, which includes therespect for human rights, not only for all its employees, but also for all those who work in its supply
chains and contribute to the value creation. Regularly updated, the Code of Ethics aims to clarify andexplains the ethical principles expected daily while the Suppliers’ Charter outlines the ethical, socialand environmental requirements expected from our suppliers.
All Kering suppliers must agree to announced and unannounced assessments/audits by Kering andthird-party representatives. Kering also expects all suppliers to make improvements when its policies
and standards are not met, and to develop sustainable management, reporting and tracking systems
within the factory or site to ensure continued compliance. Timelines for achieving compliance shall bereasonable and defined. Providing proof of correction to Kering for each non-compliance is also
required.

244

Appendices – Social Compliance and Enforcement of the Kering Code of Ethics in Supply Chain

Scope• Address?

Kering requires audits to assess the compliance of the
supplier to the principles set out in the Kering Suppliers’
Charter and Sustainability Principles acknowledged by the
supplier when signing the supplier agreement that cover
key ethical challenges. These include:

Audit Types and Frequency• Child labor• Forced labor• Safe workplace• Freedom of association• Discrimination• Working/Overtime hours• Living wage
• Compliance with environmental laws
• Compliance with security standards• Supplier sites are adequately protected by security
systems• Respect of the main environmental principles(emission, water, waste, etc.)• No counterfeit and fraudulent activities• Supplier sites are covered by insurance

Kering performs two types of audits on suppliers by the
Kering Audit Team: the global audit and the follow-up
audit; both are based on the same checklist but cover
specific areas.
The global audit is performed during the set-up process(i.e., before a supplier can start working with a Kering
brand). The supplier is then re-audited every two to four
years depending on the supplier’s risk. The global audit
monitoring goal is to check the critical areas and preventthe presence of 'Zero tolerance’ and ‘High Nonconformity’ issues. See chart below for examples of theseissues.
The follow-up monitoring is performed as a secondary
check to ensure the implementation of action plans fromthe global audit and to cover less critical areas.

Communication of audits
Documentation for suppliers and sub-suppliers
To map Kering brands’ supply chain and perform therequired social, environmental and security compliancereview, Kering collects information about its suppliers andsub-suppliers through the Kering Supplier Database
System (called SCS, Security Control System).
Once created in the system, the supplier has to complete
their profile and declare its sub-suppliers working for
Kering (web access) including:• General Information• Existing certification• Use of sub-suppliers: names and VAT codes• Contractual and financial information
In the case of Tier 1 supplier:o Total turnover of the supplierIn the case of sub-supplier:o Type of contractual link between the Tier 1 supplierand its sub-supplierso Consolidated turnover of all sub-supplierso Detailed turnover for each sub-supplier• Employees: number of employees in the company(global data) and the number of employees dedicatedto work by brand, in detail• Number or owners, partners, and employees’ family• Number of full-time / part-time employees split
between: Italian, EU, and non-EU• Number of homeworkers split between: Italian, EU,
and non-EU• Total number of employees dedicated to each brandsplit by activities

In the context of general audits, the communication flow
(audit planning, sending the corrective action plan, etc.)
between the Kering Audit Team and the suppliers should
be as follows:• For direct suppliers: Kering Audit Team contacts the
direct supplier directly copying in the brand’s
production and sustainability departments• For suppliers and their sub-suppliers: the Kering Audit
Team contacts the supplier copying in the brands’
production and sustainability departments. The
supplier then liaises with the sub-suppliers. For audit
confirmation and audit date at the sub-suppliers’ site,
the supplier reverts to the Kering Audit Team copyingin the brand’s production and sustainability
departments.
In the case of a follow-up or a suspicion of a violation, theaudits are unannounced.

245

Appendices – Social Compliance and Enforcement of the Kering Code of Ethics in Supply Chain

Type of activity

Type ofsuppliers

Type of audit

TimingFrequency

GLOBALAUDIT
SUPPLIER
ACTIVATION

Announced
General Audit

Notification,
normally one
week in advance

Only for new supplier
activation

GLOBALAUDIT
SUPPLIER
MONITORING

Announced
General Audit

Notification,
normally one
week in advanceAt least every 2 years

Unannounced
follow up

Anomalies
deadline ordepending on
need

Depending on anomalies
correction deadline

Mostlyunannounced
General Audit
based onsituation incollaboration
with the BU

ASAP

Depending on alert

FOLLOW-UP
SUPPLIER
MONITORING

Direct supplierand Sub-supplier

SUSPICION OF
SOCIALVIOLATION ORANY OTHERSPECIFIC
VIOLATION

Methodology
During the global audit the auditor will:• Observe key site activities• Interview management• Interview selected workers without management
present to respect the confidentiality of the interview• Inspect key company documentation including worker
contracts, union agreements, management
procedures, management records, and any otherdocumentation, and records relating to wages,
disciplinary practices, health and safety, discrimination,
working hours, freedom of association and collective
bargaining agreements (unions) and employment ofyoung workers

246• Disciplinary practices• Working hours (regular and overtime)• Wages and regular employment• Management systems and subcontracting• Environmental compliance• Physical security• Working condition and organization• Undeclared subcontractors

Audit results, grading system, and re-audit
frequency
Once the audit is performed, any non-compliance will be
detailed in the Supplier Database system for Kering, thebrand(s) and the supplier to see.

Close attention is paid to:

Grading system• Child labor• Forced labor• Health and safety• Freedom of association and collective bargaining• Discrimination

The outcome of the audits conducted by the Kering Audit
team will categorize suppliers in three distinct categories:
non-compliant, partially compliant, and compliant.

Appendices – Social Compliance and Enforcement of the Kering Code of Ethics in Supply Chain

Follow up audit timeframe
The most serious of the findings identified during theaudit will define the timing of the follow up audit as
below:
247

Most serious findings
during audit

Follow up audit timing

Type of audit

ZERO TOLERANCE

Termination, none

Termination, none

SERIOUSNON-COMPLIANCE

Within 1 month

Announced follow up
or unannounced investigation

NON-COMPLIANCE

Within 3 months max

Announced follow up

OBSERVATIONS

Within 6 months max

Announced follow up

Appendices – Social Compliance and Enforcement of the Kering Code of Ethics in Supply Chain

Submission of evidence for non-complianceclosure:After the audit has been carried out, the supplier can send
the Kering Audit team evidence of missing documentationor any other type of evidence to close off some or all noncompliances identified during the audit before the follow
up audit is scheduled.
Should the Kering Audit team consider the evidence as
acceptable, the non-compliances will be closed. This might
affect the timing of the follow up audit depending if any
non-compliances remain open.

Going Beyond Compliance: Social Impact
Social audits are a cornerstone to manage risk in supply
chains and to ensure compliance with local regulations.
This system is regularly updated to reflect best practices
and align with increasing legislation.
Beyond its social auditing system, Kering also considers
wider-ranging topics which can be perceived as going
beyond compliance with laws and regulations. Thisaspiration pertains to a variety of social impact topics such
as:
•
•
•
•
•

Living Wage
Gender Equality
Trainings and Skills Development
Diversity & Inclusion
Job Quality

Living Wage and Gender Equality have clearly been
identified as priority areas and Kering is actively working todevelop and implement its strategy to set the standards
for these impact categories.

248

Appendices

KERING ALERT SYSTEM

249

Appendices – Kering Alert System

To ensure the implementation of the Kering Code of Ethics and the principles it defends, the KeringGroup Ethics Committee is complemented by two regional Ethics Committees: the Asia-Pacific Ethics
Committee (APAC) and the Americas Ethics Committee.
Additionally, a hotline, accessible worldwide, is also available in the most widely spoken languages of
the Group.

This Alert System is available for paid employees and interns of the Kering Group, as well as to external
and temporary employees working for any service-provider / supplier or external partner with whom
the Group and/or its brands maintain contractual relationships.
The Committees do not deal in principle with anonymous requests, therefore any person contacting the
Ethics Committees is asked to identify themselves. Issues raised to the Ethics Committee remain
confidential and the Ethics Committee implements a no-retaliation policy when solicited in good faith.
Good faith means that the issuer believes the information is true at the time the concern is raised, even
if the information later turns out to be incorrect. Referrals are usually handled within a period of threemonths. The Ethics Committees and Ethics Hotline contact information can be found in the Kering Codeof Ethics at kering.com.

250

Appendices

ENVIRONMENTAL
PROFIT & LOSS ACCOUNT

251

Appendices – Environmental Profit & Loss AccountWhat is an EP&L?
Kering has developed an innovative tool, theEnvironmental Profit & Loss (EP&L) Account, which makesthe ‘invisible’ environmental impacts of business visible,
quantifiable and comparable. The EP&L is designed tomeasure and monetize environmental impacts from abusiness’ activities in its own operations and across its’supply chain. The tool highlights key areas where acompany can focus and prioritize its efforts to mitigate its
impacts more effectively.
The results of the EP&L allow Kering to:• Understand its true impacts and identify hotspots• Reveal risks and identify effective solutions for
mitigation• Translate its environmental impacts into a businesslanguage• Compare different environmental impacts with eachother, which was not directly possible previously• Compare the magnitude of the impact of production orsourcing of raw materials in each location (this isparticularly relevant to the availability of freshwater
resources that is location specific)• Facilitate comparisons between brands or businessunits• Monitor progress of the 2025 strategy, while
forecasting and preparing for the future• Be transparent with its stakeholders and investmentcommunity
In short, the EP&L can be used as a decision-making toolfor Kering brands to influence daily decisions and makeresponsible sourcing choices, by understanding theenvironmental impacts the company has on the world.

Summary of the methodology
The EP&L approach goes far beyond standard
environmental
reporting,producingamorecomprehensive picture of the impacts of Kering’s businessactivities.
It covers every tier of the supply chain, from Kering’s own
operations and stores all the way upstream to the
production of raw materials. At each tier, indicators aremeasured covering greenhouse gas emissions, water
consumption, waste production, water pollution, air
pollution and land use. In 2020, Kering added the usephase and end-of -life into the scope of the EP&L.

Scope covered by the EP&L approach:252

Appendices – Environmental Profit & Loss AccountKey stages in building the EP&L:

To develop the EP&L, Kering gathered information onsite and from suppliers wherever possible. When primary data was notavailable, Kering used studies derived mainly from lifecycle analyses, reviewed by panels of experts, and from economic studies.
The data was then adapted to the specific countries where the impacts occur. This is then analyzed and the environmental
changes resulting from emissions or use of resources by Kering’s businesses are translated into economic terms, taking into
account local situations and the effects on the welfare of local populations.

253

Appendices – Environmental Profit & Loss Account

Building on the extensive work done by Kering and its
brands to map and engage its suppliers over recent years,
Kering has acquired extensive environmental impact data
for each production process from each country in which it
takes place. Kering has now benefited from this invaluable
work to reduce the data-gathering process and developed
software for calculating the EP&L. Built on a financial
calculation tool, this software calculates a brand’s EP&L inminutes once the key indicators reflecting its activity havebeen collected and entered. The software also proposes
dynamic visualization to help understand impacts in amore tangible way. Using the software, scenarios can bemodelled to test the EP&L impacts of different projects
and monitor Kering’s sustainability target achievements
regarding EP&L reduction and sourcing. This progress is
key to creating a fast and simple decision-making tool thatcan be used on a day-to-day basis by Kering and thebrand’s various decision makers.

Requests to supply chain for calculating Kering
EP&L
Kering calculates the EP&L of all its activities and for all its
brands at least every year and is starting to have more
dynamic reporting.
Therefore, suppliers are asked to provide qualitative andquantitative data annually on the type and origin of all raw
material purchased, and on the environmental impacts ofthe production.

An open-source methodology
Kering open-sources and shares the EP&L methodology
and publishes the EP&L consolidated results for the Groupevery year at www.kering.com.

The EP&L has helped Kering brands unlock new insights
into their businesses and supply chains. Notably, it helps
Kering discover potential efficiencies, areas forinnovations and improvements that can provide businessvalue.

254

Appendices – Environmental Profit & Loss Account

FAQ
255

FAQ

Are the Kering Standards a contractual
document?
No, the Sustainability Principles that are attached to the
supplier agreement (contract or purchasing terms andconditions) are a legal document, but the Kering Standards
are an implementation tool to help support compliancewith these principles.

Who do I contact if I have questions regardingthese standards?
Contact the Sustainability Lead of the brand you workwith. However, if you have a question regarding theprinciples set out in the Kering Code of Ethics and theSuppliers’ Charter and/or if you suspect a breach of theirprinciples, you can contact the Ethics Committees. See
Appendix: Kering Alert System.

What if complying with the Kering Standards
has additional cost for me?
This should be part of your upfront commercial
discussions with the brand. Kering is asking suppliers
develop solutions to address these requirements in a longterm, economically viable manner.

What if following the Kering Standards
violates trade secrets or exposes confidential
business information?
Kering worked to develop the standards so that they will
not cause these problems. For example, when Kering asks
for traceability, Kering is not asking for confidential
business information. If you have concerns, please discuss
this with the Sustainability Lead for the brand you workwith.

How can I give feedback on the Kering
Standards?
Contact the Sustainability Lead of the brand you workwith.

Have the Kering Standards been externallyreviewed?
Yes, they were reviewed by the brands, key suppliers, andexternal experts.

What are the consequences for not following
the Kering Standards?
Compliance with the Kering Standards affects your vendor
rating, which is visible to all Kering brands and plays a partin supplier selection. By following the Kering Standards,
you develop a better relationship with the brands. If you
don’t meet the requirements of the Kering Sustainability

Principles, brands will require corrective actions and may
consider terminating their relationship with a supplier incase they are not implemented.

Why does Kering have such high Standards?
Kering is committed to being sustainable to mitigate its
environmental and social impacts and to redefine businessvalue and drive future growth. Kering believes that its
commitment to sustainability will allow it to become more
resilient in order to thrive and prosper in the future, whileat the same time helping to transform the luxury sector
and contributing to meeting the significant social andenvironmental challenges we face.

What if sub-suppliers won’t work with me tofollow the Kering Standards or provide mewith the information I need to follow the
Kering Standards?
Implementing the Kering Standards does require due
diligence from suppliers. Kering recommends finding
alternative sub-suppliers that will incorporate the Kering
Standards.

What are Kering Standards regarding
nanotechnology?
The Summary of Kering Chemical Management Policy
details Kering’s position on nanotechnology. In short,
Kering follows the pre- cautionary principle and will not
use any nanotechnology applications unless suchapplications are analyzed and prove to have no potential
impact on human health and the environment, including
an evaluation of end-of-life impacts. To comply with the
Kering Standards, suppliers must do the same.

What is Kering’s position on genetic
engineering / genetically modified organisms(GE/GMO)?
Kering does not support the use of GE or GMO fiber and/or
food for live- stock that provides raw materials for its
brands’ products and packaging. Kering references thisposition in several places in the Kering Standards,
particularly in the Kering Standard for Cotton, as
genetically modified cotton is often present when cotton
is not certified as organic.
Kering has taken this position on GMOs because of its
concern for their potential negative impacts: on thecontamination of GM plant varieties with natural plantvarieties, the reduction in diversity of plant
species/varieties, and the increased use of pesticides
required by GMO crops. Kering’s support of the
precautionary principle and a commitment to pursue
sustainable, holistic approaches has also led to Kering’s
position not to support GE or GMO raw materials.

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GLOSSARY257

Glossary

ARTISANAL SMALL-SCALE MINING (ASM)
Informal mining activities carried out using low
technology or with minimal machinery. Practiced byindividuals, groups, or communities often in developing
nations.
BETTER COTTON INITIATIVE (BCI)
A non-profit organization that aims to make global cotton
production better for the environment, people who
produce it and the future of the industry by bringing
together cotton’s supply chain from farmers to retailers.
However, as BCI cotton allows GMO seeds, this is not a
preferred certification Kering brands’ suppliers.
www.bettercotton.org
BIO-BASED FIBERS
Bio-based fibers consist of polymers made fromrenewable resources such as sugars, starches, or lipids(i.e., sugar, corn, castor beans).
BIODEGRADABLE
A biodegradable material is capable of decomposing d bybacteria or other living organisms in a determined timeand rate of decomposition. Elements resulting from thedecomposition should not damage the environment. Biobased plastics are not all biodegradable; some petrolbased plastics are biodegradable.
BIODIVERSITY
Also known as biological diversity, is the variety of all lifeon earth. Biodiversity can also be studied within aparticular ecosystem.
CANOPYAn award winning environmental not-for-profit
organization dedicated to protecting the world’s forests,
species and climate. www.canopyplanet.org
CAPTIVE
For species that can be bred in captivity, Kering aims toacquire them from “closed loop” captive operations. Thismeans that animals are bred in captivity and live theirwhole lives in captivity.
CARBON CAPTURE AND UTILISATIONThis is the process of capturing carbon dioxide (CO2) tobe recycled for further usage.
CARBON DIOXIDE (CO2) EMISSIONS
Carbon dioxide (CO2) emissions are caused by the
combustion of fossil fuels (coal, natural gas, and oil)primarily from energy and transportation. CO2 emissions
can also be caused by industrial processes and burning
forests and peatlands. CO2, one of a suite of greenhousegases, is the major emitter from human activity.
CELLULOSE
Cellulose is a starch-like carbohydrate obtained from thebark, wood or leaves of plants. Manufactured cellulosic
fibers are fibers structured from cellulose. Cellulosic
fibers are created by dissolving natural materials such as
cellulose or wood pulp, which are then regenerated by
extrusion and precipitation.

CHAIN OF CUSTODY (CoC)
Chain of Custody (CoC) refers to a process by which
inputs and outputs and associated information aretransferred, monitored, and controlled as they movethrough each step in the relevant supply chain.
A chain of custody system refers to a set of measuresdesigned to implement a chain of custody, including
documentation of these measures
Kering relies on CoC’s systems used by Standards andCertifications present in Kering Standard for Raw
Materials.
CIRCULAR SOURCING
Circular sourcing aims to reduce reliance on conventionalvirgin materials and avoid waste generation. On the one
hand, for virgin materials, this refers to materials sourced
from regenerative agricultural practices that comply with
the Kering Standards (see the relevant guidelines in therelevant chapters). On the other hand, for reclaimed
materials, this includes the recovery of post-consumer
clothing or pre-consumer resources such as scraps, semifinished products, damaged products, and production
leftovers that are reintegrated into the supply chain
through various transformation processes, resulting inupcycled or recycled content.
CIRCULARITY
Waste is designed out of the system at the start of thecreative process and business activities are decoupledfrom the consumption of finite resources. The aim is forresources in the system to cycle multiple times within
and across industries depending on their use and value.
Ideally, in this system, materials are constantly reused or
recycled and waste is eliminated. The system isrestorative and regenerative by design, creates sharedvalue, and enhances equality and society wellbeing.
CONVENTION ON INTERNATIONAL TRADE IN
ENDANGERED SPECIES OF WILD FAUNA AND
FLORA (CITES)CITES is an international agreement between
governments that regulates international trade of wild
animals and plant species to ensure trading does notthreaten their survival. The list of species protected by
CITES is regularly amended, the latest version can befound on their website. www.cites.org
CITES APPENDIX I
Endangered species that are prohibited from beingbought or sold internationally.
CITES APPENDIX II
Species that are not threatened with extinction now but
could be if trading is not closely monitored.
CITES APPENDIX III
Species where the trade is already being regulated andneeds the cooperation of other countries to prevent
illegal exploitation.
CLEAN PRODUCTION
In clean production processes, waste and pollution are
eliminated. This includes saving water and energy, andreducing chemical inputs, while also improving overall

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efficiency. A clear methodology to achieve this has been
provided by the “Clean by Design” program.

www.kering.com/en/sustainability/measuring-ourimpact/our-ep-l/what-is-an-ep-l/

CLOSED--LOOP SCHEME
e This refers to a program established by brands thatallow customers to return their used products. The endof-life of these collected pieces is then handled by thebrand, depending on their condition, through reuse,
repair, upcycling, and recycling.

FAIRTRADE COTTON
The cost of cotton may decrease even though the price ofits production may increase resulting in many farmers
struggling to survive. Fairtrade Cotton ensures farmers
are paid a fair price for the cotton they have grown.
www.fairtrade.org.uk

COMPOSTABLE PLASTIC
A compostable plastic can break down in composting
conditions. The disintegration of the plastic must takeplace in a composting process for organic waste within acertain time. The result of the decomposition must be
indistinguishable in the compost and cannot leave any
toxic material behind. Composting is a specific form ofrecycling, sometimes referred to as organic recycling. Allcompostable plastics are biodegradable, but not allbiodegradable plastics are compostable.

FEEDSTOCKA feedstock is a raw material that supplies or fuels anindustrial process. Polyester based polymers
predominately use petroleum (i.e., paraxylene and monoethylene glycol (MEG)), while recycled polyester currently
uses PET bottles as feedstocks. Biobased polymers use
starch/sugar-based feedstocks (e.g. corn, sugar cane,etc.). Polyamide based polymers predominately use
lipid/oil-based feedstocks.

CSCB
Certificaçao de Sustentabilidade do Couro Brasileiro(CSCB) is a Brazilian certification for sustainable leather.
DEADSTOCK
Deadstock products are defined as products that could
not be sold through traditional sales channels, or throughdiscount sales or private sales (according to the SAC
PEFCR V1.3).
DEFORESTATION
Deforestation is when forests are cut down in order tomake the land available for other uses such as animalgrazing. This is a major contributor to global warming.
DEGRADATION
Degradation is the deterioration of an environmental
element such as soil, air or water. The change or
disturbance has negative effects on the ecosystem andcan lead to wildlife extinction.
DURABILITY
The durability of a product is its ability to resist changes
caused by the environment, both in the intrinsic andextrinsic dimensions. Intrinsic refers to wear, tear,material decay or other physical aspects. Extrinsic
dimension refers to changes in user preferences resulting
from changes in personal needs, such as fit, or external
influences, such as fashion trends.
ECOSYSTEM
An ecosystem is a system formed by the interaction of acommunity of organisms within their physicalenvironment (e.g. tropical forests, wetlands, andgrasslands).
ENVIRONMENTAL PROFIT AND LOSS (EP&L)
ACCOUNTThe EP&L is a tool developed by Kering to help measureand understand a businesses impact on natural capitalacross the supply chain. The EP&L is a new way tomeasure and monetize the cost to society of the changes
in the environment as a result of business activities.

FIVE FREEDOMSThe Five Freedoms was developed by the World
Organization for Animal Health (OIE) to define an
animal’s welfare throughout its life.
FOREST STEWARDSHIP COUNCIL (FSC)
The FSC is an organization that sets their own global
standards to promote environmentally sound, sociallybeneficial, and economically prosperous management of
the world’s forests. They have a subsidiary called
Accreditation Services International (ASI) which is amember of the International Social and Environmental
Accreditation and Labelling Alliance (ISEAL). www.fsc.org
GENETICALLY ENGINEERED / GENETICALLYMODIFIED
Genetically modified usually refers to a process whereby
genes are altered by humans (this is different totraditional breeding practices to create different varietiesof plants or animals). In the case of cotton, the genetic
modification is “transgenic” which means genes from one
species (bacteria) are inserted into the genome ofanother species (cotton plant). This practice iscontroversial.
GLOBAL ORGANIC TEXTILE STANDARD (GOTS)
GOTS is a standard aiming to ensure organic textile
production from the raw material through to the labelingto provide credible assurance to the end customer.
www.global-standard.org

GLOBAL RECYCLED STANDARD (GRS)The Global Recycled Standard was released in 2014. The
GRS gives companies the ability to create a full productstandard by providing a tool to ensure the identity ofrecycled materials throughout the production stages, aswell as processing. www.textileexchange.org/integrity
GREENHOUSE GAS EMISSIONS (GHG)
GHGs are gases that trap heat in the atmosphere. They
include carbon dioxide, methane, nitrous oxide, andfluorinated gases. They are responsible for thegreenhouse effect, leading to global warming.

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ICEC
The Institute of Quality Certification for the Leather
Sector is a certification body focused on leather.
www.icec.it/en

MATERIALS INNOVATION LAB (MIL)The Kering Materials Innovation Lab is focused onproviding support to promote the integration of moresustainable materials into Kering brands’ supply chains.

ISO 14001
ISO 14001 is a standard that sets out criteria for anenvironmental management system.

MICROFIBERS
Fibers that shed from clothing during production,
consumer use, or end of life, and end up as pollution in
the environment. They can originate from all textiles andtherefore can be comprised of both synthetic and natural
materials. They are often defined as any fibers thatmeasure less than 5mm in length and less than 0.1mm
wide.

IUCN RED LISTThe Red List provides tax, conservation and distribution
information on plants, fungi and animals evaluated using
IUCN criteria. The system determines the rate ofextinction. The list is maintained by the charity
International Union for the Conservation of Nature
www.iucn.org
KERING CODE OF ETHICS
The Kering Code of Ethics, which includes the Suppliers’
Charter, sets out the Group’s principles on ethicalbusiness conduct and the behavior expected from its
employees and business partners; including with regard
to human rights, fundamental freedoms, human healthand safety and the environment.
KPI/E-KPI
Key performance indicators or environmental key
performance indicators are metrics used to trackprogress towards Kering’s sustainability targets.
LEATHER WORKING GROUP
The Leather Working Group is a multi-stakeholder groupthat monitors and assesses the environmental
compliance and performance of leather tanneries andpromotes sustainable business practices within theleather industry. www.leatherworkinggroup.com
MAN-MADE FIBERS
A type of fiber that is made artificially, such as polyesteror rayon, rather than occurring naturally like cotton or
wool.
MAN-MADE NON-FIBER MATERIALS
According to Textile Exchange ( TextileExchange_PFMR_2022.pdf (textileexchange.org) ),“while leather is a by-product of the meat and dairy
industry, some brands prefer emerging manmade nonfiber materials. While most manmade non-fiber materials
are fossil-based synthetics, a rapidly growing number ofpartially (and rarely fully) recycled and biobasedmanmade non-fiber materials are being developed. Manyare still in development as it is not easy to achieve someof the quality attributes of natural leather, such as its
durability. While partially or ideally fully substituting
fossil-based with biobased or recycled content is a start,
continuous improvements and a holistic approach
including material health and circularity are important”.
MANUFACTURING RESTRICTED SUBSTANCES
LIST (MRSL)The Manufacturing Restricted Substances List outlines
the chemicals that cannot be used intentionally in the
manufacturing of Kering’s brands’ products.

MICROPLASTIC SHEDDING
Also known as microfiber shedding, it is the release offibers (microplastics) <5mm from plastics and synthetic
textiles during production, post-production (washing, useor wear) and disposal. Research is being done to quantify
shedding rates on different fiber types and throughvarious processes
NANOTECHNOLOGY
Science, engineering, and technology conducted at thenanoscale, which is about 1 to 100 nanometers, andinvolving the ability to see and control individual atoms
and molecules.
OHSAS 18001/2
The OHSAS 18001/2 is an internationally applied British
Standard for occupational health and safety management
systems. It evolved into ISO 45001 in March 2018.
ORGANIC AGRICULTURE
Organic Agriculture is a production system that sustains
the health of soils, ecosystems and people and relies on
ecological processes, biodiversity and cycles adapted to
local conditions, rather than the use of inputs withadverse effects. Additionally, it combines tradition,
innovation, and science to benefit the sharedenvironment and promote fair relationships and a goodquality of life for all involved.
ORGANIC CONTENT STANDARDThe Organic Content Standard was created by the Textile
Exchange and relies on third-party verification to confirm
the accurate amount of organically grown material in the
final product. www.textileexchange.org
ORGANIC PRODUCT
Certified organic products are those which have been
produced, stored, processed, handled and marketed inaccordance with precise technical specifications(standards) and certified as “organic” by a certification
body
POST-CONSUMER MATERIAL
Generated by households or by commercial, industrial,and institutional facilities in their role as end-users of the
product that can no longer be used for its intended
purposePOST-CONSUMER WASTE

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Post-consumer waste is material generated byhouseholds or by commercial, industrial, and institutional
facilities in their role as end-users of a product that canno longer be used for its intended purpose. This includes
returns of materials from the distribution chain. (ISO14021)RECYCLING
Transforms a product or component into its basic
materials or substances and reprocesses them into newmaterials. Embedded energy and value are lost in theprocess. In a circular economy, recycling is the last resort
action (Ellen MacArthur Foundation).

PRECAUTIONARY PRINCIPLE
The Precautionary Principle is a strategy to cope withpossible risks where scientific understanding is yet
incomplete, such as the risks of nanotechnology,
genetically modified organisms, and systemic
insecticides.

RECYCLED CONTENT
Proportion, by mass, of recycled material in a product orpackaging. Only pre-consumer and postconsumer
materials shall be considered as recycled content,
consistent with the following usage of terms. (NF EN ISO
14021)A product containing recycled materials is not
automatically recyclable.

PRE-CONSUMER MATERIAL
Material diverted from the waste stream during the
manufacturing process. Excluded is the reutilization ofmaterials such as rework, regrind or scrap generated in aprocess and capable of being reclaimed within the sameprocess that generated it (Definition by the Textile
Exchange Glossary).
PRE-CONSUMER WASTE
Pre-consumer waste is a material diverted from thewaste stream during a manufacturing process. Excluded
is the reutilization of materials such as rework, regrind or
scrap generated in a process and capable of being
reclaimed within the same process that generated it. (ISO14021)PRODUCT RESTRICTED SUBSTANCES LIST(PRSL)The Product Restricted Substances List outlines thechemicals which cannot be detected or must meetcertain limits on Kering’s brands’ finished products.
PROGRAM FOR THE ENDORSEMENT OF FOREST
CERTIFICATION (PEFC)
PEFC is the world’s largest forest certification system. The
PEFC provides an alternative forest and chain of custodycertification. Their benchmarks for sustainability arebased on globally recognized principles and its criteria
and guidelines are developed by intergovernmental andinternational bodies. www.pefc.org
PVC
Polyvinyl chloride is a synthetic plastic polymer
associated with worker safety and end-of- life hazardous
chemical concerns.
RAW MATERIAL
Raw materials are an unprocessed first input (forexample, cotton, hide, gold, etc.) which will betransformed into the finished product through thevarious stages of processing, manufacturing, andassembly.
RECYCLABLE
A characteristic of a product, packaging or associatedcomponent that can be diverted from the waste stream
through available processes and programmes and can becollected, processed, and returned to use in the form of
raw materials or products.

RECYCLABLE PRODUCT
A characteristic of a product, packaging or associatedcomponent that can be diverted from the waste stream
through available processes and programs and can becollected, processed, and returned to use in the form of
raw materials or products. A recyclable product does notnecessarily contain recycled content.
REFILLABLE PACKAGING'Refillable packaging' refers to specifically designed
containers that can be replenished with the same
product they originally contained, thus extending thelifespan of the packaging, and reducing waste.
REGENERATIVE AGRICULTURE
Regenerative Agriculture is a way of growing crops andrearing animals that – by working with natural
ecosystems – ensures the long-term viability andresilience of the land thereby continuing to provide forgenerations to come. Key principles and outcomes used
to define regenerative agriculture include: (1) increasing
carbon in the soil and other improvements to soil health;(2) protecting and restoring native habitat andbiodiversity; (3) eliminating the use of unnecessary,synthetic harmful chemicals; (4) improving farmer
livelihoods, and (5) enhancing animal welfare.
REMAKING
Operation by which a product is created from existingproducts or components. This operation can include
disassembling, re-dyeing, restyling, and other processes
to improve emotional and physical durability.
REPAIR
Operation by which a faulty or broken product orcomponent is returned to a usable state.
RESPONSIBLE DOWN STANDARD (RDS)
Responsible Down Standard is an independent, voluntary
global standard to ensure that down and feathers comefrom ducks and geese that have been reared according togood animal husbandry practices.
www.responsibledown.org
REUSE
Operation by which a product or component is used
repeatedly and for long periods of time, for its original
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recycled. Products might need to be ‘prepared for reuse’,
which often involves cleaning, repairs, or small
modifications so that they can continue to be used.
SCIENCE BASED TARGETS
Science-based targets provide a clearly defined pathway
for companies to reduce greenhouse gas (GHG)
emissions, helping prevent the worst impacts of climatechange and future-proof business growth.
SUPPLIERS
Suppliers are the entities that touch the raw material in
its transformation from its natural state to finishedproduct including those that are involved in theprocessing, manufacturing, and assembling of the item.
SUB-SUPPLIER
A sub-supplier is a supplier to a Kering Tier 1 brand’s
supplier; a second-tier supplier.
SUPPLIERS’ CHARTER
Kering’s Suppliers’ Charter sets out in detail Kering’s
specific expectations of its business partners on ethics,
social and environmental issues.
STRATEGIC SUPPLIERS
Strategic suppliers are those needed to ensure business
continuity due to their production volumes and/or their
specific know-how.
SYNTHETIC FIBERS
Synthetic fibers are man-made fibers from high polymers
which are produced by polymerization, polycondensationor polyaddition. Original substances are simple organic
chemicals based mainly on mineral oil or natural gas.
THIRD-PARTY LOGISTICS
In logistics and supply chain management, third-party
logistics is an organization’s use of of third-party
businesses to outsource elements of its distribution,
warehousing, and fulfillment services.
TRACEABILITY
Traceability is the ability to trace the history, application,
location or source(s) of a material or product throughout
the supply chain, starting from the raw material to thefinal production stage. Traceable materials and products
need to have a traceability system in place, meaning amanual or electronic system that provides the ability toaccess any or all information relating to the material or
product throughout its’ life cycle.
For these reasons, the following are all required toenable the traceability of products:• Chain of custody documentation• Digital platform based on traceability data protocol• Tracer technologies (forensic tracer, additive tracer, or
any kind of physical marking system) to permit audit

Improving traceability requires strong collaboration
across the entire supply chain.
TRANSPARENCY
A set of activities and tools able to provide relevant
information which allows visibility, in a standardize way,of materials’ supply chain from primary production stageof raw material. Verification programs with tracer
technologies (forensic tracer, additive tracer or any otherkind of physical marking system) can be considered
complementary activities to improve the consistency of
information.
TRACEABLE DOWN STANDARD (TDS)The Traceable Down Standard was created by Patagonia
as an approach to sourcing down to prevent unnecessary
harm to the animals involved.
www.patagonia.com/traceable-down.html
WILD
Sourcing from wild populations, when done correctly, cancontribute to the conservation of the species and theirhabitats. It can also support local livelihoods of people
in developing countries, encouraging them to protect the
animals’ habitat.
UPCYCLING
A process in which materials that are not of use anymore,
are turned into ‘new’ products of a higher value so they
can re-enter the textile supply chain (closed loop).
Various techniques like dismantling, redyeing, andreprinting can be used. Internal stocks of fabrics orgarments are excluded from this definition.
VIRGIN MATERIAL
Materials that have not yet been used in the economy.
These include both finite materials (e.g. iron ore minedfrom the ground) and renewable resources (e.g. newly
produced cotton) (Circular Design for Fashion, Ellen
MacArthur Foundation).
WASTE
Materials or substances that are discarded and no longer
used, typically end up in landfill, being incinerated, or
leaking into the environment (Circular Design for Fashion,
Ellen MacArthur Foundation).

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and their use should be directed to sustainability@kering.com
Version 6.0 – November 2023

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