BIODIVERSITYSTRATEGY
Bending the Curve on Biodiversity Loss

KERING BIODIVERSITY STRATEGYFOREWORD“How we solve the ongoingenvironmental crisis is likely
the biggest challenge facing
our generation. Given the scaleof biodiversity loss sweeping
the planet, we must take bold
action. As businesses, we needto safeguard nature within
our own supply chains, as well
as champion transformative
actions far beyond them toensure that humanity operates
within planetary boundaries.
At Kering, our Houses’ products
begin their lives in farms, fields,
forests and other ecosystems
around the world. The carefulstewardship of these landscapes
is fundamental to our continued
success, and also linked to our
responsibility on a broader
global scale.
With Kering’s biodiversity
strategy, we are proud to put
forth concrete targets to play
our part in bending the curve on
biodiversity loss, and helping tochart a course for our industry.”
François-Henri Pinault
Chief Executive Officer, Kering

1

KERING BIODIVERSITY STRATEGYCONTENTS

Our Planet In Peril – p.03
Our Commitment – p.04
A Paradigm Shift – p.05
Taking Stock of Progress at Kering – p.06
Taking Action: Aligning To The Science
Based Targets Network – p.07
Value Chain Mapping & Materiality Assessments – p.08
Environmental Profit & Loss (EP&L) Accounting – p.09
The Biodiversity Impact Metric – p.09
The Guiding FrameworkStage 1: Avoid – p.10
Stage 2: Reduce – p.13
Stage 3: Restore & Regenerate – p.16
Stage 4: Transform – p.20
Monitoring, Reporting & Verification – p.23
Final Thoughts – p.23
Annex :
Kering’s Deforestation- and conversion- Free Commitment – p.24
References – p.35
Acknowledgements
We wish to thank the many external reviewers who provided critical feedback to strengthen this strategy. This includes:
Dr. Joseph Bull (University of Kent), Dr. Becky Chaplin-Kramer (Stanford University), Dr. Gemma Cranston (Cambridge
University), Dr. Helen Crowley (Conservation International), Sylvie Gillet (Entreprises pour l’Environnement), Dr. Han
Meng (UNEP WCMC), Florence Jeantet (One Planet Business for Biodiversity/Danone), Akanksha Khatri (World Economic
Forum), Eva Kruse (Global Fashion Agenda), Dr. Katie Leach (UNEP WCMC), Morten Lehmann (Global Fashion Agenda),
Jess McGlyn (Science-Based Targets Network), Duncan Pollard (Nestlé), Dr. Samuel Sinclair (Biodiversify), Dr. Cath Tayleur(Cambridge Institute for Sustainability Leadership), Dr. Helen Temple (The Biodiversity Consultancy), Dr. Tannis Thorlakson (Driscoll’s), Eva Von Alvensleben (The Fashion Pact), Eva Zabey (Business for Nature), Dr. Lu Zhi (University of Peking).
This strategy was released in July 2020.

2

KERING BIODIVERSITY STRATEGYOUR PLANET IN PERIL

Humanity has achieved remarkable feats in the past
50 years. We have lifted 1 billion people out of poverty,
increased life expectancy by over a decade, and probed
distant parts of our solar system. With the creation of
the internet, we have connected billions of people acrossthe planet, and we are currently launching a network ofstratospheric balloons to beam the internet into some ofEarth’s most remote, rural communities.

Biodiversity6 is a term used to capture the immense variety of life on our planet. It covers all plants, animals, bacteria, fungi and more, and includes not just microscopicorganisms but indeed ecosystems that span continents.7
A staggering 86% of species have yet to be discovered,and in many senses, the ‘age of discovery’ should beahead of us.8 The last time the international community came together specifically to set biodiversity targets
was in 2010 in Japan.9 Known as the ‘Aichi Biodiversity
Targets’, they were to be implemented between 2011 and2020. Countries also united around the creation of the
Sustainable Development Goals (SDGs), which similarly
set targets to create a world in which societies function inharmony with nature. Yet almost a decade later, we havefailed to meet virtually all Aichi targets.10

Yet the environmental costs of our success are catastrophic. Three quarters of terrestrial ecosystems are
now “severely altered” as a result of human actions. We
have lost 80% of the world’s wetlands.1 At least 200 vertebrate species have gone extinct in the past 100 years.2
During the short span between 1980 and 2000, humanity
cut down 100 million hectares of tropical forest for agriculture, mainly to build cattle ranches in Latin America
and palm oil plantations in South East Asia to meet surging global demand.3

Today, we are at a critical juncture. The risks to biodiversity are compounded by climate change, and the rate ofbiodiversity loss is expected to accelerate if we pass critical climate thresholds. As such, we must view climate
and biodiversity together, and invest in nature-based
solutions that simultaneously protect and restore habitat – for the sake of species, carbon sequestration, andoverall ecosystem functioning. For both moral and economic reasons, we must rise to the challenge to solve theongoing environmental crisis.

Looking to the future, the projections are bleak. In 2019,the landmark IPBES Global Assessment report – whichis the most exhaustive scientific analysis ever conductedon the status of life on earth – warned us that as many as
one million plant and animal species are at risk of extinction, many within decades.4 These expected declines areexacerbated by climate change, which is not only alreadyaccelerating the loss – particularly within the tropics –but also threatening the fundamental life-support systems of the planet.

“The health of ecosystems on which weand all other species depend is deteriorating
more rapidly than ever. We are eroding
the very foundations of our economies,
livelihoods, food security, health andquality of life worldwide.”

It is no longer just environmentalists raising the alarm.
This crumbling of Earth’s natural foundations present
enormous risks, both to economies and societies. As
concluded in the World Economic Forum (WEF) Global
Risks Report in 2020, the top five largest threats to ourglobal economy are all environmental, including biodiversity loss.5

Sir Robert Watson
Chair, Intergovernmental Science-Policy Platform
on Biodiversity and Ecosystem Services (IPBES)IPBES (2020). Global Assessment Report.
Ceballos, G., P. Ehrlich and R. Dirzo (2017). Biological annihilation via the ongoing sixth mass extinction signaled by vertebrate population losses and declines.
3
IPBES (2020). Global Assessment Report.
4
IPBES (2020). Global Assessment Report.
5World Economic Forum (2020). Global Risks Report 2020.
6
For the official CBD definition, visit: www.cbd.int/convention/articles/?a=cbd-02
7
Biodiversify & CISL (2020). Developing a Corporate Biodiversity Strategy: A Primer for the Fashion Sector.
8
National Geographic (2011).
9
During this momentous event, 190+ countries came together and are now parties to the Convention on Biological Diversity.
10
Nature editorial (2020).
1

2

3

KERING BIODIVERSITY STRATEGYOUR COMMITMENT

Inspired by the Convention on Biological Diversity (CBD),and specifically the ‘post-2020 Global Biodiversity Framework11, Kering commits to have a net positive impact on biodiversity by 2025, by regenerating and protecting an area
about six times our total land footprint. Thanks to our innovative Environmental Profit & Loss Account, or “EP&L”
for short (see page 9), we know that Kering’s footprint isabout 350,000 hectares. This includes not only our offices, shops and warehouses, but stretches the entire value
chain to also include the farms that produce all of ourraw materials (including those that grow animal feed).
In order to have a net positive impact on biodiversity, Keringwill:“Biodiversity is intrinsicallylinked to our business,and the need for holistic
integration with nature
through a strategically-driven
approach is critical for our
entire industry,and beyond.”• By 2025, Kering will regenerate one
million hectares of farms and rangelands in our
supply chain landscapes. We will accomplish thisthrough the recently-launched Kering for Nature
Fund: One Million Hectares for the Planet (more detailbelow), with a focus on the materials with the highest
environmental impacts according to our EP&L: leather,cotton, cashmere and wool. This represents about
3 times Kering’s total land footprint.

Marie-Claire Daveu
Chief Sustainability Officer, Kering• By 2025, Kering will protect one million hectaresof critical, ‘irreplaceable’ habitat outside of our
supply chain, through UN REDD+ and other programs
that offer co-benefits of biodiversity protection, carbon
sequestration and livelihood improvements. This
represents an additional 3 times Kering’s total land
footprint approximately.
This strategy outlines our path to attain these (and more)targets. We draw upon the framework offered up by the
Science-Based Targets (SBT) Network12, against which we
can benchmark progress. Given the inextricable linkages
between biodiversity and climate change, this strategy
includes both Kering’s new commitments on biodiversity, as well as our existing science-based target (SBT) for
greenhouse gas emissions.

Zero draft of the post-2020 Global Biodiversity Framework (2020)
The Science-Based Targets Network is made up of some of the world’s top conservation organizations, who are jointly asking: “What is the 1.5 degree
equivalent goal for nature?”. The network is particularly focused on developing methodologies that enable companies (and cities) to adopt science-basedtargets to address their impacts on oceans, land, climate, biodiversity and freshwater systems.
11

12

4

KERING BIODIVERSITY STRATEGY

A PARADIGM SHIFT

To support this strategy, we will work hand-in-hand with
farmers, herders and other raw material producers to stem
the biodiversity loss occurring ‘on the ground’. To enable
this change, we need to unite across the industry to build anentire movement behind these producers, as these raw material producers are often at the ‘frontlines’ of our collective
interactions with biodiversity. This means collaborating withother fashion companies to support a transition to ecologically-sound production practices , particularly given projections
that the industry will produce 63% more clothing by 2030
than we do today.14 It will also mean forging deeper collaborations with suppliers, industry alliances and certification
bodies to bring the full support of the supply chain behind
raw material producers. Finally, to ensure the industry’s efforts are grounded in scientifically-sound best practices, wemust work closely with agricultural scientists, conservation
biologists and others at the forefront of sustainability science.

Like other fashion and apparel companies, Kering’s
core business is inextricably linked to well-functioning,
healthy ecosystems. Indeed, according to the WEF Nature Risk Rising report, $44 trillion, or half of global GDP,is moderately or highly dependent on nature.13 Thoughmany of our Houses’ final products are ‘Made in Italy’,
the Kering supply chains span the planet, and our Houses’ products typically begin their lives on farms, forests,
fields, and other natural ecosystems. For instance, ourHouses use wool produced in New Zealand’s highlands,
cashmere from Mongolia’s South Gobi, organic cotton
from India, and viscose from sustainably-managed
Swedish forests, to name a few. As such, any degradation
to these ecosystems has a direct impact on our ability tocontinue producing products.
Before these materials reach our creative designers
and craftspeople, they pass through the hands manyskilled intermediaries, who provide value-addition
such as spinning, dying, tanning and weaving. Yet, weknow from our pioneering environmental accounting
tool – the EP&L – that Kering’s impacts on the natural
world are highest at the stage of raw material production. While we must continue mitigation efforts along
the full supply chain, this means that it is essential to
become laser-focused on action at the level of raw material production.

13
14

Yet, we must do even more. Across the industry, we needto examine the fundamentals of fashion business models
that reward ever-increasing production, and a pace that isincreasingly untenable. We also need to support innovations in new material development, as well as recycling processes – both of which can reduce the industry’s relianceon virgin raw material sourcing, where most of our impacts
lie. Finally, we must look outside our direct supply chains
and support bold action that can transform our industry.

World Economic Forum (2020). Nature Risk Rising Report.
Global Fashion Agenda & The Boston Consulting Group (2017).
5

KERING BIODIVERSITY STRATEGYTAKING STOCK OF PROGRESS AT KERINGFor over a decade, Kering and its Houses have worked ondiverse sustainability initiatives in order to take betteraccount of our externalities. We have focused on avoiding and reducing negative impacts on nature and finding
ways to have positive impacts on people. We have supported diverse conservation efforts, developed rigorous standards for sustainable raw material sourcing, strengthened
gender equality policies in both our direct operations andmanufacturing hubs, and created a comprehensive, opensourced measurement tool with our EP&L to quantify environmental impacts across our value chain.

more than 35% of industry volume) to ensure the fashionindustry plays its part in ‘bending the curve on biodiversity loss’.15, 16 The Fashion Pact is specifically focused on
three topics: climate, biodiversity and oceans. Member
companies have committed to support the developmentof SBTs on biodiversity and develop biodiversity strategies to measure impacts on key species and ecosystems,
as well as delineate concrete actions to prevent future loss.
Recognizing that this is an extraordinarily complicatedchallenge, and to help support this transformation, Kering
partnered with the Cambridge Institute for Sustainability
Leadership (CISL) and Biodiversify to develop a biodiversity ‘primer’ for the fashion sector. This ‘primer’ is alreadyplaying a pivotal role, and by design, is suited to meet theneeds of fashion companies at various stages in the biodiversity journey.

More recently, at the G7 Summit in 2019, the Fashion Pact
was shared by Kering’s CEO François-Henri Pinault. This
CEO-led partnership brings together the world’s largest
fashion and textile companies (who together account for

15
16

Mace et al. (2018). Aiming higher to bend the curve of biodiversity loss.
Fashion Pact (2019).
6

KERING BIODIVERSITY STRATEGYTAKING ACTION:ALIGNING TO THE SCIENCE-BASED TARGETS NETWORKIn order to translate our goal of having a net positive impact on biodiversity by 2025, we align with an approachspearheaded by the Science-Based Targets Network(SBTN)17. The SBT framework builds upon the mitigation18 and conservation hierarchies19, which enjoy wideusage in the construction and extractive industries. Yet
it raises the ambition by encouraging companies to go
far beyond their supply chains to inspire system-levelchange through transformational ideas.
Kering is part of the Initial Target Validation Group of
SBTN launched in 2023, which means we are part of asmall group of companies who will be working closely with SBTN to pilot the validation process for science-based targets.

in or near to biodiversity-sensitive areas), assessing thestate of nature in the locations we may be impacting, andsetting target boundaries for materially relevant pressures on nature considering our activities.

As diagrammed, the first couple of steps in this process
consist in looking under the hood of our raw materials
supply chain to understand our impacts and dependencies on nature.20 We already have a significant visibility
thanks to our EP&L, and are currently working towards
full alignment with the recently released version 1 of
the Science-Based Targets for Nature guidance. Among
many other activities, this process includes estimating
the pressures exerted by our activities on nature (including an assessment of whether our direct operations are

The first three steps in this action framework (also known
as the AR3T framework, for the initials of the steps thatcompose it) are hierarchical: we prioritize actions thatprevent impacts (“avoid”), minimize impacts that are
unavoidable (“reduce”), and push for corrective, nature-positive action when possible (“restore & regenerate”). We then look outside of our immediate supply
chain (“transform”) to concretely take game-changing
actions that proactively contribute to a world in whichpeople and nature can thrive.

We have also supported the development of a new toolby the Cambridge Institute for Sustainability Leadership (CISL) called the Biodiversity Impact Measurement(BIM) Tool (details below).
Next, grounded in a sophisticated understanding of ourimpact, we set science-based company targets for nature.
To implement these targets, we follow the 4-stage action
framework proposed by SBTN.

17The Science-Based Targets Network is made up of some of the world’s top conservation organizations, who are jointly asking: “What is the 1.5 degree equivalent goal for nature?”. The network is particularly focused on developing methodologies that enable companies (and cities) to adopt science-based targets toaddress their impacts on oceans, land, climate, biodiversity and freshwater systems.
18
Arlidge et al (2018).
19
https://conservationhierarchy.org/
20
As defined in the 2019 IPBES Global Assessment Report, “nature” can be defined as “…all non-human living entities and their interaction with other living or
non-living physical entities and processes”. We use this term to encompass biodiversity (species, ecosystems, genes), as well as nature’s contributions to people.

7

KERING BIODIVERSITY STRATEGYVALUE CHAIN MAPPING& MATERIALITY ASSESSMENTS
As reported in our 2020 Sustainability Progress Report, we
Before reaching our clients, our Houses’ products begin theircan currently trace 88% of our materials to at least the counjourney as raw materials in farms, forests, mines and othertry-level, with a goal to attain 100% traceability by 2025. In
landscapes. While we sometimes rely on certifications as a
the case of leather (our highest impact material), we expect
marker of sustainability, there are cases where we can pin-EP&L RESULTS
full traceability to the farm level by 2025. We are also pilotpoint the exact sourcing location. This is true in the case ofing blockchain technologies, isotope-tracers, and othercashmere, for instance, where we have direct relationships
techniques to increase the number of ‘identify-preserved’with nomadic herding cooperatives in Mongolia’s South
products
in our supply chain.
Gobi. This supply chain visibility enables us to better assess
FIGURE
2:
EP&L impacts
across the tiers split by impact area
our impacts on nature, as well as understanddependencies
Ultimately, this information enables us to assess the materiand potential risks. We can then use this information to makeality of our impacts and take decisions accordingly.
key programmatic and conservation decisions.

End of life

Use phase

TIER 0Stores,warehouses,
offices

TIER 1
Assembly

TIER 2
Manufacturing

TIER 3
Raw material
processing

TIER 4
Raw material
production

AIR
EMISSIONS

8%
€48M

10 T

2 249 T

3 947 T

989 T

1 744 T

1 918 T

6 347 T

GHGs

17 204 T

37%
€206M

8 814 TCO2

229 711 TCO2

477 398 TCO2

154 548 TCO2

243 006 TCO2

265 671 TCO2

1 002 842 TCO2

LAND USE

2 381 991 TCO2

31%
€172M

0 Ha

194 Ha3 081 Ha3 287 Ha3 242 Ha

1 722 Ha288 146 Ha

WASTE

299 673 Ha

6%
€35M

3 807 T48 415 T

122 578 T

156 838 T

243 259 T

79 051 T

37 932 T

WATER
CONSUMPTION

691 879 T

6%€35M

4 dam33 530 dam3

16 374 dam3

5 591 dam3

6 688 dam3

5 127 dam3

18 617 dam3

WATER
POLLUTIONTOTAL INMILLIONS

TOTAL

55 977 dam3

12%
€67M

0T

141 T

563 T

89 T

88 T

324 T

3 085 T

4 290 T

0,2%
€1

7%
€39

14%
€77

5%
€28

8%
€43

9%
€53

57%
€322

100%
€562M

EP&L Impacts Across The Supply Chain (2021)
As illustrated, our largest environmental impacts occur in Tier 4, which is the raw material production phase.
Specifically, impacts are greatest in the “Land Use” category, which contains several biodiversity proxies.
This level of visibility into our supply chain allows us to act, as well as measure yearly progress.
8

KERING BIODIVERSITY STRATEGYENVIRONMENTAL
PROFIT & LOSS (EP&L)
ACCOUNTING

THE BIODIVERSITYIMPACT METRIC

In 2012, Kering launched its pioneering EP&L, which isthe ‘work horse’ behind virtually all sustainability activities at Kering. It paints a comprehensive, detailed picture of our environmental impacts across the full supply chain, looking at six key parameters: air pollution,water pollution, greenhouse gases, water consumption,
waste production and land use (which contains a number of proxies for biodiversity21). Critically, it also allows
us to quantify our total land footprint, which is around
350,000 hectares across the full supply chain (of which
94%, or 330,000, is farmland, rangeland, mining sites, andother areas that produce raw materials).

In order to fine-tune our understanding of how our supply chains impact biodiversity, we recently supported theCambridge Institute for Sustainability Leadership (CISL)
to develop a Biodiversity Impact Metric (BIM) tool.23 The
development process involved extensive consultative
processes with some of the world’s top ecologists, conservation biologists and social scientists, and produced
a number of groundbreaking interim studies.24 The BIM
tool functions adeptly in both data-rich and data-poor
scenarios, and provides an initial risk screening of potential biodiversity impacts from agricultural production. This, in turn, can drive smarter sourcing decisions.
For instance, using data from our raw materials supply
chain, we can weigh the relative biodiversity impacts ofpurchasing conventional cotton from one country, as opposed to organic cotton from another. Behind the scenes,
the BIM enables us to examine several parameters for agiven commodity, including farming intensity, sourcing
country (or ideally, specific region), and the range/rarityof local species within that geography. Looking ahead, in
addition to improving our EP&L, the BIM can also help
pinpoint regions to invest in place-based biodiversity
programs for critical supply chains.

The EP&L’s underlying methodology includes life cycle
assessments for specific materials. Taking a natural capital approach by looking at the cost of impacts to societies, the EP&L allows us to compare ‘apples to apples’ by
converting impacts into monetary terms. In short: the
EP&L provides an excellent indication of the relative impact on the environment overall (and to society) of different commodities in different tiers of the value chain.
This enables us to understand where to focus efforts tomitigate environmental impacts.22 As diagrammed, theresults are quite clear: our largest environmental impacts
occur at the level of raw material production, and are specifically around land-use change, which is directly connected to biodiversity. Our second largest impact – alsoin Tier 4 – is greenhouse gas emissions. Taken together,
the message is very clear: We need to focus action at thislevel of the supply chain, and prioritize nature-based
solutions that offer dual benefits in biodiversity protection and carbon reductions. Every year, we refine the
EP&L methodology, thereby improving the precision of
our measurements and allowing us to monitor progress
towards our sustainability goals. We publicly share our
EP&L results annually, and open-source our methodology to support other companies on their journeys towards
greater supply chain understanding and transparency.

For instance, this includes changes in above-ground plant biomass as well as expected plant species’ richness, using multipliers based off the work of Kieret al (2005) and Tracy & Sanderson (2000).
22
Bull, J, P. Addison, M. Burgass & S. Sinclair. “Biodiversity, and a Conservation Hierarchy for Kering S.A.” (2019).
23
CISL & NCIG (2020). Measuring business impacts on nature (2020)
24
CISL (2016). Biodiversity and ecosystem services in corporate natural capital accounting: Synthesis report. Di Fonzo & Hime (2017). Biodiversity and ecosystemservices in corporate natural capital accounting: Synthesis report.
21

9

THE GUIDINGFRAMEWORK
Stage 1: Avoid

KERING BIODIVERSITY STRATEGYSTAGE 1: AVOID
In order to attain our biodiversity goals, we prioritize avoiding
negative impacts in our direct operations and along our value chain
whenever possible, especially in areas of globally or nationally critical
ecological importance.

Kering’s commitments:
Continue to ensure that all plant and animal-based raw materials inour supply chain come from legal, verifiable sources at a minimum,
closely adhering to guidance issued under CITES, the IUCN Red
List, and other relevant national and international conventions.

By 2025, ensure that the production and sourcing of companies
in Kering’s supply chains does not cause or contribute to the lossof natural ecosystems (including land, freshwater and marine
ecosystems). This covers all natural ecosystems, including but
not limited to Ancient and Endangered Forests, to natural forests
more widely, and to those ecosystems that meet the criteria of Key
Biodiversity Areas, High Conservation Value areas, High Carbon
Stock or Irrecoverable Carbon areas.
The cut-off date adopted by Kering for this deforestation- andconversion-free commitment is of 1st January 2020 at the latest. Thismeans that lands where natural vegetation has been cleared since 1st
January 2020 are deemed non-compliant with the commitment, andraw materials produced in such lands cannot enter Kering’s supply
chains. This backdrop cut-off date does not supersede earlier existing
cut-off dates: in biomes or certification schemes where an earlier cutoff date may apply, this must be upheld.
This is in direct support of the Global Biodiversity Framework’s
mission for 2030 to take urgent action to achieve no net loss ofnature and to put nature on a path to recovery for the benefit ofpeople and planet.
For more information, please refer to Annex 1: Deforestation andconversion-free commitment.”

By 2025, achieve 100% traceability of all materials to at least thecountry level, and to the farm level for key materials like leather.

11

KERING BIODIVERSITY STRATEGY

Spotlight On Ongoing Work:

Avoiding Negative Impacts on Species and Ecosystems

As a Group, Kering protects critical
habitats and ecosystems through strict
sourcing policies.

Finally, our sourcing policies ensure thatall plant and animal-based products inour supply chain come from legal andverifiable sources, with strict adherence
to international and national treaties andconventions. In the case of reptilians,
for instance, we work closely with theInternational Union for Conservation of
Nature (IUCN) and Southeast Asian Reptile
Conservation Alliance (SARCA) networks
to prioritize both traceability as well as
conservation programs. These actions
ensure that markets remain transparent,
regulated and subject to external scrutiny.

For instance, we work with the NGO
Canopy to ensure our supply chain is
free of products sourced from ancientand endangered forests as part of the
CanopyStyle Initiative, particularly when it
comes to viscose and other cellulosics.
These sourcing practices protect
biologically-rich ecosystems, and allow
wild plant and animal species to thrive
in large, undisturbed contiguous areas.
These actions also ensure the continued
protection of forests, which are criticalcarbon sinks.

12

THE GUIDINGFRAMEWORK
Stage 2: Reduce

KERING BIODIVERSITY STRATEGYSTAGE 2: REDUCE
When impacts cannot be avoided, Kering and its Houses actively work
to reduce negative impacts. We take a full 360-degree approach, andapply this concept both to operational day-to-day decisions, as wellas through our sourcing practice that reduce the duration, intensity
and/or extent of impacts.

Kering commitments:
Reduce biodiversity impacts associated with sourcing decisions,by ensuring 100% alignment with the Kering Standards for Raw
Materials and Manufacturing Processes by 2025. For instance, thisincludes prioritizing sourcing organic cotton, which has 80% lessenvironmental impact compared to conventional cotton (see theKering EP&L appendix).

Reduce our reliance on virgin materials sourcing by scaling up
circular materials in the collections (for example, recycled materials).

Reduce our reliance on virgin raw materials by supporting
material and process innovations and also by investing in start-up
companies creating alternative materials.

Achieve a target of 100% metal-free tanned leather in our Houses’
collections by 2025.

Furthermore, as detailed in the Kering 2025 Sustainability Strategy, we
will reduce our total Group environmental footprint by 40% by 2025
across our own operations and the entire supply chain, as measured by
our EP&L. We will also reduce our controlled greenhouse gas emissions
by 50% by 2025. Both are calculated vis a vis a 2015 baseline.

14

KERING BIODIVERSITY STRATEGY

Spotlight On Ongoing Work:

Reducing Impacts Through the Kering Standards

In order to reduce our impacts on nature,
we developed the Kering Standards
for Raw Materials and Manufacturing
Processes, which cover 16 categories ofmaterials. These open-sourced Kering
Standards are a cornerstone of corebusiness operations, and are used by
our Houses and suppliers to ensure oursourcing is adhered to, and in line with
best-available technologies, scienceand practices. For instance, in thecase of wool, we support the Textile
Exchange’s Responsible Wool Standard,
which requires sheep farms minimize
biodiversity impacts by implementing
biodiversity management plans (BMPs).

Across all raw materials, suppliersmust meet “minimum” requirements
immediately. For example, in the caseof leather, this means only purchasing
skins from suppliers who are willing todisclose the source. Suppliers must also
meet “additional conditions” by 2025. For
instance, in the case of leather, this will
mean having full traceability up to thefarm, with the implementation of best
ecological and animal welfare standards.
Our recent Sustainability Progress
Report shared that we have thus far
achieved 68% alignment with the Kering
Standards, well on track to meet our goalof 100% by 2025.

15

THE GUIDINGFRAMEWORK
Stage 3: Restore & Regenerate

KERING BIODIVERSITY STRATEGYSTAGE 3: RESTORE & REGENERATE
In order to help shift the industry paradigm that merely seeks to minimize negative impacts, we act to restore and regenerate ecosystems
through nature-based solutions in our sourcing locations, which offer
biodiversity and carbon benefits. This work is often done in partnership with agricultural scientists, botanists and foresters through carefully-planned interventions grounded in science.

Kering commitments:
As mentioned above, by 2025, regenerate one million hectares offarms and rangelands in our supply chain landscapes, prioritizing
interventions that offer both biodiversity and carbon benefits. We
will accomplish this through the Regenerative Fund for Nature(see explanatory box below), with a focus on the materials with thehighest environmental impacts according to our EP&L: leather,cotton, cashmere and wool. This represents about 3 times Kering’s
total land footprint.

By 2025, restore habitats where mining and other extractive activities
occurred, restoring an area three times larger than our total ‘direct’
footprint (which includes all stores, warehouses and offices).

Expand the ‘basket of materials’ used by our Houses, by identifying,sourcing and scaling forgotten plant varietals and livestock breeds
in our supply chain, thereby improving agricultural resilienceand moving away from an industry that is overly reliant on
monocropping. By 2025, increase the offerings of such materials at
our Materials Innovation Lab.

17

KERING BIODIVERSITY STRATEGY

Spotlight On Ongoing Work:

Restoring Former Gold Mining Sites

In French Guiana, we are working withconservation partners Solicaz andForest Finance to reforest a former
alluvial gold mining site. This project
goes beyond regulatory requirements(which mandate that 30% of former
mines must be restored), and instead
focuses on 100% restoration, making it
the first full reforestation program of amining site in the Amazon. Beginning withdetailed ecological assessments of local
species, our partners began by creating
in-situ plant nurseries, and preparing
more than 90,000 seedlings to plantover 116 hectares. Solicaz reforestation

experts first focused on species withhigh nitrogen-fixation potential that
could act as ‘pioneer species’. Today, thesystems are thriving, and our partners
regularly monitor soil health, the qualityof tree development, the appearanceof spontaneous plant diversity and soil
respiration. By focusing on full ecosystem
restoration, this project not only restores
habitat for local biodiversity, but also
facilitates carbon sequestration. We are
now inviting other brands to join forces
to extend the work to other gold sites, aswell as trying to launch similar initiatives
in silver and platinum.

18

KERING BIODIVERSITY STRATEGY

Spotlight On Ongoing Work:

Building Biodiversity Through Regenerative AgricultureWith the launch of the Regenerative
Fund for Nature in collaboration with
Conservation International, we will support
promising agriculture and rangeland
projects throughout the world, with a focus
on leather, cotton, wool and cashmere.
Regenerative agriculture has the potential
to completely transform the face ofagriculture, and is grounded in the ideathat we can replenish and strengthen
ecosystems through improved farming
and livestock rearing practices. Specifically,
regenerative agriculture increases farmbiodiversity, reduces agro-chemical inputs,
improves soil water retention, enhancescarbon sequestration and focuses on
livelihood gains.

Society. We are also partnering with the
Savory Institute to promote and support theregenerative production of raw materials
and utilize Savory’s pioneering methodology,
Ecological Outcome VerificationTM (EOVTM)
in our leather and fiber supply chains thatcome from grazing systems, such as wool
and cashmere. More recently, we partneredwith RARE and SouthPole on a cotton projectin China to quantify carbon sequestration
through improved practices. At an industry
level, we work with our peers in foodproduction via the One Planet Businessfor Biodiversity to identify potential crosscompany projects in regenerative agriculture.
With the launch of the Regenerative Fund for
Nature, we are excited to scale the successand lessons from these projects, which will
not only meaningfully increase regenerative
materials in our supply chain, but will also
positively transform one million hectaresof land by 2025 with the corresponding
biodiversity and carbon benefits.

To date, Kering has supported a numberof direct regenerative projects, including
an innovative goat rangeland programin Mongolia connected to our cashmere
supply chain, which is being implemented inpartnership with the Wildlife Conservation

19

THE GUIDINGFRAMEWORK
Stage 4: Transform

KERING BIODIVERSITY STRATEGYSTAGE 4: TRANSFORM
In order to have a net positive impact on biodiversity by 2025, we need to go
above and beyond. We must collectively revolutionize the fashion & apparelindustry through actions outside of our direct supply chains. We are committed
to engaging with stakeholders to halt nature loss, as well as protect, restore andregenerate biodiversity. Kering is made up of teams of creative experts, and theirvision and skills are the driving force behind the beautiful products which are
our raison d’être. For this reason, the “transform” pillar is especially relevant, as
it represents a way to channel our most innovative ideas into action.

Kering commitments:
As mentioned above, by 2025, Kering will protect one million hectares of critical,‘irreplaceable’ habitat outside of our supply chain, through UN REDD+ andother programs that offer co-benefits of biodiversity protection, carbon
sequestration and livelihood improvements. This represents an area threetimes Kering’s total land footprint.

Continue playing a pivotal role spearheading the Fashion Pact, which brings
together more than 250 fashion brands and suppliers (who represent around
35% of the industry), to work together on the topics of climate, biodiversity
and ocean health.

Continue providing key support to groups at the forefront of biodiversity
protection (see box).

Lead the fashion industry in reimagining fashion show calendars andrequirements, as they exert a high environmental toll.

Inspire our 38,000+ employees to incorporate biodiversity into their daily lives,
through diverse activities at the House- and site-level, such as bee-keeping clubs
and citizen science projects. In addition, we will continue to develop online
biodiversity and sustainability trainings and games to engage our teams and help
them translate biodiversity considerations into their daily lives.

Work to strengthen the biodiversity element of existing certification schemes
and standards.

Continue engaging scientific, academic and industry partners to produce
publicly available tools, reports and insights which can drive high-level change.

Continue to promote natural capital accounting by strengthening our internalmeasurement via our EP&L, as well as creating open-sourced, operationalized
tools to support the industry.

21

KERING BIODIVERSITY STRATEGY

Spotlight On Ongoing Work:

Supporting Groups Working
at the Forefront of Biodiversity Conservation

Over the years, Kering and its Houses havesupported a diverse array of internationalorganizations working at the forefront of
biodiversity conservation and science.
This includes our partnership with IPBES,
following the release of their pivotal
report which called the world’s attention
to the scale of global biodiversity loss. We
also provide support to the Paris’ Museumof Natural History, and as recently
announced on World Environment Day,
we are thrilled to support The Explorers

Program, a global media platform building
a rich catalog of Earth’s natural assets. In
2020, Kering and its Houses responded toa number of crises, for instance providing
key support to teams battling bushfires inAustralia. Finally, our Houses also support
varied biodiversity programs directly,
such as Gucci’s partnership with the Lion’s
Share Fund, which seeks to raise over
100 million USD every year over the next
five years to protect endangered species
and their natural habitats.

22

KERING BIODIVERSITY STRATEGYMONITORING, REPORTING& VERIFICATIONAs a next step, Kering will develop an operational planthat stems from this strategy. The plan will facilitate ongoing monitoring towards our commitments on an annual basis, enabling us to publicly report on key areas ofprogress. Given the depth and breadth of our biodiversity
programming, we will draw upon a number of monitoring tools, including our EP&L, both at the level of Kering
corporate and our Houses.
This strategy is designed to be a ‘living document’, which
Kering will continue to update and modify to ensure it
remains relevant and ambitious. This will mean building in new scientific findings that might affect particularactions and decisions. Looking ahead, we are especially
excited to continue to implement guidance from the Science-Based Targets network as it becomes available, as
well as aligning to CBD Global Biodiversity Framework.

FINAL THOUGHTS

We depend on, and therefore must protect the naturalenvironment. Biodiversity – and nature more generally– provides an infinite source of inspiration to our Houses’
creative design teams, who regularly celebrate nature in
all of its forms. With this strategy, Kering aims to help
stem biodiversity loss and restore ecosystems in its global supply chains, and finally, spark systemic change that
goes above and beyond our own business activities.
Ultimately, our aim is to help shift the outdated businessparadigm that has failed to account for its impacts onnature. Instead, we need to come together, as individualcompanies, as the fashion industry, and as the private
sector more generally and work together with all relevant stakeholders to bend the curve on biodiversity loss.
This is one of the greatest challenges of our generation.
We have both an ethical and a business responsibility torespond. We hope the ambitions outlined hereabove will
be a meaningful step on this journey.

23

KERING BIODIVERSITY STRATEGY

ANNEX
Kering’s Deforestation- and Conversion- Free Commitment

INTRODUCTION

Endangered Forests. This also includes a commitment
to no land clearance by burning or clearcutting, and tono planting on peatlands.

For many years, Kering has been increasing the ambition of its sustainable sourcing actions for its key raw
materials. Importantly, since 2019, Kering has published and updated every year a set of Kering Standards
for sustainable production, which, among other topics,
set out strict requirements pertaining to the environmental, social and animal welfare impact of key raw
materials sourced by the company, and aligns withindustry-leading initiatives. In 2021, the company has
also launched the Regenerative Fund for Nature alongside Conservation International to support the implementation of regenerative agriculture practices across
1 million hectares of croplands and rangelands in the
key landscapes where the group sources key raw materials such as leather, wool, cashmere and cotton.

This commitment applies to all raw materials used by
Kering’s brands (although with higher-priority focus
on riskier materials), for both products and packaging.
It also applies to our own operated sites and to our suppliers’ sites. It covers all natural ecosystems (not only
forests) – hence the inclusion of “conversion”, beyond
deforestation alone. The aim is to achieve no gross lossof natural ecosystems. The cut-off date for this commitment is of 1st January 20201 at the latest. Any existing earlier cut-off dates for specific materials, sectors
and regions continue to apply, as well as earlier cut-off
dates associated with certification standards (for example, 1994 will continue to be the cut-off date applied
to forest-based materials, as detailed in Table 2).

In 2023, Kering is strengthening this commitment
with a reinforced deforestation- and conversion-freecommitment included under the Stage 1 (Avoid) of our
Biodiversity Strategy, including (but not limited to)
a commitment to ensuring no conversion of natural
ecosystems (including but not limited to those ecosystems that meet the criteria of Key Biodiversity Areas,
High Conservation Value Areas, High Carbon Stockor Irrecoverable Carbon Areas), and to avoid sourcing
forest-derived materials from the world’s Ancient andThis commitment includes full legal compliance withnational and international forest- and land-use related
regulations related to deforestation and conversion ofnatural ecosystems, including in countries where activities are taking place – but it goes even beyond thisto ensure no deforestation or conversion, even where
this may be considered legal.

1This backdrop cut-off date is aligned with guidance from the Accountability Framework initiative – an internationally-recognized guide for achieving
and monitoring ethical supply chains – free of deforestation and conversion of natural ecosystems and of related abuses of the rights of indigenous
peoples, local communities and workers. The Accountability Framework initiative serves as a reference for a wide range of NGOs and rating agencies
working on these topics, and explicitly underpins the Forest 500 assessments, the CDP Forests questionnaires, the Global Reporting Initiative’s new
Sector Standard for Agriculture, Aquaculture and Fishing and the draft SBTi Forest, Land and Agriculture (FLAG) guidance.

24

KERING BIODIVERSITY STRATEGYKERING DCF COMMITMENT IN DETAIL

Protection of forests and other natural ecosystems iscritical for maintaining biodiversity, combating climatechange and sustaining livelihoods. Some of the key raw
materials in Kering’s supply chains – leather, cellulosic
fibers, wool, cashmere, cotton, paper and paper-based
packaging – can pose risks for natural ecosystems, andmay directly or indirectly be linked to their loss or degradation. As part of its overall commitments to sustainable sourcing, Kering is committed to halting deforestation and ecosystem conversion in its operations andsupply chains. The group commits to achieving this assoon as possible, and by 2025 at the latest.

The definitions of deforestation, conversion and natural ecosystems used for this commitment are outlined below, drawing from the Accountability Framework initiative, Canopy and our Kering Standards. Inline with these definitions, the commitment includes
not only illegal deforestation and conversion, but alsothat which may be considered legal in the jurisdiction
where infractions may occur.
As mentioned under the “Stage 3: Restore & Regenerate” chapter of this Biodiversity Strategy, beyond halting the devastating impacts of deforestation and conversion of natural ecosystems for biodiversity, soils,
climate and indigenous and local communities, Keringis also committed to actively supporting the conservation, restoration and regeneration of natural ecosystems,
agricultural lands and rangelands, with the ambition to:• Transition one million hectares of agricultural lands
and rangelands to regenerative practices by 2025
• By 2025, protect one million hectares of critical,‘irreplaceable’ habitat outside of our supply chain

This means that the operations, production and sourcing of companies in Kering’s supply chains – as well as
our own direct operations – must not cause or contribute to the loss of natural ecosystems (or conversion – including land, freshwater and marine ecosystems). This
covers all natural ecosystems, including but not limited to Ancient and Endangered Forests, to natural forests more widely (deforestation), and to those ecosystems that meet the criteria of Key Biodiversity Areas,
High Conservation Value areas, High Carbon Stock or
Irrecoverable Carbon areas. In addition to forests, thisincludes savannahs, wetlands, peatlands, grasslands
and all other natural ecosystems. Implementation follows a risk-based prioritization approach, with higher
priority being given to areas from which we are sourcing high-impact raw materials and which are facing
high rates of natural ecosystem loss.

The Kering Standards – which set out requirements
and additional best practices for suppliers of raw materials to the Houses of the Kering group – include a requirement that the above holds true for all key natural
raw materials supplied to Kering’s Houses. All suppliers are expected to be fully aligned with this and otherrequirements laid out in the Kering Standards as soon
as possible, and by 2025 at the latest.

The cut-off date adopted by Kering for this deforestation- and conversion-free commitment is 1st January
2020 at the latest. This means that areas where natural ecosystems have been cleared or degraded since
1st January 2020 are deemed non-compliant with thecommitment, and raw materials produced in such areas cannot enter Kering’s supply chains.

Kering is also committed to improving the traceability
and transparency of its supply chains, to increasingly
trace materials to the point of origin, and to systematically determine that all materials are free of deforestation (including of Ancient and Endangered Forests)
and conversion and fully aligned with the Kering Standards. Where raw material traceability to the origin may
not be possible or viable, Kering will aim to use othersolutions to very compliance, including third-party
certification, or industry-/biome-wide solutions.

This backdrop cut-off date does not supersede earlier existing cut-off dates: in biomes or certification
schemes where an earlier cut-off date may apply, thismust be upheld. For example, for wood, paper-based
packaging and man-made cellulosic fibers, a deforestation cut-off date of November 1994 is applied by
the industry through initiatives including CanopyStyle, Pack4Good and FSC certification.

As environmental and social challenges are intrinsically linked, and recognizing that deforestation andconversion often go hand in hand with human rights
abuses, this commitment also includes a commitment
to protecting human rights and livelihoods, including25

KERING BIODIVERSITY STRATEGY

and in particular the conventions on the eradication ofchild labor and the abolition of slavery and forced orcompulsory labor.

those of workers, local communities and indigenous
peoples, in line with Kering’s Code of Ethics and Human Rights Policy. This notably means that, prior to
any activity that may affect the rights of indigenous
peoples or their territories, their Free, Prior and Informed Consent (FPIC) must be systematically secured.
This FPIC should also be secured with local communities. We expect direct suppliers to respect the rights ofindigenous peoples (including securing FPIC), and tocommunicate this requirement to their sub-suppliers.
In line with our Code of Ethics, we respect the provisions of the International Labor Organization (ILO),

Where our activities or our direct or indirect supplier’s
activities may have caused or contributed to adverse human rights, we will work with suppliers to provide for orcooperate in the remediation of associated harms.
In line with our Kering Standards, the target date forthis deforestation- and conversion-free commitment isof 2025 at the latest.

26

KERING BIODIVERSITY STRATEGYSCOPE OF DEFORESTATION- AND
CONVERSION-FREE COMMITMENT
The provisions in this commitment apply to:•In the future, this policy will also extend to embedded materials that may pose risks of conversion ofnatural ecosystems, such as soy in animal feed foranimal supply chains (e.g., bovine leather). We recognize that this is an important issue but also that wecannot address it alone, and that it is more challenging to monitor indirect exposure to risks associatedwith highly embedded products. This will require
collaboration with companies in other connectedsupply chains, and importantly with the food industry. In 2022, we have worked with the Responsible
Luxury Initiative (ReLI) and with Trase.earth to better explore our exposure to soy-driven, leather-linked
deforestation associated with leather sourced from
Europe. The findings of this assessment have been
published by Trase.earth.

• All materials sourced by Kering’s Houses that may belinked to a risk of being linked to deforestation andconversion of natural ecosystems (including Ancientand Endangered Forests), including leather, paper
and wood, plant fibers, animal fibers, cellulosic fibers
and rubber (see percentages of raw material sourcing
and of Kering’s Land Use EP&L on our EP&L page).
• Early 2023, Kering has expanded its activities to beauty and fragrances, with the launch of Kering Beauté.
This policy will also apply to all ecosystem-risk materials that may be used in such products, including
in ingredients like ethanol (often made from sugarcane, maize or beetroot), palm oil and palm kernel
oil and their derivatives, coconut oil, soybean oil,wood-based ingredients as well as any other butters,
waxes, oils, seeds, nuts, flowers and leaves extracts.
We will expand Table 2 below with material-specificpathways for compliance over the coming months.

To fulfill this policy, we require our suppliers to adhere to our Kering Sustainability Principles or equivalent documents available at brand level, which arepart of Kering’s contractual framework with suppliers. The Kering Sustainability Principles (or equivalent documents) are the contractual equivalent of theKering Standards. Suppliers are required to abide bythese principles, and supplier compliance is evaluated on this basis. Suppliers are also required to comply
with the Kering Code of Ethics. We aim to only sourcefrom direct suppliers that adhere to these documents,
and we expect direct suppliers to cascade DCF requirements upstream to their own direct and indirect
suppliers, all the way to a point at which compliancewith such a DCF policy can be ascertained. We also
expect all suppliers to be 100% aligned with all of therequirements of the Kering Standards as soon as possible, and by 2025 at the latest.

• All suppliers, including direct and indirect suppliers. Kering’s direct operations are also in scope of
this commitment; although the portion of the risk
represented by them is very small.
• All geographies where these raw materials may be
produced• These provisions also apply to any licensees that are
producing and marketing products under the nameof the brands of the group, including fragrances andcosmetics. We will work towards integrating theseprovisions into future contracts with all licensees.

27

KERING BIODIVERSITY STRATEGY

IMPLEMENTATION

To implement and demonstrate progress towards our commitments,
Kering further commits to:
1. Risk assessment• Providing direct and indirect suppliers with trainings, technical assistance, and other incentives tosupport compliance while at the same time improving local livelihoods. This may include the development of a range of pathways to incentivize DCF upstream production, for instance through investment
in “next generation” materials, offtake agreements,
robust certification standards, “impact incentives”
or through the integration of stronger DCF criteria
in long-term contracts for sourcing sustainable raw
materials, produced with regenerative practices.

We use our existing data systems (e.g., EP&L, Vendor
Portal System) to produce a high-level assessment of
our risks to guide priority actions. Thanks to this assessment, we can prioritize actions in areas or with
suppliers that present higher risk levels. We complete
the risk assessment provided by the EP&L with morein-depth investigations as warranted for higher-priority materials and origins.

2. Transparency and traceability
We continue to work towards a level of transparency
and traceability (as defined by the Kering Standards)
that enables us to ascertain compliance with DCF commitments – including indirect suppliers when applicable –, with third-party verification.

4. Monitoring, verification and reporting
We will strengthen our traceability systems and build
a third-party verified monitoring, verification and reporting system to regularly assess and disclose compliance and progress towards the commitment. We will
also regularly share progress towards meeting our policy commitments.

3. Supplier engagement
We will continue to strengthen supplier requirements
and supplier engagement mechanisms to ensure full implementation of the DCF commitments, for instance by:• Integrating these commitments into our Kering Sustainability Principles or equivalent documents available at brand level, which are part of Kering’s contractual framework with suppliers, requiring suppliers tohave their own policies to address these risks in their
supply chains, in alignment with guidance from AFi
and Canopy. This aims to support consistent, aligned
cascading requirements upstream on halting deforestation and conversion and securing ecosystem integrity.
• Working with our suppliers to address, prevent, mitigate, and where necessary remedy, environmental
and social harms that violate this policy. This includes remediating, restoring and/or compensating
past harms.

5. Collaboration for systemic change
We actively participate in collective action to drivechange at industry level, for instance through field incentive programs for farmers and industry collaborations. In addition to taking action in our own supply
chains, we partner with others to increase the effectiveness of our actions and accelerate progress towardachieving our goals of halting deforestation and conversion, promoting ecosystem restoration and regeneration and forwarding human rights. This includes
collaborations such as the Fashion Pact, the One Planet
Business for Biodiversity Coalition (OP2B), CanopyStyle
initiative, or the Responsible Luxury Initiative (ReLI),
facilitated by Business for Social Responsibility (BSR) –as well as other more material-specific initiatives.

28

KERING BIODIVERSITY STRATEGYCROSS-COMMODITY ACTIONSDESCRIPTION

Table 1: Implementation plan for Kering’s DCF Strategy

(1)
Risk
assessment(2)
Transparency
and traceability(3)
Supplier
engagement(4)
Monitoring
and verification(5)
Collaboration forsystemic change

Using existing datasystems (e.g., EP&L,
Vendor Portal System,
Verisk MapleCroft)to produce a firstassessment of ourrisks to guide priority
actions. We will thenprioritize actions inareas or with suppliers
that present higher risk
levels.

Working towards alevel of transparency
and traceability insupply chains thatenables us to ascertain
compliance with DCF
commitments, withthird-party verification.

Strengthening supplierrequirements andsupplier engagement
mechanisms to ensure
full implementation of
the DCF commitments.

Building a third-party
verified monitoring,verification andreporting system toregularly assess anddisclose complianceand progress towards
the commitment.

Actively participatingin collective action
to drive change at
industry level, forinstance through field
incentive programs forfarmers and industry
collaborations.

Assessing EP&L data
(and other supplierdata collection systems
where relevant,such as Kering’s 3Cquestionnaires) to
identify key areas ofconcern (high-risk
origins and unspecified
origins) where further
third-party verified
traceability needs to beprioritized.

Working towards
a transition fromsupplier selfdeclaration-based
traceability toslaughterhouse tothird-party verified
traceability systems
covering all non-lowrisk origins.

Adding DCF
requirements for all
relevant commodities
to the Kering
Standards and the 3Cquestionnaire.

Working with a third
party to implement amonitoring, verification
and reporting system.

This includes
collaboration within
the following collective
action platforms:• OP2B• The Fashion Pact
• ReLIIt also includes
material-specificcollaborative
initiatives such as:• Leather
WorkingGroup• ICEC• Canopy –includingCanopyStyle
partnershipand support toForestMapper• Textile Exchange
Call to Action on
Deforestation-Free
leather supply chains

29

KERING BIODIVERSITY STRATEGYPATHWAYS FOR COMPLIANCEFOR EACH MATERIAL GROUP
ethanol (often made from sugarcane, maize or beetroot), palm oil and palm kernel oil and their derivatives, coconut oil, soybean oil, wood-based ingredients as well as any other butters, waxes, oils, seeds,
nuts, flowers and leaves extracts. We will expand
Table 2 below with material-specific pathways forcompliance over the coming months. Similar requirements around traceability, transparency, and robust
third-party certification and/or verification will apply
to these materials.

All of the materials below are included in the policy –however, a higher-priority focus will be put on thosepresenting higher risks at the top of the table. Thoseare considered to be higher-priority because of highvolumes purchased and/or because of disproportionate potential impact on natural ecosystems.
As mentioned above, this policy will also apply to all
ecosystem-risk materials that may be used in beautyand fragrance products, including in ingredients like30

KERING BIODIVERSITY STRATEGY

Table 2: Material-specific2 pathways for DCF compliance3
MATERIALS4OPTIONS AVAILABLE TO VERIFY DCF COMPLIANCE
Introduction to leather-specific pathways: Using the best available information, we maintain a list of low-, medium- andhigh-risk countries for leather sourcing, which includes information on deforestation and conversion risk, alongside otherenvironmental, human rights and animal welfare criteria. We do not source leather from high-risk countries, following thisrating. The below pathways are available for leather coming from low- or medium-risk countries.

Traceability to a low-risk subnational area

• Third-party verified traceability to the slaughterhouse in a low-risk subnational area (at low risk of deforestation orconversion of other natural ecosystems).
• AND alignment with Kering Standards requirements, in particular on supply chain transparency & traceability.

LEATHEROR Full traceability through all indirect farms & DCF verification• Third-party verified traceability to the slaughterhouse (including specific location, with georeferenced boundaries)• AND Third-party verified traceability to the direct farm that the slaughterhouse has purchased from (including specific location, with georeferenced boundaries), and a verification of alignment with Kering’s requirement of no deforestation or conversion after a cut-off date of 1st January 2020 (i.e., no native vegetation has been cleared on the farm
after this cut-off date), i.e., DCF compliance.
• AND Third-party verified traceability to the indirect farms that the “direct farms” referred to above have purchasedfrom (including specific location, with georeferenced boundaries), and verification of alignment with Kering’s requirement of no deforestation or conversion after a cut-off date of 1st January 2020 (i.e., no native vegetation has beencleared on the farm after this cut-off date), i.e., DCF compliance.

OR Traceability to the slaughterhouse and audit of DCF safeguards• Third-party verified traceability (e.g., with ICEC certification) to the slaughterhouse (including specific location, withgeoreferenced boundaries)• AND audit of slaughterhouse systems and process to verify DCF compliance within their entire supply chain (direct
and indirect farms). This may include a combination of traceability systems with segregated certification ensuring DCF
compliance (e.g., for meat industry).

OR Third-party certification of leather guaranteeing DCF compliance

ANIMALFIBERS• Third-party segregated (SG) or identity-preserved (IP) certification of the hides with DCF requirement. To our knowledge, no existing leather certification is currently strong enough to guarantee this, but they can be developed.
• AND alignment with Kering Standards requirements, in particular on supply chain transparency & traceability.
• Third-party segregated or identify-preserved certification or verification with DCF requirement, for instance Responsible Wool Standard (cut-off date of June 1st, 2016)• OR Third-party verified traceability to the farm/grazing areas (for non-low-risk areas) and third-party DCF verification – possibly building supply chains “from the ground up”

PLANT
FIBERS

All options above should be in addition to alignment with Kering Standards requirements, in particular on supply chaintransparency & traceability.
• Third-party segregated or identify-preserved certification with DCF requirement (for instance, Regenerative Organic Certification, which has a cut-off date of January 1st, 2015)• OR Third-party verified traceability to the farm (for non-low-risk areas) and third-party DCF verification (+ regenerative practices) – possibly building supply chains “from the ground up”
All options above should be in addition to alignment with Kering Standards requirements, in particular on supply chaintransparency & traceability.

PAPER AND
PAPER-BASED
PACKAGING

Note: a cut-off date of November 1994 applies to all paper sourced.
• Avoid and reduce unnecessary packaging is a first priority• Reusable: Reusable paper and paperboard, instead of single use, made with materials aligned with the points below• Recycled: Certified recycled paper• Next generation: Next generation materials, with feedstock certification including DCF criterion (e.g., Roundtable on
Sustainable Biomaterials)• Certified virgin: Not sourced from Ancient and Endangered Forests and FSC 100% certified. If FSC 100% is not available,
FSC Mix is accepted• Recyclability: Recyclable paper or cardboard, to be checked according to the standard EN13430
All options above should be in addition to alignment with Kering Standards requirements, in particular on supply chaintransparency & traceability.

31

KERING BIODIVERSITY STRATEGYCELLULOSE-BASEDFIBERS

Note: a cut-off date of November 1994 applies to all cellulose-based fibers sourced.
• Sourcing only from Canopy Hot Button Report dark green shirt suppliers of MMCF AND requiring
Qsegregated FSC 100% certification. If FSC 100% is not available, FSC Mix is accepted•bSourcing alternative “next generation” fibers made from alternative feedstocks such as recycled textiles andQagricul-tural residues. As availability of certified “next generation” feedstocks improves, we will require
Qsustainability certifica-tion (e.g., Roundtable on Sustainable Biomaterials).

WOOD

Both options above should be in addition to alignment with Kering Standards requirements, in particular on supply
chain transparency & traceability.
Note: a cut-off date of November 1994 applies to all wood sourced.
• Not sourced from Ancient and Endangered Forests and FSC 100% certified• OR Third-party verified traceability to the plantation and verification that the wood is not sourced from Ancient andEndangered Forests or causing deforestation or conversion

RUBBER

Both options above should be in addition to alignment with Kering Standards requirements, in particular on supply
chain transparency & traceability.

• Third-party segregated or identify-preserved certification with DCF requirement (e.g., FSC 100%)• OR Third-party verified traceability to the plantation and DCF verification

NOTES:• All certified 100% recycled materials (or any portions of these materials which are certified recycled), with robust Kering Standards-aligned certification, are also considered aligned with this policy, as such materials are
reducing pressure on natural ecosystems from which alternative virgin materials would have originated.
• Ideally, all third-party DCF verification systems / SG or IP certifications referred to above should also include regenerative practices.
• In general, when certifications are mentioned in the table above, they should align with those listed in the respective
material-specific section in the latest available version of the Kering Standards.

Please note that although they may be at risk of driving deforestation and conversion, this list does not include bio-based plastics or biosynthetic fibers.
This is because these materials still represent a very small percentage of our raw material sourcing and therefore are of limited relevance for this policy atthis stage. Bio-based plastics represented 0,5% of all raw materials sourced by the group (8% of all plastics) in 2022, and biosynthetic fibers represented
0,1% of all synthetic fibers sourced in 2022, or 0,003% of all raw materials sourced by the group in the same year. As these percentages increase in the future,
we will more explicitly integrate these materials into this policy and require suppliers to provide proof of a robust third-party certification including DCF
criteria pertaining to the feedstocks used in the production of such materials, such as from the Roundtable on Sustainable Biomaterials.
3
The table is organized by land footprint associated with Kering’s 2022 sourcing of raw materials, which should also reflect Kering’s risk exposure to deforestation and conversion risk through sourcing these materials.
4
The materials on this list as well as other non-bio-based plastics and synthetic fibers (which are not relevant for our deforestation- and conversion-freecommitment) represent 99,9% of materials sourced by weight in 2021. “Other” materials representing the remaining 0,1% include glass, bamboo, cork,
straw, ceramic, horn, calcium carbonate or mother of pearl. Because these represent very small and fragmented volumes each year, we do not have dedicated DCF implementation plans for these specific materials – although DCF requirements apply to all suppliers, including those selling these materials.
5
As they largely come from virgin wood pulp when not certified recycled, cellulose-based fibers do come with an inherent risk of being associated with deforestation or conversion of other natural ecosystems. This risk is however moderated by the fact that they only represented 0,5% of our raw material sourcing
in kg in 2021 (and 0,0% of our 2021 land use EP&L). Despite this, DCF requirements do apply to all suppliers, including those selling cellulose-based fibers.
2

32

KERING BIODIVERSITY STRATEGY

DEFINITIONS

Ancient and Endangered Forests

ly diminished, and the ecosystem has attained species
composition, structure and ecological function similar
to prior or other contemporary natural ecosystems;• Managed natural ecosystems (including many ecosystems that could be referred to as “semi-natural”) where much of the ecosystem’s composition,
structure, and ecological function are present; thisincludes managed natural forests as well as native
grasslands or rangelands that are, or have historicallybeen, grazed by livestock• Natural ecosystems that have been partially degradedby anthropogenic or natural causes (e.g., harvesting,fire, climate change, invasive species, or others) but
where the land has not been converted to anotheruse and where much of the ecosystem’s composition,
structure, and ecological function remain present orare expected to regenerate naturally or by management for ecological restoration.

Ancient and Endangered Forests are defined as intact
forest landscape mosaics, naturally rare forest types,
forest types that have been made rare due to humanactivity, and/or other forests that are ecologically critical for the protection of biological diversity. Ecologicalcomponents of endangered forests are:• Intact forest landscapes;• Remnant forests and restoration cores;• Landscape connectivity;• Rare forest types;• Forests of high species richness;• Forests containing high concentrations of rare andendangered species;• Forests of high endemism;• Core habitat for focal species;• Forests exhibiting rare ecological and evolutionary
phenomena.

This includes but is not limited to Ancient and Endangered Forests, natural forests more widely (deforestation), and those ecosystems that meet the criteria of
Key Biodiversity Areas and High Conservation Value
Areas (including High Carbon Stock or Irrecoverable
Carbon Areas). It also includes the Amazon as well as
Intact Forest Landscapes.

Key endangered forests globally are:• the Canadian and Russian Boreal Forests;• Coastal Temperate Rainforests of British Columbia,
Alaska and Chile;• Tropical forests and peat lands of Indonesia, the Amazon and West Africa.

For more information on the location and definitions ofAncient and Endangered Forests, please see Canopy’s
ForestMapper.

Deforestation
Deforestation is a loss of natural forest as a result of:i) conversion to agriculture or other non-forest land use;ii) conversion to a tree plantation; oriii) severe and sustained degradation.
• It is important to note that although this definition
focuses on natural forests only, Kering’s commitment
extends to other non-forest natural ecosystems as
well, such as (but not limited to) natural grasslands,
savannahs or peatlands.
•
Severe degradation (scenario iii in the definition)
constitutes deforestation even if the land is not subsequently used for a non-forest land use.
• Loss of natural forest that meets this definition is considered to be deforestation regardless of whether or
not it is legal.
• Deforestation signifies “gross deforestation” of natural forest where “gross” is used in the sense of “total;
aggregate; without deduction for reforestation or other offset.”

Natural ecosystems
A natural ecosystem is an ecosystem that substantiallyresembles – in terms of species composition, structure,and ecological function – one that is or would be foundin a given area in the absence of major human impacts.
This includes human-managed ecosystems wheremuch of the natural species composition, structure,and ecological function are present.
Natural ecosystems include:• Largely “pristine” natural ecosystems that have not been
subject to major human impacts in recent history• Regenerated natural ecosystems that were subject to major impacts in the past (for instance by agriculture, livestock raising, tree plantations, or intensive logging) but
where the main causes of impact have ceased or great-

33

KERING BIODIVERSITY STRATEGY

Conversion

Cut-off dateConversion refers to the change of a natural ecosystem
to another land use or profound change in a natural ecosystem’s species composition, structure, or function.

In this context, “cut-off date” refers to the date after
which deforestation, conversion or degradation renders a given area or production unit non-compliant
with Kering’s commitments on the topic.

• Deforestation is one form of conversion (conversionof natural forests).
• Conversion includes severe degradation or the introduction of management practices that result in substantial and sustained change in the ecosystem’s former species composition, structure, or function.
• Change to natural ecosystems that meets this definition is considered to be conversion regardless ofwhether or not it is legal

The cut-off date adopted by Kering for this deforestation- and conversion-free commitment is 1st January
2020 at the latest. This means that areas where natural ecosystems have been cleared or degraded since
1st January 2020 are deemed non-compliant with thecommitment, and raw materials produced in such areas cannot enter Kering’s supply chains.
This backdrop cut-off date does not supersede earlier existing cut-off dates: in biomes or certification
schemes where an earlier cut-off date may apply, thismust be upheld. For example, for wood, paper-based
packaging and man-made cellulosic fibers, a deforestation cut-off date of November 1994 is applied by
the industry.

34

KERING BIODIVERSITY STRATEGYREFERENCES• Act4nature, Business for Biodiversity (2018). www.act4nature.com/wp-content/uploads/2018/11/act4nature_version-en.pdf• Arlidge, William & J.W. Bull, P.F.E. Addison, M. Burgass, D. Gianuca, T.M. Gorham, C. Jacob, N. Shumway, S. Sinclair,
J.E.M. Watson, C. Wilcox, E.J. Milner-Gulland (2018). “A Global Mitigation Hierarchy for Nature Conservation.” BioScience, Volume 68, Issue 5: 336-347. https://doi.org/10.1093/biosci/biy029• Assessment of biodiversity measurement approaches for businesses and financial institutions, EU Business & Biodiversity Platform (2019). www.arcadis.com/~/media/files/belgium/europeanbbplatformreportbiodiversityassessment2019final5dec2019.ashx?la=en• Biodiversify & The University of Cambridge Institute for Sustainability Leadership (CISL). (2020). Developing a Corporate Biodiversity Strategy: A Primer for the Fashion Sector. www.cisl.cam.ac.uk/resources/natural-resource-security-publications/developing-a-corporate-biodiversity-strategy-a-primer-for-the-fashion-sector• Bull, J, P. Addison, M. Burgass & S. Sinclair (2019). “Biodiversity, and a Conservation Hierarchy for Kering S.A.”. Internal document prepared for Kering S.A.
• Cambridge Institute for Sustainability Leadership (CISL), (2016). Biodiversity and ecosystem services in corporate
natural capital accounting: Synthesis report. Cambridge, UK: Cambridge Institute for Sustainability Leadership.
www.cisl.cam.ac.uk/resources/natural-resource-security-publications/biodiversity-and-ecosystem-services-in-corporate-natural-capital-accounting• Cambridge Institute for Sustainable Leadership (2019). Linking planetary boundaries to business: Part of Kering’s series on planetary boundaries for business. www.cisl.cam.ac.uk/resources/publication-pdfs/linking-planetary-boundaries.pdf• Cambridge Institute for Sustainable Leadership and the Natural Capital Impact Group (NCIG) (2020). Measuring
Business Impacts on Nature: A Framework to Promote Better Stewardship in Supply Chains. www.cisl.cam.ac.uk/
resources/publication-pdfs/measuring-business-impacts-on-nature.pdf• Ceballos, G., P. Ehrlich and R. Dirzo (2017). Biological annihilation via the ongoing sixth mass extinction signaled byvertebrate population losses and declines. PNAS July 25, 2017 114 (30). www-pnas-org.stanford.idm.oclc.org/content/114/30/E6089• Di Fonzo, M. & S. Hime (2017). “How businesses measure their impacts on nature: A gap analysis”. University ofCambridge Institute for Sustainability Leadership (CISL), Working Paper 01/2017. www.cisl.cam.ac.uk/resources/
working-papers-folder/how-businesses-measure-impacts-on-nature• Fashion Pact (2019). Structure of Framework for Action. Biarritz, G7 Summit. https://thefashionpact.org/?lang=en• Global Fashion Agenda & The Boston Consulting Group (2017, 2018, 2019). Pulse of the Fashion Industry.
• IPBES (2019): Summary for policymakers of the global assessment report on biodiversity and ecosystem services of
the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. S. Díaz et al.(eds.). IPBES
secretariat, Bonn, Germany.
• IUCN (2015): Net positive impact on biodiversity: The business case. https://portals.iucn.org/library/sites/library/files/documents/Rep-2015-008.pdf

35

KERING BIODIVERSITY STRATEGY• Kering (2020). Reference to EP&L Report for 2019 data: https://keringcorporate.dam.kering.com/m/788c4d5588730055/
original/Kering-EP-L-report-2019-.pdf• Kering (2020). Sustainability Progress Report, 2017 – 2020: https://keringcorporate.dam.kering.com/m/b2ad4cc8eeacaa5/original/Kering-Sustainability-Progress-Report-2017-2020.pdf• Kering (2020). Updated Kering Standards Report, 2019:https://keringcorporate.dam.kering.com/m/2b0fd1f253475285/original/KERING_Standards_EN.pdf• Kering (2017). Sustainability Strategy: www.kering.com/en/sustainability/our-strategy/• Kier, G et al. (2005). Global patterns of plant diversity and floristic knowledge. Journal of Biogeography. Vol 32(7):1107-1116.
• Mace, G.M., Barrett, M., Burgess, N.D. et al (2018). Aiming higher to bend the curve of biodiversity loss. Nat Sustain
1, 448–451. https://doi.org/10.1038/s41893-018-0130-0• National Geographic (2011). 86 Percent of Earth’s Species Still Unknown? National Geographic News. www.nationalgeographic.com/news/2011/8/110824-earths-species-8-7-million-biology-planet-animals-science/• Nature Editorial (2020). The United Nations must get its new biodiversity targets right. 578: 337-338. doi: 10.1038/
d41586-020-00450-5• Tracy, B. & M. Sanderson (2000). Patterns of plant species richness in pasture lands of the northeast United States.
Plant Ecology. Vol 149: 169 – 180.
• United Nations (2019). Press Release: Only 11 Years Left to Prevent Irreversible Damage from Climate Change, Speakers
Warn during General Assembly High-Level Meeting. www.un.org/press/en/2019/ga12131.doc.htm• World Economic Forum (2020). Global Risks Report 2020 (15th Edition). Produced in collaboration with Marsh & McLennan and Zurich Insurance Group. www.weforum.org/reports/the-global-risks-report-2020• World Economic Forum (2020). Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy. Part of the World Economic Forum’s New Nature Economy Series. Produced in collaboration with PwC. www.
weforum.org/reports/nature-risk-rising-why-the-crisis-engulfing-nature-matters-for-business-and-the-economy• Zero draft of the post-2020 Global Biodiversity Framework (2020). CBD/WG2020/2/3 6 January 2020. www.cbd.int/
doc/c/efb0/1f84/a892b98d2982a829962b6371/wg2020-02-03-en.pdf

36sustainability@kering.com
www.kering.com/en/sustainability
Version 2.0 - June 2023