KERING STANDARDSFOR RAW MATERIALSAND MANUFACTURING
PROCESSES

Contents

Overview – p.04
Introduction for use by Suppliers – p.06
Standards for Raw Materials – p.09
Hides and Skins for Leather – p.10
Precious Skins – p.18
Fake Fur – p.23
Cashmere – p.26
Wool – p.31
Silk – p.36
Cotton – p.41
Paper & Wood – p.46
Plastics – p.51
Down – p.56
Cellulosic Fibers – p.60
Synthetics – p.66
Other Raw Materials – p. 72

Standards for Manufacturing Processes – p.74
Tanning – p.75
Textile Processing – p.83
Leather Goods and Shoes Manufacturing – p.93

Standards for Non Merchandising – p.99
Packaging – p.100
Visual Tools – p.108

Standards for Logistics – p.113
Warehousing – p.114
Transport – p.121

Standards for End-of-Life – p.128
End-of-Life – p.129

2

Contents

Standards for Innovation – p.136
Innovation – p.137

Appendices – p.145
Summary of Kering Chemical Management Policy – p.146
Summary of Kering Animal Welfare Policy – p.151
Social Compliance and Enforcement of the Kering Codeof Ethics in Supply Chain – p.154
Kering Alert System – p.158
Environmental Profit and Loss Account – p.159

FAQ – p.163
Glossary – p.165

3

OVERVIEW
4

Overview“We are redesigning our business to continue to thrive and prosper
sustainably into the future, while at the same time helping totransform the luxury sector and contributing to meet the significant
social and environmental challenges of our generation.”
François-Henri Pinault

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, and views
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 catalyse transformational 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, andcreating innovative, game-changing platforms. The newstrategy, ‘Crafting Tomorrow’s Luxury’, presents clear targets
to attain by 2025 under the themes Care, Collaborate andCreate, such as:• 100% traceability of key raw materials and 100%
compliance with Kering Standards for Raw Materials
and Manufacturing Processes (the 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 acrossthe entire 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 business models and integrating innovative approaches around sourcing
raw materials, new technological solutions for materials andcontributing 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 over the next decade will be theimplementation of industry leading environmental andsocial standards across Kering’s supply chains. Outlined
in detail in this document, the Kering Standards and theiraccompanying suite of policies set the framework for commitment and action for Kering and our brands. In addition,
they provide a way of measuring progress and outcomes on
traceability, social welfare, environmental protection, animal welfare and chemical use. This document is intended
to give clarity and help operationalise Kering’s overall longterm commitment to sustainability. The principles that
underpin the Kering Standards are integrity, circularity andthe application of the precautionnary principles. By design,
the Kering Standards are specific and requirement based.
Thus, as a reflection of our commitment, Kering will assess
all new suppliers for adherence to our sustainability standards and work with current suppliers who have challenges
in meeting certain Kering Standards, from 2017 onward.
Kering recognizes that a collaborative relationship with our
suppliers is key to achieving the long-term value and mutual
benefits that sustainability can provide our businesses. And
although we are committed to excellence and achieving ourambitious sustainability goals, we also recognize that thistakes time and that we need to set realistic milestones toencourage and support progress and improvements. As such,
while Kering and our suppliers make this transition together,
we will offer suppliers technical support in the form of training and the creation of a suppliers’ platform which will promote the Kering Standards and share best practices. We lookforward to working with you on understanding and incorporating our Kering Standards into your business.
It is through our mutual commitment to sustainability anddrive for innovation that will enable us to contribute topositive environmental and social impacts, while we alsopreserve successful and thriving businesses into the future.

5

INTRODUCTIONFOR USEBY SUPPLIERS
6

Introduction for use by Suppliers

The Kering Standards for Raw Materials and Processes(the Kering Standards) are designed to support all suppliers who
work with brands 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 high sustainability standards.

These Kering Standards should be used in conjunction withother key guidance for suppliers including:• 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 sets out in detail
Kering’s specific expectations of its business partners on
ethics, social and environmental issues
Kering Human Rights Policy which aims to set 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) covering requirements for chemical use andmanagement for manufacturing processes
Kering’s high standards of sustainability are based on thecommitment to reduce the negative environmental impacts
of its business across the supply chain and to support practices that create social and environmental benefits. Additionally, Kering looks to new innovations and technologies
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 principles that
underpin the Kering Standards:• Application of the precautionary principle to not use
a technique until there is a scientific consensus that it issafe for society and the environment• Compliance with all national and international laws,
conventions and regulations• Robust and verifiable traceability• High standards of animal welfare in all aspects ofhandling, raising, transportation and slaughter of animals• Avoidance of the degradation and destruction ofnatural ecosystems and promotionof environmentally-friendly production methods• Commitment to reducing climate change impacts• Guarantee of ethical treatment of people working inthe supply chain as described in the Supplier’s Charter of theKering Code of Ethics and the Kering Human Rights Policy• Incorporation, to the extent possible, of newtechnologies and innovative solutions in the sourcingof raw materials or in processing and manufacturing
techniques
The Kering Standards aim to take a holistic and responsible approach in the making of products for Kering brands
accounting for each step in the supply chain from farm orfield to finishing.
The market in general is moving toward more sustainable
practices. Adherence to the Kering Standards will prepare
suppliers to stay ahead of the curve.
All suppliers will be evaluated on their alignment with the
Kering Standards in the sustainability section of the Kering
Vendor Rating System. Note that this rating system will also
be visible to all Kering brands. This should further incentivise suppliers to implement the Kering Standards with care
to potentially attract business across the Kering portfolio.

7

Introduction for use by Suppliers

Minimum Requirements & Additional Conditions
to Meet Kering Standards

Each separate Kering Standard includes a section on “Minimum Requirements”, which a supplier must fulfill in order
to be compliant, as well as “Additional Conditions to Meet
Kering Standards” and best practices that suppliers should
work towards over the coming years.

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.

Minimum Requirements
This section is designed to provide operational guidance tosuppliers to comply with mandatory requirements to meet
the Kering Standards. These are the minimum standards
and practices required by Kering. To be a Kering supplier,the commitments and actions outlined in the Minimum
Requirements section, and aligned with the Kering Sustainability Principles attached to supplier agreements, need tobe met by suppliers immediately. Kering expects that suppliers will communicate these commitments and actions
to their sub-suppliers to ensure compliance. A failure tocomply might be considered as a breach of the undertaking
relating to the Kering Sustainability Principles as set forth in
the supplier agreement.

Additional Conditions to Meet the Kering Standards
This section provides guidance and recommendations forbest practices for suppliers. These should be viewed as additional to the Minimum Requirements listed above. Suppliers
to Kering brands should be prepared to engage in continuous improvement in their practices to reach the high standards required by Kering. Some of the actions listed in the
Additional Conditions sections have already been moved
to Minimum Requirements sections between version 1 andthe current version of this document. More Additional Conditions will become Minimum Requirements for suppliers
to Kering brands in the near future (1-3 years) and all will
be mandatory by 2025 (the date defined in Kering’s 2025
Sustainability Strategy). Note that suppliers who alreadyalign with – at least part of – the Additional Conditions will
receive a higher rating in the Kering Vendor Rating System.
The Appendices attached hereto are also of great importance and should be distributed to your suppliers when relevant to their activities. Covering chemical management,
animal welfare, social compliance, the environmental profit
and loss (EP&L) account, sustainable innovation and FAQ’s,
the Appendices give further in-depth information for the
Kering Standards.

8

STANDARDSFORRAW MATERIALS
9

Standards for Raw Materials

HIDES AND SKINS FOR LEATHERBOVINE, OVINE

10

Standards for Raw Materials – Hides and Skins for Leather

The production of leather at the farm level can potentially have significant negative environmental and social
impacts. Although leather is seen as a by-product or co-product of the meat industry, Kering is committed toensuring that its leather is sourced in the most responsible and sustainable manner where 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 ofsynthetic 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 long term. 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 otherparties 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.

The requirements outlined below are focused on livestock
production for bovine leather (beef, cow, calf, young calf)
and ovine leather (sheep, lamb, mutton, goat) and shearling.
They are relevant up until the slaughter of the animals.
Additional Kering Standards are available for the processingof hides and tanning of leather (See Kering Standard fortanning and Kering Standard for leather goods and shoe
manufacturing).

In summary, the key principles
that underpin the Kering Standard
for hides and skins for leather are:• Complying with all national
and international laws, principles andregulation notably related to humanrights, fundamental freedom,
health and safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Avoiding the degradation anddestruction of natural ecosystems• Ensuring the highest standardsof animal welfare• Promoting the ecologicalsustainability of livestock production
methods.

11

Standards for Raw Materials – Hides and Skins for Leather

MINIMUM REQUIREMENTS

Ensure that leather does not comefrom farms involved in any form of
deforestation in the Amazon biome
Kering brands will not work with suppliers that source leather
from farms involved in any form of deforestation in the Amazon biome since July 2006, or farms included in IBAMA’s
embargo list. Leather suppliers must: (1) investigate with theirsub-suppliers as to where the hides come from, (2) actively
check in detail for the sources of leather coming from SouthAmerica and (3) terminate relations with any sub-supplier thatis not compliant on these points.

When not sourcing from a “preferredcountry”, work with Kering brands
on deeper investigation on the originof leather
When sourcing from a country that is not part of the Indicative List of Preferred Sourcing Countries for Leather, suppliers
will work in constructive, pragmatic and mutually-beneficial
partnership with Kering to better understand the supply chain
and to investigate the exact origin of the hides up to farm leveland evaluate whether it meets the Kering Standards and define
possible actions, where needed.

Provide minimum information on originof the hides

Advance the Kering Standards for
Animal Welfare

Kering is committed to achieving the highest levels of transparency within its leather supply chain. In this context, leather
suppliers will make all reasonable efforts to provide Kering withinformation when requested about the origin of the hides. This
information includes:

Suppliers must be aware of Kering’s Species-Specific Animal
Welfare Standards. Suppliers are also responsible for communicating the need for Kering to monitor and verify animal welfare to their sub-suppliers. This means that suppliers need to:• Location and name of finishing tannery• Location of pickling, wet-blue, crust tannery if different
from the finishing tannery• Location (country, region) of the slaughterhouse• Country of origin (i.e. country of farming)

Use best efforts to source from a Kering“preferred country”
Kering supports ongoing research by experts to: (1) evaluate therisk of sourcing hides/leather from countries based on farming practices, environmental pollution, animal welfare, labor
practices, etc. and (2) identify countries and, in some cases,
farms where it is more favorable to source. Explanations and alist of preferred countries are provided in BOX 2. Suppliers areencouraged to propose to Kering brands leather coming fromthese countries, when possible.

• Read the Kering Animal Welfare Standards as well as the
Appendix on Animal Welfare. The species-specific standards
are available upon request• Share the Kering Animal Welfare Standards with
their sub-suppliers and communicate the need for Kering
to monitor and verify animal welfare• Provide information on sourcing upon request so that
Kering can carry out monitoring and verification of thealignment to Kering Standards of the specific slaughtering/farming practices

Source from producers respecting
human rights and social requirements as
set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships. Therefore, suppliers must adopt andimplement sourcing practices which include high expectations regarding the social 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 the Kering
Code of Ethics in Supply Chain.

12

Standards for Raw Materials – Hides and Skins for Leather

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Ensure full traceability of leather
Kering expects to have full traceability of hides up to the farmlevel by 2025, supported by documentation, physical traceability mechanisms and verification. This will require collaboration
within the entire leather supply chain. Leather suppliers are
required to support this collaboration and to provide the following information:• Location and name of finishing tannery• Locations and names of all the tanneries upstreamof the finishing• Location (country, region) and, if deemed necessary,name of the slaughterhouse• Location (country, area) of the farms (from finishing farmto breeding farm)
Leather suppliers are strongly encouraged to work with existing
traceability systems such as ICEC (Istituto di Certificazione dellaQualità per l’Industria Conciaria), LWG traceability or CSCB (Certificaçao de Sustentabilidade do Couro Brasileiro). See BOX 1:
Recommended certifications for traceability.
There may be additional certifications in the future that will berecommended by Kering and suppliers will be notified about
these. It is important to note that having a traceability certification in place doesn’t mean full compliance with the Kering
Standards if the other requirements listed thereafter (including
animal welfare) aren’t met as well.

Only source from Kering preferredcountries, or from specific sourcesthat are verified as sustainable
By 2025, all suppliers will be required to only source leather/hides for Kering from:• Either a preferred country as listed in BOX 2. Among thesecountries, the operations with certifications listed in BOX 3 are
preferred to non-certified sources. Note that the type of 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. locallysourced, sustainable feedstock, wildlife friendly practices) is
considered in the evaluation of “preferred” sources.
• In particular, Kering will be focusing on ensuring thatits leather comes from farming systems that regenerate thesoil and practice the highest levels of animal welfare –and this means that production of meat/leather from feedlots
systems will not be part of Kering’s sourcing from 2025.
• And/or from any country as long as the source of thehides/ leather (e.g. the farm and slaughterhouse) are verified
as sustainable, meaning that it has one of the certifications
listed in BOX 3, or another certification that is approvedby Kering and that meets the Kering Standards of land
management, working/social conditions and animal welfare.

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

13

Standards for Raw Materials – Hides and Skins for Leather

BOX 1 : Recommended Certifications for Traceability

StatusCertifier

Scope

LWG

PrivateStandard

Leather Working
Group

Applicable internationally,at present mainly spread in SouthAmerica and Asia, including 3 Notes
for Hide traceability (wet blue
& white blue/slaughterhouse/
suppliers of split)

ICEC

PrivateStandard

Istituto diCertificazionedella Qualita perl’Industria Conciaria

Applicable internationally,
started with tanneries in Italy

National
Standard

Certificaçao desustentabilidade do
Couro Braisileiro

Focused on practices in Brazilian
tanneries

Textile Exchange

Under development (Environmental,
Social impact, Animal welfare &Traceability. Will include practices
at farm, slaughter and tannery)

CSCB

TextileExchange
Sustainable
Leather

Voluntary
Standard

14

Standards for Raw Materials – Hides and Skins for Leather

BOX 2 : Indicative List of Preferred Sourcing Countries for Leather
Kering supports ongoing research to evaluate the risk of sourcing from different countries.
A country is considered high-risk if it includes at least one of the following:• There is a risk of conversion of sensitive ecosystems (notably natural forests and grasslands) into
grazing lands for farming.
• The farm practices are not ecologically sustainable (e.g. significant water pollution,high greenhouse gas emissions, etc).
• There is a risk of forced labor or child labor.
• Some of the cattle grazing operations occupy land disputed by indigenous groups or areas
protected by federal, state or municipal legislation.
• There is no regulation on animal welfare, or local practices are incompatible with animal welfare.
• The traceability system is very limited (lack of specific food chain certification,
no governmental regulation, etc.).
This table lists the sources preferred 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 this may change with additional research and information. We encourage suppliers to give
Kering feedback on their knowledge of the different risk issues in sourcing countries.

Leather type

Sourcing Country

Bovine Leather(including
beef, cow, calf,
young calf)• 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, mutton)• Europe: France, Germany, Greece, Iceland, Ireland, Italy,
Netherlands, Portugal, Spain, Sweden, Switzerland, UK• New Zealand

15

Standards for Raw Materials – Hides and Skins for Leather

BOX 3: Recommended Certifications for Sustainability
When sourcing from one of the countries listed hereunder, Kering encourages suppliers to source skins coming fromfarms applying the voluntary certifications listed in the table which verify criteria for sustainable farming such asanimal welfare, biodiversity conservation and ecological farming practices.
Country

Certification

Stakeholders

Type

Scope

CATTLE (BEEF, COW, CALF, VEAL, BUFFALO)WORLDWIDEFRANCENETHERLANDS

Organic
For national
Standards, pleasesee IFOAM

National Organic
Associations

third party

Ecological sustainability infarm practices, Traceability,
Chemicals, Biodiversity
conservation

Ecological
Outcomes
Verified (EOV)

Savory Institutesecond party

Traceability, Animal Welfare,
Biodiversity conservation,
Sustainable farming practices

Label Rouge

Institut Nationalde l’Origine et dela Qualité (INAO)

third party

Breeding, Animal Welfare, Feed
Management, Traceability

Beter Leven

Dutch Society
for the Protectionof Animals

third party

Animal Welfare, Feed
Management, Traceability
16USA, CANADA,UNITED KINGDOMAND SOUTH AFRICA

Animal Welfare
Approved
Certified Grassfed

A Greener World

third party

Traceability, Animal Welfare
and Feed Management(grassfed only)

Certified Humane

Humane Farm
Animal Carethird party

Animal Welfare, Traceability,
Feed Management

RSPCA Assured(previously
Freedom Food)

RSPCA

second party

Animal Welfare, Traceability

Pasture for Life

Pasture Fed
Livestock
Association

third party

Land management
practices, Animal Welfare,Traceability

USA

American Human
Certified

AmericanHumanethird party

Animal Welfare, Traceability

WORLDWIDE

Regenerative
Organic Certified

Regenerative
Organic Alliancethird party

Land management practices,
Animal Welfare, Traceability,
Social Responsibility

SPCA Certified

SPCA (New
Zealand)

third party

Animal Welfare, Traceability

USA, CANADAAND AUSTRALIAUNITED KINGDOM& IRELANDNEW ZEALAND

Standards for Raw Materials – Hides and Skins for Leather

SMALL RUMINANTS (SHEEP, LAMB, GOATS)Country

Certification

Stakeholders

Type

Scope

Organic;
For national
Standards,
see IFOAM

National organic
associations

third party

Ecological Sustainability,
Traceability, Chemicals,
Biodiversity Conservation

Ecological
Outcomes Verified

Savory Institutesecond party

Traceability, Animal Welfare,
Biodiversity conservation,
Sustainable farming practices

Label Rouge

Institut Nationalde l’Origine et dela Qualité (INAO)

third party

Breeding, Animal Welfare,
Feed Management, Traceability

RSPCA Assured(previously
Freedom Food)

RSPCA

second party

Animal Welfare, Traceability

Certified Karoo
Meat InitiativeKaroo
development
foundation

third party

Traceability, Animal Welfare,
Ecological Sustainability

WORLDWIDEFRANCEUNITED KINGDOMSOUTH AFRICA

17
USA, CANADA,
NEW-ZEALAND& AUSTRALIA

Animal Welfare
Certified

Global AnimalPartnership

third party

Animal Welfare,
Feed Management, Traceability,
Sustainable Farming Practices

Animal Welfare
Approved
Certified Grassfed

A GreenerWorld

third party

Traceability, Animal Welfare
and Feed Management(grassfed only)

USA, CANADA,& AUSTRALIA

Certified Humane

Humane Farm
Animal Carethird party

Animal Welfare, Traceability,
Feed Management

UNITED KINGDOM& IRELAND

Pasture for Life

Pasture Fed
Livestock
Association

third party

Land management practices,
Animal Welfare, Traceability

Regenerative
Organic Certified

Regenerative
Organic Alliancethird party

Land management practices,
Animal Welfare, Traceability,
Social Responsibility

SPCA Certified

SPCA(New Zealand)

third party

Animal Welfare, Traceability

USA, CANADA,UNITED KINGDOM& SOUTH AFRICAWORLDWIDENEW ZEALAND

Standards for Raw Materials

PRECIOUS SKINS

18

Standards for Raw Materials – Precious Skins

Precious skins from several species of animals are a part of some of Kering’s brands’ products. Kering is committed
to strictly ensuring that these skins are sourced according to the highest standards of animal welfare, ecologicalsustainability and working conditions. In regards to 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 and sourcing 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 careful and strict 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 tomeet the Kering Standards and ensure sustainability.

For Kering, precious skins include:• Crocodilians (crocodiles, caiman & alligators)• Snakes (e.g. pythons, water snakes such as ayers, cobras,
rat snakes, etc.)• Lizards (e.g. tejus, varanids, etc.)• Birds (e.g. ostrich)• Fish (e.g. fish, eel, etc.)• Other (e.g. antelope, deerskin, etc.)
The Kering Standard for precious skins below is focusedon the production of precious skins in farms and ranches
and/or the wild harvest of animals for precious skins.
Additional Kering Standards are available for the processingof hides and tanning of leather (see Kering Standard fortanning, 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
and international laws, principles andregulation notably related to humanrights, fundamental freedom,
health and safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Ensuring the highest standardsof animal welfare• Ensuring that there are no
detrimental impacts on wild
populations and their habitat

19

Standards for Raw Materials – Precious Skins

MINIMUM REQUIREMENTS

Do not source any species that aretraded/trafficked illegally for Keringor any other client
Suppliers must commit not to trade in illegal animal products
or support wildlife trafficking at any time and in any way.
All precious skins must be sourced and traded legally accor­
ding to national and international laws and conventions.

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 be used.
• Species listed on CITES Appendix II and Appendix III
can be used by suppliers as long as CITES procedures arestrictly adhered to and as long as suppliers are willing andable to share certain information about their sourcing(see “Provide verifiable information” below).
Suppliers shall use best efforts to avoid sourcing from countries/operations where there is a risk that the operations are
non-compliant with CITES (e.g. Laos).
Kering requires that extreme caution is needed if sourcing
non-CITES species. If non-CITES species are being used then
Kering requires suppliers to provide Kering with the following: detailed information on the location (country/region)of the source (farm or wildcaught) and on 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 these regulations
and, further, detailed traceability and verification by Kering.
Suppliers also need to adhere to all import conditions onthese 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 engagementfrom the supplier that outlines their commitment to theabove sourcing standards around species threatened by trade.

Provide verifiable information
on origin of the animal
For species listed on the CITES Appendices, align with the
CITES system: The mandated traceability/tagging systems
for species listed on the CITES Appendices must be followed.
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.
For non-CITES species, provide adequate and verifiable
information: The exact scientific name of the animal andthe origin of the animal (country and type of source: captive,
ranched or wild) must be provided to Kering brands.

Advance Kering’s standards for animal
welfareSuppliers must be aware of Kering’s Species-Specific Animal Welfare Standards. Suppliers are also responsible forcommunicating the need for Kering to monitor and verify
animal welfare to their sub-suppliers. This means that suppliers need to :• Read the Kering Animal Welfare Standards as well as
the Apprendix on Animal Welfare. The species-specificstandards are available upon request.
• Share the Kering Animal Welfare Standards with theirsub-suppliers and communicate the need for Kering
to monitor and verify animal welfare.
• Provide information on sourcing so that Kering cancarry out monitoring and verification of the alignment
to the Kering Standards particularly with respect tothe specific farming and slaughtering welfare practices.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

20

Standards for Raw Materials – Precious Skins

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Source from Kering preferredcountries and operations
In the coming years, suppliers should only source from Kering preferred countries and operations (please see BOX 1:
Indicative list of preferred sources for precious skins).
Kering will provide regularly updated information on recommended countries/sources, which will also include theoperations where suppliers are currently working after they
have been 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 for animal welfare.
Sourcing through Kering preferred operations/facilities will
ensure that suppliers meet all of Kering’s Minimum Requirements and many of the Additional Conditions to meet the
Kering Standards. This means that there will be no sourcing through re-export permits or from sources that cannot
identify and verify the original source of the animal.

Ensure complete traceabilityof 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 theprovision 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 that can verify 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 shall agree to second or third
party verification of traceability and sourcing claims.

Ensure that animal welfare practices
are aligned with Kering Species-Specific
Animal Welfare Standards
All suppliers/sub-suppliers dealing with live animals (e.g.
farm and processing facilities) will agree to the implementation and verification by Kering or a third party of Kering’s
Species-Specific Animal Welfare Standards, which outline
the specific requirements for management practices inplace 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. Examples of other certifications that are in development and that may meet Kering Standards include, forfarmed ostrich, the South African Ostrich Business Chamber(SAOBC) Standards and for reptilians the Southeast Asian
Reptile Conservation Alliance (SARCA) ongoing work. See
Appendix: Animal Welfare.

21

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 the Minimum
Requirements and Additional Conditions for precious skins. This list reflects the best knowledge available to Kering whenwriting 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 NameAMERICAN
ALLIGATOR

SPECTACLEDCAIMANYACARECAIMAN

Scientific Name

Source Location

Source TypeUSA (Lousiana,
Georgia)

Captive Bred

Alligator
mississippiensis

Caimancrocodilus

CITES Certificate required?

yes, Appendix II
USA

Wild

Venezuela

Wild

Argentina

RanchedBolivia

Captive Bred

Caiman yacare

yes, Appendix II

22yes, Appendix II
Bolivia

Wild Tacana
harvestprogram

Crocodylus
niloticus

Madagascar,
South Africa,
Zimbabwe

Ranched,Captive Bredyes, Appendix II

YELLOW
ANACONDA

Eunectes notaeus

Argentina

Wildyes, Appendix II

BURMESEPYTHON

Vietnam

Captive Bred

Python molurus
ThailandCaptive Bred

RETICULATEDPYTHON

Pythonreticulatus

Indonesia, Malaysia

Wild

Thailand, Vietnam

Captive Bred

NILE
CROCODILE

yes, Appendix II

yes, Appendix II

Standards for Raw Materials

FAKE FUR

23

Standards for Raw Materials – Fake Fur

Kering brands are no longer using fur in their collection. 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. It 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.

BOX 1: “Fake Fur” and other Fur Alternatives
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. Such fur
alternatives also have sustainability considerations, since the majority of fur alternatives are composedof synthetic fibers such as acrylic, moda acrylic and polyester which are petroleum based.
Kering recommends that suppliers take a cautionary approach to sourcing fur alternatives:
Raw materials
Materials used in alternative furs shall comply with the Kering Standards:• plant or animal fibres (cotton, linen, silk, wool, alpaca, mohair, cashmere as well as the regenerated

options): see related fibre standards (Kering Standard on Cotton, Kering Standard on Wool, etc.).
For other natural fibres specifically covered by the Kering Standards, suppliers should refer to the
Kering Materials Innovation Lab for guidance;• viscose and recycled viscose fibres: see Kering Standards on Viscose;• polyester fibres: the use of recycled synthetics shall be primarily prioritized, and secondarily
the use of biobased synthetics. See Kering Standard on Synthetics, section on the use of recycled
and bio-based synthetics;• acrylic and modacrylic fibres: wherever possible, they should be avoided as there is no sustainable
alternative for these fibres on the market at the moment. Concerns are related their end-of-life (theycannot be recycled) and to potential risk for human health due to monomer building blocks usedduring fibre production process. If acrylic and modacrylic cannot be avoided, supplier shall do any
reasonable effort to provide information about:– solvent in use to spin the fibre– solvent recovery and reuse– system in place to prevent worker exposures to toxic solvents and other hazardous

Dying/ Finishing
Sustainable options for alternative fur dying might be chosen considering the raw material to lower
the environmental impact, e.g.:• natural fibres: natural dying or no dyeing can be viable options mainly for alpaca and mohair;• synthetic fibres: a dope dying shall be preferred wherever possible;• Polyester fibres (virgin, recycled or bio-based): water-efficiency dying technologies.
Closed loop dying process where chemicals and water is recovered and reused in production is an
option that can be adopted by manufacturers producing all types of alternative fur. GRS and GOTS
certified dying and finishing are available for alternative fur like for other organic and recycled textiles.

24

Standards for Raw Materials – Fake Fur

BOX 1: “Fake Fur” and other Fur Alternatives
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. Such fur
alternatives also have sustainability considerations, since the majority of fur alternatives are composedof synthetic fibers such as acrylic, moda acrylic and polyester which are petroleum based.
Processing
A number of sustainable options might be implemented at processing level and production
techniques in order to lower production impact and microfiber leakage. There are two main knitting
techniques, one starting from fibres (sliver knitting), one starting from yarns (yarns knitting). Sliver
knitting generates more fibres leakage than yarn knitting as it makes textile construction more loose.
Also at yarn level, tightly constructed yarns generate less fibre leakage.
Manufacturer with in-line vacuum system for eliminating loose fibres via air filtration and exhaustion,
should be preferred.
Please refer to the Kering Standard for End-of-Life for further info about microfiber leakage.
For the chemical and manufacturing processing of fur alternatives, suppliers should refer to Kering’s
MRSL and PRSL and to the Kering Standard for textile processing and the Appendix: Summary of
Kering Chemical Management Policy.
Note that the terms “fake fur” or “eco fur” have to be carefully used, as such references are notallowed by law in several countries.

25

Standards for Raw Materials

CASHMERE

26

Standards for Raw Materials – Cashmere

Goats producing cashmere are mostly found in Central Asia, including Mongolia and Inner Mongolia, althoughsome 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 is mainly produced by small-scale, traditional nomadic herders and these herding families typically own between 100 and a few thousands goats. They
need to move around the vast grasslands in order to find enough pasture for the goats, which has been a practicefor many centuries. One of the most critical issues with cashmere production in Mongolia is the environmental
degradation that has occurred over the last 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, anda reduction in productivity. Additionally, environmental consequences such as widespread dust storms fueled bysignificant 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 critical source of GDP, Mongolia is in the
midst of implementing substantial measures to improve the sustainability of the industry.
The Kering Standard for cashmere is designed to promote and encourage sourcing of cashmere from production
systems that respect social and cultural values, support local livelihoods and drive more sustainable grazing
practices and high standards of animal welfare.

In this Kering Standard, cashmere refers to the textile
fiber from goats and covers the phases from the herding
to the dehaired cashmere. Additional Kering Standards
are available for the processing 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
and international laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Maximising ecological sustainability:
support cashmere production that
does not degrade natural ecosystems
but rather restores and protects soil,
plants and wildlife• Ensuring the highest standardsof animal welfare27

Standards for Raw Materials – Cashmere

MINIMUM REQUIREMENTS

Inquire about the origin of the cashmere
Suppliers shall use best efforts to provide, at the very minimum, the country of origin (i.e. country of goat production)
for all cashmere utilised in Kering’s brands’ products.

Advance Kering’s standards for animal
welfareSuppliers must be aware of Kering’s Species-Specific Animal
Welfare Standards for goats. Suppliers are also responsible
for communicating the need for Kering to monitor andverify animal welfare to their sub-suppliers. This meansthat suppliers need to:• Read the Kering Animal Welfare Standards as well as
the Appendix on Animal Welfare. The species-specificstandards are available upon request• Share these standards with their sub-suppliers andcommunicate the need for Kering to monitor and verify
animal welfare• Provide information on sourcing so that Kering cancarry out monitoring and verification of the Kering
Standards

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpecatations regarding the social and labor conditionsof the workers in the supply chain, in accordance withthe principles set out in the Kering Code of Ethics and its
Suppliers’ Charter. See Appendix Social Compliance andEnforcement of the Kering Code of Ethics in Supply Chain.

28

Standards for Raw Materials – Cashmere

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Achieve traceability of cashmere
Kering is committed to achieving the highest level of transparency within its cashmere value chain. In this context,
suppliers will make all reasonable efforts to provide Keringwith the origin and the journey of the cashmere that they
supply to Kering brands. This information includes:• Where cleaning and dehairing was performed• Information on the goats producers and/or herdercooperatives

Prioritize the use of cashmere
from Kering’s preferred sources
Suppliers will work with Kering to prioritize sourcing of cashmere from identified herding cooperatives and farms thatare committed to more sustainable practices, in particular interms of animal welfare, land management and grazing practices. As of today, Kering has identified the following sources
as being ‘best in class’. This list can be extended and modified in new revisions of this document, and all projects may
be subject to additional verification from Kering.
Mongolia• Herding cooperatives of the Kering Sustainable
Cashmere project in the Gobi Desert
China• Farmed cashmere produced under the “Aid for Trade”
Program, which carries the “Good Cashmere Standard”
labelCountry Agnostic• Producers certified organic with the GOTS certification• Producers of cashmere from farms compliant with EU
Organic Certification
Kering may require its cashmere to be segregatedto make sure it is fully traceable and coming from these
preferred sources.

Ensure that animal welfare practices
are aligned 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. In particular, cashmere suppliers will agree with
Kering’s animal welfare standards for goats in cashmere

production. See Appendix: Animal Welfare. Note that the
Kering Standard for cashmere goats has some specific conditions to allow for cultural important practices in traditional herding communities.
The Sustainable Fiber Alliance certification program
includes existing standards that meet some of Kering’s
requirements on animal welfare and are acceptable as proofof animal welfare by producers.

Ensure that land management
and grazing practices are sustainable
Kering requires evidence and verification that its cashmere
is sourced from producers that are engaged in ‘regenerative’ grazing practices (i.e. grazing practices that do not leadto overgrazing and degradation of the land). The following
initiatives promote sustainable grazing, and are considered
suitable for sourcing:• The Sustainable Fiber Alliance’s (SFA) grassland
management protocol, which includes producers/herding
cooperatives working to achieve SFA certification. This
protocol is under review.
• Through targeted verification of identified programsfor sustainable cashmere under the management of local,
national or international agencies and NGOs.
• Herding cooperatives working with Agronomes &Vétérinaires Sans Frontières (AVSF) in the province ofBayankhongor in Mongolia.
• Other cooperatives working with experts to improvegrazing practices (i.e. The Nature Conservancy in theeastern steppe, and the Mongolian Green Gold Program,
sometimes referred to as ‘Responsible Nomads’).

Use recycled/regenerated cashmere
where possible
This type of cashmere can be either pre-consumer cashmere
offcuts or post-consumer, or a combination of the two. This
enables the reduction of the demand for virgin cashmere andthe associated environmental and social impacts. For recycled/regenerated cashmere, GRS Certification is preferred.
Please be aware and align with any national and local legislation about recycled/regenerated cashmere.

29

Standards for Raw Materials – Cashmere

BOX 1: Cashmere from Mongolia versus Inner Mongolia

Mongolia
Cashmere is the third most valuable export from Mongolia (sometimes referred to as “Outer Mongolia”).
Cashmere is primarily produced by nomadic herding communities, which graze the goats over vast
tracks of Mongolia’s grasslands. With increasing concerns about ecosystem health and social wellbeing,
the Government of Mongolia, herding cooperatives and a range of stakeholders are working with
the UNDP to develop a ‘cashmere sustainability standard’ that will have far-reaching applicability.
Kering welcomes this multi-stakeholder initiative, and will use it to inform sourcing decisions once itis released. Until that point, Kering will prioritize sourcing from the boutique, hand-selected projects
that are aligned with Kering’s sustainability standards.
China
In contrast to Mongolia, most cashmere production in China takes place within enclosed or semienclosed farming systems in a region known as “Inner Mongolia”. China currently produces about
75% of global cashmere, with an additional 18% entering Chinese borders via trade for further
processing. Cashmere produced under such farming systems should be subject to a different (butrelated) set of standards, as compared to cashmere produced via nomadic herding which requires
access to grasslands.

BOX 2: The South Gobi Sustainable Cashmere Project

Since 2015, Kering has supported the South Gobi Cashmere Project in Mongolia. This innovative
program works with over 120 herding families across 250,000 hectares, and is administered by
The Wildlife Conservation Society. Through a unique market-based approach that links the herders
to Kering, as well as environmental monitoring expertise at Stanford/NASA, this is one of the firstoutcome-driven cashmere projects in the world, which focuses on rangeland protection, wildlifefriendly cashmere production, animal health and improved livelihoods. At a more macro-level, theproject seeks to build a ‘best-in-case’ scalable model, and is currently collaborating with stakeholders
to establish a larger sustainable cashmere industry in Mongolia. Cashmere produced under thisproject is of top sourcing priority for Kering.

30

Standards for Raw Materials

WOOL

31

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 judged as more or less sustainable based on the impact of the farming system and on animal welfare
issues, with a particular focus on the practice of mulesing (i.e. the removal of skin from the breech and/or tail ofa sheep using mulesing shears). The methods used to clean or scour the raw (greasy) wool can also be a factor inassessing the sustainability of a source. The relative impacts and significance of farming systems, animal welfare
and scouring methods varies by country and region.
The factors contributing to the environmental impacts of the farming system include the conversion of 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 have been carried out for a longtime, sometimes centuries, and thus the conversion of land from natural ecosystems (grasslands and forests) toagricultural land in these areas is less of an issue. However, partly due to this longevity there is often increasinglevels 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 likelice and blowflies. Most chemicals used to treat these external parasites bind to the wool grease rather than thefiber itself and are 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. Another aspect of sheep farmingthat is important to consider is the way that farms 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).

In this Kering Standard, wool refers to the textile fiber fromsheep and covers the phases from the farm to the scoured/
combed wool. Additional Kering Standards are available
for the processing of wool further down the supply chain(See Kering Standard for Textile Processing).
Wool has the potential to be a very sustainable natural raw
material if the chemical inputs are limited, the scouring
process is well managed and sustainable grazing practices
are put in place.

In summary, the key principles
that underpin the Kering Standard
for wool are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Maximizing ecological sustainability:
supporting wool production that does
not degrade natural ecosystems but
rather restores and protects soil plants
and wildlife• Reducing chemical inputs:
wool production with limited use of
toxic chemicals• Ensuring high standards of animal
welfare• Using water efficiently and responsiblyat farm level and scouring level32

Standards for Raw Materials – Wool

MINIMUM REQUIREMENTS

Inquire about the origin of the wool
Suppliers shall use best efforts to provide, at the very minimum, the country of origin (i.e. country of sheep production)
for all wool utilised in Kering’s brands’ products.

Advance Kering’s Standards
for Animal Welfare
Suppliers must be aware of Kering’s Species-Specific Animal Welfare Standards for sheep on farms and in transport. Suppliers are also responsible for communicating theneed for Kering to monitor and verify animal welfare to theirsub-suppliers. This means that suppliers need to:• Read the Kering Animal Welfare Standards as well as
the Appendix on Animal Welfare. The species-specificstandards are available upon request• Share these standards with their sub-suppliers andcommunicate the need for Kering to monitor and verify
animal welfare• Provide information on sourcing so that Kering cancarry out monitoring and verification of the Kering Standards

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

33

Standards for Raw Materials – Wool

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Achieve traceability of the wool
Kering is committed to achieving the highest level of transparency within its wool value chain. In this context, suppliers
will make all reasonable efforts to provide Kering with theorigin and the journey of the wool that they supply to Kering
brands. This information includes:• Where cleaning and scouring was performed• Information on the farms and movement of wool
through the supply chain

Prioritize the use of wool from Kering’s
preferred sources
Suppliers will work with Kering to prioritize sourcing of wool
from identified farms that are committed to more sustainable practices, in particular in terms of traceability, animal
welfare and land management. As of today, Kering has
identified the following sources as being more sustainable,
which can be extended in a new revision of this document:• Farms certified to Responsible Wool Standard (RWS, see
BOX 1), including ZQ Merino wool and ZQRX Merino wool.
• Fibers certified to Organic Standards (GOTS)• Farms part of the Nativa certification program• Producers of wool from farms compliant with EU
Organic certification• Farms in Australia may also be certified to the New
Merino Standards for Responsible Wool Productionin Australia• Farms in South Africa may also be certified to the
Sustainable Cape Wool Standard, or the Abelusi Wool
Audit Standard
Kering may require its wool to be segregated to make sure it
is fully traceable and coming from these preferred sources.

Ensure that animal welfare practices
are aligned with Kering Standards
All suppliers/sub-suppliers dealing with live animals willagree with the implementation and verification by Keringor a third party of Kering’s Species-Specific Animal Welfare
Standards. In particular, wool suppliers will agree with Kering’s welfare standards for sheep farming and transport. See

Appendix: Animal Welfare. Please note that Kering’s animal
welfare standards for sheep cover more than mulesing.
There are some existing wool animal welfare standards thatmeet some of Kering’s requirements and are acceptableas proof of animal welfare on farms. However, Kering may
require additional verification and auditing on these farms
and this will be evaluated on a case-by-case basis.

Ensure that land management
and grazing practices are sustainable
Kering requires suppliers to engage in farm production practices that improve and restore ecosystem function on thefarm. Proof of best practices in grazing management willneed to be provided to Kering.
Kering supports the use of regenerative agricultural practices, which can bring about diverse ecological and social
benefits. This includes restoring soil health, sequestering
additional carbon, protecting biodiversity, and ensuring
farmers receive fair payment for improved practices. Whenever possible, brands should prioritize sourcing regeneratively-farmed wool, assuming practices and outcomes areverified by a third party. This includes the Ecological Outcome Verification (EOV) program by Savory Institute, as well
as ZQRX certified wool.

Use recycled/regenerated wool where
possible
Kering supports the use of recycled/regenerated wool.
This type of wool can be either pre-consumer wool offcuts or post-consumer wool or a combination of the two.
This enables to reduce the demand for virgin wool and theassociated environmental and social impacts. For recycled/
regenerated wool, GRS certification is preferred.
Please be aware and align with any national and local legislation about recycled/regenerated wool.

34

Standards for Raw Materials – Wool

BOX 1: Responsible Wool Standard
The Responsible Wool Standard (RWS) is a voluntary global standard that addresses the welfareof sheep, land management practices, and traceability of the wool. It was launched in summer2016 by the non-profit organization Textile Exchange and revised in March 2020. The standard
was created to provide a global benchmark for animal protection and agriculture in the fieldof sheep farming. Other goals include helping dedicated sheep farmers worldwide byrecognizing examples of best practice, protecting on-farm biodiversity, advancing social welfare
as well as increasing transparency along the global value chain. The RWS is intended to be usedby farms involved in the production of wool from sheep, certification bodies contracted toprovide certification services to the standard and companies buying and selling wool products.
This is a voluntary standard and is not intended to replace the legal or regulatory requirementsof any country. The goals of the Responsible Wool Standard are to:• Provide an industry tool to identify best farm practices• Ensure wool is from responsibly treated sheep• Confirm that farms follow enhanced land management methods that protect soil health,biodiversity and native species• Advance social welfare

35

Standards for Raw Materials

SILK

36

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 many kinds of silk with differingcharacteristics 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 China is the largest producer, followed by India
and Japan. Most of the silk used in the luxury sector comes from the Bombyx mori species of moth which are
fed mulberry leaves cultivated on farms. The larvae that 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 tocompletely enclose themselves for their 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 most sericulture has been domesticated over thousands of years and has been selected throughgenerations of breeding programs. It is entirely dependent on farming systems for survival and could not survive
in the wild. There are a number of inherent sustainable attributes of silk. Silk is a natural, biodegradable fiber andthe mulberry trees 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 is treated and the resulting impacts on natural
ecosystems, and, significantly, the conditions and livelihoods of the silk farmers. These are all issues in the silk
supply chain that Kering is focused on and committed to ensuring best practices via the Kering Standard for silk.

37

The Kering Standard for Silk is focused on the commercial
production of ‘mulberry silk’ from the Bombyx morimoths which represents around 95% of the world’s silk
production (See BOX 2 for some guidance on other typesof silk). The production of mulberry silk is a complex andmulti-step process and this Kering Standard deals with theinitial steps of silk production (‘sericulture’) including:
1. Cultivation of the cocoons: rearing the silk worms
from eggs, mulberry tree cultivation and the productionof cocoons.
2. Filature operations: sorting cocoons, processing withsteam or hot air to eliminate the larvae, de-gummingin soap solution to soften the sericin, extracting thesilk threads from the cocoon and combining several
filaments (‘reeling’).
Please note that the next stages in silk production including
spinning/twisting, use of silk schappe, dyeing and finishingare 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 andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof 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 the initialstages of sericulture processing• Using water and renewable energy
efficiently and responsibly at farm level
and in filature processes

Standards for Raw Materials – Silk

MINIMUM REQUIREMENTS

Inquire about the origin of the silk
Suppliers shall use best efforts to provide the country oforigin (i.e. country of cultivation and the initial phases ofsericulture) for all silk utilized in Kering’s brands’ products.

Use best efforts to include certified
organic silk in your sourcing
Kering brands are encouraged to use as much certified
organic silk (fiber certification) as possible in their products.
This means having GOTS certification through to yarn or
fabric and OCS or GOTS certification for other processes suchas dyeing, finishing, etc. (See BOX 1: Organic silk for moredetails). Kering’s Materials Innovation Lab can recommend
suppliers of organic silk.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits 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.
Sourcing silk enables the support of traditional ways ofworking, and in particular the work of women, as long associal and labor conditions are excellent. Therefore, suppliers need to verify that social and working conditions meetthe principles set out in the Kering’s Code of Ethics and theones of the Kering Standards in the farming and reelingprocesses. This criteria for social excellence is detailed inAppendix Social Compliance and Enforcement of the Kering
Code of Ethics in Supply Chain.
38

Standards for Raw Materials – Silk

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Source only organic certified silk
In order to fully align with Kering Standards, suppliers
should only source certified organic silk that shows thatthe farming practices have been verified against organic
farming practices and that there is traceability of the silk
throughout the supply chain (preferred certification is GOTS,
see BOX 1: Organic silk for more information).

Use recycled/regenerated silk where
possible
Kering supports the use of recycled/regenerated silk.
This type of silk can be either pre-consumer silk offcuts
or post-consumer silk or a combination of the two. This
enables to reduce the demand for virgin silk and the associated environmental and social impacts. For recycled/
regenerated silk, GRS certification is preferred.

Ensure best environmental practicesof the filature operations
The first phases of silk filature, in particular silk reeling, canhave a significant impact on the environment mostly due
to water use, energy use and chemicals. Ensure that these
impacts are monitored and minimized. In particular:• Engage with the ‘Clean by Design’ program at reelinglevel for water and energy efficiency• At the filature operations stages, the chemicals usedneed to be verified against the Kering Manufacturing
Restricted Substances List (MRSL). See Appendix:
Summary of Kering Chemical Management Policy for more
info on the MRSL

Please be aware and align with any national and local legislation about recycled/regenerated silk.
39

Standards for Raw Materials – Silk

BOX 1: Organic silk
It is important to note the difference between “organic” and “certified organic”. There are many
suppliers of silk that claim it is “organic”. Often this claim is based on the way that the silk is
dyed with the use of natural dyes being equated with “organic”. In fact, truly organic silk is thatwhich has been certified against organic standards. This means that the cultivation of mulberrytrees has been done in accordance to organic standards and the sericulture process is without
the use of any synthetic chemicals or growth hormones. The national laws governing organic
production are EEC Organic Regulation 834/2007 in Europe, USDA NOP in the United States, NOPOin India and JAS in Japan. In addition, a certification for the product’s chain of custody needs to
be in place, and would normally follow the Global Organic Textiles Standard (GOTS) or the OrganicContent Standard (OCS). The GOTS is recognized as the world’s leading processing standard fortextiles made from organic fibers. It defines high-level environmental criteria along the entire
organic textiles supply chain and requires compliance with social criteria as well as to traditionalorganic farm certification.

BOX 2: Other silks
Wild silks tend to be produced in smaller production systems than mulberry silk. Many of these silks
have their own unique characteristics in terms of texture, color and uptake of dye. They should betreated as unique raw materials and not as a replacement for the conventionally farmed mulberry silk.
Some are produced in farming systems and some are wild whereby the moth is attracted to certain
plants to lay eggs. These species of moths have not been domesticated in the same way as Bombyx
mori and so can survive in the wild. There can be many positive aspects of harvesting wild silk, including
the protection of natural ecosystems, but this along with labor conditions and processing impacts
need to be verified.
Honan silk (region of China): some of the best quality wild silk is produced by silkworms from Honan,
which is the only type of wild silk that can be easily dyed.
Assam silk (region of India that is especially noted for its exceptional and unique silks, instead of :including:• Muga silk: glossy fine texture, durability and natural golden amber glow. This is the second
most costly fabric after Pashmina. The golden hue increases with time and washing and the silk isnaturally stain-resistant.
• Eri silk: almost as white in color as the Bombyx mori silks. Sometimes known as “peace silk”
because the moth lives a full lifecycle. The filaments are shorter and the silk has the look of wool
mixed with cotton but the feel and softness of silk.
• Tusar (‘tussah’) silk: this has natural shine, is often a golden color and is very durable. It is produced
in many countries (India, China, Japan, Africa) by different species of tussah silk moths which feed on
oak leaves and other leaves rich in tannin. These tannins give the golden color to the silk.

40

Standards for Raw Materials

COTTON

41

Standards for Raw Materials – Cotton

Cotton is an important basic raw material for Kering’s brands’ products. Globally, cotton is grown in some 80
countries, on 33 million hectares (around 2.5% of global arable land) and represents 36.5% of the global fiber
demand. The majority of the cotton grown in the world is grown with the use of vast quantities of pesticides andfertilizers. Compounding the obvious environmental and human health impacts of this synthetic chemical use,is the unsustainable water use for much of this cotton cultivation. Additionally, cotton supply chains represent
significant sustainability challenges with examples of forced labor and child labor in cotton cultivation. A verysmall proportion of cotton production (less than 1%) is truly sustainable. An example of this is organic and/or
Fairtrade certified production where the cultivation is done without synthetic chemicals, water use is reduced
and social/labor conditions are well-managed. Kering’s Environmental Profit and Loss (EP&L) account shows
clearly that organic cotton has up to 80% less environmental impact than conventional cotton. Both social andenvironmental considerations are driving Kering’s strong commitment to using only traceable and sustainably
cultivated cotton in its supply chains.

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). This Kering Standard
for cotton and lists of preferred and high-risk countries will
be reviewed annually.

In summary, the key principles
that underpin the Kering Standard
for cotton at the farm/cultivationlevel are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof 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 detriment to natural
ecosystems

42

Standards for Raw Materials – Cotton

MINIMUM REQUIREMENTS

Inquire about origin of the fiber
Suppliers shall use best efforts to provide the country oforigin (i.e. country of cultivation) for all cotton utilized in
Kering’s brands’ products.

Do not source cotton from high risk
countries
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 update suppliers as necessary on
sourcing countries that are considered “high risk”. Kering
is a signatory to the Pledge Against Forced Child Labor in
Uzbekistan Cotton and firmly opposes the use of forcedchild labor in the cotton supply chain.
Suppliers should also be prepared to show evidence of theircompliance and the compliance of their sub-suppliers (i.e. show
documentation of traceability to country or countries of origin).

Use best efforts to include certified
organic cotton in your sourcing
Kering brands are encouraged to use as much certified
organic cotton (fiber certification) as possible in theirproducts because studies done by Kering have shown thatorganic cotton has up to 80% less environmental impact
than conventional cotton (please see Environmental Profit
and Loss [EP&L] Appendix for more information). Suppliers
should work to source materials containing organic cotton,whether at fiber stage through IFOAM family of standards orideally beyond during processing through GOTS certification,and proactively offer them to the brands when possible.
Moreover, Kering does not support genetically engineered(GE) fiber and food as raw materials for its brands’ products
and packaging. This includes genetically modified cotton,
which is often present when cotton is not certified organic.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships. Therefore, suppliers must adopt andimplement sourcing practices which include high expectations regarding the social 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.
Suppliers need to verify that social and working conditions
meet the principles set out in the Kering’s Code of Ethics
in all the processes of cotton production. This criteria forsocial excellence is detailed in Appendix Social Complianceand Enforcement of the Kering Code of Ethics, its Suppliers’
Charter and the ones of the Kering Standards in Supply Chain.

43

Standards for Raw Materials – Cotton

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Source only organic-certified cotton
Suppliers should source GOTS certified organic cotton
throughout the textile supply chain. When this is not possible, a combination of GOTS certified and Organic Content
Standard (OCS) certified organic cotton is acceptable (i.e.
products can have GOTS certification through to yarn or
fabric and OCS certification for all other processes such as
dyeing, finishing, etc.) through to final product. This will
ensure the integrity of the organic cotton at each level ofthe supply chain.
See BOX 1: Explanation of Sustainable Cotton Standards andPreferences of Kering below for additional information on
possible standards.

Prioritize cotton farmed using
regenerative practices
Cotton grown using regenerative agricultural practices canbring about diverse ecological and social benefits. This
includes restoring soil health, sequestering additional carbon, protecting biodiversity, and ensuring farmers receive
fair payment for improved practices. Whenever possible,
brands should prioritize sourcing regeneratively-farmed
organic cotton, assuming practices and outcomes are verified by a third party. This includes cotton produced under
the Regenerative Organic Certification (ROC).
Please be aware and align with any national and local legislation about recycled/regenerated cotton.

If sourcing organic cotton is notpossible, consider other certifications
for cotton
Certified recycled cotton is another acceptable certification.
For recycled cotton, the GRS Certification is preferred andrecycled cotton should have clear, verifiable traceability for
integrity within the supply chain and verification of compliance to Kering’s chemical standards (see Appendix on
Chemical Management).

Other certified cotton, such as Cotton made in Africa (CMiA) and
Better Cotton Initiative (BCI), are not preferred choices compared to the above mentioned certifications unless evidenceof sustainability can be provided (e.g. evidence-based reportsthat the certification is an improvement over conventional cotton in terms of environmental impact). Additionally, as statedabove, Kering does not support genetically engineered (GE) or
modified (GMO) fiber and/or food for the livestock that provide
raw materials for its brands’ products and packaging in keepingwith the precautionary principle, with respect to its environmental and social impacts. As BCI cotton allows GMO seeds,
this is not a preferred certification for suppliers.

Support in-conversion / transitionalorganic cotton programs
Currently, less than 1% of cotton is organically grown. As
Kering’s objective is to use as much organic cotton as possible in its brands’ products, it is important to help support
programs and farmers that are making the transition fromconventional to organic cotton production. This process
takes approximately three years and can sometimes meanthat farmers see a drop in yield in the first couple of years
while their crops adjust to organic production practices.
However, long-term benefits out- weigh this possibility.
Kering encourages suppliers and brands to source from verifiable in-conversion/transitional organic cotton programs
to ensure a robust supply of organic cotton for the future.
For information on potential sources, please ask the Kering
Materials Innovation Lab.

Be transparent and smart
Suppliers should be prepared to provide all appropriate
documentation to support certification claims (i.e. scopecertificates, transaction certifications). For further detail,please see the BOX 1: Explanation of Sustainable CottonStandards and Preferences of Kering.
All certified cotton should meet Kering brands’ quality criteria and sourcing certified cotton should not lead to lower
quality cotton.

44

Standards for Raw Materials – Cotton

BOX 1: Explanation of sustainable cotton standards and preferences of Kering
What is the difference between the Global Organic Textile Standard (GOTS) and the OrganicContent Standard of Textile Exchange (OCS) and the related certification systems?
While GOTS is a comprehensive standard for a “full product claim” that is setting detailed environmental and social criteria throughout the entire textile supply chain for textiles using a minimumof 70% organic fibers, OCS traces the organic fiber flow throughout the entire textile supply chain
to allow a corresponding organic ”fiber claim” in the final textile product without adding environmental or social criteria in processing.
Brands and retailers may use OCS as a stepping stone to GOTS (e.g. a certification to cover tracking
and handling while supply chains organize themselves to comply with GOTS). Many companies inthe supply chain even choose to be certified to both standards - GOTS and OCS - so that they canbetter meet the needs of their customers. There may be cases where a specific product cannot
meet all demanding processing requirements of GOTS (e.g. because not all dyestuffs and auxiliaries used can comply with GOTS processing criteria or the minimum percentage of 70% organic
fibers is not met). In that case the product could still be certified to OCS, which still allows verification and a labelling possibility for the organic fiber content. GOTS and OCS may therefore beseen as complementary rather than competing certification systems.
For more information, see the GOTS website.
What is Fairtrade?
45

Fairtrade is about better prices, decent working conditions, local sustainability and fair terms oftrade for farmers and workers in the developing world. By requiring companies to pay sustainable
prices, which must never fall lower than the market price, Fairtrade addresses the injustices of
conventional trade, which traditionally discriminate against the poorest, weakest producers. It
enables them to improve their position and have more control over their lives.
Fairtrade standards require sustainable farming techniques and higher prices to be paid fororganic products. The Fairtrade system’s environmental standards and guidelines currently forbid the use of GM seeds by farmers and encourage active monitoring in nearby fields.
For more information, see the Fairtrade UK website.
What is the Global Recycled Standard (GRS)?
The GRS was developed with the textile industry in mind but it may also be applied to products from any industry. It applies to any product made from recycled materials, including natural
fibers (e.g. recycled cotton or recycled wool), synthetic materials (e.g. recycled polyester, recycledpolyamide/other recycled polymer) and other products such as recycled paper, recycled glass, etc.
The standard applies to the full supply chain and addresses criteria relating to five key elements:
traceability, environmental principles, social requirements, chemical inputs and labelling.
For more information, see the textileexchange.org/integrity website.

Standards for Raw Materials

PAPER & WOOD

46

Standards for Raw Materials – Paper & Wood

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

The requirements for the Kering Standard for paper
and wood apply to paper as a raw material for production,
as well as finished paper products such as office paper,
shoeboxes, shopping bags, etc.

In summary, the key principles
that underpin the Kering Standard
for paper and wood are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Reducing pressure on forest
ecosystems by using recycled paper
where possible• Preferring virgin wood products thatare from certified sustainably managed
forests• Ensuring no forced labor in making
forestry products• Complying with Kering chemical
management policies to control
dangerous substances47

Standards for Raw Materials – Paper & Wood

MINIMUM REQUIREMENTS

Have wood-based products comply
with Kering Product Restricted
Substances List (PRSL)

Choose paper and wood-based
products that are certified fromsustainably-managed sources

Compliance with the PRSL is requested for all wood-based
products, whether a raw material, component or finishedproduct. Compliance with the PRSL must be ensured by the
supplier through product testing and each Kering suppliermust guarantee PRSL compliance of its brands’ products.
Moreover, Kering oversees an internal testing program of the
products as an additional auditing measure.

The certification that Kering recommends is from Forest
Stewardship Council (FSC). An important feature of certification 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 sustainability of thematerial is critical for Kering.

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

Where possible, use raw materials(paper and wood-based) with recycledcontent
Kering is committed to reducing its dependency on primary(“virgin”) raw materials. Recycled content greater than 50%
and up to 100% is recommended especially for products suchas office paper, B2B packaging and hangtags and labels.
For recycled paper and wood-based products, Forest Stewardship Council (FSC) recycled and Blue Angel are the preferred certifications. See BOX 1: Explanation of FSC Labels.

FSC certification is in line with Kering’s commitment to sustainable management and also avoids the most destructive
forestry practices: illegal logging, natural forest conversion
to other land uses, liquidation of high conservation value
forests, civil rights violations, local , and genetic modification of forest species. It also guarantees adequate stakeholder management principles such as the right of Indigenous People and rural communities to give or withhold theirFree, Prior and Informed Consent (FPIC) before undertaking
forestry management activities.visual
FSC 100% is preferred to FSC Mix. See BOX 1: Explanationof 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 of traceability.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

48

Standards for Raw Materials – Paper & Wood

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Comply with Kering Manufacturing
Restricted Substances List (MRSL)
and in particular, make sure paper andpaper products are processed withoutchlorine
Kering is committed to ensuring all hazardous chemicals
have been phased out and eliminated from its brands’
processes and products by 2020. 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 the case whether theprocessing is taking place under the suppliers’ control or
upstream in the supply chain with sub-suppliers.

Preferentially source FSC certified
wood from small-holders
Sourcing FSC certified wood can support ecological sustainability 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 that are from FSC certified“small and low intensity forest management systems” and/or FSC certified community-managed forestry production.

In particular, when chlorine is used to bleach paper, the process can result in the formation of harmful chemicals suchas dioxins and furans which are known to cause cancer inhumans. It is recommended to source paper that has been
produced by a bleaching process that has been verified as
totally chlorine-free (TCF) or process chlorine-free (PCF).
49

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 havebeen 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
pre and post-consumer recycled material.

50

Standards for Raw Materials

PLASTICS51

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 non-renewable 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 has a very short lifespan and over half of plastic products are thrown away after a single use even though
plastic is permanent 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 eventually ends 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 plastic 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 Plastic applies to all plastic types
used in products, packaging and visual merchandising.

In summary, the key principles
that underpin the Kering Standard
for Plastic are:• Complying with all national
and international laws, principles andregulation notably related to humanrights, fundamental freedom,
health and safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Avoiding PVC entirely• 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 and bio-based plastics• Address the end-of-life of plastics

52

Standards for Raw Materials – Plastics

MINIMUM REQUIREMENTS

Do not use PVC in products or
packagingComply with Kering Manufacturing
Restricted Substances List (MRSL)PVC poses potential environmental and health threats
because of the chlorine containing by products (e.g. dioxins) that are produced during the manufacturing of PVC andburning of products that contain PVC. Chlorine by products
are carcinogenic and extremely dangerous to human healthand the environment, and to wildlife more broadly. Becauseof these risks, Kering has had a public target since 2012 foreliminating PVC from collections and products.

Kering is committed to ensuring all hazardous chemicals
have been phased out and eliminated from its production.
To this end Kering has adopted a Manufacturing Restricted
Substances List (MRSL). As of January 1st 2020, suppliersmust make sure that the chemicals listed in the MRSL are
not intentionally used in the different process steps of the
production, should this process step be taking place at the
supplier’s location or upstream in the supply chain. In particular for plastics, chemical categories of concern include:
aromatic and aliphatic VOCs, azo dyes, ortho-phthalates, PAH,
heavy metals, flame retardants, alkylphenols and organotins.

Comply with Kering Restricted
Substances List (PRSL)
Compliance with the PRSL is requested for all plastic products, be this a raw material, component or finished product.
Compliance with the PRSL must be ensured by the supplierthrough product testing and each Kering supplier must
guarantee PRSL compliance of its products. 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 the Appendix: Summary of Kering Chemical Management Policy.

Apply the precautionary principle
for nanotechnologies
Kering follows the precautionary principle and will not use
any nanotechnology applications unless such applications
are analyzed and proved to have no potential impact on human health and the environment, including an evaluationof end-of-life impacts. Suppliers are requested to proactively share information on nanotechnology uses in their
manufacturing. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

Furthermore, the supplier should work towards conformance to new releases of the MRSL, in order to meet new
MRSL requirements by the communicated transition period.
This is of particular relevance for plastics since restrictions
on substances related to certain polymers (Rubber, Foam
and Adhesives) have been introduced through latest releaseof the MRSL, MRSL V.2.0. Please refer to Appendix: Summaryof Kering Chemical Management Policy for details.
This requirement is not applicable for packaging suppliers.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

53

Standards for Raw Materials – Plastics

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Prioritize the use of bio-based plastics
and recycled plastics

Minimize amount of criticalingredients

Suppliers should prefer recycled plastics and bio-based
plastics over conventional fossil-based plastics. These alternative plastics can have different features (e.g. bio-content,
recycled content). These features are listed hereunder witha decreasing level of importance for Kering.

Prefer plastics with minimal amount of Plasticizers andChlorine.

• Prefer plastics that are made with recycled content andcertified (GRS is the preferred certification).
• If not possible, source plastics with bio-content , i.e.
without any fossil/petrol content, and certified (OK Biobased).

Every year in Europe, 41,000 tonnes of unprocessed plastic granules, beads or flakes end up in the environment. To
avoid this, the processes of plastics producers, processors
and transporters need to be adapted, with equipment andprocedures in place to prevent loss and leakage of thismaterial that can poison living organisms. The installationof filters or systems to contain and collect granules on the
ground are some examples of actions that would preventthe risk of dispersion.
Operation Clean Sweep® (OCS), a project initiated in 2015,
aims to disseminate and systematise good practices during
production, transport and processing operations.

Plastics with bio-content in today’s market are composedof a mix of fossil content and bio-content. When sourcing
this type of plastic, suppliers should maximize the percentage of non-fossil content and inquire about the feedstockthat goes into producing the bio- logical component of theplastic (crops, organic wastes, proteins, etc.).
Prefer second-generation plastics (using feedstock that is
not a food source but is rather from non-edible parts ofthe plant, resources from forestry, proteins from discarded
sources, etc) or third-generation plastics (using feedstocks
from non-land based crops such as biomass derived fromalgae, fungi and bacteria). See Kering Standard for Sustainable Innovation for Materials and Processes for more information on feedstock generations.
Ask your supplier of plastics for information on the bio-content of their products.
Make all efforts to ensure that the feedstock is not a genetically modified organism (GMO). Kering does not support
GMO in this context.
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 the percentage of bio-content.

Minimize plastic leakage

Address the end-of-life of plastics
Prefer plastics that are recyclable.
Ban oxo-fragmentable 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 are questionable.
See Kering Standard for End-of-Life.

54

Standards for Raw Materials – Plastics

BOX 1: Plastics and bio-plastics, definitions
Bio-plastics refer to two types of plastics:• Plastics with bio-content, also called bio-based polymer, are made from renewable biomass
such as corn starch, woodchips, vegetable oil, food waste, etc. The resulting polymer can be starchbased, 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 the environmental conditions 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 new materials and objects. Nearly all types of plastics are in theory recyclable, but in reality
only a few types are recycled as the extent of recycling in different regions depends on economic,
logistics and technical factors.
A compostable plastic is a plastic that can break down in composting conditions. Thedisintegration 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 andcannot leave any toxic material behind. Composting is a specific form of recycling, sometimes
referred to as organic recycling.
All bio-based plastics are not biodegradable. Some petrol-based plastics are biodegradable.
All compostable plastics are biodegradable, but not all biodegradable plastics are compostable.

55

Standards for Raw Materials

DOWN

56

Standards for Raw Materials – Down

Down comes from different species of farmed geese and ducks and is most often a by-product of the food industry. The major consideration when sourcing down is the animal welfare, from the parent birds through to thedown/feather producing birds. While all aspects of animal welfare need to be at the highest standards (including housing, handling, nutrition, etc.), the key issues are to ensure that there is no force-feeding of the animals
and that there is no live plucking. Kering is wholly against these practices and committed to ensure they are notoccurring 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.
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
and international laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Understanding origin of down
and working towards full traceability• Preferring down that is certified tomeet Kering’s animal welfare standards

57

Standards for Raw Materials – Down

MINIMUM REQUIREMENTS

Provide information on the originof the down
Kering is committed to achieving the highest level oftransparency when sourcing down because of the animal
welfare risks associated with down production. In thiscontext, suppliers using down are required to provide
information on the origin of the down up to the farm and/or processing facility level.

Wherever possible, use recycled downwith GRS certification

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

Recycled down is a sustainable alternative prefered by Kering
when there is a certification on chain of custody. In particular,
GRS certified recycled down is an excellent option.

For new down, only use down thathas been certified according to
the Responsible Down Standard (RDS)or Traceable Down Standard (TDS)
From 2020 onwards, Kering brands will only source fromsuppliers with certified chain of custody to the standards of
RDS and/or TDS. Suppliers claiming this certification need toshow evidence with the appropriate certificates, document
traceability and demonstrate proof of recent audits.
The certification “Downpass” currently is not preferred anddoes not meet the Kering Standards because there is no
third party verification and it does not cover the entire supply chain. If this should change, suppliers will be notified.
See BOX 1.

58

Standards for Raw Materials – Down

BOX 1: Explanation of Down Certifications
The Responsible Down Standard ensures that down and feathers come from ducks and geesethat have been treated well. This means enabling them to live healthy lives, express innate behaviors, and not suffer from pain, fear or distress. The standard also follows the chain of custodyfrom farm to product, so consumers can be confident that the down and feathers in the products
they choose are truly RDS.
More information available on Responsible Down’s website.
The Traceable Down Standard was developed by the brand Patagonia with the goal of providing their customers with the highest assurance that the down in their garments comes from a
responsible source that respects animal welfare. The only way to achieve this is to evaluate every
link in the supply chain from the parent farm to the garment factory for: 1) animal welfare including non-force feeding and non-live plucking and 2) traceability management systems including
documents showing an unbroken chain of custody of the down.
More information available on Patagonia’s Down Standard on their website.
The first version of the Downpass Standard was completed in June 2016. As part of a continuous improvement process, a new version of the standard is valid from 01 January 2017 and 132
stands for the exclusion of feathers and down from live animals, material from foie gras production as well as rearing control. Although the revised standard is an improvement, Downpass is
not third-party verified and still allows certain practices that are not accepted by Kering (e.g. debeaking), and therefore is not a preferred certification for Kering brands.

59

Standards for Raw Materials

CELLULOSIC FIBERS

60

Standards for Raw Materials – Cellulosic Fibers

The Kering Standard for cellulosic fibers covers man-made cellulosic fibers from forestry sources, including viscose orrayon, lyocell, modal, acetate and other trademarked brands of these fibers. These fibers can sometimes come fromother sources such as bamboo or recycled materials, but a wide majority of the cellulose used to create them comesfrom forests. This is where the risks are the highest in terms of environmental and social aspects. One of the main
issues in using these fibers is that the wood pulp may be sourced from endangered forests such as the Canadian andRussian Boreal Forests, Coastal Temperate Rainforests of British Columbia, Alaska and Chile, and the tropical forestsand peat lands of Indonesia, the Amazon and West Africa. Kering is supporting the approaches and systems that do
not use ancient and endangered forests in man-made cellulosic fibers. Another main issue of cellulosic fibers arises
from the production process during which the cellulose of the wood pulp is turned into a liquid from which the fiber
is then extruded. A lot of chemicals are used to dissolve the pulp and to obtain a finished filament and the chemical
substances and gases produced during this process can potentially harm the environment 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 are free 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 addressed 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 investigating new feedstocks that may have an even better sustainability profile andextrusion of the fiber, and 2) the Kering Standard for textile
processing, which focuses on minimizing hazardous chemicals in production and in wastewater by requiring Kering suppliers to conform to its Manufacturing Restricted Substances
List (MRSL) and Product Restricted Substances List (PRSL).
Kering will continue to work collaboratively to improve thesustainability of the cellulosic supply chain and will proactively respond to human rights or environmental concerns
in this sector. Non-wood cellulosic fibers (i.e. cupro) are notcovered under this Standard because of the differences insupply chain and impacts. The greatest concern surrounding
most of these fibers is related to chemicals so please refer toKering’s MRSL and PRSL when analyzing the sustainability of
non-wood cellulosics. For non-wood cellulosic fibers, which
can be derived from cotton, for instance acetate from cotton(eyewear) or cupro, please also refer to the Kering Standard
for cotton. Bamboo can also have significant biodiversity andland use impacts, which should be taken into consideration.
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 andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof 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 not havenegative impacts on the environmentor on the health of factory workers• Relying on third-party
methodologies to select the best
managed forest resources• Exploring alternate raw materials(i.e. recycled content, agriculturalresidues)

61

Standards for Raw Materials – Cellulosic Fibers

MINIMUM REQUIREMENTS

Inquire about cellulosic fiber origin
Kering is committed to achieving the highest level of transparency within its cellulosics supply chain. In this context,
suppliers are required to make all reasonable efforts toprovide Kering with information about the origin of thesefibers to evaluate the associated sourcing risk. This information includes:• Name and address of the viscose/cellulosics producer

Evaluate your supply chain vis-à-vis
the CanopyStyle methodology
Kering strongly encourages its suppliers to evaluate their own
supply chain vis-à-vis the CanopyStyle methodology and toaim for continuous improvement. This means sourcing fromthe highest-ranked producers and/or supporting the current
producers to improve their practices. See BOX 1: The Work of
CanopyStyle on improving the cellulosic supply chain.

• Name, address and list of sourcing countries ofdissolving pulp producer

Source from producers who canprovide verified sustainable feedstock

Put in place a sourcing policy

Producers meeting CanopyStyle Audit expectations havedemonstrated a higher performance level on sustainability aspects. Kering expects suppliers using cellulosics fromwood pulp to source from producers who can provide verified sustainable feedstock, such as those meeting the CanopyStyle Audit expectations. Currently, approximately 60%of the market fulfills this requirement.
See BOX 1: The Work of CanopyStyle on improving the cellulosic supply chain.

Suppliers must put in place sourcing policies committing to
not source cellulosic fibers from ancient and endangered
forests or controversial sources. Suppliers will work with
their supply chain to eliminate viscose/cellulosics comingfrom controversial supply chains that are not complying
with national 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 of viscose or rayon and other cellulosics will use best efforts toeliminate sourcing fiber made with dissolving pulp from:• Companies that are logging forests illegally, fromtree plantations established after 1994 through theconversion or simplification of natural forests, fromareas being logged in contravention of indigenous
peoples’ rights, or from other controversial suppliers.
Kering requests that its suppliers acknowledge the rightof Indigenous People and rural communities to give or
withhold their Free, Prior and Informed Consent (FPIC)
before new logging rights are allocated or plantations
are developed. Kering requests that its suppliers resolve
complaints and conflicts, and remediate human rights
violations through a transparent, accountable, andagreeable 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, the Amazon
and West Africa.

Producers sourcing from EU plantation forests will needto show verification of this supply chain and sustainable
management of plantation forest feedstocks.

Use best efforts to source fromproducers that have a closed-loop
chemical management system
Suppliers are expected to propose cellulosic fibers madefrom a closed-loop chemical management system so thatthe chemicals that are used and produced during the transformation of wood pulp to cellulosic filament 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 phasingout and eliminating hazardous waste, with the goal toachieve a complete closed-loop production system.
Once the above conditions have been met and Kering is certain no sourcing is coming from ancient and endangered
forests, endangered species or controversial sources Kering
will look for the following additional conditions.

62

Standards for Raw Materials – Cellulosic Fibers

MINIMUM REQUIREMENTS

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

63

Standards for Raw Materials – Cellulosic Fibers

ADDITIONAL CONDITIONS TO MEET KERING STANDARDSFor virgin fibers only use fibers sourced
from certified sustainably managed
forests
Forest Stewardship Council’s (FSC) forest management
certification is in line with Kering’s commitment to sustainable management and avoiding destructive forestry
practices such as illegal logging, natural forest conversion
to other land uses, liquidation of high conservation value
forests, civil rights violations, and genetic modification offorest species standards. Suppliers should request fibers
sourced from forests that are certified to FSC standards
when sourcing virgin cellulosic fibers. Please note that thisrecommended standard is different from the FSC chain-ofcustody certification, which applies to businesses that manufacture or sell forest products and confirms that FSC-certified material is handled and tracked correctly throughout
the entire supply chain.
As an example, products from the suppliers Lenzing, Enka,
Eastman and Mitsubishi come from certified forests.
As suppliers move towards FSC Certified sourcing, please referto the Kering Materials Innovation Lab for updated information.

Propose alternative fibers madefrom recycled materials or agriculturalresidues
Suppliers should work toward developing sources of cellulosic fibers with lower environmental impacts, such as
recycled materials and agricultural residues to reduce
dependence on natural resources. Cellulosic fabrics certified to Global Recycled Standards (GRS) are also acceptable
although cannot guarantee wood pulp source.

Ask producers if they have conservation
solutions in place
Suppliers should demonstrate further commitment toensure that producers and pulp suppliers are working toprevent further forest destruction by asking them whether
they have meaningful conservation planning in place basedon independent science for long-term sustainability ofancient and endangered forests.
Kering is committed to playing an active role in advocatingconservation solutions for the world’s ancient and endangered forests through its partnership with Canopy.

64

Standards for Raw Materials – Cellulosic Fibers

BOX 1: The Work of CanopyStyle on Improving the Cellulosic Supply Chain
Canopy is a non-profit environmental organization created in 1999, which is dedicated to protecting forests, species and the climate. Since 2013, Canopy has been working with brands andsuppliers to improve the viscose (and other cellulosics) supply chain and halt their impact onancient and endangered forests through a collaborative initiative called CanopyStyle. To further
this goal, CanopyStyle has developed a methodology to assess viscose/cellulosics producers andhas policies in place with nine out of the top ten largest producers representing approximately
70% of the global market share of these fiber types.
The methodology of CanopyStyle and the corresponding ranking of viscose producers performance released in December 2020 is available at:https://hotbutton.canopyplanet.org/

65

Standards for Raw Materials

SYNTHETICS

66

Standards for Raw Materials – Synthetics

Unlike natural fibers, such as cotton, wool and silk, which are cultivated from plant or animal resources, synthetic
fibers are man-made. They are created through polymerization, which is the process of chemically combining
monomers, or building block molecules, that can bind together to create polymer chains. Conventional synthetics such as nylon, acrylic, polyester and elastane are produced using by-products of petroleum and/or natural gas. The manufacturing process of synthetic yarns includes chemical polymerization, drying into chips, andthe 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 fiberbased fabrics with different performance attributes. Synthetic fibers currently account for approximately 65% of
the total worldwide fiber use and polyester accounts for over 70% of all synthetic fibers used. Synthetic fibers
provide valuable performance attributes such as strength, abrasion resistance, stretch and recovery, as well asother important characteristics like flame resistance. There are a number of sustainability issues associated withconventional 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 wateruse. Furthermore, synthetic fibers shed microplastics and there are end-of-life issues, as they do not biodegrade.
In acknowledgement of these issues, the Kering Standard for Synthetics is supporting the use of recycled synthetic fibers and also bio-derived feedstock to avoid the dependency on virgin fossil fuel feedstock. Recycledmaterials include both pre and post-consumer waste and bio-derived synthetic fibers include those from sugars,
starches and lipids, which are becoming more available and can be indistinguishable from conventional synthetic fibers from a performance and processing perspective.
67

The Kering Standard for Synthetics covers synthetic fibers frompetroleum (fossil fuels), recycled materials and bio-based 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 other trademarked brands associated with these fabrics.
Kering is aware that synthetic feedstocks and chemicals used
to turn those 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 focuseson sourcing feedstock from recycled or bio-based materials
and extrusion of the fiber and 2) the Kering Standard for Textile
Processing, which focuses on minimizing hazardous chemicals
in production and in wastewater through requiring Kering
suppliers to conform to its Manufacturing Restricted Substances
List (MRSL) and Product Restricted Substances List (PRSL)and by meeting the ZDHC wastewater standards. Kering willcontinue to work collaboratively in the industry to improve
the sustainability of the synthetic fabric supply chain, including
any issues around human rights and environmental concerns
in this sector. Additional Kering 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 Synthetics are:• Complying with all national
and international laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment,
as set out in the Suppliers’ Charterof 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 and bio-based materials• Addressing the end-of-life
for synthetic fibers

Standards for Raw Materials – Synthetics

MINIMUM REQUIREMENTS

Provide information about synthetic
fabric origin

Comply with Kering ProductRestricted Substances List (PRSL)

Kering is committed to achieving the highest level of transparency within its synthetic supply chain. In this context,
suppliers are required to make all reasonable efforts toprovide Kering with information about the origin of thesefabrics to evaluate the associated sourcing risk. This information includes:

Compliance with the Kering Product Restricted Substances
List (PRSL) is required for all synthetic fibers. Compliancewith the PRSL must be ensured by the supplier throughproduct testing and each Kering supplier must guarantee
PRSL compliance of its products. Moreover, Kering willoversee an internal testing program of the products as anadditional auditing measure.

• Name and address of the synthetic fabric producer.
• Name and address of the synthetic yarn producer.

Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring all hazardous chemicals
have been phased out and eliminated from its production
by 2020. To this end, Kering has adopted a Manufacturing
Restricted Substances List (MRSL). By 2020, suppliers must
make sure that the chemicals listed in the MRSL are not intentionally used in the different process steps of the pro- duction, should this processing be taking place at the supplier’s
location or upstream in the supply chain. In particular forplastics, chemical categories of concern include aromatic andaliphatic VOCs, azo dyes, ortho-phthalates, PAH, heavy metals,
flame retardants, alkylphenols and organotins.

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.

Source from producers respecting
human rights and social requirements
as set out in the Kering Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships. Therefore, suppliers must adopt
and implement sourcing practices which include highexpectations regarding the social 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 Enforcementof the Kering Code of Ethics in Supply Chain.

68

Standards for Raw Materials – Synthetics

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Prioritize the use of recycled
and bio-based synthetics

Preferably source synthetics thathave been certified

Suppliers should propose recycled and bio-based synthetics, with the highest possible percentage overconventional fossil-based synthetic fabrics. These alternative synthetics can have different features (i.e.
bio-content, recycled content, etc.) and they are listed
below with a decreasing level of importance for Kering:

Suppliers should preferably source synthetics that havebeen certified according to:• Prefer synthetics that are made with recycled content
certified to the Global Recycled Standards (GRS).
If not possible, source synthetics with biobased content(non-fossil/petrol content).
• Prefer synthetics that are recyclable.
Synthetics with bio-content in today’s market are often composed of a mix of fossil content and bio-content. When sourcing these types of synthetics, suppliers
should maximize non-fossil content in yarns and fabrics
and inquire about the origin of the feedstock that goes
into producing the biological component of the synthetics (i.e. crops, organic wastes, proteins, etc.).
• Prefer second-generation or third-generation
synthetics using feedstock that is not a food source but
is rather from non-edible parts of the plant, resourcesfrom forestry, proteins from discarded sources, biomass
derived from algae, fungi and bacteria, etc. Ask the
supplier of synthetics for information about the biocontent of their products.
• Make all efforts to ensure that the feedstock is notfrom genetically modified organisms (GMO). Kering does
not support GMO.
Suppliers should use an official test method to assess
the percentage of bio-content, such as ASTM D8666
method (American Society of Testing and Materials) or
EN 16785- 1:2015, and should be able to provide test
results that assess the percentage of bio-content.
Whenever possible, suppliers should provide Kering
brands with life cycle analysis of the synthetic material
used in the product to scientifically show how it compares to its conventional equivalent.
More information on terminology for synthetics is available in the Glossary.

• The Global Recycled Standard (GRS), which is a voluntarystandard from Textile Exchange. It is applicable internationally for recycled content, chain-of-custody, social and environmental practices and chemical restrictions.
• One or more of the following certifications for bio-based
fabrics:– Bio-based content certification as specified by EN
16785-1:2015– OK Bio-based TUV– DIN CERTCO Biobased

Minimize plastic leakage
Every year in Europe, 41,000 tonnes of unprocessed plastic
granules, beads or flakes end up in the environment. To
avoid this, the processes of plastics producers, processors
and transporters need to be adapted, with equipment andprocedures in place to prevent loss and leakage of thismaterial that can poison living organisms. The installationof filters or systems to contain and collect granules on the
ground are some examples of actions that would preventthe risk of dispersion.
Operation Clean Sweep® (OCS), a project initiated in 2015,
aims to disseminate and systematise good practices during
production, transport and processing operations.

69

Standards for Raw Materials – Synthetics

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Address microfiber leakage pollution

Address end-of-life issues

Suppliers will also stay up to date on various test methods
for microfiber shedding. Test methods are currently being
developed by The ASTM (American Society for Testing andMaterials), The AATCC (American Association of Textile
Chemists and Colorists) and The University of Leeds.

Suppliers should move to recycling technologies which havethe ability to deliver virgin-equivalent fibers in quality andin order to promote the circular economy.
In the future, when there are viable options and technology to recycle synthetics back into synthetics, suppliers
should prefer synthetics that are able to be recycled (i.e.
not blended or with minimum blend).
See Kering Standard for End-of-Life.

Please note that oxo-fragmentable fibers should not be
used as the micro fragments released could increase thelevel of microplastics in the oceans.
Biodegradable/compostable fibres cannot be seen as
a potential solution to the microfibre leakage pollution
because both biodegradation and compostability depend
on very specific environmental conditions in terms of temperature and moisture profiles, which may not be foundin all environmental locations that microfibres end up. As
such, while a fibre may be regarded as ‘biodegradeable’ or‘compostable’ this might not occur easily in certain environmental locations eg deep sea, extreme cold etc.

70

Standards for Raw Materials – Synthetics

BOX 1: Recommended Bio-based Certifications
StatusCertifier

Scope

DIN
CERTCO
Biobased

Voluntary
Standard

DIN

Mainly Europe but
recognized worlwide
Determination of Biobasedcarbon content Based on
ASTM D6866 / EN 17228 /ISO 16620 standards
Delivered by DIN CERTCO 3
levels of performance:
20-50%; 50-85%; sup. 85%

OK Biobased

Voluntary
Standard

TUV

Mainly Europe but recognizedworldwide
Determination of Biobasedcarbon content Based on EN
16640 standard Delivered by
TUV AUSTRIA Belgium 4 levelsof performance: 20-40%; 4060%; 60-80%; sup. 80%

BiobasedContent
Certification

Voluntary
Standard

Biobased

EU scheme to demonstrate
the bio-based content in a
product and labeled with thisclaim based on European
standard
EN 16785-1

BOX 2: Bioplastics vs Biodegradability

Not Biodegradable

Biodegradable

Fossil Based

Bio-based

Polyester (PET)

Bio-PETPolyamide (PA)Bio-PA

Polypropylene (PP)

Bio-PP

Non textile

Polylactic Acid (PLA)(only in industrial
compost)This area is in a state of flux as more biodegradable products are being developed from both typesof feedstock.

71

Standards for Raw Materials

OTHER RAW MATERIALS

72

Standards for Raw Materials – Other Raw materials

Although the following materials are sometimes used in the Kering supply chain, they are used in small quantities, and are therefore 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 are listed asnear-threatened, vulnerable, endangered or critically endangered.

Animal-based Materials

Bamboo and Cork

Mohair• Bamboo and Cork shall strictly follow the samerequirements as outlined in the Kering Standard for paper
and wood regarding chemical management, use of recycledmaterials and commitment to sustainable management
through FSC certified products. Although bamboo is a plantand not a tree, it can follow the exact same 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 as in the Kering Standard for Paper and Wood.

• Preference for mohair that carries the RMS certification(Responsible Mohair Standard).
• Alignment with Kering Animal Welfare Standards for Goats.
Alpaca• Preference for alpaca that carries the RAS certification(Responsible Alpaca Standard).
• Alignment with Kering Animal Welfare Standards.
All other animal-based materials

Pearls and Mother of Pearl• Alignment with the fundamental principles for Animal
Welfare as outlined in the Kering Animal Welfare Standards,
throughout all the different phases of an animal’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 of processing facility(if applicable).
• Kering will evaluate particular 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.

Plant-based Materials• When sourcing pearls, suppliers may be required toprovide information on the pearl farm to ensure the farms(a) respect local regulations, (b) manage water flows(and potential effluent) sustainably, (c) manage potential
disease risk in a manner that does not damage surrounding
ecosystems. For farms that harvest and ‘seed’ wild oysters,
there must be strict attention paid to maximum sustainable
yield of the oyster fishery.
• Suppliers might also be requested to provide information
on how the farms stimulate the pearl-formation process, andwhether the pearls are treated with any bleach or chemicals.
• Suppliers must ensure that pearl farms adhere to safe
working conditions and provide fair wages to regular andseasonal employees.
• Kering has a preference for pearl producers that haveattained MSC (or ASC) certification, such as the Pearl
Producers Association of Australian South Sea Pearls.

Rubber/Latex

Other marine and freshwater products• Whenever possible, natural rubber shall follow the same
sourcing principles described in the Kering Standard for Paperand Wood. More specifically Kering will prefer suppliers actively
engaged with the Global Platform for Sustainable Natural
Rubber (GPSNR) and the Forest Stewardship Council (FSC).
• Synthetic rubber shall follow the same guidelines as
outlined in the Kering Standard for Synthetics.

• 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 has a ban on the use of coral.

73

STANDARDS FORMANUFACTURING
PROCESSES74

Standards for Manufacturing Processes

TANNING75

Standards for Manufacturing Processes – Tanning

Although leather is often considered a natural product since it is derived from animal hides, the chemicals usedin tanning can add potentially hazardous substances to the natural hides. These substances are accompanied bywastewater and waste streams that must be properly managed in order to avoid environmental and health impacts.
A study conducted by Kering in Italy in 2016 showed that 6% of the chemical products used in tanneries containhazardous substances that can be toxic, carcinogenic, or disrupt hormonal systems in people/animals; whereas, there are potential existing greener alternatives for tanning. Additionally, tanning is a process that uses large
amounts of water and energy, and often in larger quantities as compared to optimally managed tanning process
requirements. Kering is tackling this issue by encouraging suppliers to adopt best available technologies in processequipment and management and by requesting that 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 proper waste management, to recycle as much waste as possible, and to properly segregate and treat
chrome containing waste and hazardous wastes. Furthermore, the tanning process has a high potential for healthand safety risks that can exist in all steps of the tanning process from raw material storage to finishing and effluent
treatment. Risks related to chemicals, machinery, workplace conditions and general emergencies must be reduced.
Kering works with suppliers to audit all facilities to assess adherence to the 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.
Additional Kering Standards are available for the sourcing of hides (See Kering Standard for Hides and Skins for
Leather and Kering Standard for Precious Skins).

In summary, the key principles
that underpin the Kering Standard
for tanning are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Avoiding 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 the process• Properly treating waste andwastewater• Promoting recycling and upcyclingof waste and residues• Adopting environmental and social
certification schemes

76

Standards for Manufacturing Processes – Tanning

MINIMUM REQUIREMENTS

Comply with national legislation
It is legally mandated that tanneries strictly comply with national and local legislation, in particular with regard to theenvironment as well as health, safety and welfare of permanent and occasional workers at the facility.

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and throughits business relationships.

Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested for all finishedleather from the supplier who has the full responsibility ofthe product, as well as for possible contaminations occurring
up- stream in the production process. Each Kering suppliermust guarantee PRSL compliance of its products and ensure
this through supplier product testing. Moreover, Kering
oversees an internal 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 Appendix: Summary of Kering Chemical Management Policy.

To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its Houses maintain contractual relationships. Kering
expects therefore its direct suppliers to refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 linewith International Standards. The audits are conducted by
the Kering Supply Chain Audit Team (KSCA) at Kering brands’
suppliers. These audits in addition to supplier engagement
activities are intended to provide a risk management
framework to address key sustainability concerns in the
supply chain. The suppliersare required to pass the audit oraddress non-compliances in a reasonable timeframe. Moreinformation is available in Appendix Social Compliance andEnforcement of the Kering Code of Ethics in Supply Chain.

Do not use leather coming from unknown
tanneries
Kering aims at having full visibility of its leather supply chain
to minimize risks related to environmental and social aspects
like water pollution, improperly managed waste, and forcedlabor. Kering is working with its suppliers to progress stepby step towards more transparency. For this reason, Kering
brands shall not purchase finished leather and skins fromtraders unable or unwilling to disclose where the hides andskins are sourced (upstream traceability as far as the countryof origin). In case the trader/tannery manages skins from different origins and does not keep internal traceability, the veryminimum requirement is to have a balance of the origins (e.g.
70% Country A, 20% Country B, 10% Country C).

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Standards for Manufacturing Processes – Tanning

MINIMUM REQUIREMENTS

Apply the precautionary principle
for nanotechnologies

Comply with Kering Manufacturing
Restricted Substances List (MRSL)

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 an evaluationof end-of-life impacts. Suppliers are requested to proactively
share information on nanotechnology uses in their
manufacturing. More information is available in Appendix:
Summary of Kering Chemical Management Policy.

Kering is committed to ensuring all hazardous chemicals
have been phased out and eliminated from its production.
To this end, Kering has adopted a Manufacturing Restricted
Substances List (MRSL). By January 1st 2020, the suppliermust make sure that the chemicals listed in the MRSL are
not intentionally used in the different process steps of
production, should this process step be taking place at the
supplier’s location or upstream in the supply chain.

Use best efforts to propose metal-freeor chrome-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” or“chrome-free” according to EN 15987:2015• Have a lower environmental impact on the whole life
cycle than conventional chrome tanning. Having a productconsidered “biodegradable” according EN ISO 20136:2017 isrecommended.
Suppliers shall use best efforts to propose to Kering
brands alternative tanning techniques fulfilling 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 the LCA is not yet available.

To this extent, suppliers shall implement a chemical
management system and investigate their supply chain toensure compliance.
Furthermore, the supplier should work towards
conformance to new releases of the MRSL, in order to meet
new MRSL requirements by the communicated transition
period. 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 useof MRSL VOCs and substitute them with MRSL compliant
alternatives if necessary, cooperate with chemical suppliers
to identify or implement effective alternatives that do notcontain VOCs included in the Kering MRSL
• Identify or implement alternatives fortetrachoroethylene 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

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Expand the offer of metal-free tanned
products

Ensure traceability through the tanning
process

Kering is committed to having all leather products metal-free by2025, and suppliers for Kering brands shall work in this direction.

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 rawhide or skin to the finishedleather, should all the processes occur onsite or should somemanufacturing steps be externalised. From the minimum
current requirements traceability should be pursued, fromthe lowest level to the highest one:

Please refer to the Minimum Requirements on metal-free tanning
for acceptable criteria for products to be considered “metal-free”.

Provide Environmental Key Performance
Indicators (e-KPIs)
Kering is monitoring its environmental impact across its
supply chain. For that reason, suppliers shall provide Keringwith e-KPIs specific to their production. This means working
on measuring and monitoring the environmental impacts of
their tannery, including energy and water consumption, water
quality and waste production. These e-KPIs shall be more andmore specific; initially they will be for average production but
eventually they will be requested on an article-by-article basis.
Ideally, these e-KPIs are verified by a third party. In the future,
thresholds on e-KPIs will be used to qualify suppliers.

• By lot, even for lots containing different origins
by mass-balance• By skin, when considered particularly at risk, including
split leather
Externally verified traceability procedures are preferred
to self-declaration. Among the available certification
schemes on traceability, ICEC and the Leather working Group
traceability schemes are the preferred ones and see BOX 2.
For recommended schemes on traceability upstream of thetannery, see Kering Standard for hides and skins for leather.

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Aim for the best certification schemes
Tanneries in high-risk regions shall be Leather Working Group(LWG) assessed. Tanneries producing wet-blue, pickled and/or
finished leather that are in Asia, South America or Africa needto have some verification of their environmental performance.
Such tanneries will need to be Leather Working Group (LWG)
assessed or show evidence of environmental performance inline with the LWG protocol if the tannery is not yet LWG assessedin order to be a supplier or sub-supplier of Kering brands.
All tanneries are encouraged to have a third party verified
environmental management system with ISO 14001 certification,an energy management system with ISO 50001 certification,a health and safety management system with ISO 45001
certification and SA8000 certification for social responsibility.

Set a Science Based Target
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) andthe World Wide Fund for Nature (WWF). Through this initiative,
companies willing to do their part on contrasting the Climate
Change commit to a path of reduction of 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 fits well with the size of Kering suppliers, andprovides external recognition to the efforts done by suppliers.

Implement best available techniques
for tanning
Environmental performance is key for more sustainable tannery
operations. At the European level, the Best Available Techniques(BAT) Reference Document for the Tanning of Hides and Skinsgives a benchmark for tanneries’ 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
through e-KPIs• Evaluate environmental performance against the BAT
framework and take corrective actions if performance levels
are low compared to BAT Standards• For all new equipment, ensure installations comply withBAT Standards• Use grey water or rainwater sources (rainwater, civil waste
water, etc.) to limit the use of blue water when possible

Minimize wastewater and alignwith highest wastewater quality standards
Suppliers shall be able to provide Kering with information on
the quality of their wastewater. In all cases, wastewater quality
shall align with local regulation and with the standard set by
Zero Discharge of Hazardous Chemicals (ZDHC) in their ZDHC
Wastewater Guidelines. Please, refer to the Appendix: Summaryof Kering Chemical Management Policy.
Kering encourages suppliers in improving wastewater
management on these three directions by:
1. Reducing the amount of water and chemicals used throughthe process and integrating measures indicated above
2. Improving the effectiveness of wastewater treatment
in cleaning water from the pollutant load
3. Improving the reuse and recycle of water, towards
a fully circular loop of industrial water and, where possible,
also of additives

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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 in orderto improve the process both from an environmental and from a financial point of view, as indicatedin the BREFs (Best Available Technologies Reference Documents) on tanning and energy efficiency
and proven by specific best practices. , To this aims, several practices and techniques are proposed
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 and energy• 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 solvant-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 finishing.

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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. Guidelines for the environmental
performance of leather manufacturers give four levels of performance using a med- al-tiered approach:Gold (85%), Silver (75%), Bronze (65%), and Audited (50%).
LWG audits and certification is conducted by authorised 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. The objective of this multi-stakeholder
group is to develop and maintain a protocol that assesses the environmental compliance andperformance capabilities of tanners, 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 the detailed audit notes. In addition, the leather manufacturer becomesa member once audited and can give input to the LWG. Key items of 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

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Standards for Manufacturing Processes

TEXTILE PROCESSING
SPINNING, WEAVING, DYEING, PRINTING AND FINISHING

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Standards for Manufacturing Processes – Textile Processing

Despite being considered a “light” industry, the textile industry is a huge consumer of water, energy and chemicals.
It is currently considered the second most polluting industrial sector in the world, after oil and gas.
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, like electricity, and may include the use of chemicals that require special care and can giverise 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 of energy and water in an
economically viable way (12% reduction, 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.
Safety and health issues in the textile industry are extensive and require constant monitoring and management.
These issues can include exposure to chemicals, noise, pollution, dangerous substances and dangerous machinery.
Each stage of the process from production of materials to finishing, coloring and packaging contains hazards andimpacts must be mitigated to meet Kering’s expectations.

The Kering Standard for Textile Processing outlined below
is focused on the main textile processing steps. Additional
Kering Standards are available for the sourcing of 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
and international laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Adopting occupational healthand safety best practices for employees• Improving energy and water
efficiency levels, and measuring themthroughout the process• Properly treating waste andwastewater• Promoting recycling and upcyclingof waste and residues• Adopting environmental and social
certification schemes

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Standards for Manufacturing Processes – Textile Processing

MINIMUM REQUIREMENTS

Comply with national legislation
It is legally mandated that Kering’s suppliers strictly comply
with national and local legislation, in particular with regard toenvironmental issues, as well as health, safety and welfare ofpermanent and occasional workers at the facility.

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships.
To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its Houses maintain contractual relationships. Kering
expects therefore its direct suppliers to refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 linewith International Standards. The audits are conducted by
the Kering Supply Chain Audit Team (KSCA) at Kering brands’
suppliers. These audits in addition 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 oraddress non-compliances in a reasonable timeframe. Moreinformation is available in Appendix Social Compliance andEnforcement of the Kering Code of Ethics in Supply Chain.

Do not use PVC in Kering’s brands’
products or packaging
PVC poses potential environmental and health threats becauseof the chlorine containing by-products (e.g. dioxins) that are
produced during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products are carcinogenic and extremely dangerous to human health and the environment, and to wildlife more broadly. Because of these risks,
Kering has had a public target since 2012 of eliminating PVC
from collections and products.

Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring all hazardous chemicals havebeen phased out and eliminated from its production by 2020.
To this end, Kering has adopted a Manufacturing Restricted
Substances List (MRSL). As of January 1st 2020, the suppliermust make sure that the chemicals listed in the MRSL V.1.0
are not intentionally used in the different process steps of
production, should these process steps be taking place at the
supplier’s location or upstream in the supply chain.
To this extent, suppliers shall implement a chemical management
system and investigate thei supply chain to ensure compliance.
Furthermore, the supplier should work towards conformanceto new releases of the MRSL in order to meet new MRSL
requirements by the communicated transition period. The
latest release of the MRSL, MRSL V.2.0, introduces restrictions
on susbtances related to certain polymers (Rubber, Foam andAdhesives) Please refer to Appendix: Summary of Kering Chemical Management Policy for details.

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Standards for Manufacturing Processes – Textile Processing

MINIMUM REQUIREMENTS

Comply with Kering Product Restricted
Substances List (PRSL)

Apply the precautionary principle
for nanotechnologies

Compliance with Kering’s PRSL is requested from the supplier
who has the full responsibility of the product, as well as forpossible contamination occurring upstream in the production
process. Each Kering supplier must guarantee PRSL complianceof its products and ensure this through supplier product testing. Moreover, Kering oversees an internal testing program ofthe products as an additional auditing measure.

Nanotechnology refers generally to the engineering or manipulation 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 iscurrently known on the environmental and health impacts ofnanotechnology and associated nanomaterials.

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

Kering follows the precautionary principle and will not use any
nanotechnology applications unless such applications areanalyzed and proved to have no potential impact on humanhealth and the environment, including an evaluation of endof-life impacts. Suppliers are requested to proactively share
information on nanotechnology used in their manufacturing.

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDSProvide Environmental Key
Performance Indicators (e-KPIs)

Implement best available techniquesof textile processing

Kering is monitoring its environmental impact across its
entire supply chain. For that reason, suppliers shall provide
Kering with e-KPIs on their production. This means working
on measuring and monitoring the environmental impacts of
their textile production, including energy and water consumption, water quality and waste production. These e-KPIs shallbe more and more specific, starting as a facility average andmoving to an article-by-article level before 2025. Ideally, thesee-KPIs are verified by a third party. In the future, thresholds on
e-KPIs will be used to qualify suppliers.

Environmental performance is key to a more sustainabletextile industry. At the European level, the Best Available
Techniques (BAT) Reference Document for the Textile
Industry gives a benchmark for environmental performance.

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 get certification at theirproducts and/or processes levels, meaning recognizedcertification at global, regional or national level regarding
sustainability and social responsibility. Certifications
regarding the sourcing of the materials such as GOTS or
Fairtrade are detailed in the Kering Standards for raw
materials (cotton, viscose, etc.). In regards to the process
only, the preferred schemes are BlueSign™ and OEKOTEX STeP™, followed by OEKO TEX Standard100™, Nordic
Swan, Blue Angel and EU Ecolabel. Note that the Kering
Materials Innovation Lab (see BOX 4) can help suppliers inunderstanding the benefits of a certification.
Mills are encouraged to obtain and maintain the following
certifications:• 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

To optimize their environmental performance, textile mills shall:• Measure and monitor environmental impacts
through e-KPIs• Evaluate environmental performance against the BAT
framework and take corrective actions if performance levels
are low compared to BAT Standards (see BOX 1)• For all new equipment ensure that new installations
comply with BAT Standards
Kering also promotes the development of innovative,
disruptive techniques allowing large reductions in the useof energy, water and chemicals. In particular including:• Use of biodegradable or bioeliminable lubricants
and additives, and of enzyme catalysed finishing processes• In bleaching processes use the preferential ozone process
and, if not feasible, hydrogen peroxide with limited useof stabilisers (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 spun dyeing
for cellulosic fibers, low liquor ratio dyeing, etc.
• Use ultrasonic treatments to improve the dispersionof dyestuffs and auxiliaries• Use of plasma technologies• Develop waterless dyeing, using supercritical CO2 as asolvent, and experiment its use for other processes currently
involving the use of perchloroethylene or other solvents87Standards for Manufacturing Processes – Textile Processing

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

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 of benchmarks
and good practices for auxiliary equipment. Kering encourages
mills to enter the Clean by Design program (see BOX 2).
Kering encourages suppliers in installing 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 on waste gas
and water flows

Minimize wastewater and align withhighest 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 the standard
set by Zero Discharge of Hazardous Chemicals (ZDHC) in their
ZDHC Wastewater Guidelines. Please, refer to the Appendix:
Summary of Kering Chemical Management Policy.
Kering encourages suppliers in improving wastewater
management on these three directions by:
4. Reducing the amount of water and chemicals used throughthe process and integrating measures indicated above
5. Improving the effectiveness of wastewater treatment incleaning water from the pollutant load
6. Improving the reuse and recycle of water, towards a fully
circular loop of industrial water and, where possible, also ofadditives (see BOX 3).

Aim for closed loop in textile use:
minimize waste in the production,
use recycled materials and avoid blended
fabrics wherepossible
Kering encourages all efforts to make the continual recyclingof textiles a sustainable reality. This includes:• Decreasing the amount of textile materials wasted during
the different processes of textile production and divert thewaste from landfill• Segregating and reusing the pre-consumer waste as raw
materials for textile products or other product categories
such as fluff, thermal insulating materials, etc.
• Using recycled raw materials such as recycled cashmere,
recycled cotton, etc.
• Discouraging the use of blended fabrics if they are difficult
to recycle• Developing innovative techniques to enable “recapturing”
post-consumer textiles, to then turn them into yarn again to
be spun into new fabric creating a “circular resource model”
for textiles
Kering expects its suppliers to be part of the transitionof the textile industry towards a circular resource model.

Minimize the 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 process that preserve
fiber yarn strength and reduce fiber irregularities• choose washing process that allow to reduce microfiber
leakage (close-loop or microfiber filters)• increase pre-washing and filtering of finished productin the manufacturing plant

Set a Science Based Target
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 World Wide Fund for Nature (WWF).
Through this initiative, companies willing to do their parton contrasting the Climate Change commit to a path of
reduction of their scope 1 and scope 2 emissions, withclear intermediate and final targets aimed at reducing theirgreenhouse gases emissions. The SBTi recently developed
a streamlined pathway for Small and Medium Enterprisesthat fits well with the size of Kering suppliers, and provides
external recognition to the efforts done by suppliers.

88Standards for Manufacturing Processes – Textile Processing

BOX 1: Best Available Technologies in textile plants
Kering encourages suppliers to continue optimizing technologies and techniques they use in order toimprove the process both from an environmental and from the financial point of view, as indicated in
the BAT Standards. In particular 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 2: Clean by Design
The specific aim of Clean by Design (Cbd)is to optimize the auxiliary systems at the premises of Kering’s
suppliers. Results of the program in Italy were excellent: average savings in the mills involved in termsof CO2 emissions were 12%, with some of them saving up to 25%.
Kering started running the Clean by Design program in Italy in cooperation with the US-based NGO
National Resources Defense Council (NRDC) in 2013. The program evolved with time, it was handed
over by NRDC to the Apparel Impact Institute (Aii) and from 2021 it will be run also in Italy as a sector
initiative, with other brands participating like Burberry and Stella McCartney together with Kering, andthe coordination of Aii and the Italian NGO Legambiente as the local partner.
Clean by Design is based on an easy to implement, zero or low cost interventions with short pay- backtime. The program is based on the following 10 best practices, valid worldwide:
1. Measuring energy and water consumption and finding leaks
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 boilers’ 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 on its Italian suppliers, some further measures were found to be implementable such as direct production heat where it is used, improvement of lighting efficiency, electricmotors and HVAC systems optimization and self-production of energy.

89Standards for Manufacturing Processes – Textile Processing

BOX 3: Toward closed-loop water use and zero wastewater discharge
Several water streams can already be reused and recycled (see BOX 2) and the degradability of
specific wastewater streams can be improved by keeping them separated before the dedicatedcleaning processes are applied. This helps to abate their particular polluting load.
The big step forward for the reduction of water needs is the installation of a reverse osmosis
system at the end of the wastewater treatment plant. This transforms most of the wastewaterflow into high quality water, re-feeding the plant to pursue a circular water management scheme.
This intervention, together with the needed accessory technological and management changes
in the plant to make such a system economically and technically viable, allows the reuse ofabout 90% of the process water. Further additional steps may include systems to recover sodium
chloride and sodium sulphate, as well as a large part of the remaining water. The result for theplant will be a huge reduction of its water needs, a sensible decrease in the use of salts andthe virtual elimination of a liquid discharge, the final effluent resulting in a solid mix of salts
and additives used.

BOX 4: The Kering Materials Innovation Lab
The Kering Materials Innovation Lab (MIL) was established in 2013 in Novara, Italy, to be an operational
support to all Kering brands. In 2019 its offices moved to Milan, at the Italian Kering headquarters.
The MIL’s goal is to provide support to promote the integration of more sustainable materials into thebrands’ supply chains, including providing sustainable material options and also information andtechnical support to help the brands and key suppliers understand how to make more sustainablechoices in their products’ development.
The MIL is now providing assistance in coordinating the effective management of sustainable raw
materials across the brand’s supply chain, achieving verification tracking of documents, mapping
suppliers, negotiating cost and switching conventional materials into sustainable.
The MIL focus either externally by communicating the Kering Sustainability strategy to partner
suppliers and internally by partnering closely with counterparts of each of the brand’s teams to provide
direction and technical support in integrating innovative and sustainable materials/technologies.
In addition, the MIL has created and is carrying on a continuously updated library of sustainable andinnovative solutions (textiles, trims, non-wovens, technologies, etc.) . All fabrics have been evaluatedagainst both internal and external sustainability standards.

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BOX 5: Coated fabrics
Coated fabrics are an increasingly important category of materials for Kering, as they are increasingly
used material especially in accessories and shoes. The correct application of the Kering Standards
for these materials see both important current requirements and additional expectations. The fabriccomponent shall satisfy the current requirements and possibly the additional expectations for thefiber(s) it is made of in terms of materials, and what is written in this section for the processing and thefabric itself. As regards the coating component, the most common materials on the market are either
Polyvinylchloride (PVC) or Polyurethane (PU) based. The current requirements involve that:
1. The coating material must be PVC-free
2. Coated fabrics must meet PRSL requirements
3. Used chemical products must meet MRSL requirements;
4. Manufacturing process must have a closed-loop chemical management system, whereby the usedchemicals/solvents are recovered and reused in the production process and are not released in the environment and potentially harm workers.
Beside these mandatory requirements, the general indications provided within the additional expectations translate into these additional recommendations:
1. Prefer products having a high percentage of bio-based components (see Standard for Sustainable
Innovation for Materials and Processes for more information about biobased feedstock)
2. Seek suitable safer alternatives to hazardous chemicals.

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BOX 6: Denim fabrics
Denim is quite important for Kering, and as the denim industry often anticipates trends intechnological development of dyeing and finishing it is strategic to provide some indications,especially as regards additional expectations.
In terms of materials, Kering recommends to choose:• GOTS organic cotton an/or GRS recycled cotton• Recycled or biodegradable elastomer fiber• Blends of cotton with low impact fibers as hemp, linen, tencel, kapok
As regards yarn dyeing, Kering recommends to choose fabrics dyed through highly water-efficienttechnologies, which are able to reduce water use by 90% compared to traditional indigo dyeing,also providing significant reduction of energy use, waste and wastewater and eliminating the
problem of residues of aniline and other chemicals from the fabric.
As regards finishing, Kering recommends the adoption of emerging techniques able to reduceenergy, water and chemicals use. These include:
1. Laser use for producing color effects and wear effects. These machines allow avoiding the use ofpermanganate, of stone wash and the use of large water quantities substituting traditional techniques
2. Ozone use for discoloration. This allows the attainment of interesting wear and color effects
decreasing water use and avoiding permanganate and other bleaching agents
3. Spray dyeing. This technique allows reducing by 90-95% the use of water for dyeing finishedgarments, with subsequent large savings of energy (water used in conventionally dyeing is hot)
Kering is aware that these emerging techniques cannot reproduce every possible effect attainablewith traditional techniques, but they can reproduce several of them and can also be used toobtain completely new effects and features.

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Standards for Manufacturing Processes

LEATHER GOODS& SHOE MANUFACTURING

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Standards for Manufacturing Processes – Leather Goods & Shoe Manufacturing

Kering brands’ production of leather goods and shoes requires highly specialized craftsmanship and manufacturing
is largely concentrated in Italy. The majority of the environmental impact of leather production is at the sourcing andtanning steps, and the production of shoes and leather goods can give rise to waste streams. The management ofthese waste streams, especially in regards to 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 not as much of a challenge as compared to other industry segments. However, sinceenergy is mostly used for lighting and heating, ventilation, and air conditioning (HVAC) systems, inefficiencies andimprovement margins are often significant. To this end, Kering encourages its suppliers to improve their practices inbuilding construction, renovation and operations and provide Kering with e-KPIs. Also, at the final processing step,
Kering promotes traceability, compliance and sustainability certification schemes of products, processes and suppliers.
Safety and health issues in the shoe industry can be extensive and require consistent management of risks to ensure
the safety of workers in the supply chain. The number of steps and machines involved in the manufacturing of shoes
increase the likelihood of exposure to chemicals and excessive noise as well dangerous substances.

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 for tanning.

In summary, the key principles
that underpin the Kering Standard
for leather goods and shoe
manufacturing are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment
as set out in the Suppliers’ Charter ofthe Kering Code of Ethics• Reducing the use of potentiallyhazardous chemicals and avoiding
hazardous chemicals for whichalternatives have been identified• Adopting occupational healthand safety best practices for employees• Improving energy and water
efficiency levels, and being able tomeasure them throughout the process• Promoting recycling and upcycling ofwaste and residues• Implementing certifications

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Standards for Manufacturing Processes – Leather Goods & Shoe Manufacturing

MINIMUM REQUIREMENTS

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

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships.

Comply with Kering Product Restricted
Substances List (PRSL)
Compliance with Kering’s PRSL is requested for all finishedleather 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 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. Moreinformation is available in Appendix: Summary of Kering
Chemical Management Policy.

To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its Houses maintain contractual relationships. Kering
expects therefore its direct suppliers to refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 linewith International Standards. The audits are conducted by
the Kering Supply Chain Audit Team (KSCA) at Kering brands’
suppliers. These audits in addition 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 oraddress non-compliances in a reasonable timeframe. Moreinformation is available in Appendix Social Compliance andEnforcement of the Kering Code of Ethics in Supply Chain.

Comply with Kering Manufacturing
Restricted Substances List (MRSL)
Kering is committed to ensuring all hazardous chemicals
have been phased out and eliminated from its production
by 2020. To this end, Kering has adopted a Manufacturing
Restricted Substances List (MRSL). By January 2020, thesupplier shall make sure that the chemicals listed in the MRSL
are not intentionally used in the different process steps of the
production, should this process step be taking place at the
supplier’s location or upstream in the supply chain.
In particular for leather goods and shoe manufacturers themain recommendations are:• Making sure the MRSL is respected upwards inthe 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 with chemical
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 make surethat they comply with the Kering MRSL

95

Standards for Manufacturing Processes – Leather Goods & Shoe Manufacturing

MINIMUM REQUIREMENTS

Do not use leather coming fromunknown tanneries
Kering aims at having 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 to progress stepby step towards more transparency. For that reason, Kering
brands shall not purchase tanned skins from traders unable orunwilling to disclose where the skins are sourced. In case thetrader/tannery manages skins from different origins and does
not keep internal traceability, the very minimum requirement
is to have a balance of the origins (i.e. 70% Country A, 20%
Country B, 10% Country C).

Do not use PVC in Kering’s brands’
products or packaging
PVC poses potential environmental and health threats because of the chlorine containing by-products (e.g. dioxins) thatare produced during the manufacturing of PVC and burningof products that contain PVC. Chlorine by-products are carcinogenic and extremely dangerous to human health and theenvironment, and to wildlife more broadly. Because of theserisks, Kering has had a public target since 2012 of eliminating
PVC from collections and products.

96Standards for Manufacturing Processes – Leather Goods & Shoe Manufacturing

ADDITIONAL CONDITIONS TO MEET KERING STANDARDSProvide 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 on their production. This means measuring andmonitoring the environmental impacts of their facilities,
including energy and water consumption, water quality andwaste production. These e-KPIs shall be more and more
specific, starting as a facility average and moving to an articleby-article level before 2025. Ideally, these e-KPIs are verified
by a third party. In the future, thresholds on e-KPIs will be used
to qualify suppliers.

Implement best practices
The most important environmental impact in leather goods
and shoe making is related to waste production. Energy usethat is typical of domestic activities where heating, cooling,
ventilation and lighting are used is more impactful thanprocess machinery energy use. Water use is also very limited,
and limited to non-manufacturing uses.
Thus, the highest care shall be put into waste management
as the production of leather goods and shoes can poseenvironmental concerns when not properly managed.
The largest amount of waste are materials that can besegregated and recycled. In particular, clean leather scrap(unpolluted by glues and uncoupled from other materials)
should be collected separately and recycled for bonded
leather production; whereas, pure textile, plastic or rubber
waste streams should be recycled in the same supply chain.
Several other waste streams can be used as fuels in specificapplications (metal processing, cement production, etc.)
Suppliers with high qualitative and quantitative recycling
rates will be preferred. See BOX 1: Leather Scrap Recycling.
At the 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 with ISO 14001 certification,an energy management system with ISO 50001 certification,a health and safety management system with ISO 45001
certification and SA8000 certification for social responsibility.

Set a Science Based Target
Suppliers are invited to adhere to the Science Based Targets
initiative (SBTi) initiative a partnership between CDP, theUnited Nations Global Compact, World Resources Institute(WRI) and the World Wide Fund for Nature (WWF). Through thisinitiative, companies willing to do their part on contrasting the
Climate Change commit to a path of reduction of their scope 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 Smalland Medium Enterprises that fits well with the size of Kering
suppliers, and provides external recognition to the efforts
done by suppliers.

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Standards for Manufacturing Processes – Leather Goods & Shoe Manufacturing

BOX 1: Recovery of leather scraps• Sent to municipal, urban waste landfills• Sent to industrial landfills• Recycled for fertilizer production• 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 scrap for producing a
new material, such as regenerated leather, appears to be the best solution in environmental terms. Thissolution has some limits since it cannot be applied for all types of scraps, but it allows the conversion ofwaste into a product that already has a market and use. Thus, Kering encourages leather cutting centers,
leather goods makers and shoe factories to implement this solution preferentially. Note that chromefree
tanning makes leather waste easier to deal with because in most cases it allows the management of thiswaste as an ordinary organic material.

98

STANDARDSFOR NONMERCHANDISING
99

Standards for Non-Merchandising

PACKAGING

100

Standards for Non-Merchandising – Packaging

Packaging, which is largely single use, seriously contributes to global waste. This pollution can be visible, like the plastic
that washes up on ocean shores, or it can be invisible, for example airborne microplastics. Additionally, the majority of
packaging is not recycled even if it is technically recyclable. This can cause detrimental impacts, not only in its disposal
but also in its production and the extraction of natural resources used to make packaging.
Through the Fashion Pact, Kering committed to significantly reducing the negative impacts that it has on the ocean
environment, in collaboration with other existing leading initiatives. These impacts can be linked to packaging and,accordingly, Kering committed to targets: (i) eliminate single use plastic in B2C packaging by 2025 and in B2B packaging
by 2030 and (ii) to ensure that at least 50% of all plastic packing we use in B2C and B2B packaging is 100% recycledcontent by 2025 and 2030 respectively.
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 basically anythingthat 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 client with the
product, and B2B packaging for all other types of intermediary
packaging used during the preparation and logistics.
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 beread in conjunction with Kering’s standards for raw materials
which provide comprehensive details on packaging(see Kering Standard for Plastics, Kering Standard for Woodand Paper, Kering Standard for Cotton, etc.)

In summary, the key principles
that underpin the Kering Standards
for packaging are:• Complying with all applicable laws,
conventions and regulations• Reducing unnecessary packaging• Optimising volumes of packaging
to product volume• Designing for reuse or repurpose,and consider recycling as a last option• Avoiding plastics and preferring
more natural materials, such as certified
paper/cardboard or organic cotton• Phasing out single-use plastics

101

Standards for Non-Merchandising – Packaging

MINIMUM REQUIREMENTS

Comply with Kering Product Restricted
Substances List (PRSL)Use less packaging and improvesaturation of cartons

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

Kering brands are encouraged to discuss with print vendors
to develop more efficient designs, including reducing or eveneliminating constituents of components. Together they shallassess to what extent packaging is necessary for product protection, and measure and manage the package-to-productratio and the carton efficiency.
When designing primary packaging, make best efforts to optimize
the saturation and avoid oversized boxes to reduce useless voids,
thus enabling more efficient packing operations for shipping.
See BOX 2: Design tips for more sustainable packaging for recommendations on how to optimize packaging.

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

Do not use PVC in packaging
PVC poses potential environmental and health threats because of the chlorine containing by-products (e.g. dioxins) thatare produced during the manufacturing of PVC and burningof products that contain PVC. Chlorine by-products are carcinogenic and extremely dangerous to human health and theenvironment, and to wildlife more broadly. Because of theserisks, Kering has eliminated PVC from collections and products.

Review the packaging flow
Most efficient packaging reduction is usually achieved byreviewing the use of packaging alongside the product life,
from production to distribution and reducing the number ofintermediary packaging.
In particular, Kering brands shall review the process of the quality
check (for make and buy production) in order to reduce the amountof waste generated with unpacking and repacking activities.

Design for reuse or repurposing andconsider recycling as a last option
Packaging must be designed while taking into account its end-oflife. Preference is given first to reuse (use again for the same purpose) and repurpose (use again for a different purpose). If these
two options are not possible, the last option can be designing forrecycling (converting waste into reusable material). Recyclability
depends on packaging characteristics, which may include shape,
dimensions, color, weight, and finishing treatment.
See BOX 2: Design tips for more sustainable packaging for recommendations on these topics.

Where possible, use natural materials
instead of plastics
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. As a whole, packaging uses plastics
too much and by default. This is increasing awareness that thismust change and as companies are unable to monitor whereplastic packaging may end up, and as it takes a very long time
to degrade and decompose, there is also a risk that discarded
plastic packaging pollutes soil or oceans.
For these reasons, use natural materials such as certified cardboards, paper or organic cotton instead of plastics wherever
possible. For these materials, refer to the section Kering Standards for Raw Materials.

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Standards for Non-Merchandising – Packaging

MINIMUM REQUIREMENTS

For paper and cardboard, only use
recycled or certified content

Use only recycled plastics for B2B plastic
hanger, garment covers and polybags

Whether it is for B2B packaging (logistic boxes, velinas, …) or
B2C packaging (retail bags), all cardboard and paper used shallfollow the minimum requirements of the Kering Standard forPaper and Wood with the exception of B2B packaging for ecommerce with external courier who have until 2025 to adhere to
this requirement.

B2B hangers are used during transport and warehousing of
the garment. Recycled B2B hangers can be easily found more
and more in the market and Kering requires that they are usedin every region of the world where it is possible. Furthermore,
avoid using hangers that are covered with velvet, as these prevent easy recycling.

Ensure proper packaging waste sorting
and recycling at all stages of logistics

Similarly, garment covers and polybags are used during transport and warehousing of the garment and Kering requires thatthey are made of recycled plastics in every region of the world
where it is possible.

At all points of product logistics, from supplier production,
through warehouse and including the store, there shall be inplace a sorting system for packaging. Additionally, all sorted
packaging shall be directed to reuse or recycling stream.

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Standards for Non-Merchandising – Packaging

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Phasing out single-use plastics
in packaging
Within the framework of the Fashion Pact, Kering committed
to eliminate single-use plastic in B2C packaging by 2025 andin B2B packaging by 2030.
In 2020 and 2021, the Fashion Pact will provide more details
about this commitment and find collaborative solutions forthe fashion industry.

Change packaging flow for single
end-to-end packaging system
By 2025, Kering expects to find a solution for a single end-toend packaging system. From manufacturer to warehouse, to
distribution, to collectors, packaging shall be reduced to a single end-to-end packaging system, thus drastically reducing theamount of packaging needed along the way.

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Standards for Non-Merchandising – Packaging

BOX 1: Types of packaging
A glossary of wording used for different categories of packaging.
B2B packaging and B2C packaging• B2B packaging: this is the transport packaging, or logistics packaging. It includes
cardboardtransport boxes, plastic films, polybags, hangers, and any protective items• B2C packaging: this is the customer/client packaging. It includes of shopping bags, luxury boxes,
suit covers, watch boxes, shoe boxes, etc.
Primary, secondary and tertiary packaging• Primary packaging: this is the container that closely holds the products, in direct contact withthe product itself, often referred to as “retail packaging.” Its main goals are to protect the productand inform or attract a customer• Secondary packaging: this is the outer wrapping used to group a certain number of products
to create a stock-keeping unit (SKU) and to ship products already in primary packaging. This
packaging also assists in displaying, storing, protecting products and providing branding during
shipping. Primary and secondary packaging sometimes overlap• 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
product’s environmental footprint. Changing primary packaging can heavily impact on secondary
and tertiary 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
not overcompensated for by an increase in another component.

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Standards for Non-Merchandising – Packaging

BOX 2: Packaging Circular Design – 4R

1

ReduceEliminate PVC, unnecessary packaging,
single-use plastics packaging (B2C by
2025, B2B by 2030)
Prefer the use of natural materials

2

Reuse

Design for reuse or repurposing

3

RecycleDesign for recycling
Ensure packaging waste sorting andrecycling at all stages

Close the loop

Post
consumerRe-integrate

100% of recycled, or certified, biobased
content
For B2B plastic hangers/gament covers/
polybags, only use recycled plastics

Generated by households or by commercial, 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 is of lower quality thanpre-consumer material.

Preconsumer

External - Production scrap from another industrial facility
Internal - Production scrap from our own facilities. In this case,
it is not possible to claim about a recycled content because itis excluded from ISO 14021.

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Standards for Non-Merchandising – Packaging

BOX 3: Design tips for more sustainable packaging
Design tips for hangers• Use hangers made of recycled plastic• Avoid, if possible, the use of logo or iconic patterns to make reuse or recycling easier• Avoid “seasonality”: customers won’t see these hangers, so try to design them neutral
and keep using them for several seasons• Avoid the use of velvet to help recyclability. Encourage monomaterial solutions,through checkering or friction surface on shoulders• Prefer suppliers with a widespread collection system of used hangers for reuse or recycling
Design tips for paper/cardboard• Reuse corrugated cartons several times• Use recycled or certified content (FSC, Blue Angel)• Avoid colored paper packaging in pulp as this significantly reduces the chance of recycling
due to the very low quality of the secondary raw material that has no request on the market• Prefer light colors that allow higher quality secondary raw material when recycled• Exploit monomaterial solutions and try to avoid mixing paper with other materials,(e.g. avoid textile handles for shoppers, especially if synthetic)• Do not laminate paper packaging, this will prevent any chance to recycle
Design tips for plastic packaging• Reduce the quantity of plastic in terms of both dimensions and thickness• Increase recycled content• Think about the end-of-life when designing, prefer recyclable plastics and be sure that proper
local collection schemes are widely spread and available• Promote recyclability through mono-material packaging• Limit inks and stickers at minimum to grant a high quality secondary raw material when recycling• If there is a desire to introduce bio-based content, prefer Biomass or Waste Based or Biotech
Based, or any food-non competitive material• Keep updated with innovations, startups and new market opportunities that are quickly
developing to discover alternative materials and phase out plastics
Other design tips
• Default to paper tape for sealing boxes, use vinyl tape only when necessary.
Prefer machineries that enable box sealing with paper tape
• Prefer size of packaging adapted to the outside boxes to ensure a perfect fit and to avoid
unnecessary fillers to stabilize the branded box during the transport. In particular, design primary
packaging optimizing the saturation, not oversized, to reduce useless voids and optimize thepacking during shipping• Prefer water-based or vegetal-based inks, as opposed to petroleum-based or metallic inks
as they emit less VOCs and contain less controversial substanceMore design tips can be found here: https://www.rei.com/stewardship/rei-sustainable-packaging-guidelines.pdf

107Standards for Non-Merchandising

VISUAL TOOLS108

Standards for Non-Merchandising – Visual Tools

Visual tools, also referred to as “visual merchandising”, are important components for brand identity and also for thecustomer in-store. They are often temporary decorations available to display products, as well used during one orseveral seasons before being replaced by new ones. In this regard, the disposability of visual tools is not fundamentally
sustainable. Visual tools can also encompass advertising banners and canvas that are displayed in different locations
around a city and they can also include retail store windows, showcasing items for sale or otherwise designed to attract. While Kering recognizes the need for visual tools to reinforce brand platforms and store identities, 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 purchase display
Seasonal displays
Event decorations
Advertising banners/canvas
Etc.

The Kering Standard for Visual Tools is focused on the design
and use of visual tools. It should be read in conjunction with
Kering’s standards for raw materials that cover the details
for materials used to make visual tools (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 visual tools are:• Complying with all applicable laws,
conventions and regulations• Rethinking visual merchandising
to improve disposability and enhance
circularity• Promote circular design by designing
for reuse or repurpose and consider
recycling as a last option
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Standards for Non-Merchandising – Visual Tools

MINIMUM REQUIREMENTS

Review visual merchandising approach

Design for dismantling and anonymizing

Most efficient reduction of the environmental impact of visual
tools can be achieved by reviewing the visual merchandising
approach and questioning the necessity for temporary / disposable items.
In particular, brands shall work with store/event designers onthese questions and consider:

Visual tools that can be easily dismantled and anonymized (i.e.
where it is not possible anymore to recognize the brand) canbe more likely given a second life.

- Favoring rented equipment that can be restored
and reused afterwards 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,

Use best effort to give a second life to oldvisual tools in good conditions by sellingor donating
Disposal of visual tools that are still in good conditions shallbe avoided by all means.
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 describedin BOX 1: Giving a second life to Visual Tools
3. Dismantle and recycle the parts

Follow Kering minimum requirements
on raw materials used for visual tools
When choosing materials for visual tools, refer to the relevant
sections of the Kering Standards (ex: plastics, wood, cotton)and follow the minimum requirements.

Therefore, brands are encouraged to do so by:– Having removable logos on visual tools– Thinking through the dismantling of the item right from thedesign phase

Use best efforts to avoid PVC
PVC poses potential environmental and health threats because of the chlorine containing by-products (e.g. dioxins) thatare produced during the manufacturing of PVC and burning ofproducts that contain PVC. Chlorine by-products are carcinogenic and dangerous to human health and the environment,
and to wildlife more broadly. Because of these risks, Keringbanned PVC from collections and products.
Kering aims at phasing out PVC from visual tools by 2025 andis willing to work with partners on finding alternative materials.

110Standards for Non-Merchandising – Visual Tools

ADDITIONAL CONDITIONS TO MEET KERING STANDARDSFollow Kering additional conditions
on raw materials used for visual tools
When choosing materials for visual tools, refer to the relevant sections of the Kering Standards (ex: Plastics, Wood, Cotton) and follow
the minimum requirements and the additional conditions.

Do not use PVC in visual tools
As explained in the “minimum requirements” section of the Standard, Kering aims at phasing out PVC from visual tools by 2025.
In particular, Kering expects suppliers of advertising banners/
canvas to work on innovative solutions for replacement of PVC.

Give a second life to all visual tools
Disposal of visual tools will not be accepted by 2025. All visual
tools should be given a second life or should be easily disassembled and redirected to recycling channels of materials.
Kering will take great care to enable second life of visual tools
without encouraging the grey market.

Consider single-material additive
manufacturing for producing
visual tools
Additive manufacturing provides excellent opportunities for
producing small bacthes of items, such as for many visual
tools, moreover production happens with a single material,
potentially for recycled plastics and very often easily recyclable after the item is no longer needed. The use of 3D printing
is therefore recommended.

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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 andthen by selling/donating to internal private sales. A third possibility for their second life is throughdonating to partners, such as to organizations specializing in the circular economy. Outlined below are
examples of partners as such:• La Reserve des Arts: located in Paris and Marseille, France• 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 and local associations could also be interested in non-merchandisingelements (benches, chairs, shelves).

112

STANDARDSFOR LOGISTICS
113

Standards for Logistics

WAREHOUSING

114

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, orother direct suppliers managing these activities and their sub-suppliers 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 for several 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 the Group level, logistics are directly responsible for morethan 86% of the waste produced at Kering sites, and indirectly responsible for the majority of the waste generated atstores. This waste is largely related to packaging, with another minor, but important, stream related to not yet soldproducts, which are typically stored in warehouses before being moved to their final destination. Greenhouse gas
emissions and air pollution from warehouses are significant, especially at the local level where logistic centers areprimary 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 also relatively limited but they
can be significantly reduced as well.

The Kering Standard for Warehousing applies toall warehousing activities directly operated by Kering,by any direct supplier of Kering and any of theirsub-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:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the 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

115

Standards for Logistics – Warehousing

MINIMUM REQUIREMENTS

Comply with national legislation
It is legally mandated that logistic companies working with Kering strictly comply with national and local legislation, in particular with regard to the environment as well as health, safety
and welfare of permanent and occasional workers at the facility.

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships.
To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its Houses maintain contractual relationships. Kering
expects its direct suppliers to therefore refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 respect and ensure good working conditions for workers in its supply chains. This applies for warehousing activities, too, where suppliers are requested to ensurehigh standards of well-being at work in terms of ergonomics,
proper shift duration, appropriate number of breaks and a safeand healthy working environment. Certification frameworks
regarding organizations 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 as a minimum requirement but provide
a solid reference framework for ensuring workers’ wellbeing.

Contribute proactively in the realizationof the Group sustainability strategy,
defining clear objectives for warehousing
activities
The requirements for the Kering Standard for Warehouses apply toall 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 in challenging
waste production reductions, recycling and reuse targets andis requested to contribute proactively in the building of thesustainability strategy, proposing an effective 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 andenergy use that enable Kering to calculate the carbon footprint.

Phase out single-use plastics
Following to Kering’s public commitment to the Fashion Pactaround eliminating single-use plastics, the Group is working toeliminate any unnecessary single-use plastics in its B2B packaging by 2030, and B2C packaging by 2025. Additionally, Kering
is committed to using and increasing the recycled content forplastics as much as possible (at least 50% of all plastic packaging is 100% recycled content in B2C by 2025 and in B2B by
2030). A phase-out plan should be put in place by suppliers.
Suppliers are therefore required to avoid single-use plastic
packaging during the handling of Kering brands’ associatedtransportation of products and to prefer multiuse solutions or
non-plastic, which facilitates recycled materials easier.

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MINIMUM REQUIREMENTS

Implement a circular waste
management system

Comply with the Kering Standard
for packaging

The circular economy is the basis of the development modelthat Kering is aiming for. Suppliers are therefore requested to
implement a proper waste management system in order toenable separate collections of all the different materials thatare disposed and to divert them to the correct recycling channels, according to suppliers’ local regulations and the infrastructure set up for recycling. Non-recyclable materials shallbe avoided or substituted with recyclable ones with a detailed
substitution plan.

Suppliers are recommended to consider a life cycle approachfor packaging and, at the same time, to preserve the mandatory mechanical and technical characteristics that can grantboth security and a standard of quality for the operations. The
Kering Standard for packaging must always be the reference
when engineering or purchasing tertiary, secondary or primary
packaging. With reference to consumables and packaging, suppliers are expected to act in accordance with the 5R hierarchy:• Remove what is unnecessary• Reduce the exceeding quantity, weight, thickness or volume• Reuse what is already available and promote the adoptionof reusable items• Recycle through an appropriate separate collection
system and choose materials that can be easily recycled• Reintegrate incrementing recycled content, aiming toclose the loop and make waste become a resource

Utmost care shall be taken in reconditioning areas and quality control stations when handling plastic packaging waste,in particular for polybags and covers. Several solutions canbe implemented to eliminate unnecessary and problematic/
single-use plastic packaging:• Challenge the functionality of the packaging, andeliminate if unnecessary• Develop a closed-loop recycling model that involves bothrecycling companies and suppliers. For the time being, the targetof 80% waste diverted to recycling is the minimum requirement• Introduction of multi-use solutions

Adopt sustainable cleaning initiatives
for obsolete items
Obsolete items of both merchandise and non-merchandise
stocked in warehouses must be carefully taken under control
and specific cleaning initiatives implemented in order to virtuously manage their end-of-life. Actions shall be put in placein accordance to a hierarchy that prioritizes reuse first (internal sales, resale platforms, sales to stock lists, donations) andthen recycling. As far as recycling is concerned, processes must
keep the value of the material as much as possible. Upcycling/
remaking are therefore to be preferred to recycling, and downcyling must be considered as the last option. When recycling
or downcycling, closed loop or semi-closed loop approaches
are to be considered.
(See Kering Standard for End-of-Life)See the Kering Standard for Packaging.

Design and operate sustainablelogistic sites
In 2021, Kering will issue detailed guidelines to be followed for
new logistic projects directly managed and operated by theGroup. This will build on the experience gained on the realization of the new Wayne and Trecate logistic hubs of the Group.
Aside from optimized packaging and waste reduction, reuse
and recycling, it is recommended that all warehouses maketheir best efforts in reducing 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 LEEDor equivalent for new developments or renovations,targeting a high rating• Implement energy efficient equipment and management
practices• Use solar energy, covering roofs and parking lotswith PV systems• Develop new sites on brownfield areas• Phase out boilers, switching 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

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MINIMUM REQUIREMENTS

Ban idlingInternal combustion engine use is the main source of both air
pollution and greenhouse gas emissions in logistic operations.
Logistic centers are the source and/or destination of logistic
flows and are a concentration of vehicles, and thus pollution.
Banning idling and leaving vehicles with the engine runningduring 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 specific awareness (including posts) and control program on the site.

Provide Environmental Key
Performance Indicators (e-KPIs)
Kering closely monitors its environmental impacts across its
supply chain on an annual basis. For this reason, suppliers shallprovide Kering with e-KPIs specific to their activities including periodical environmental reporting to comply with andcontribute to the Group’s legal requirements of non-financial
accounting (see BOX 1: Environmental Reporting List of KPIs).

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 is set to increase in the future andwill become a more prominent part of distribution channels,
sustainable solutions for e-commerce operations are to becontinuously sought and developed. Kering and its brands’ suppliers need to keep a flexible and open mindset with regards
to disruptive activities in logistics, such as reverse logistics andreusable packaging.

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Achieve zero waste production
in logistics
Implement a circular waste management system with the aim
to become zero-waste and achieving medium term targets of
95% by 2025 and 100% by 2030 for zero waste production inlogistic 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

Aim for best certification schemes
Suppliers are encouraged to have a recognized certification
for their processes at global, regional or national levels regarding sustainability and social responsibility. Assessment by athird party of the supplier and/or of the product is preferred toself-assessments or self-declarations. The ISO 14001 certification scheme is recognized as a clear added value and guarantees the implementation 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 arehighly recommended. In regard to buildings, it is encouraged
to achieve LEED Certification with a Gold or Platinum rating.

Be single-use plastic free
By 2030, Kering aims to have phased-out single-use plastics fromits own operations and supply chains wherever possible. Kering
is currently developing definitions, KPIs and roadmaps for this.
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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 a 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 net [kWh]Light fuel consumption - Warehouses [m3 light fuel]Purchase costs for light fuel - VAT and taxes excluded [EUR converted by the tool from local value]
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 toolfrom local value]
People transport
Is the fuel consumption of the pool cars available?
Average emission factor of the pool cars [g CO2e/T.km]
Gasoline consumption of the pool cars [l]Diesel fuel consumption of the pool cars [l]120Standards for Logistics – Transportation

TRANSPORTATION

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Standards for Logistics – Transportation

The Kering Standard for transportation applies to the transportation of goods, either B2B or B2C, directly managed orcontracted by Kering. Due to the typical speed requirements for delivery in the Luxury sector, the majority of transportation activities are carried out by flight, 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. As an
example, in 2020, 81% of the emissions generated by the Group’s operations were due to transportation activities,
including emissions directly or indirectly from the Group’s direct operations and related to energy consumption fromthe Group’s sites and from B2B and B2C transportation. 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 types of transportation used for the Group’s activities include mainly air (majority in Europe) and road freight (Europe)and marginally related to rail and sea freight, due to geographical and timing constraints. Around 60% of Kering’s volumes
are distributed by road freight, however approximately 95% of the emissions linked to transportation are related to air freight
distribution and, consequently, this is where Kering is focusing its main efforts. However, even though the Group’s emissions
caused by road freight are limited, it is important to highlight that this is mainly concentrated in city centers. As a rule ofthumb, the last mile in deliveries requires particular care as this is linked to negative 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 in alignment with a
1.5° pathway and in line with the Paris Agreement. 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 andthe related processes) by 70% per unit of value added by 2030, from a 2015 base year. Particular attention must be dedicatedto Kering’s transportation strategy whereby synergy with Kering’s suppliers is key. Adequate emissions reduction planning isnecessary and the 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 related
shipments from various consolidation centres to central
distribution centres; the distribution from central to regional
warehouses; the last mile deliveries to stores and to final
customers; and the intercompany and reverse flows related
to returns for both B2B and B2C, including e-commerce.

In summary, the key principles
that underpin the Kering Standard
for Transportation are:• Complying with all national and international laws, principles and regulation
notably related to human rights, fundamental freedom, health and safety and theenvironment as set out in the Suppliers’
Charter of the Kering 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 means andpromoting model shifts• Developing sustainable initiatives

122Standards for Logistics – Transportation

MINIMUM REQUIREMENTS

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

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships. To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its brands maintain contractual relationships. Kering
expects therefore that its direct suppliers refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 resting breaktimes are strictly respected for drivers and that workers forurban deliveries are permanently employed by contractors
or benefit from the same social rights and benefits aspermanent employees in the same country.

Contribute proactively to the realizationof the Group sustainability strategy,
defining a clear roadmap for GHG
reductions related to transportation
As a prerequisite for collaboration, any forwarder is expected
to be able to engage in challenging emissions reduction targets
according to the Group’s commitments and is requested to contribute proactively to the building of the sustainability strategy.
This includes: proposing an effective CO2e reduction plan; adopting initiatives aimed at increasing optimization and efficiency;
shifting to more sustainable fuels; and using electric vehicles andmeans of transportation. Suppliers are also requested to contribute to the Group’s annual environmental reporting, sharing a periodical greenhouse gas emission report as per the international
standard EN16258, or in line with the regulations.

The requirements for the Kering Standard for Transportation
applies to all couriers and forwarders in charge of all Kering
shipments related to both B2B and B2C distribution (seeBOX 1), except for outbound or reverse shipments for indirect
customers with ex-works delivery terms.

Phase out single-use plastics
Following Kering’s public commitment to the Fashion Pactaround eliminating single-use plastics, the Group is working
to eliminate any unnecessary single-use plastics in its B2B
packaging by 2030 and B2C packaging by 2025. Additionally,
Kering is committed to using and increasing the recycled content for plastics as much as possible (at least 50% of all plastic
packaging is 100% recycled content in B2C by 2025 and in B2B
by 2030). A phase-out plan should be put in place by suppliers.
Suppliers are therefore required to avoid single-use plastic
packaging during the handling of Kering brands’ associatedtransportation of products and to prefer multiuse solutions or
non-plastic, which facilitates recycled materials easier.
123

Lower GHG emissions selecting best
options in daily activities
Couriers and forwarders are requested to identify and select thebest solutions available on the market. In particular, they are
asked to choose the best performing means of transportation
with the lowest emissions generated (threshold for airplanes:
600 gCO2/t.km; threshold for trucks and vans: EURO 6 or equivalent) and to reduce the distances for each delivery as much as
possible to limit CO2e emissions.
The suppliers are expected to periodically re-assess together
with Kering their environmental performance in terms of theirselection of their means of transportation, identification of thebest available routing and average emissions generated, withparticular attention to airfreight.

Standards for Logistics – Transportation

MINIMUM REQUIREMENTS

Review distribution model approachAn effective way to reduce CO2e emissions from transportation
can be achieved with the Kering brands by reviewing the distribution model and highlighting the environmental impacts tothe individuals driving the decision-making process.
In particular, Kering brands shall prefer greener solutions foritems for which the delivery time is not critical, preferring sea
and rail freight distribution when possible. The same approachis highly recommended for reverse logistics and should be taken
into consideration for slow movers and/or carry-over items.

Provide Environmental Key
Performance Indicators (e-KPIs)
Kering requests that suppliers provide a periodic carbon footprint report as per international standard EN16258 and in linewith the regulation (see BOX 2) in order to monitor and analyze
the CO2e emissions related to the distribution flows and to takerelevant actions when trends are not in line with Kering’s set
targets. On an annual basis, this data will feed into the Group’s
environmental reporting and contribute to the fulfillment of
the Group’s legal requirements for non-financial accounting.

Offer green last mile deliveries
The last mile deliveries to stores for B2B or to the final customer for B2C can often be affected by constraints and restrictions (e.g. extra traffic in densely populated areas, limited traffic
zones) relevant to the urban areas where they take place. In
order to contribute to improve the conditions of urban areasand communities, reduce negative externalities and overcome
restrictions that can limit the quality and the timeliness of theservice, the suppliers are highly recommended to put in placea green delivery service with electric vehicles and other greener
alternatives whenever it is possible.

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Achieve measurable emissions
reductions and compensation
Whereas defining a roadmap for GHG accounting and reductions
is a minimum requirement for all Kering’s transportation activities and services, achieving measurable reductions or properly
compensating for emissions will be an additional condition thatwill be gradually targeted, with the below order of priority:
1. Avoiding and reducing emissions, through optimization ofroutes, electrification of transportation, model shifts, increaseof fuel efficiency for trucks and airplanes
2. Innovation around ways of avoiding and reducing emissions,such as rolling out Sustainable Aviation Fuels programmes
3. Compensating “hard to abate” emissions through robust
initiatives to be reviewed by Kering to evaluate if they alignwith its standards.

Propose new technologies and businessmodels aimed at reducing environmental
impacts

Aim for best certification schemes
Suppliers are encouraged to have a recognized certification of
their processes at global, regional or national level regarding sustainability and social responsibility. Assessment by a third partyof the supplier 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 the implementation 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 forsocial responsibility are highly recommended.

Be single-use plastic free
By 2030, Kering aims to have phased-out single-use plastics fromits own operations and supply chains wherever possible. Kering
is currently developing definitions, KPIs and roadmaps for this.

125

Suppliers are requested not only to implement the best available options for traditional logistics services but are asked tobe more disruptive and identify alternative transport solutions
and business models. Innovation is a key lever, in particular
for the Group’s omnichannel strategy. Couriers and forwarders
are expected to manage an agile business able to satisfy theneeds of customers particularly attentive to the environment.
The proposal of a customized sustainable service, especiallyfor e-commerce, offering full visibility for the different 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 hugely added-value. Additionally, business intelligence technologies and digital infrastructures, suchas electronic proof of delivery and intelligent consolidation oforders to reduce the number of deliveries or route optimization, are fundamental to quickly respond to the opportunitiesof the 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) to test and eventually implement at larger scale.

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 to be managed are
significantly high and can involve a large number of pallets and parcels. When talking about B2B
distribution, the Group refers to the flows aimed at the replenishment of its stores with the products
needed for day-to-day business.
B2C (business-to-consumer)
In B2C, orders will go directly to the end customer. This usually consists of small quantities and single parcels.
B2C distribution corresponds therefore to the flows related to e-commerce that allow the delivery of thegoods directly to the final customers in accordance to their order requests and the selected delivery services.
B2B

B2C

Inbound

From suppliers/consolidation centres to central
warehouses

Outbound

From central warehouses to regional warehouses

Last mile

From regional
warehouses to door(= stores)

Intercompany

From store to store

ReverseFrom stores/regional
warehouses to central
warehouses

From regional
warehouses/stores todoor (= final customer)

From final customer
to store/regional
warehouse

Omnichannel
The growth of the e-commerce business has led to a convergence of B2B and B2C traffic into
omnichannel supply chains. Omnichannel is a sales approach driven by consumer demand forenhanced convenience and online and offline shopping experiences where the borders between
the real and the digital world blur. An omnichannel strategy implies a synergetic approach withmultiple 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 fromstores) to satisfy the new dynamic customer and their needs.

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BOX 2: Carbon footprint reporting

In order to promote standardized, accurate, credible and verifiable declarations and effectively
contribute to the Group’s environmental reporting, Kering refers to the EN 16258 standard which
establishes a common methodology for the calculation and declaration of energy consumption and
GHG emissions related to any transport service of freight, passengers 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 at least, for each single shipment and its relevant legs of travel, information on
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 and delivery), 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 transportation services suppliers.

127

STANDARDS FOR
END-OF-LIFE
128

Standard for End-of-Life

A significant amount of the environmental impacts linked to the fashion sector are associated with a product’s end-oflife, including scraps and unsold products, as well as the proliferation of microfibers in nature. Building in more effective
ways to extend the life of products from design and manufacturing to materials and resources will not only limit these
impacts, and the reliance on new resources, but will ultimately help avoid the destruction of materials. To promotea circular economy, managing the highest utility of products through all stages of the life cycle will help enable theirsubsequent transformation into new raw materials and products through reusing, repairing, remaking and recycling.
Starting from 2020, as part of its enhanced EP&L methodology, Kering has included product use and end-of-life to
the analysis to capture the environmental impacts from consumer product care, and their disposal behaviours forluxury products. This extended scope of the EP&L enables the Group to understand and quantify the full lifecycle ofits products from cradle to grave.
The Kering Standard for End-of-Life is designed to promote and encourage the consideration of end-of-life in all
product categories, scraps, visual tools, and packaging in order to drive practices that facilitate circularity.

The Kering Standard for End-of-Life applies to finishedproducts, as well as pre-consumer and post-consumer waste.
For instance, pre-consumer waste entails unsold products,
unused raw materials, damaged, and semi-finished products
and scraps, and post-consumer waste includes products,
packaging, visual tools, as examples.
The requirements for the Kering Standard for End-of-Lifedo not constrain innovation but accompany it, reflecting
Kering’s creavity, exceptional know-how, quality andlongevity.

In summary, the key principles
that underpin the Kering Standard
for End-of-Life are:• Complying with all national andinternational laws, principles andregulation notably related to humanrights, fundamental freedom, healthand safety and the environment
as set out in the Suppliers’ Charterof the Kering Code of Ethics• Managing products and components
design and manufacturing to consider
end-of-life• Promoting cradle-to-cradle approachaiming at zero material destruction• Prioritizing a hierarchy of reuse,
repair, remake, recycle

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Standard for End-of-Life

MINIMUM REQUIREMENTS

Comply with national legislation
It is legally mandated that operations strictly comply withnational and local legislation, in particular with regard to theenvironment as well as health, safety and welfare of permanentand occasional workers at the facility.

Comply with human rights and social
expectations as set out in the Kering
Code of Ethics
Kering is committed to respect and ensure internationallyrecognized human rights, both in its activities and through its
business relationships. To this end:
• Kering is making available its Alert System to externaland occasional employees working for any service-provider/
supplier or external partner with whom the Group and/or its brands maintain contractual relationships. Kering
expects therefore that its direct suppliers refer to the Group
Ethics Committees (by mail or through an external hotline)
when in doubt or in the event of any malfunction related
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 linewith International Standards. The audits are conducted by
the Kering Supply Chain Audit Team (KSCA) at Kering brands’
suppliers. These audits in addition 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 oraddress non-compliances in a reasonable timeframe. Moreinformation is available in the Appendix Social Complianceand Enforcement of the Kering Code of Ethics in Supply Chain.

Think cradle-to-cradle,
aiming at zero destruction
Products and components shall be designed to consider their
end-of-life and subsequent transformation into new raw materials and products. This subsequently minimizes waste production, while reducing the reliance on new natural resources.
Before choosing a material, fabric, or packaging, brands andsuppliers should have a roadmap in place to determine how
they shall be treated at end-of-life, with the aim to avoid theirdestruction. By destruction, this means:• Solid Recovered Fuels (SRF)• Incineration, even if energy recovery• Landfilling
Brands and suppliers should act through eco-design for recycling, as well as by ensuring waste collection, sorting andrecycling/upcycling components and raw material scraps, inpractice and at scale.
This policy applies to finished products, pre-consumer andpost-consumer waste:• Post-consumer waste: for instance, products, packaging,visual tools;• Pre-consumer waste: for instance, unsold products,
unused raw material, damaged and semi-finished products,
and scraps.

Oxo-degradable materials are not allowed
Oxo-fragmentable plastics are banned. 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 are questionable.

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ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Recycling is the last option
Brands should prioritize end-of-use based on the following
hierarchy:
1. Reduce
2. Reuse
3. Repair
4. Remake
5. Recycle
The recyclability of each component of a product should bechecked individually and as a whole:
Material > Fabrics (multi material) > Product (multi component)
Because a material can be recyclable but loose its recyclability,
depending on the design of the product and if it is blended or
associated with other materials and also depending on therecycling schemes implemented locally, it is key to ensure thatthe product will be recycled in practice and at scale.

Eco design must be extended
to the end-of-life
To facilitate the second life of a product or a component, its
design must consider the following actions without compromising the quality and physical durability (a main priority inthe circular economy):
Design for reuse:• Ensure anonymization is possible, where possible
Design for recycling and upcycling:• Facilitate product dismantling, which is a designprinciple that enables the product to be taken apart in sucha way that allows components and materials to be reused,
remade, or recycled• Simplify product’s composition• Avoid problematic materials that might hinder or disrupt
the recyclability

Composting is not a blanket solution
The recycling process must keep thevalue of the material as much as possible
To be called recyclable, a product should align with the following recommendations:• It is collected and recycled in practice and at scale:achieve a 30% post-consumer recycling rate in multiple
regions and collectively representing at least 400 million
inhabitants (See BOX 1)• At least 50% of the materials in the dismantled productmust be upcycled or recycled• Recycling within a specific industry is the preferred
option (i.e. closed loop) to stimulate design for recyclability,
materials innovation and demand for recycled inputs• Where products are recycled into other industries orapplications (semi-closed loop) these should be designed
to be recycled again and ultimately separated (See BOX 3)

In a circular economy designing for recycling comes with theadvantage of keeping the value of the material in the economy.
In many cases this is preferred over 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 a recycling process if
it provides a mechanism for returning to the soil, in the formof fertilizer or soil improvers, the biological nutrients of the
product or packaging it contains that would otherwise havebeen lost. For instance, composting vegetable waste is a formof recycling that allows carbon to be stored in the soil and provides organic matter to the soil. Whereas composting biodegradable plastics turns it into water and CO2: it disappears andit is no longer available for new life, nor does it bring nutrientsto the soil. Composting a compostable plastic is not recycling.
Compostable material needs to go hand in hand with appropriate collection and composting infrastructure in order for it
to be composted in practice. Composting can take place in anindustrial facility, following a controlled process managed byprofessionals, as well as in a collective or at home, where theprocess is subject to the householder’s skills.

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Standard for End-of-Life

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Leakage should be avoided
Fashion supply chains can have an impact on marine biodiversity through the leakage of micro-fibres (including micro-plastics) into waterways and oceans. This can occur during the
manufacturing of yarn and fabrics, as well as during the consumer use phase of products. Several preventative actions canlimit these potential impacts:
Product creation:• Limit the risk of leakage at the beginning of the life cycle• Improved management and best practices on handlingof plastic feedstocks (for the production of products withplastics, including fibres)• Promotion of eco design: implement standardised testing
methods and research concerning the shedding behaviours
related to various production parameters (i.e such as thosedeveloped by The Microfiber Consortium)
Consumer care and instructions:• Wash clothing and home textiles less, in cold water anduse a lower spin cycle• Utilise front-load washing machines where possible• Line-dry instead of using a machine dryer• Identify hotspot leakage and “close the tap”
• Filter on washing machines• Washing bag: reduces the amount of microfibers that may
enter waterways and oceans from washing
Limiting the impact of microfibres once it is in the environment
is not the best option. Indeed, actions to clean up the ocean are
not recommended as they are not very effective and may also
have a negative impact on marine biodiversity.
Biodegradable/compostable fibres cannot be seen as a potential solution to the microfibre issue, because both biodegradation and compostability depend on very specific environmental conditions in terms of temperature and moisture profiles,
which may not be found in all environmental locations thatmicrofibres end up in. As such, while a fibre may be regarded
as ‘biodegradeable’ or ‘compostable’ this might not occur easily
in certain environmental locations (i.e. deep sea, extreme coldetc.). Furthermore, during any biodegradation or compostingprocess textile chemicals will be released into the environment,these can include but are not limited to: pigments and dyes
(which may be synthetic), or coatings and finishes.

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Standard for End-of-Life

BOX 1: Definitions
Fashion products and components
REUSE
Operation by which a product or component is used repeatedly and for long periods of time, for its
original purpose, without being significantly modified, remade, or recycled. Products might need tobe ‘prepared for reuse’, which often involves cleaning, repairs, or small modifications so that they cancontinue to be used throughout time and multiple users.
REPAIR
Operation by which a faulty or broken product or component is returned back to a usable state.
REMAKING
Operation by which a product is created from existing products or components. This operation can
include disassembling, re-dyeing, restyling, and other processes to improve emotional and physicaldurability.
RECYCLING
The process of reducing a product back to its basic material level, reprocessing those materials, andusing them in new products, components or materials.
Source: Ellen Mac Arthur Foundation, Vision of a circular economy for fashion, 2020

Packaging
REUSABLE PACKAGING
Packaging which has been designed to accomplish or proves its ability to accomplish a minimum
number of trips or rotations in a system for reuse.
RECYCLABLE PACKAGING
A package(1) or packaging component is recyclable if its successful post-consumer collection, sorting,and recycling is proven to work in practice and at scale(2).
Notes
1. A package can be considered recyclable if its main packaging components, together representing>95% 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 recyclabilityof the main components.
2. The suggested test and threshold to assess if the recyclability of a packaging design is proven ‘inpractice and at scale’ is: Does the packaging achieve 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

133

Standard for End-of-Life

BOX 2: Prioritisation of actions

1. UNSOLD PRODUCTS

Leftover after Friends& Family sales, etc.

• Anonymize the product• Reuse by sale or donation• Recycling is forbidden

yes
Anonymizationis possible
no2. UNUSED RAW
MATERIAL

Unused raw materials

Recycling• Last option

Recycling• Last option

yes
Brand isrecognizable

Reuse
1. Internally with good stock
management
2. Within the Group
3. Externally: by sale or donation
Recycling is forbidden

no

134

3. DAMAGED & SEMIFINISHED PRODUCT

Damaged products
or semi-finishedproducts

Repare• See unsold productyes
Product isrepairable
no

Recycling• Last optionnoAnonymizationis possible

If donation refusals
recycling is allowed

yes

4. NON MERCH& SCRAPS

Non merchyes• Anonymize the product• Reuse, by sale or donation

Recycling• Last option
If donation refusals:
recycling is allowed

Brand isrecognizable
noReuse by saleor donation

Standard for End-of-Life

BOX 3: The recycling process

1. DISMANTLING

ManualMechanical

Allows to preserve the material and toobtain a good homogeneous quality.

Often requires the material to be
crushed, which deteriorates it
and mixes it with other materials,
obtaining medium quality.

2. REGENERATION

Upcycle, remake

RecycleDowncycle

Very low transformationof the product. A new productis created from existingproducts or components.

Reducing a product back to
its basic material level,
reprocessing those materials,
and using them in new products,
components or materials.

The properties of the recycledmaterial are lowered, and it
can’t be used for the same
applications as virgin material.

3. USER OF SECONDARYMATERIAL

Closed loop

Semi-closed loop

Open loop

Used to replace the samevirgin material for products.

Used to replace the samevirgin material in anothersector (automotive, buildings).

Used to replace anothermaterial in another sector.

In the innovation space, textile-to-textile recycling solutions are available via mechanical processing
but often with quality standards that are compromised. Chemical recycling technologies of textiles
are nascent, however they are promising and starting to enter the market.

135

STANDARDS FORINNOVATION
136

Standards for Innovation

The world of sustainable fashion innovation is a new and fast-moving one. Whereas five years ago, there were relatively few innovators working in this space, today, there is an entire ecosystem dedicated to it, including: innovatorsand startups themselves, accelerators, investors, academics and government institutions. Indeed, innovation drives
sustainability forward in fashion and it is a key enabler for Kering to achieve its sustainability targets as well. Kering
set an ambitious goal to reduce its total environmental footprint, as measured by its EP&L, by 40% by 2025 and theGroup is already aware that 50% of this reduction will come from implementing the Kering Standards and the other
50% will be through adopting innovative solutions, such as alternative raw materials (i.e. mycelium-based alternatives
to leather, bio-based polyurethanes, etc.) and new ways of processing materials (i.e. biotech dyeing solutions, laser
technologies for denim, etc.).
The Kering Standard for innovation covers new materials that may complement or replace existing, traditional materials as well as new technologies and solutions for processing and manufacturing. The Standard 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 the Textile Exchange, among
others. The scope of the Kering Standard for innovation is primarily looking at the first half of the apparel value chain– alternative materials and processing technologies. New business models that help redefine the use of materials
and processes (such as digital technologies as well as the re-sale and rental markets) are also a very important areaof fashion innovation, and not to be underestimated in terms of potential positive impact. However, they are outside
the scope of the Kering Standard for innovation as they are often more closely linked with the business strategy andlogistics flows, as opposed to raw material and manufacturing processes.
137

The Kering Standard for Innovation refers to specific areas of“innovation” and associated with new material or technologythat will complement or replace existing, traditional
materials and processes in the supply chain.
The Kering Standard for Innovation covers key topics such as:• Feedstock• Material inputs and processing (for fibres)• Nanotechnology• GMO
It should be noted that, depending on the proposed
innovation, not all of the above topics will be relevant. Also,
it should be kept in mind that, as the sustainable innovation
movement in the apparel sector is relatively young, there areoften differences in industry definitions and terminology.
This Standard attempts to classify such terms based on
current dominant thinking and trends.
The Kering Standard 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 Synthetic Fibers, Kering Standard for Textile Processing, etc).

In summary, the key principles
that underpin the Kering Standards
for Innovation are:• Complying with all applicable laws,
conventions and regulations• Respecting the Precautionary
Principle• Adhering to the Kering Supplier
Code of Ethics• Understanding the clear added valueof the innovation in terms of impact• Understanding red flag issues
where information is needed before
proceeding with the adoptionof a proposed innovation.

Standards for Innovation

MINIMUM REQUIREMENTS

Apply the Precautionary Principle
and Assess Impact
Kering fully supports the Precautionary Principle with respect
to its environmental and social impacts. The Group is a signatory to the UN Global Compact that also supports the Precautionary Principle and states “where there are threats of serious
or irreversible damage, lack of full scientific certainty shall not
be used as a reason for postponing cost-effective measures toprevent environmental degradation.” In terms of business, thismeans looking to work on the level of prevention rather than
waiting until there is a need for a cure.
Kering consistently, across all of its activities, supports innovative and sustainable approaches that do not degrade theenvironment or have negative impacts on people, now or in
the future. At the same time, it is key to ensure that theseapproaches are not in any way harmful to the environment
or society and this becomes particularly relevant in the caseof innovation where technologies and solutions can still be
experimental and unproven.
Therefore, when analyzing a new material or process, it isimperative to:• Ask the innovator for data, preferably an LCA (based on
ISO 1440, specifically: UNI EN ISO 14040 (2006) and UNI EN
ISO 14044 (2018) to best understand the potential impact of
the innovation on the environment and society.
• Many innovations are very early stage, and therefore
difficult to assess in terms of impact (e.g., it is not possible
to do an accurate LCA and when an innovation is still inlab stage). If an LCA is not available or possible to do, selfreported impact data as well as third-party verified data areboth acceptable as a minimum requirement.
• Viable impact data that is gathered from an innovator
should be directed to the Kering Sustainability Department
to help determine its EP&L impact and potential savings overtraditional materials and processes.

Comply with Kering Product Restricted
Substances and Material Restricted
Substances Lists (PRSL and MRSL,
respectively)
In addition to meeting all regulatory and necessary legal
requirements, compliance with the PRSL and MRSL is requested
for any new material or processing innovation. Compliancewith the PRSL and/or MRSL must be ensured by the innovator
through product testing and each innovator must guaranteesuch 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 the Appendix: Summary of Kering Chemical Management Policy.

Pass Kering auditing to verify adherence
to the Kering Code of Ethics
138

Kering requires brands’ suppliers to be audited for compliancewith the Kering Supplier Charter which covers key ethical, social,environmental and security aspects in line with International
Standards. This applies also to innovators from whom Kering
brands will source materials or introduce new processes. The
audits are conducted by the Kering Supply Chain Audit Team
(KSCA) at Kering brands’ suppliers. This ensures screening ofmajor social aspects and provides a certain level of insurance. The auditees are required to pass the audit or address
non-compliances in a reasonable timeframe. More information
is available in Appendix: Social Compliance and Enforcementof Kering Code of Ethics in Supply Chain.

Standards for Innovation

MINIMUM REQUIREMENTS

Inquire as to source of feedstock
When analyzing the potential impact of innovations, it isimportant to understand the feedstock used to produce theenergy, chemical reaction or material. Please see BOX 1: Feedstock for a detailed explanation of the different recognized“generations” of feedstocks.
In general, in terms of feedstock:• Try to collect as much information as possible from theinnovator about the feedstock used to best assess 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.) anddecreases as you proceed to Fourth Generation feedstocks.
For this reason, try to avoid innovations using First
Generation feedstocks. This can be difficult as they currently
are the most commercially available.
• If it is not possible for an innovator to avoid using a First
Generation feedstock, innovators should be encouraged tomove to other sources to the extent commercially possible orprovide a roadmap showing how they will do so over time.
• If there are known negative effects of an innovation’s
feedstock such as certain competition with local food security,
toxic chemical compound release, negative impact on wateruse or quality, etc., then the innovation should not be used.
• Make all efforts to ensure that the feedstock is not fromgenetically modified organisms (GMO). Kering does notsupport GMO.
• Suppliers should preferably source biobased materials
that have been certified according to:– DIN CERTCO Biobased– OK Bio-based TUVThese certifications verify only the biobased carbon contents
into materials.
• Suppliers should provide Kering brands wheneverpossible, with any additional information and/or
certifications about the biomass feedstock management.
Some certifications are: FSC and PEFC (for materials basedon wood and its by-products), Bonsucro (for materials basedon sugar cane and its by-products), ISCC (referring totheir chain of custody for biomass), RED Cert (referring to theirchain of custody regarding sustainability of the biomass).

Analyze material inputs and processing(for fibres)
Material inputs (synthetic or bio-based) and the way they areprocessed (bio-processing, mechanical, or chemical) are key
components to analyze when determining the impact of an
innovation related to fibre production. Prioritize materials thatare made with recycled content certified to the Global Recycled
Standards (GRS). If not possible, source materials with bio-content (non-fossil/petrol content) considering the recommendations in the previous paragraph.
Material inputs can be categorized as follows:
1. Natural fibers where the material inputs are plants or parts(,e.g. leaf, bast, seeds from agri-waste and residues or foodindustry by-products ) that do not require fibre formation or
reformation. The fibres are usually obtained through chemical
or mechanical processing and the basic structure of the fiber is
primarily kept intact. In this area we have also artificially produced fibres (e.g., lab-grown fibres). In general these materials
have low impact both on input and processing but the quality
need to be enhanced for adoption.
139

The below categories refer to innovations on fibres processed synthetically (Man-Made Fibres: 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 Synthetic 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 the so-called CCU(Carbon Capture and Utilization) technologies, which refers to
the process of capturing carbon dioxide (CO2) and using it asa feedstock for polymers in textile applications (e.g. CCU PLA)
reducing the CO2 into the atmosphere and its negative impact.
Innovations in this fibre category are promising but quite earlystage, their TRL need to be improved for scaling.

Standards for Innovation

MINIMUM REQUIREMENTS

3. MMFs derive from new natural polymers (e.g., protein, algae,
chitin,etc.). In some cases (e.g. biofabricated silk), the main
ingredients (building blocks) of the fibres, are produced by
microorganism (e.g. yeast, bacteria) through a fermentation
process to be further mechanical or chemical processed andtransformed into fibres or spun into filaments. Often it is challenging to measure the impact or define the sustainability
assessment for these specific innovations, 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) tofeed the living organisms.
Processing can be categorized by:
1. chemical processing (e.g., applying chemical-based solvents);
2. mechanical processing (e.g., cationic, subcritical water); and3. bio processing (e.g., using bacteria,in a fermentation process).

Apply the Precautionary Principle
when using nanotechnology
Kering will not use any nanotechnology applications unlesssuch applications are analyzed and proved to have no potential
impact on human health and the environment, including anevaluation 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 scientifically verified
and based on scientific studies.
• If more information is required to determine safety of
the nanotechnology, have the supplier and/or brand test the
product using the Nano Risk Framework.

Some solutions can be also the result of a mix of the above.
When evaluating innovations, bio-based materials (with ashigh a percentage of bio-content as possible) which are bioor mechanically processed will generally have a lower impact.
Based on the above, when analyzing material inputs and processing, please use the following framework:• Analyze feedstock used and try to avoid First Generation
feedstocks in materials or processes.
• For materials that are partially bio-based, try to attainthe highest percentage of bio-content possible. In today’s
market, at or above 30% should be targeted.
• Bio-based material innovations need to have obtained
third party standards, certifications and/or testing.
Please refer to the Kering Standard on Synthetics BOX 1
for recommendations on certifications.
• Ask for a roadmap on how the innovator plans to increase
the bio-based content in the material.
• When possible, combine both bio-based material as wellas bio or mechanical processing.
• When processing is chemical, inquire as to the safetyof the chemicals used and refer to the Kering MRSL.
• When processing is mechanical, inquire as to energy
and water use.

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 and packaging.
There may be occasions, however, where, upon careful consideration, Kering brands accept some levels 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 microorganisms 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 product ormaterial process when impact data shows that the environmental 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 not detectable in the final
material or technology to be used).
See BOX 3: GMO/Genetic Engineering for further explanationof GMO and GE issues.

140

Standards for Innovation

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Address end-of-life

Avoid use of First Generation feedstocks

When looking to adopt an innovation, particular attention
should be paid to the end-of-life of the solution. Before adopting an innovation, brands should have a roadmap in place todetermine how the product shall be treated at end-of-life.

As solutions become more mature and ready for commercialization, Kering brands should always be pushing toward sourcing innovations that are “best in class”. This means that, as they
become commercially available, Kering should source innovations based on Second, Third and Fourth Generation feedstocks.

In the innovation space, textile-to-textile recycling solutions
are available via mechanical processing (but with quality
standards that are usually compromised). Chemical recycling
technologies of textiles are nascent but promising and now
entering the market.
Please see Kering Standard on End-of-Life for more information on this topic.

Perform a full impact assessment
Brands should prioritize innovations that have conducted LCAs
by third parties (see references above).

Only rely on recycled or sustainablebio-based material input
By 2025, it should be possible to have more recycled or biobased content in materials without compromising performance and quality.
To that end, sourced materials should be made of at least 80%
recycled or bio-based content. The recycled content is the priority, in this case preferring post-consumer recycled material
inputs and secondarily pre-consumer (post-industrial) one.

Address end-of-life by ensuring fullcircularity
See Kering Standard on End-of-Life for more information on
additional conditions to meet Kering standards.

141

Standards for Innovation

BOX 1: Feedstocks
A “feedstock” refers to any unprocessed natural material (e.g., not manmade) used to supply aprocessing technology. Feedstocks come from a variety of sources (e.g., petroleum, biomass, coal,etc.) and are transformed from their unprocessed state to create fuel or to support a chemical
reaction to create a material or process. Any natural resource might be considered as a feedstock.
For example, petroleum is a feedstock for most plastic and polyester. Algae is starting to be
used as a feedstock for textiles and dyes. Corn is a popular feedstock for bio-based plastics.
When determining whether a feedstock is “sustainable” or not, it is important to understand thefeedstock and how it is procured. Generally, feedstocks are classified as follows (although there
are currently differences in industry definitions):
1. 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 Feedstock
could be: competition with food crops, land use change, use of pesticides and GMO, reliance on
industrial monoculture.
2. Second Generation: Feedstocks that do not compete directly with food and feed crops because
they are derived from biomass such as waste and agricultural residues of nonfood crops suchas 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.
3. Third Generation: These 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
today, although it is a growing segment. Potential negative impacts are methane production,
destruction of natural habitats in harvesting, and potential environmental contamination or leaks.
4. Fourth Generation: This involves sourcing from carbon in greenhouse gases released byindustrial or waste management processes. This is the most promising type of feedstock in termsof impact as they remove harmful gases from the atmosphere. However, they are also the mostexperimental and generally not available on the market. Potential negative consequences also
exist such as how to handle the end-of-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 and Technology in World History:
An Introduction. JHU Press. ISBN 978-0-8018-8360-6

142Standards for Innovation

BOX 2: Nanotechnology
Kering is working to align, where possible, its PRSL and MRSL with existing or emerging industry
efforts. For example, Kering is working to align, where possible, with:
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. Specifically relating to products, nanomaterials canbe potentially found in or on many technical fabrics and some leathers. They are applied as thinfilms or coatings to fibers or are fillers or part of the materiality of fibers themselves.
Nanomaterials are designed to change the surface and/or overall properties of the material, forthe following desired functions:
•
•
•
•
•
•
•
•

Stain and Water Repellency
Anti-microbial and Odor Protection
UV Protection
Abrasion ResistanceAnti-static
Wrinkle-free
BiomimicryColor

Why is “nano” 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 indicationsof potential adverse health and environmental effects with some nanoparticles. Certain kindsof risks to humans from nanoparticles can be inferred from already-studied substances. The
extremely small-size of 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 related to the environment is if the nanomaterial is toxic
or could become toxic to living species in the environment. Another concern is if nanomaterials
are applied incorrectly as coatings or finishes and wash off in the first wash or dry cleaning anddischarge into the environment.

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Standards for Innovation

BOX 3: GMO/GE Preferred sourcing countries
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 –such as 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 and animals (something that humans have been doing for centuries) but includes
genetic engineering whereby genes are manipulated and genes from other species areinserted (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 maintainprofit-making ownership• Risks include contamination and leaking of genetically engineered organisms into
the natural environment.
Because the issue of whether GMOs deliver the benefits that outweigh the potential risks,
Kering uses the precautionary principle when determining whether to adopt a solution
containing genetically engineered materials and processes.

144

APPENDICES
145

Appendices

SUMMARY OF KERINGCHEMICAL MANAGEMENT POLICY

146

Kering has developed a comprehensive Chemical Management Policy which defines its strategy on chemicals
that are potentially hazardous to the environment or
people. This includes chemicals that may not have been
regulated yet. This policy serves as the Kering Standard
for chemical management to which all of Kering brands
and suppliers are required to adhere. In summary, the key
objectives that underpin the sustainable and responsible
use of chemicals are:• Ensuring that chemicals are managed
at ambitious standards throughout the entire
supply chain in order 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.

Appendices – Summary of Kering Chemical Management Policy

MINIMUM REQUIREMENTS

Comply with Kering Product Restricted
Substances List

Carefully monitor and minimize
the formation of Chromium VI

The paragraph “compliance with environmental laws” in the
Kering Sustainability Principles attached to supplier agreements (contract or purchasing terms and conditions) requests
that suppliers undertake to comply with the Kering ProductRestricted Substances List and Safety Requirements (PRSL).

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 program in place to ensure that bestpractices are being fully implemented to minimize or eliminate
the formation of Chromium VI.

The PRSL provides guidance to suppliers and product manufacturers in order to comply with Kering’s requirements for the
manufacturing and sale of products safe, free of harmful, toxic
and hazardous chemicals. The PRSL includes a wide range ofsafety requirements, chemical substances that are regulated bygovernmental agencies and programs from different countries
around the world where Kering products are distributed andsold (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, at a minimum, must comply
with the Kering PRSL. The Kering PRSL is available in English,
Italian and Chinese as an Appendix to your supplier agreementwith Kering brands.
Each Kering supplier must guarantee PRSL compliance of its
products (be this a raw material, component or finished product) and suppliers must ensure compliance through producttesting. Kering oversees an internal testing program as an additional auditing measure. All testing must be early enough in the
product cycle to allow 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 is to ensure that insituations of PRSL failure, appropriate remedial actions can bemade with minimal cost impact to the supplier(s) and the brand.
Kering’s supplier agreements include a clause stating that products which do not meet requirements (including PRSL) will not
be accepted by the brand, and that the vendor will be liable forloss, sales and destruction, if necessary, of all products that do
not fully comply with the legal parameters at worldwide level. Thisrequirement is commonly referred to as a “no-pass/no-buy” policy.

Do not use PVC when manufacturing
Kering’s brands’ products
Polyvinyl Chloride (PVC) poses potential environmental andhealth threats because of the chlorine containing by-products(e.g. dioxins) that are produced during the manufacturing of PVC
and burning of products that contain PVC. Chlorine by-products
are carcinogenic and extremely dangerous to human healthand to the environment, and wildlife more broadly. Because of
these risks, Kering has made a public commitment to eliminate
PVC from all its brands’ collections. Suppliers must ban PVC
from their production for Kering’s brands.

Apply the precautionary principle
for nanotechnologies
Nanotechnology refers generally to the engineering or manipulation of atoms or molecules for the production of micro scale
products or materials. Currently and in general, nanotechnologies
are being used in some coatings on fabrics as well as sun- screensand cosmetics. However, little is currently known on the environmental and health impacts of nanotechnology and associatednanomaterials. Kering follows the precautionary principles andwill not use any nanotechnology applications unless such applications are analyzed and proved to have no potential impact onhuman health and the environment, including an evaluation of
end-of-life impacts. Suppliers must proactively share information
on nanotechnology used in their manufacturing.

147

Appendices – Summary of Kering Chemical Management Policy

MINIMUM REQUIREMENTS

Comply with Kering Manufacturing
Restricted Substances List

• Ensures the use and purchase of MRSL conformant chemical
products, at minimum with regards to chemical products usedin the production processes of Kering’s brands’ items.

The Kering Manufacturing Restricted Substances List (MRSL)
provides guidance to suppliers and product manufacturers
addressing hazardous substances that are potentially usedand discharged into the environment during manufacturing
and related processes, and not just the substances that could
be present in finished products (PRSL).

The ZDHC (Zero Discharge of Hazardous Chemicals) Chemical Management System Framework and the ZDHC TechnicalIndustry Guide provide guidance for the implementation of achemical management system.

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 by 2020.
As of January 1st 2020, no chemicals listed in the Kering MRSL
V.1.0 (dated November 2016) can be intentionally used in Kering’s supply chains’ production processes. There may be unintentional presence of impurities or trace amounts of thesesubstances whose quantities cannot in any case exceed thechemical formulation limits specified in the MRSL. The detailed
Kering MRSL is available as an Appendix to your supplier agreement with Kering brands.
The Kering MRSL will be regularly updated. Kering envisages a“transition period” following new releases of the Kering MRSL,
during which suppliers can work towards conformance to thelatest MRSL release, whilst being compliant only with the previous version of the MRSL. This is in order to enable suppliers tomeet new MRSL requirements by end of the transition period.
The Kering MRSL V.2.0 will be released in 2020. The Kering MRSL
V.2.0 is the ZDHC (Zero Discharge of Hazardous Chemicals)
MRSL V.2.0 plus additional ban on PFC’s use.
See BOX 1: Alignment with other industry PRSL and MRSL efforts
Kering recognizes that it is more difficult to ensure conformance with an MRSL than a PRSL, and that suppliers must
implement a chemical management system and investigate
their supply chain to ensure conformance. The steps suppliersmust take are as follows:
1. Suppliers must adopt a chemicals management system that:• Demonstrates the control and understanding of the origin
and chemical composition of purchased chemical products
through review of technical and safety data sheets, and the
supplier must have a copy of the technical and safety data
sheets of all chemical products• Includes sharing of the Kering MRSL with suppliers
and sub-suppliers and requiring and monitoring its
implementation, including the termination of any
relationship with suppliers and sub- suppliers who refuse
to comply with the Kering MRSLIn addition, suppliers may choose to enroll in programs andtraining supporting the implementation of MRSL and a Chemical Management System, such as the ZDHC Supplier To Zero
program and the ZDHC Academy.
2. The supplier must develop and maintain an inventory ofchemical products used in the production processes of Kering’s brands’ items 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 otherchemical auxiliaries• Includes, for each chemical product, information on
conformance to the MRSL, identifying chemical products
containing the chemicals mentioned in MRSL, if any.
Conformance to the MRSL must be documented. Suppliersmust require their chemical suppliers to provide adequate
documentation to show compliance with the MRSL. This canbe done by obtaining a list of Chemical Products withouthazardous chemicals (Positive List) or requesting a declarationof compliance with the MRSL from the chemical supplier.
Suppliers may choose to use third party certification
systems or ZDHC tools such as the ZDHC Gateway and the
ZDHC InCheck report. Bluesign™ is a certification systemthat ensures conformance with the Kering MRSL. Other
certifications may be used but must be supplemented withadditional evaluation and testing. See BOX 1: Alignment withother industry PRSL and MRSL efforts
3. Suppliers must prepare and define a MRSL compliance planthat 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.2.0) will be phased out andreplaced by end of the transition period. Suppliers must require
their chemical suppliers to provide adequate documentation
to show compliance with the MRSL. This plan must be updated
and indicate which steps have already been taken and thoseplanned in order to reach full compliance with the MRSL by endof the transition period.
All of Kering’s key suppliers must have documented conformance with the Kering MRSL. Starting from 2020, Kering plans
to conduct audits of suppliers’ chemical management systems
at least every second years in order to demonstrate conformance with the MRSL.

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Appendices – Summary of Kering Chemical Management Policy

ADDITIONAL CONDITIONS TO MEET KERING STANDARDS

Wastewater and sludge managementfor MRSL conformance
Suppliers shall be able to provide Kering with information on
the quality of their wastewater. In all cases, wastewater quality
shall align with local regulation, while Kering encourages suppliers in improving wastewater management.
With regards to MRSL conformance, applying good practices
for output management would provide suppliers an additional
tool for monitoring the performance of their Chemicals Management System as well as tracking progresses.
In particular, suppliers should:• aim to meet highest wastewater standards such as theones 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• in case of non-conformance detection, develop a root
cause analysis and corrective action plan with a definedcompletion date, in line with the ZDHC Wastewater
Guidelines.
In addition, suppliers may publish wastewater test reports on
the ZDHC Gateway platform and share ZDHC ClearStream report.

149

Appendices – Summary of Kering Chemical Management Policy

BOX 1: Alignment with other industry PRSL and MRSL efforts
Kering is working to align, where possible, its PRSL and MRSL with existing or emerging industry
efforts. For example, Kering is working to align, where possible, with:• The Zero Discharge of Hazardous Chemicals Program’s MRSL:
the Kering MRSL V.2.0 is the ZDHC MRSL V.2.0 plus additional ban on PFC’s use.
The ZDHC MRSL V.2.0 is available at the following link:
https://mrsl.roadmaptozero.com/• The Camera Nazionale della Moda Italiana’s Guidelines, which comprise a PRSL and a MRSL

150

Appendices

SUMMARY OF KERINGANIMAL WELFARE POLICY

151

Kering expects all suppliers in the
supply chain to:• Be aware of and commit torespect the Kering Animal Welfare
Standards• Support traceability in the
supply chain so that Kering canverify 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 animal production. At the very
least suppliers must meet “Bronze level” standards which are entry leveland mandatory. Suppliers must also commit to engage in continuous
improvement of their practices and must also be open to regular third
party audits to show adherence to the Kering Animal Welfare Standards andprogress towards improvement. Species-specific animal welfare standards
are available to suppliers and sub-suppliers upon request.

Appendices – Summary of Kering Animal Welfare Policy

Kering’s commitment to animal welfare
Kering is committed to implementing and verifying the highest
standards of animal welfare across all its animal-based supply
chains. As such, Kering developed and published in 2019 a suiteof animal welfare standards designed to be implemented at the
points in the supply chain where there are live animals (mainly
at farms and processing facilities). Kering is also committed todriving improvement in industry practices more broadly.
Kering is also engaging with industries beyond the luxury andfashion sector. In order to achieve strong results and progress, Kering has started to work with the food industry as the
supply chain of both sectors tend to overlap on many of theanimal-based material Kering sources from. By aligning expectations, sharing best practices and strengthening collaborative
efforts, Kering thus ambitions to advance animal welfare to thehighest possible standards.

Kering Animal Welfare Standards
While based in part on existing best practices of animal welfare
standards around the world, the Kering Animal Welfare Standards aim to be among the most stringent in order to align with
its commitment and to catalyze and drive industry improvement with more just, humane and safe practices. The Kering
Animal Welfare Standards have been developed with external
experts who have extensive experience in animal welfare andhave been verified by third parties.
The comprehensive Kering Animal Welfare Standards are publicly available on kering.com and summarize our approach andkey requirements for all significant species relevant to ouranimal-based materials. Regarding the 4 main key species
used for their hides or fibers (calf, cattle, sheep and goats), thedetailed standards are available upon request, as well as the
Kering guidelines for animal welfare practices in abattoirs.
The Kering Animal Welfare Standards focus primarily on thewelfare of animals and are designed to be specific to particular species, as well as specific to the type of production (i.e.
farm or wildharvest) and, in some cases, geographic location.
The Kering Animal Welfare Standards are structured in threelevels (Bronze, Silver, Gold) with the goal of driving continuous
improvement towards the very highest standards.
• Bronze: This is entry-level compliance for Kering suppliers.
However, some Kering brands may decide that compliancelevel needs to be Silver or Gold
• Silver and Gold: More stringent standards that include thevery best practices in animal welfare in the industry. There
are also additional requirements for the management of
biodiversity on the farm.
While the scope of the Kering Animal Welfare Standards
encompasses all points of the supply chain where there arelive animals (from farms/wild harvest to killing facilities), theverification of the implementation of these standards will
depend of the situation and will follow the general prescriptions: 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 own audits when necessary.
Kering recognizes that these standards are setting a new precedent for animal welfare and, as such, will take time and effort
to implement. While Kering expects all its suppliers to commit
to the Kering Animal Welfare Standards and make continuous
improvement, Kering will approach implementation of thestandards in a collaborative manner with suppliers. The following sections highlight the operational steps for suppliers
to engage with in order to facilitate alignment with the Kering
Animal Welfare Standards.

Supply chain transparency
Supply chain transparency is a prerequisite in order for Kering
to assess its supply chain against the Kering Animal Welfare
Standards. To this aim, suppliers will be regularly requested
to provide information about their own supply chain. For all
animal-based material, a minimum requirement is to provide
the country of origin, where farming/harvesting/hunting/herding happens.
An additional layer of information will be requested as welldepending on the material type:• Hides & skins for leather (ovine, bovine, caprine): Listof abattoirs in the supply chain of the supplying tanneries(including name & location)• Precious skins: List of processing facilities/killing facilities
in the supply chain of the supplying tanneries (including
name & location)• Fur: List of auction houses/processing facilities in the
supply chain of the fur supplier• Cashmere: List of cleaning/dehairing processors andherding cooperative if possible• Wool: List of cleaning/scouring processors

152

Appendices – Summary of Kering Animal Welfare Policy

Preferred sourcing countries
Kering recommends that suppliers take a precautionary
approach to sourcing with respect to animal welfare. This is
why for each material type, Kering has established a list of preferred sourcing countries, in order to minimize risks.
For each material, the list of preferred 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 with additional
research and information. We encourage suppliers to give Kering feedback on their knowledge of the different risk issues insourcing countries.
Sourcing from countries that are not listed isn’t prohibited per
se but will require more stringent verification in order to ensurecompliance with the Kering Animal Welfare Standards.

Working with third party standards
and certification
Kering has made an extensive review of existing regional
and international standards and consequently we have anapproach for the verification of our suppliers that can be basedon a number of existing standards and certifications. These
are listed in each species’ section of our Kering Animal Welfare Standards. Therefore, not every supplier will need to beverified against the Kering Animal Welfare Standards if othercertifications and verification procedures recognized by Kering are in place. In some cases, the equivalence between therequirements of the Kering Animal Welfare Standards and 3rdparty certifications/standards might not be fully equivalent
in which cases additional verification may happen to ensure
full compliance. Kering will revise the listed certifications andstandards as necessary based on any new, relevant scientificfindings, programs or certifications.

153

Appendices

SOCIAL COMPLIANCE AND ENFORCEMENT
OF THE KERING CODE
OF ETHICS IN SUPPLY CHAIN

154

Kering is committed to ensure its suppliers respect human rights and the environment and to help its
suppliers and sub-suppliers to improve labor, health and safety and environmental conditions in theworkplace. This supports Kering in achieving its high ethical and environmental standards. Kering recognizes
that this effort requires a collaborative approach to compliance and Kering will openly work with all relevantbodies to deliver effective action plans for positive change.
The Code of Ethics affirms Kering’s commitment to responsible business practices, which includes respectfor human rights, not only for all its employees, but also for all those who work in its supply chains andcontribute to the value creation. Regularly updated, the Code of Ethics aims to clarify and explains the
ethical principles expected on a daily basis, while the Suppliers’ Charter outlines the ethical, social andenvironmental requirements expected from our suppliers.
All Kering suppliers must agree to receive announced and unannounced assessments/audits by Kering andthird party representatives. Kering also expects all suppliers to make improvements when its policies andstandards 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 be reasonable
and defined. Providing proof of correction to Kering for each non-compliance is also required.

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

Scope
Kering requires audits to assess the compliance of the supplierto the principles set out in the Kering Suppliers’ Charter andSustainability Principles acknowledged by the supplier whensigning the supplier agreement in order to cover key ethicalchallenges. These include the following:

In the case of sub-supplier:– Type of contractual link between the first level supplier andits sub-suppliers– Consolidated turnover of all sub-suppliers– Detailed turnover for each sub-supplier• Child labor• Employees: number of employees in the company (globaldata) and the number of employees dedicated to work bybrand, in detail• Forced labor• Number or owners, partners, and employees’ family• Safe workplace• Number of full-time / part-time employees split between:
Italian, EU, and non-EU• Freedom of association• Discrimination• Working hours• Number of homeworkers split between: Italian, EU, andnon-EU• Total number of employees dedicated to each brand split
by activities• Fair wage
• Compliance with environmental laws

Audit Types and Frequency• Compliance with security standards

Kering performs two types of audits on suppliers: the global
audit and the follow-up audit; both are based on the same
checklist, but cover specific areas.

• Supplier sites are adequately protected by security systems• Respect of the main environmental principles (emission,
waste, etc.)• Supplier sites are covered by insurance

The global audit is performed during the activation (i.e. before
a supplier can start working with a Kering brand). The supplieris then renewed every two to four years depending on supplier’s risk. The global audit monitoring goal is to check the morecritical areas to prevent the presence of Zero tolerance andHigh Non-conformity issues.

Documentation for suppliers
and sub-suppliers

The follow-up monitoring is performed as a second check toensure the implementation of action plans coming from theglobal audit and to cover less critical areas.

• No counterfeit and frauds activities

In order to map Kering brands’ supply chain and perform therequired social, environmental and security compliance review,
Kering collects various items of information about its suppliers
and sub-suppliers through the Kering Supplier Database System (called SCS, Security Control System).
Once created in the system, the supplier will have to complete
its profile and declare its sub-suppliers working for Kering (webaccess) including:• General Information• Existing certification or review: in the case of supplier or
sub-supplier certified or audited or under certification or audit
for a specific standard for social, environmental or security• Use of sub-suppliers: names and VAT codes to be detailed• Contractual and financial information
In the case of first level supplier:– Total turnover of the supplier

Communication of audits
In the context of general audits, the communication flow (audit
planning, sending the CAP, etc.) between the Kering Audit teamand the suppliers should be as follows:• For direct suppliers: Kering Audit team contacts the direct
supplier directly copying in the brand’s production andsustainability functions teams.
• For suppliers and their sub-suppliers: the Kering Audit
team contacts the supplier copying in the brands’ production
and sustainability functions teams. The supplier then liaises
with the sub-suppliers. For audit confirmation and audit dateat sub-suppliers’ site, the supplier reverts to the Kering Audit
team copying in the brand’s production and sustainability
functions teams.
For the opposite, in case of a follow-up or of a suspicion ofviolation, the audits are unannounced.

155

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

Type of activity

Type of supplierType of audit

TimingFrequency

Announced
General Audit

Notification normally
one week in advance

Only fornew supplier
activation

Announced
General Audit

Notification normally
one week in advanceAt least
every 2 years

Unannounced
Follow Up

Anomalies deadline
or dependingon needs

Depending fromanomalies
correction deadline

Mostly unannounced
General Audit
based on situationin coordination
with the BU

ASAP

Dependingon alert

GLOBAL AUDIT
SUPPLIER ACTIVATION

GLOBAL AUDIT
SUPPLIER
MONITORINGFOLLOW-UP
SUPPLIER
MONITORING

Direct supplierand Sub-supplier

SUSPICION
OF SOCIALVIOLATION
OR ANY OTHERSPECIFIC VIOLATION

Methodology
During the global audit the auditor will:• Observe key site activities• Interview management• Interview selected workers without management present
and to respect the confidentiality of the interview• Inspect key company documentation including worker
con- tracts, union agreements, management procedures,
management records, and any other documentation, andrecords relating to wages, disciplinary practices, health andsafety discrimination, working hours, freedom of associationand collective bargaining (unions,) and employment ofchildren and young workers
Areas to be checked are:
•
•
•
•
•
•
•
•
•
•
•
•
•

Child labor
Forced labor
Health and safety
Freedom of association and collective bargaining
Discrimination
Disciplinary practices
Working hours
Wages and regular employment
Management systems and subcontracting
Environmental compliancePhysical security
Working condition and organization
Work order

Audit results, grading system,
and re-audit frequency
Once the audit is performed, a non-conformity issue will
be available in the Supplier Database system for Kering, thebrand(s) and the supplier.
Grading system
The outcome of the audits conducted by the Kering Audit teamwill categorise suppliers in three distinct categories: non-compliant, partially compliant and compliant.

156

Appendices – Social Compliance and Enforcement of Kering Code of Ethics in Supply Chain
Type of Non Conformity
Zero tolerance

Serious nonconformity

Non conformity

Observations

Any

Any

Any

Any

None

Any

More than 5

Any

None

None

Less than 5

Any

None

None

None

More than 5

None

None

None

Less than 5

Categories

ZERO TOLERANCENON-COMPLIANTPARTIALLYCOMPLIANTCOMPLIANT

Follow up audit timeframe
The most serious of the findings identified during the audit will define the timing of the follow up audit as below:

Most serious findings
during audit
ZERO TOLERANCESERIOUSNON-CONFORMITYNON- CONFORMITYOBSERVATIONS

Follow up audit timing

Type of audit

Termination, none

Termination, none

Within 1 month

Announced follow up
or unannounced investigation

Within 3 months max

Announced follow up

Within 6 months max

Announced follow up

Submission of evidence for non-conformity closure:
After the audit has been performed, the supplier can send to the Kering Audit team evidenceof missing documentation or any other type of evidence with the objective to close off some or all non-conformities identified
during the audit before the follow up audit is scheduled to be performed.
Should the Kering Audit team consider the evidence as acceptable, the related non-conformities will be closed off. This might
affect the timing of the follow up audit depending on the type of non-conformities that remain open.

157

Appendices

KERING ALERT SYSTEM

158

In order to ensure the implementation of the Kering Code of Ethics and the principles it defends, the Kering Group Ethics Committee is complemented by two regional Ethics Committees : the Asia-Pacific Ethics Committee (APAC) and the Americas Ethics Committee.
In parallel to this organization, a worldwide hotline is also available in the most spoken languages of the Group.

APAC
ETHICS COMMITTEE
Excecutive Committee

GROUP
ETHICS COMMITTEEAMERICASETHICS COMMITTEEThis Alert System is available and opened to paid employees and interns of the Kering Group, as well as to external and occasional employees
working for any service-provider / supplier or external partner with whom the Group and/or its Houses maintain contractual relationships.
The Committees do not deal in principle with anonymous requests, therefore any person contacting the Ethics Committees are 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 believed the information was true at the time the concern was raised, even if theinformation later turned out to be incorrect. Referrals are usually handled within a period of three months. The Ethics Committees and Ethics
Hotline contact information can be found in the Kering Code of Ethics at kering.com.

Appendices

ENVIRONMENTAL PROFITAND LOSS ACCOUNT

159

Appendices – Environmental Profit and Loss AccountWhat is an EP&L?

• Monitor progress of 2025 strategy, while forecastingand preparing for the future• Be transparent with its stakeholders andinvestment community

Kering has developed an innovative tool, the Environmental Profit & Loss (EP&L) Account, which makes the invisible
environmental impacts of business visible, quantifiable andcomparable. The EP&L is designed to measure and monetize
environmental impacts from a business’ activities in its own
operations and across the supply chain. The tool highlights
key areas where a company can prioritize and focus its efforts
to mitigate its impacts more effectively.

In short, the EP&L can be used as a decision-making tool for
Kering brands to influence daily choices and make responsible
sourcing decisions, by being able to understand the environmental impact the business will have on the world.

The results of the EP&L allow Kering to:Summary of the methodology• Understand its true impacts and identify hotspots• Reveal risks and find effective solutions for mitigation• Translate its environmental impacts intoa business language• 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 is particularly
relevant to the availability of fresh water resources that is
specific to each location)• Facilitate comparisons between brands or business units

The EP&L approach goes far beyond standard environmental
reporting, producing a more comprehensive picture of the
impacts of Kering’s business activities.
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 are measured covering: greenhouse gas emissions, water consumption, waste pro- duction,water pollution, air pollution and land use. In 2020, Kering
added the use phase and end-of -life in the scope of the EP&L.

Scope covered by the EP&L approach:
TIER 4

TIER 3

TIER 2TIER 1TIER 0160
Production

Processingof rawof rawmaterials

materials

Preparation of
subcomponents

Final assembly

Operations
and stores

Water Greenhousegas emissions(GHG)
Upstream in the supply chain
Water
consumption
Downstream in the supply chain

Environmental
and legalreporting(Grenelle 2
law)

Waste
production

Waterpollution

Air pollution

Additional
enviromental
impacts

Land use+ ECONOMIC IMPLICATIONS OF THESE IMPACTS ON LOCAL POPULATIONS (€)

Use andend-of-life
products

Appendices – Environmental Profit and Loss AccountKey stages in building the EP&L:

Data gathering

Supplier
data gathered

Consolidationof models andinterim results

Data analysis
and modelingto remaining
suppliers

finalize
e-KPIs (keyenvironmental

Life Cycle
Assessment(LCA)

performanceindicators, m3,

EP&L results
available by:

Applying
economic value
coefficients toestimate the• business unit
• tierimpact on local
populations• process• material• country

liters, tons, etc.)

Financial
data

Final results

Extrapolation

Consolidationof data to
Quantity of
raw material

Monetization ineconomic terms

Economicmodeling using
environmentallyextended inputoutput (EEIO)
modelsTo develop the EP&L, Kering gathered information onsite and from suppliers wherever possible. When primary data were not available,
Kering used studies derived chiefly from life cycle analysis, reviewed by panels of experts, and from economic studies. The data is thenadapted to the specific countries where the impact occurs. This is then analyzed and the environmental changes resulting from emissions or use of resources by Kering’s business are translated into economic terms, taking into account local contexts and the effects on
the welfare of local populations.

Greenhousegas emissions

Water
consumption

Waterpollution

Land use

Hectaresof tropical,
temperate,wetlands andother forests,
etc.

Emissionsand use ofresources

CO2, N2O, CH4,
CFCs, etc.

m3

Specificheavy metals,
nutrients,
and toxic
compounds

Environmental
changes

ClimatechangeWater
shortages

Water quality
deterioration

Effect on
well-being(costs tosociety)

Healthimpacts,
economiclosses, andchanges
to naturalenvironment

Malnutrition
and illness

Healthimpacts,
eutrophicationand economic
lossesAir pollution

Waste
production

PM2.5, PM10,
Nox, Sox, VOCs,
NH3

Hazardous
and nonhazardous
waste

Ecosystem
services
reduction

Increase inpollutantconcentrations

Climatechange,pollution andcontamination

Healthimpacts,
economiclosses, andchanges
to naturalenvironment

Respiratory
illnesses,
agriculturallosses, andreducedvisibility

Enjoymentof localenvironment
impaired, anddecontamination
costs

161

Appendices – Environmental Profit and Loss Account

Building on this extensive work done by Kering and its brands
to map and test its suppliers over recent years, Kering has anextensive base of environmental impact data for each production process and in each of the countries where they take place.
Kering has now capitalized on this valuable work to reduce thedata-gathering process and developed a software for calculating the EP&L. Built on a financial calculation tool, this software
calculates a brand’s EP&L in minutes once the key indicatorsreflecting its activity have been entered. The software also proposes dynamic visualization to help understand impacts in amore tangible way. In addition, with the software, scenarios canbe created to test the EP&L impacts of different projects andmonitor Kering’s sustainability target achievement regarding
EP&L reduction and sourcing. This progress is key to creatinga fast and simple decision-making tool that can be used on a
day-to-day basis by Kering’s various decision makers.
The EP&L has helped Kering brands unlock new insights into
their businesses and supply chains. Notably, it helps Kering
discover potential efficiencies, innovations and improvementsthat can provide business value.

Requests to supply chain for calculating
Kering EP&L
Kering calculates the EP&L of all its activities and covering all brands
at least every year and is starting to have more dynamic reporting.
Therefore, suppliers are asked to provide qualitative and quantitative data annually, in particular on the types and origin of
all the raw material purchased, and on environmental impactsof the production steps.

An open-source methodology
Kering open-sources and shares the EP&L methodology andpublishes the EP&L consolidated results for the Group every
year at www.kering.com.

162

FAQ
163

FAQ for Suppliers

Are the Kering Standards a contractual document?
No, the Sustainability Principles that are attached to the supplier
agreement (contract or purchasing terms and conditions) are alegal document, but the Kering Standards are an implementation
tool to help support compliance with these principles.

Whom do I turn to if I have questions?
Contact the Sustainability Lead of the brand you work with. However, if you have a question regarding the principles set out in the
Kering Code of Ethics and the Suppliers’ Charter and/or if you suspect a breach of their principles, you can contact the Ethics Committees. See Appendix Kering Alert System

What does it mean to “use best efforts”
or “all reasonable efforts”?
“Best efforts” imposes a higher obligation than “reasonable efforts.”
Best efforts means taking, in good faith, all reasonable steps toachieve the objective, carrying the process to its logical conclusion
and leaving no stone unturned. Reasonable efforts does not mean
“every” effort or “all efforts”. It means making efforts that are reasonable and all things considered, and that will depend on particular
circumstances of individual cases.

What if following the Kering Standards has
additional cost for me?
This should be part of your commercial discussion with each brand.
If you foresee an additional cost, this needs to be discussed up front
with the brands. Kering is asking you to develop solutions to addressthese requirements in a long-term, 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 contact the Sustainability Lead for the brand
you work with.

How can I give input on the Kering Standards?
Contact the Sustainability Lead of the brand you work with.

Have the Kering Standards been externally reviewed?
Yes, they were reviewed by the brands, key suppliers, and external
experts.

What are the consequences for not following these
Kering Standards?
Compliance with the Kering Standards affects your vendor rating, which
is visible to all Kering brands and plays a part in supplier selection.
By following the Kering Standards you develop a better relationshipwith the brands. If you don’t meet the requirements of the Kering
Sustainability Principles, brands will require corrective actions andmay consider terminating their relationship with you in case they
are not implemented.

Why does Kering have such high Kering Standards?
Kering is committed to being sustainable to mitigate its environmental and social impacts and to redefine business value and drive
future growth. Kering believes that its commitment to sustainability
will allow Kering to redesign its business to become more resilientin order to thrive and prosper in the future, while at the same time
helping to transform the luxury sector and contributing to meetingthe significant social and environmental challenges of its generation.

What if my sub-suppliers won’t work with me tofollow the Kering Standards or provide me with theinformation I need to follow the Kering Standards?
Implementing the Kering Standards does require due diligencefrom suppliers. Kering recommends finding different sub-suppliers
that will incorporate the Kering Standards.

What do the Kering Standards require with regard
to nanotechnology?
The Summary of Kering Chemical Management Policy details Kering’s position on nanotechnology. In short, Kering follows the precautionary principle and will not use any nanotechnology applications unless such applications are analyzed and proved to have nopotential 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 GE or GMO fiber and/or food for live- stockthat provide raw materials for its brands’ products and packaging.
Kering reflects this position in several places in the Kering Standards, particularly in the Kering Standard for cotton, which prefers
certified organic cotton, since genetically modified cotton is often
present when cotton is not certified organic.
Kering has taken this position on GMOs because of its concern for the
potential negative impacts GMOs could have on the contamination ofGM plant varieties with natural plant varieties, the reduction in diversityof plant species/varieties, and the increased use of pesticides required
by GMO crops. Kering’s support of the precautionary principle and acommitment to pursue sustainable, holistic approaches has also led
to Kering’s position to not support GE or GMO raw materials.

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ARTISANAL SMALL-SCALEMINING (ASM)

Informal mining activities carried out using low technology or with minimal machinery.
Practiced by individuals, groups or communities often in developing nations.

BETTER COTTONINITIATIVE (BCI)

A non-profit organization that aims to make global cotton production better for theenvironment, 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 for suppliers of Kering brands.
www.bettercotton.org

BIO-BASED FIBERS

Bio-based fibers consist of polymers made from renewable resources such as sugars,
starches, or lipids (i.e. sugar, corn, castor beans)

BIODEGRADABLE

A biodegradable material is capable of being decomposed by bacteria or other livingorganisms in a determined time and rate of decomposition. Elements resulting from thedecomposition should not be damageable to the environment. Bio-based plastics are not
all biodegradable. Some petrol-based plastics are biodegradable.

BIODIVERSITY

Also known as biological diversity, is the variety of all life on earth.
Biodiversity can also be studied within a particular ecosystem.

CANADAMARK

Independently verifies that a diamond is of Canadian origin. The diamonds are responsibly
mined in Canada’s Northwest Territories and the stones are tracked and audited at eachstage of the supply chain.
www.canadamark.com

CANOPYAn award winning environmental not-for-profit organization dedicated toprotecting the world’s forests, species and climate.
www.canopyplanet.org

CAPTIVE

For species that can be bred in captivity, Kering aims to acquire from “closed loop” captive
operations. This means that animals are bred in captivity and live their whole lives in captivity.

CARBON CAPTURE
AND UTILISATION

Carbon capture and utilization is the process of capturing carbon dioxide (CO2) to berecycled for further usage.

CARBON DIOXIDE(CO2) EMISSIONS

Carbon dioxide (CO2) emissions are caused by the combustion of fossil fuels (coal, naturalgas, and oil) primarily for energy and transportation. CO2 emissions can also be caused byindustrial processes and burning forests and peatlands. CO2, one of a suite of greenhousegases, is the major one emitted through human activity.

CELLULOSE

Cellulose is a starch-like carbohydrate obtained from the bark, 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 thenregenerated by extrusion and precipitation.

CIRCULARITY

Waste is designed out of the system from the beginning and business activities aredecoupled from the consumption of finite resources. The aim is for resources in thesystem to cycle multiple times within and across industries and depending on theirhighest utility and value. Ideally in this system, materials are constantly reused or recycled
and waste is eliminated. The system is restorative and regenerative by design, creates
shared value, and enhances equality and society wellbeing.

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CONVENTION ON
INTERNATIONAL TRADEIN ENDANGERED SPECIESOF 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 not threaten their survival.
The list of species protected by CITES is regularly amended, the latest version can be foundon their website.

CITES APPENDIX I

Endangered species that are prohibited to buy or sell internationally.

CITES APPENDIX II

Species that are not threatened with extinction now, but have the possibility
to be, if trading is not closely monitored.

CITES APPENDIX III

Species where the trade is already being regulated and needs the cooperation of othercountries to prevent illegal exploitation.

COMPOSTABLE
PLASTICA compostable plastic is a plastic that can break down at composting conditions. The
disintegration of the plastic must take place in a composting process for organic waste
within a certain time. The result of the decomposition must be indistinguishable in thecompost and cannot leave any toxic material behind. Composting is a specific formof recycling, sometimes referred to as organic recycling. All compostable plastics arebiodegradable, but not all biodegradable plastics are compostable.

COTTON MADE
IN AFRICA (CMIA)

An initiative by the Aid by Trade Foundation (AbTF), CMIA helps to improve the living
conditions of smallholder cotton farmers in Africa.

www.cites.org

www.cottonmadeinafrica.org

CSCB

Certificaçao de Sustentabilidade do Couro Brasileiro (CSCB) is a Brazilian certification forsustainable leather.

DEFORESTATION

Deforestation is when forests are cut down permanently in order to make the landavailable for other uses. 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 and can leadto wildlife extinction.

ECOSYSTEM

An ecosystem is a system formed by the interaction of a community of organisms with
their physical environment (e.g. tropical forests, wetlands, and grasslands).

ENVIRONMENTAL PROFITAND LOSS (EP&L) ACCOUNTAn EP&L is a tool developed by Kering to help measure and understand a business’
impact on natural capital across the supply chain. The EP&L is a new way to measureand monetize the cost to society of the changes in the environment as a result of
business activities.
www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/what-is-an-ep-l/

FAIRMINED (FM) GOLDFM Gold is a label that certifies gold coming from responsible practices of artisanal
small-scale mining (ASM). It is an exchange between miners and markets, and guarantees
fair prices for the minerals.
www.fairmined.org

FAIRTRADE COTTON

The cost of cotton may decrease even though the price of production may increase and many
farmers struggle to survive. Fairtrade cotton ensures farmers get a fair price for their cotton.
www.fairtrade.org.uk

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FAIRTRADE (FT)GOLD

FT Gold is a standard that monitors human rights, chemicals, environmental protectionand ensures that miners receive a premium ($2,000/kg) to invest in better business orcommunity projects such as health care, clean water and education.
www.fairgold.org

FEEDSTOCKA feedstock is a raw material that supplies or fuels an industrial process. Polyester based
polymers predominately use petroleum (i.e. paraxylene and mono-ethylene glycol(MEG)), while recycled polyester use 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.

FIVE FREEDOMSThe Five Freedoms was developed by the World Organisation for Animal Health (OIE) todefine the animal’s welfare through its entire life cycle.

FOREST STEWARDSHIPCOUNCIL (FSC)

The FSC is an organization that sets their own global standards to promote
environmentally sound, socially beneficial and economically prosperous managementof the world’s forests. They have a subsidiary called Accreditation Services International(ASI) which is a member of the International Social and Environmental Accreditation andLabelling Alliance (ISEAL).
www.fsc.org

FOREVERMARK

Each Forevermark diamond is responsibly sourced, originating at a carefully selected minethat benefits the people, community and country where it is located. Strict environmental,
business, and environmental standards are met at each stage of the diamond’s journey.
www.forevermark.com

GENETICALLY ENGINEERED/GENETICALLY MODIFIED

Genetically modified usually refers to a process whereby genes are altered by humans(this is different to traditional breeding practices to create different varieties of 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 of another species (cotton
plant). This practice is controversial.

GLOBAL ORGANIC TEXTILESTANDARD (GOTS)

GOTS is a standard aiming to ensure organic textile production from the raw material
through to the labeling to provide credible assurance to the end customer.

GLOBAL RECYCLED
STANDARD (GRS)The Global Recycled Standard was released in 2014. The GRS gives companies the ability
to create a full product standard by providing a tool to ensure the identity of recycledmaterials throughout the production stages, as well as processing.

www.global-standard.org

www.textileexchange.org/integrity
GREENHOUSE GASEMISSIONS (GHG)

GHGs are gases that trap heat in the atmosphere. They include carbon dioxide, methane,
nitrous oxide, and fluorinated gases. They are responsible for the greenhouse effect,leading to global warming.

ICEC

The Institute of Quality Certification for the Leather Sector is a certification body focusedon leather.
www.icec.it/en

ISO 14001

ISO 14001 is a standard that sets out criteria for an environmental
management systems.

IUCN RED LISTThe Red List provides tax, conservation and distribution information on plants, fungi andanimals evaluated with IUCN criteria. The system is to determine the rate of extinction. The
list is maintained by the International Union for the Conservation of Nature, a non-profit.
www.iucn.org

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KERING CODE
OF ETHICS

The Kering Code of Ethics states Kering’s beliefs and the ethical principles that must takeprecedence wherever Kering operates. The Code of Ethics sets out the points of reference
that must guide every individual’s actions. It covers respect for employees, gender equality,
child labor, respect for the environment, and listening to civil stakeholders.

KERING RESPONSIBLE
GOLD FRAMEWORKThe Kering Responsible Gold Framework is an innovative purchasing strategy developedby Kering and its brands to define and access a customized mix of ethical gold that meets
Kering’s sustainability target requirements.

KIMBERLEY PROCESSCERTIFICATION SCHEME

The Kimberley Process Certification works on the basis that only diamonds certified
as ‘conflict free’ in line with KPCS guidelines may be exported from producing member
countries or imported by other KPCS member countries.
www.kimberleyprocess.com

KPI/E-KPI

Key performance indicator or environmental key performance indicator is a metric used to
track progress towards Kering’s sustainability targets.

LEATHER WORKINGGROUP

The Leather Working Group is a multi-stakeholder group that monitors and assesses
the environmental compliance and performance of leather tanneries and promotes
sustainable business practices within the leather industry.
www.leatherworkinggroup.com

MAN-MADE FIBERS

A type of fiber that is made artificially, such as polyester or rayon, rather than occurring naturally likecotton or wool.

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.
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MATERIALS
INNOVATION LAB (MIL)The Kering Materials Innovation Lab is focused on providing support to promote theintegration of more sustainable materials into Kering brands’ supply chains.

MICROPLASTIC SHEDDING

Also known as microfiber shedding, it is the release of fibers (microplastics) <5mm from plastics andsynthetic textiles during production, post-production (washing, use or wear) and disposal . Researchis being done to quantify shedding rates on different fiber types and through various processes.

NANOTECHNOLOGY

Science, engineering and technology conducted at the nanoscale, which is about 1 to 100
nanometers, and involving the ability to see and to control individual atoms and molecules.

OHSAS 18001/2

The OHSAS 18001/2 is an internationally applied British Standard for occupational healthand 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 andpeople and relies on ecological processes, biodiversity and cycles adapted to local conditions,rather than the use of inputs with adverse effects. Additionally, it combines tradition,
innovation and science to benefit the shared environment and promote fair relationships anda good quality of life for all involved.

ORGANIC CONTENTSTANDARDThe Organic Content Standard was created by the Textile Exchange and it relieson 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 in accordance with precise technical specifications (standards)
and certified as “organic” by a certification body.

Glossary

POST-CONSUMER WASTE

Post-consumer waste is material generated by households 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. (ISO 14021)

PRECAUTIONARY
PRINCIPLE

The Precautionary Principle is a strategy to cope with possible risks where scientificunderstanding is yet incomplete, such as the risks of nanotechnology, genetically modified
organisms and systemic insecticides.

PRE-CONSUMER WASTE

Pre-consumer waste is a material diverted from the waste stream during a manufacturing
process. Excluded is reutilization of materials such as rework, regrind or scrap generated in aprocess and capable of being reclaimed within the same process that generated it. (ISO 14021)

PRODUCT RESTRICTEDSUBSTANCES LIST (PRSL)The Product Restricted Substances List outlines the chemicals which cannot be detected
or must meet certain limits on finished Kering’s brands’ products.

PROFUR

Profur is a fur certification developed starting in 2005 by the Finnish Fur Breeders’
Association. It is a quality assurance and environmental system that emphasizes
responsibility, traceability and transparency.
www.profur.fi/profur

PROGRAM FOR THE
ENDORSEMENT OF FOREST
CERTIFICATION (PEFC)

PEFC is the world’s largest forest certification system. The PEFC provides alternative
forest and chain of custody certification. Their benchmarks for sustainability are basedon globally recognized principles and its criteria and guidelines are developed byintergovernmental and international bodies.
www.pefc.org

PVC

Polyvinyl chloride is a synthetic plastic polymer associated with worker safety and end-oflife hazardous chemical concerns.

RAW MATERIAL

Raw materials are an unprocessed first input (for example, cotton, leather, gold, etc.) which
will be transformed into the finished product through the various stages of processing,
manufacturing and assembly.

RECYCLABLE

A characteristic of a product, packaging or associated component 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.

REGENERATIVE
AGRICULTURE

Regenerative Agriculture is a way of raising crops and animals that – by working withnatural ecosystems – ensures the long-term viability and resilience of the land tocontinue to provide for generations to come. Key principles and outcomes used to define
regenerative agriculture include: (1) increasing carbon in the soil and other improvements
in soil health; (2) protecting and restoring native habitat and biodiversity; (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 existing products 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 or component is returned back to a usable state.

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RESPONSIBLE DOWNSTANDARD (RDS)

Responsible Down Standard is an independent, voluntary global standard to ensure that down
and feathers come from ducks and geese that have been treated well.
www.responsibledown.org

REUSE

Operation by which a product or component is used repeatedly and for long periods of time, for
its original purpose, without being significantly modified, remade, or recycled. Products mightneed to be ‘prepared for reuse’, which often involves cleaning, repairs, or small modifications sothat they can continue to be used throughout time and multiple users.

SCIENCE BASED TARGETS

Science-based targets provide a clearly-defined pathway for companies to reduce greenhousegas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof
business growth.

SUPPLIERS

Suppliers are all of the entities that touch the raw material in its transformation fromits natural state to finished product including those that are involved in the processing,
manufacturing and assembling of the material.

SUB-SUPPLIER

A sub-supplier is a supplier to a Kering brand’s supplier; a second tier supplier.

SUPPLIERS’ CHARTER

Kering’s Suppliers’ Charter is a charter where Kering and its brands declare their commitment
to comply with the International Labour Organization (ILO) and in particular with theconventions concerning the eradication of child labor and the abolition of slavery and forcedlabor, through a list of supplier codes.

SYNTHETIC FIBERS

Synthetic fibers are man-made fibers from high polymers which are produced bypolymerization, poly condensation or 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 useof of third-party businesses to outsource elements of its distribution, warehousing,and fulfillment services.

TRACEABILITY

Traceability is the ability to identify and trace the history, distribution, location, andapplication of products, parts, and materials. In the sustainability context, traceability
is a tool to assure and verify sustainability claims associated with commodities andproducts, ensuring good practice and respect for people and the environment all along
the supply chain.

TRACEABLE DOWNSTANDARD (TDS)The Traceable Down Standard was created by Patagonia as an approach to sourcing down inan effort to prevent unnecessary harm to the animals involved.
www.patagonia.com/traceable-down.html

WELFUR

WelFur was created by the European Fur Breeders’ Association (EFBA) and is a science-based
welfare assessment aiming to fulfill three purposes: reliable animal welfare assessment,
animal welfare improvement and consumer transparency. WelFur is an extension of theEuropean Commission’s Welfare Quality Project.
www.fureurope.eu/fur-policies/welfur/

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WILD

Sourcing from wild populations, when done correctly, can contribute to the conservationof the species and their habitats. It can also support local livelihoods of people
in developing countries, encouraging them to protect the animals’ habitat.

WORLD DIAMONDCOUNCIL

The World Diamond Council represents the diamond industry in the development andimplementation of systems to control the trade in diamonds embargoed by the United
Nations or covered under the KPCS.
www.worlddiamondcouncil.com

WORLD DIAMONDCOUNCIL SYSTEM OF
WARRANTIES STATEMENT

The World Diamond Council System of Warranties Statement reads:“The Diamonds herein invoiced have been purchased from legitimate sources not involvedin the funding of conflict and in conformance with United Nations resolutions. The seller
hereby guarantees that these Diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the Supplier of these Diamonds.”

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Kering

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KeringContact

Any questions regarding the Kering Standards
and their use should be directed to sustainability@kering.com
Version 4.2 – March 2022

Photos credits: Kering, iStock, Shutterstock