CIRCULARITYAMBITION
Coming Full Circle

CIRCULARITY AMBITION Coming Full Circle

Summary
Moving away from the conventional model of“take-make-waste” is not only about recycling,
but about rethinking the way we produce, use
and extend the life of resources and products.
Our circularity approach is completely aligned
and in tune with our climate and biodiversity
strategies. The three work together to create
our framework for action.
A circular economy provides the opportunity
not only to move towards a positive impact
on resources, but also to innovate in order
to better serve our customers and to further
advance our sustainability goals. This is morethan a strategy, this is a whole new mindset
that reinforces what defines us: creativity, exceptional know-how, high quality.
We will increase the longevity of our products
by supporting new business models designed
to keep clothes in circulation for the longest
possible time; design our products and materials so that they are durable and can be madeagain; accelerate the transition to regenerative
farming practices which we are linking to science-based research, improving the health of
our ecosystems as well as the livelihoods ofthose who work on the land; expand our repairs services. We are shifting our production
practices to reduce waste, reduce energy andwater use, and to eliminate microfibre leakage
and single-use plastics.
As a business, we see the circular economy
as an opportunity to create an industry fit for
purpose for future generations, that works
with nature rather than against it. We mean
business and have set a series of targets tokeep us on track: zero product destruction;
100 per cent renewable energy by 2022; zero
single-use plastics by 2025; 100 per centof raw materials to comply with the Kering

Standards by 2025; zero microfibre leakage
by 2030.
We know systemic change requires investment, creative thinking and the will to change.
In this document, we have outlined some of
the initial, tangible, actions our brands aretaking on a range of issues, from upcycling
their waste materials to make new products,
reviewing the cycle of the fashion calendar,
looking at techniques for design for disassembly and enabling easier access to repairs andresale markets. We are investing in the Kering
Regenerative Fund for Nature and creating
training opportunities to ensure we have thefuture skills required for a circular system.
But we know it’s not enough. This is about working together, not just for our brands at Kering
but as an industry. We need open-source solutions and collective action. The Fashion Pact,
which launched in 2019 – a global coalitionof companies to stop global warming, restore
biodiversity and protect the oceans – was afirst step towards taking responsibility for the
impact of our industry as a whole. In February,
we announced the Made in Italy project led by
the Apparel Impact Institute, to work alongsideother brands to improve the efficiency, waste
management and energy use of our suppliers.
We are collaborating with a range of experts,
from The Microfibre Consortium to the Apparel
Impact Institute, Fashion for Good and the Ellen
MacArthur Foundation. We are engaging openly
with Italy’s leading environmental NGO Legambiente to ensure that our actions are underpinned
by transparent auditing and that they ultimately
lead to a shift in the way we operate, so that we
can achieve the ultimate goal for a circular system – decoupling our economic developmentfrom the consumption of finite resources.

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CIRCULARITY AMBITION Coming Full Circle

Coming Full Circle
Kering’s Approach to Circularity

LUXURY THAT LASTSDURABILITY BY DESIGNA CULTURE OF REPAIR AND REUSE

Kering Eyewear designing for durability

Ulysse Nardin verifying authenticity

MCQ ensuring long-term relevance

Pomellato mending with gold
Brioni a suit for life
Kering’s Shanghai repairs centre

BUILDING A BUSINESS MODEL THATGIVES PRODUCTS A SECOND LIFE
Alexander McQueen & Vestiaire Collective
keeping loved clothes in play
How re-commerce works as partof the service of luxury

REGENERATIVE SOURCING
AND CLEAN PRODUCTION
WORKING WITH NATURE
Gucci regenerating for the future
Kering Regenerative Fund for Nature

SETTING STANDARDSFOR CIRCULAR MATERIALSMAKING MANUFACTURING PROCESSESCLEAN AND EFFICIENT

Balenciaga changing the system

Clean by Design
Working with Legambiente
Zeroing in on microfibre pollution

MAKING PRODUCTIONPROCESSES MORE EFFICIENT
The Materials Innovation Lab
Bottega Veneta circular design andimproving waste management in stores

REDUCING UNNECESSARY PRODUCTION
AND ELIMINATING SINGLE-USE PLASTIC
Tackling single-use plastic packaging

REUSE/UPCYCLE/RECYCLE
Gucci Round and round
Saint Laurent revitalisingleather leftovers
La Réserve des Arts

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CIRCULARITY AMBITION Coming Full Circle

Context
The fashion landscape has changed irreversibly over the past two decades. The climate
emergency is at the top of everyone’s agenda
and particularly that of the fashion industry,
which has a significant impact in terms of useof energy, water and resources, and throughchemical pollution. Compounding this, theCovid-19 pandemic has given the industry theopportunity to rethink its model. It has shown
us how we are all connected, economically andsocially, and indeed how our connection withnature is essential; the impact of the pandemic
has been felt at every level – from the cotton
fields to the textile mills to the shop floor.
The enforced pause in the fashion cycle has
given brands and designers the opportunity tostop and reflect and take stock. Though there
was much we were already doing before thepandemic, the last year has focused our attention more acutely on “re-building better”.
It has highlighted the importance of resilient
supply chains and the need for traceability and accountability across the supply andproduction process as it has shown us that
we need to act fast to keep the threat of pollution and global warming under control. We
know that we must be more respectful of therelationship between fashion and the natural
world – by understanding our dependence onnature, halting our negative impacts and acting to restore and regenerate natural systems
and processes. We know that we can change
the way we source raw materials – our cotton,
cashmere and leather – to drive positive outcomes for both nature and livelihoods.

duce greenhouse gas emissions, limit its useof natural resources and safeguard the environment for the future – very seriously. While
policymakers are beginning to act with greater
decisiveness, bringing in legislation designed
to stop the use of single-use plastics, ensurethat products and materials are not destroyed
unnecessarily and that products are repairable and recyclable, Kering is already committed to being accountable across these key
areas. With only a few years left till 2030, thepoint at which the entire industry needs tohave pivoted to climate- and nature- positive
approaches if we are to meet the UN Fashion
Industry Charter for Climate Action and Paris
Agreement goal to limit global warming to 1.5
degrees, the urgency is great. We need to havethe strategic and measurements frameworks
in place to act decisively and effectively on aseries of actions that restore ecosystems andbiodiversity while mitigating climate change
by nurturing the relationship between us, ourclothes and nature. Kering understands thechallenges ahead.

Kering, which has for more than a decade
been at the forefront of leading innovationand investment into accounting for the environmental impact of its brands, has been
taking its responsibility – to measure and re-

It is in this context, and guided by the Ellen
MacArthur Foundation’s report Vision of a
Circular Economy for Fashion, that Kering is
working on a holistic and strategic approach
to changing the linear “take-make-waste”

The attitude of customers is changing, too.
New generations have different priorities
and role models. Social media has becomea place to question and challenge systems,
perspectives, inequalities and injustices. At
the same time, there is a greater awarenessof the interconnectedness of the climate, theenvironment and the way we consume – andthe impact of the clothes we wear and how
we care for them.

model to one that keeps products and materials in use while regenerating nature. The
action starts with the soil, promotes biodiversity, educates its brands and designers on materials and the durability of design, explores
closed-loop systems, considers microplastics,
eliminates single-use plastic and invests in
new technology and new skills to recycle andregenerate materials efficiently and cleanly. It
brings into play a support system that offers
repairs and incentivises resale to ensure thatevery product fulfils its potential for the longest life possible. It recognises the need for a
new rhythm to the fashion calendar, allowing
time for creativity and experimentation. For
Kering, circularity is more than a strategy. It is a
new mindset that focuses on innovation, creativity and responsibility to design out waste,regenerate the soil and reinvent the way weuse – and reuse – materials.
Kering has already made headway in piloting
projects that promote circularity, but we are
deepening those initiatives. We are introducing new technology and ideas and creating ahoneycomb of systemised solutions that all ofour brands can easily access and implement
so they can share knowledge and resources.
We believe that a pioneering and radical circular approach is essential to build a luxury
fashion industry for the future that is fit for
purpose, and that works with nature rather
than against it. We do not pretend to know all
the answers and are actively seeking to collaborate with others who have more knowledge and expertise. Most importantly, we aredetermined to take risks, regenerate, experiment and invest for the future of our industry
and the planet as well as the wellbeing of theworld’s population.

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CIRCULARITY AMBITION Coming Full Circle

Coming Full Circle
Kering’s Approach to Circularity

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CIRCULARITY AMBITION Coming Full Circle

1

LUXURYTHAT LASTSOf the three pillars in the Ellen MacArthur
Foundation’s 2017 report A new textiles economy:
redesigning fashion’s future, a priority for the luxury
industry if it is to make collective progress is thatclothes should be “used more”. In practice, thismeans that products need to be kept at their highest
value for the greatest amount of time, using, forexample, repair services and business models such as
re-commerce. We recognise the responsibility
to design products with durability in mind, in termsof physical longevity and repairability, while making
sure that a product has long-term relevance anddesirability. To achieve this, we carry out numerous
tests to guarantee quality and assure longevity.
In addition, we are mindful of excess inventory –and technology is helping to predict more precisely
production levels so that we keep unnecessary
production to a minimum.

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CIRCULARITY AMBITION Coming Full Circle

1.1 DURABILITY BY DESIGNFOR TODAY AND TOMORROW
Measuring the physical durability of one product compared to another istremendously challenging. Quality control tests are carried out by our brands
to ensure the long life of our products, and to extend this, in April 2021,
we set up a new Test Innovation Lab in Prato, just outside Florence, to be at
the forefront of testing technologies for safety and durability.

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Kering Eyewear: designing for durability
Glasses are a specific category, designedwith both form and function in mind. Kering
Eyewear must have long-lasting durability
as well as long-term appeal aesthetically.
Frames are tested to a high degree – during
the design phase, technical feasibility is
carried out on both sunglasses and opticalframes using 2D and 3D CAD to verify functionality and aesthetics; then resistancetests are done on real samples to check forbreakage and fading so that we can makesure a product stays in pristine condition
for the longest possible time as well as being confident that it is built to last.
We have developed an internal roadmap todevelop new materials in line with the Kering Standards for Raw Materials and Manufacturing Processes to improve the environmental impact of our frames and we havebeen able to test and explore a range of newmaterials with several success stories.

To ensure quality control and consistency
across design, materials, safety, comfort
and technical features, we have established a selected network of strategic
suppliers. To have full visibility and control of all the materials and components
used throughout this very complex supply
chain, Kering Eyewear developed – andhas been continuously investing in – thefirst blockchain platform in the industry.

CIRCULARITY AMBITION Coming Full Circle

Measuring and qualifying the durability of a product continues to be a complex issue. Keeping
a product in use for longer – and ensuring that it is designed to last – requires the best-quality
materials, the highest levels of craftsmanship and time to think and consider how it will be worn
and used. There is a perception that luxury products have a higher physical durability, but it isessential to us that we are able to quantify that, so that we can improve our products by using
this measurement as part of the life cycle analysis for environmental footprint labelling or of
our Environmental Profit & Loss tool, which measures and quantifies our environmental impact.
For this reason, we are launching the first research programme on physical durability of luxury
products with the Institut Français de la Mode, so that durability of our materials and products
can be investigated more thoroughly. The resulting research, to be published over the next
three years, will help better inform us and our brands so we can keep improving our practices.

“Keeping a productin use for longer requires
the best-quality materials
and the highest levelsof craftsmanship.”Long-lasting appeal
Products should be designed to have long-term appeal to last physically as well as emotionally.
Fashion might be about a fleeting moment, but a new generation of consumers is looking fora more meaningful connection – an emotional attachment. Collections need to be designedwith a level of continuity, so that a garment or accessory might be re-worn in a few years’ time,or styled with something from a previous collection. We have always sought to design iconic
pieces with the aim of building a unique “vestiaire” that transcends seasons and fashion. Ourcircular approach to luxury is – and always has been – about making luxury pieces that standthe test of time.

“We have always sought
to design iconic pieces withthe aim of building a unique‘vestiaire’ that transcends
seasons and fashion.”8

CIRCULARITY AMBITION Coming Full Circle

9MCQ: ensuring long-term relevance
When MCQ launched its first collection in
September 2020, it was created as an entirely
new system of making and marketing fashion, designed to break away from traditionalmodels, seasons and systems in order to give
each item of clothing its own currency andcredibility.
MCQ integrates blockchain technology, essentially a means of storing and transmitting
information, into the collections – or icons, as
they are called – so that each piece of clothingcan be tracked every step of the way. An NFC(near-field communication) tag allows a garment to become a piece of media, completewith videos, music, a launch party; and tells its
own story, from its number in the production

line, when and where it was made, where it was
sold, who designed it and who owned it. Ownership can be registered publicly or anonymously.
The owner then becomes part of a community
who can see each other’s digital wardrobes andcollections. Eventually, the MYMCQ platform willallow pieces to be sold or traded peer to peer,with every icon existing as part of a network ofstories and collaborators. In this way, collaborators and owners become as important as theitem itself, giving each piece its own currency.
Each numbered item exists inside the MCQ
universe to collect, swap, sell or keep. Its relevance endures beyond a season or a trend,and connects the owner to a social network of
the creatives involved. Every icon – and there

might be two or three icons in a cycle – is designed by a new creative or team of creatives
from the worlds of music, art, fashion, photography and film. The second collection, or icon,
Genesis II, for example, lists five collaboratorsand three organisations as the creative teamthat designed it, including the London-based
vocalist Shygirl and the poet and spoken word
artist James Massiah. It will continue to exist
within the platform alongside future icons.
MCQ is rethinking conventional businessmodels, including packaging – items havethe same packaging from production all theway through to the consumer, the idea beingthat the packaging travels with the garment
as its life cycle continues.

CIRCULARITY AMBITION Coming Full Circle

1.2 A CULTURE OF REPAIR
AND REUSE
A new interest in the culture of repairs is making the simple act of sewing on abutton part of a more responsible way of looking after our clothes. And customers
do want to be seen to be looking after their clothes and accessories as much as with
their precious items such as watches and jewellery. This approach, which is alignedwith the principle “used more” in the Ellen MacArthur Foundation’s Vision of a
Circular Economy for Fashion, is one that we share, and all our brands, big andsmall, have excellent repair services as standard after-sales care. We are using thelatest technology to extend the warranty of a watch, guaranteeing its authenticity
and owner history. And in the case of jewellery, we are looking back at ancienttechniques to upcycle damaged gemstones with the help of master craftsmanship.

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Ulysse Nardin: verifying authenticity
Developments in blockchain technology are transforming what we can offer interms of warranty, and this is a very exciting development. We can already see how
it might benefit the customer at Ulysse Nardin, where blockchain is allowing us to keep
track of the authenticity of a watch, and, inthe near future, to pass that warranty on
to the next owner. It is the first time thata luxury watch brand has used blockchain– a system of recording information that is
impossible to change – to create a global
database of information, such as warranty and after-sales care, about each watchthat is tamper-proof and which provides
the customer with secure verification ofauthenticity as well as a record of maintenance. This database also provides validityof ownership and other information shoulda client wish to sell their watch.

CIRCULARITY AMBITION Coming Full Circle“At Pomellato, broken stones arebeing given new life as beautiful,
poetic, one-of-a-kind jewels thatcelebrate their fragility and flaws.”

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Pomellato: mending with gold
Pomellato Kintsugi is a collection that shows
the beauty of repairs. So that precious gems
are never wasted or discarded, Pomellato hasapplied the ancient art of kintsugi, a traditional Japanese mending technique, to upcycle damaged gemstones, including jet andkogolong, which would otherwise be discarded, employing a Japanese artist to mend thestones using gold. The technique originates in
15th-century Japan and is an expression of theJapanese philosophy of resilience and compassion. “Kin” means gold and “tsugi” means
to mend. Pomellato’s Creative Director was
drawn to the elegance of Japanese thinking

and the idea of something broken becoming
more precious through this ritual of repairing.
While it is perfectly normal for gemstones tocontain flaws and inclusions, broken stones
are being given new life as beautiful, poetic, one-of-a-kind jewels that celebrate theirfragility and flaws with the highly skilledapplication of gold to join the pieces back
together again.
Repurposing, rather than discarding, is so relevant to our own lives and our commitment
to sustainability.

CIRCULARITY AMBITION Coming Full Circle

Indeed, after-care and access to repair services are an integral part of our approach to circular
fashion in luxury. As part of our commitment, we have created specialist repair hubs for ourcustomers located in China (one in Shanghai – see below – and another in Hong Kong) andAmerica (at our US headquarters in Wayne, New Jersey). This is intended to provide a localised
service and an immediate solution for clients, offering the same services as the brands provide
at their ateliers, with skilled craftspeople who see repairs as part of the art of creating, and whoare specially trained by experienced Italian technicians to carry out these repairs. The technicians themselves are trained by the Kering after-sales team and the brands’ ateliers in Italy,
learning the skills required to make a bag or a pair of shoes. In addition, the workshops are fully
equipped with state-of-the-art machinery.
We have plans to open further repair hubs in Dubai and in Europe, staffed by our trained artisans, and additional support will be given to suppliers through our brand-new logistics hub in
Trecate, north-west Italy, 50km from Milan. We already provide a service for re-soling trainers,
and several brands now have pilot schemes which offer trainer cleaning and maintenance. Our
after-sales service helps to create brand loyalty and is part of a system designed to extend thelife of trainers and keep them looking pristine for longer.
For all our brands, after-sales is part of the circularity approach, and it is extremely important
to us as a company to ensure that items are kept in use or keep their value for resale. We arecommitted to expanding accessibility to our quality repairs and renovation services as part ofthe customer journey and experience.

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Kering’s Shanghai
Repairs Centre
In Shanghai, our after-care services havebeen widely used in the past four years. In
2020, the hub repaired 20,000 items. This
number looks set to rise to 25,000 in 2021,
an increase of 25 per cent. If an item is vintage it is possible to check with the brand,
and if the material is still available, the item
can be fixed.
Problems such as damage to stitching, repairs to handles or faded colour can all becorrected as part of our after-sales commitment and two-year warranty. To help recruit
craftspeople with the right skill level, we
are in discussion with a university to put inplace an apprenticeship scheme.

CIRCULARITY AMBITION Coming Full Circle

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Brioni: a suit for life
Each Brioni suit purchase marks the beginning of an enduring relationship between
the client and the House. A Brioni suit is designed to evolve with the wearer, as the seamallowance can accommodate for a lifetimeof alterations to adapt to changes in body
shape. Moreover, any rip, frayed pocket edge
or damage caused by everyday wear and tearcan be repaired or reconditioned.
This unique approach to repairs and after-careservice subscribes to the concept of slow luxury. There is respect for the quality of the fabricand its sourcing, the tailor’s craftsmanship andthe experience of a client’s changing needs.
Customers are given advice on how best to

take care of their suit, coat or shirts. It is an
exchange between the client and the House
which ensures that garments are cared forover the years. Brioni offers a pit stop for analterations and reconditioning service, including quick repairs in most of its stores acrossthe world.
For bespoke, clients have the opportunity toselect fabrics available in limited quantities
from earlier seasons. In this way, Brioni andthe client team up to avoid sourcing newmaterials and thus lessen the environmental impact. In the spirit of circular fashion,
Brioni also donates leftover fabric to NGOs
and fashion schools.

CIRCULARITY AMBITION Coming Full Circle

1.3 BUILDING A BUSINESS MODELTHAT GIVES PRODUCTS
A SECOND LIFE
There is a range of new business models emerging across the fashion industry– from subscriptions and rentals to re-commerce. When you buy a quality
item and look after it, the chances are it will keep its value, and that is why
the entire life cycle of a product is so important to us at Kering, one of theprinciples of our EP&L. Our vision is that the second-hand market becomesa service and an opportunity for our luxury brands. We can authenticate – andgive value – to a product, that the customer can then sell on, either througha service that we offer or using the information we provide.
Elevating and promoting the experience of buying luxury items second hand makes perfectsense for leather goods as well as for ready-to-wear. A new textiles economy notes that a circular economy “entails gradually decoupling economic activity from the consumption of finite
resources, and designing waste out of the system.” The report found that doubling the average
number of times a garment is worn would reduce its greenhouse gas emissions by a staggering
44 per cent. Our consumer survey Capturing the Impacts of Consumer Use and Product End ofLife in Luxury has shown that, on average, some 65 per cent of luxury products are given to afriend, resold or donated to charity. It shows that a significant proportion are already being
given a “second life”.
According to Vestiaire Collective, the leading global luxury resale platform, an individual can
reduce the environmental impact of a bag by more than 90 per cent when they buy it second
hand as compared to buying new.
While we cannot dictate how many times a piece of clothing is worn, we can create simple
ways for clothing to be kept in circulation, which is why, in March 2021, we announced aninvestment in Vestiaire Collective. It is both a business opportunity and an important signifierof how seriously we take the secondary market in luxury goods. In the US alone, the numberof second-hand pieces in people’s wardrobes is predicted to grow from 21 per cent in 2021
to 27 per cent in just two years’ time, with the value of the second-hand sector forecast to be
worth more than $60 billion by 2025.
The fashion community identified by Vestiaire Collective as a core part of its customer baseare people who want to reduce their consumption habits and who understand the inherent
longevity of well-designed, quality items. We share these values; and view the re-commercemarket as one of the main links in the circularity chain, and are seeing resale as both an entry
level for a new generation, as well as a thriving ecosystem to promote ideas and practice aroundcare, maintenance, repair and reuse.
Ultimately, there are many ways of bringing re-commerce into the DNA of a brand and eachof our teams has its own approach to the business opportunities presented by after-care services, repairs, finding ways to take back and resell pre-loved pieces, and to the introduction ofa new flexibility and understanding that is bringing with it a whole new approach to aesthetics,
creativity and artistic vision.

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CIRCULARITY AMBITION Coming Full Circle

15

Alexander McQueen & Vestiaire Collective:
keeping loved clothes in play
There is a holistic approach to circularity fromwithin Alexander McQueen that looks at thewhole cycle, starting with the materials themselves and continuing into perpetuating thegarment’s life. In February 2021, Alexander
McQueen launched a pilot scheme with theluxury re-commerce platform Vestiaire Collective in which the house invited McQueencustomers to sell their pre-loved pieces in
return for store credit.
The innovative programme aims to make iteasier for client to resell their garments andaccessories – as part of the service, the items
are picked up from the client and the pieces
are authenticated and bought by Alexander
McQueen Vestiaire Collective, and a credit
is immediately issued, so the client doesn’t
have to wait for the resale to happen. The
items are tagged with an NFC tag for futureclients to know the product has a confirmed
authenticity. Users understand they are participating in a circular economy, extending
the life of their clothes and accessories, andensuring they look after those pieces while
they are in their care.

CIRCULARITY AMBITION Coming Full Circle

How re-commerce works
as part of the service of luxury
Re-commerce is being included in the business plans ofour brands and creating a new dynamic creatively, too. We
believe that pre-owned luxury is integral to the cultureof how a new generation of customer is shopping withsustainability in mind. As part of our strategy to ensurethat there is a strong ecosystem to continue the lifespanof our clothes and accessories, in March 2021 we invested
in Vestiaire Collective. It announced a €178 million financing round backed by Kering and Tiger Global Management
to accelerate our growth in the second-hand market andto drive change for a more sustainable fashion industry.
By investing in Vestiaire Collective (with an approximate
5 per cent stake) and by being represented on the platform’s board of directors, Kering is illustrating its pioneering strategy, supporting innovative business models, embracing new market trends, demonstrating the impact of
the resale market to feed into our EP&L, and exploring newservices for fashion and luxury customers.
We embrace this new culture of mixing new pieces withpre-loved items and see this mix of old and new as a future
direction of retail, with a shift from the seasonal musthave purchase to a more fluid, trans-seasonal approach.

“Our vision
is that thesecond-handmarket becomesa service andan opportunity
for our luxury
brands.”16

CIRCULARITY AMBITION Coming Full Circle

2

A HOLISTICAPPROACH– REGENERATIVE
SOURCING
AND CLEAN
PRODUCTION
At Kering, we believe that it is no longer sufficient
merely to say that the industry is minimising
its negative impact in the natural world: we must
do better and act to restore and protect nature, which
is why we are prioritising regenerative agriculture,committing to agricultural resilience and protecting
the earth. Healthy soil is the starting point for thenatural and renewable materials we use. These
already account for more than 90 per cent of all those
we source, particularly cotton but also leather, wool
and cashmere, which all come from grazing land.

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CIRCULARITY AMBITION Coming Full Circle

Regenerative agriculture is a way of growing crops and grazing animals that, by working withnature, ensures the health and long-term viability and resilience of the land and the wellbeingof those who tend it. The focus on restoration and regeneration of nature is about “doing moregood” through agriculture rather than simply “less bad”. As well as preventing soil erosion caused
by intensive conventional farming methods, it most importantly improves the livelihoods ofthe farmers as well as looking after the welfare of their animals. We also believe at Kering that
we can build regenerative approaches that include wildlife – regenerative farming is not only
about the soil and the plants, but also about allowing the co-existence of wildlife and farmers.
We believe that circularity begins with materials – to design products that last, we have to
make sure that these are not just high quality but are also cultivated in a way that restoresand respects nature – and, we believe, this should extend to the entire production process. As
one of the fundamental principles of a circular approach, we are speeding up the transition
towards regenerative agriculture across our supply chain.
One of the most important points about regenerative farming is that it can lead to a net positive impact in terms of carbon and greenhouse gas emissions for materials that are grown andgrazed appropriately. We have strict standards for the raw materials we use – with the goal ofsetting the bar high and supporting continuous improvement with our suppliers. As a first step
we are committed to maximising our use of materials that are verified or certified as organic,
regenerative and regenerative organic. We are also providing training and expertise for ourbrands to give the most up-to-date strategies, from sourcing materials to upcycling, including
workshops with external specialists such as Circular.Fashion1 and the Sustainable Angle2.

“To design products that last,
we have to make sure that these
are not just high quality but
are also cultivated in a way that
restores and respects nature.”
Switching to renewable energy
and increasing efficiency
Ninety per cent of all the electricity used in our own operations worldwide is already renewable, and we have committed to achieving 100 per cent renewable energy by 2022. To increaseenergy efficiency and manage waste in our manufacturing processes with our supply chain,
we are working closely with the Clean by Design programme, which looks at water pollution
and carbon emissions across the industry, to improve outcomes in our textile mills.
In addition, Kering is taking seriously the problem of microfibre fragmentation from textiles
as part of the circular economy’s key commitment to protect our ecosystems. We are collaborating on a pilot scheme to filter out microfibres.

Circular.Fashion is a start-up agency, accelerated by Fashion for Good, that delivers a range of solutions to the fashion industry on circularity.
The Sustainable Angle is a not-for-profit organisation which aims to initiate and support projects that lower the environmental impact of the fashion industry. Its main
project, the Future Fabrics Expo, has become the largest dedicated showcase of innovative and sustainable material solutions for the fashion industry.

1
2

18

CIRCULARITY AMBITION Coming Full Circle

2.1 WORKING WITH NATURE
Kering’s Environmental Profit & Loss tool shows that our biggest
environmental impacts happen in tier 4 of the supply chain – that is, withthe goat herders, in the cotton fields and the cattle pastures where wesource our cashmere, cotton and leather. Thirty-two per cent of Kering’s
environmental impacts relate to potential biodiversity and land use impacts,
mostly from the production of raw materials in tier 4 of our supply chains.
We have the opportunity to change the systems to generative positive
outcomes through nature-based solutions.
To accelerate our transformative action, Kering and Conservation International have launched
the Regenerative Fund for Nature. By 2025, we will transition one million hectares of current
crop and grazing land into regenerative farming practices that restore nature and mitigate
climate change. This represents about three times our total land footprint.

19“The focus on restoration
and regeneration of nature
is about ‘doing more good’
through agriculture rather
than simply ‘less bad’.”CIRCULARITY AMBITION Coming Full Circle

20

Gucci: regenerating for the future
As part of its Natural Climate Solutions Portfolio, Gucci is funding and incentivising farmers
to switch to regenerative agriculture through“carbon farming”. As an example, Gucci has
funded wool growers in Patagonia to enable
them to convert to regenerative grazing on
1,800 hectares of grasslands, which will promote soil health, water quality, increased
biodiversity, animal welfare best practices

and carbon sequestration for the long term.
Looking within its own supply chain, Gucci
has also taken a first significant step in a
broader, long-term strategy for regenerative
agriculture: with a goal to source regenerative
raw materials for its products, the House has
been working on feasibility studies to identify
and scale up regenerative agriculture projects
within its sourcing regions.

CIRCULARITY AMBITION Coming Full Circle“The soil is the starting
point for circularity.”

Kering Regenerative Fund for Nature
The soil is the starting point for circularity with raw materials grown in a way that sequesters
carbon from the atmosphere and stores it in the soil, thereby reducing greenhouse gas emissions. Regenerative farming makes use of organic compost and natural fertilisers, removing
harmful chemicals and pesticides from the land. These chemical inputs impact badly on
the farmers, both on their health and their wallets. Removing them makes sense all round.
We are committed to reducing our overall environmental footprint and we know from our
EP&L that our biggest challenge is how we use land. The Regenerative Fund for Nature aims tocatalyse change in how we use the land in the future – not only within our supply chains but
beyond. By supporting producers who are cultivating important materials (cotton, cashmere,leather and wool, for example) as they test our approach to move towards more regenerative
practices, we can deliver many “co-benefits”, including enhanced soil health, restorationand protection of biodiversity, climate change mitigation and improved rural livelihoods.
The work of the fund draws on our decade of experience in sustainable sourcing across all
our supply chains and the partnerships that we have built, including our long-running programme for sustainable cashmere production in South Gobi, Mongolia, and our collaboration
with Savory Institute that supports the pioneering Ecological Outcomes Verification (EOV)
as a way to measure outcomes. We ask: Is the soil getting better? Is biodiversity improving?
With the Regenerative Fund for Nature, we will provide grants to support producers at thefront lines of agricultural change in 17 countries, to grow fibre, as well as to provide pasture
for animal grazing, focusing on wool, leather, cotton and cashmere. We want to show thatlivelihoods and biodiversity can be changed for the good through better soil management
and by supporting local farmers through impactful transformations. These projects will be away of scientifically measuring the positive effect of regenerative farming and will contributeto showcase regenerative raw materials as the foundation for circularity.

21

CIRCULARITY AMBITION Coming Full Circle

2.2 SETTING STANDARDSFOR CIRCULAR MATERIALS
Kering Standards for Raw Materials and Manufacturing Processes presents
clear criteria and best practice for every material we use, from cotton to gold.
In 2017, we committed to 100 per cent alignment with the Kering Standards
by 2025.
Circularity is one of the three principles that underpin the Kering Standards, alongside integrity
and the application of the precautionary principles. The Kering Standards drive the use of raw
materials that are preconfigured for circularity, meaning that they start their journey without
depleting resources, they are renewable from regenerative production or their feedstock comesfrom recycled waste (pre-consumer or post-consumer). Through our standards and criteriathat outline “best in class” sourcing practices, we aim to promote the use of materials that are
entirely decoupled from an extractive and wasteful production and are instead regenerative.
The Kering Standards have a progressive approach, from minimum requirements to additional
conditions. They are designed to highlight the continuous progress needed by our industry.
Each year, we are making improvements, from better land management practices to organicand regenerative agriculture. We need to go further, and Kering is currently working on circularity indexes that measure each step of the processes and provide life cycle assessment.
And just as the Kering Standards, these indexes will be drafted with experts and will be madepublic for greater scrutiny.

“We committed to 100 percent
alignment with Kering Standards
by 2025. Circularity is one of
the three principles that underpin
the Kering Standards.”

22

CIRCULARITY AMBITION Coming Full Circle

23

Balenciaga: changing the system
The Balenciaga design team's core practices
are already made up of several circular techniques. Continuing its ongoing research, theteam has recently taken part in two workshops: one prepared by the sustainability
team, and a second, more operational one,with Circular.Fashion, an external agency thatdelivers a range of solutions to the fashionindustry, including strategies to achieve material and product cyclability, emotional durability and longevity.
Balenciaga has established a well-developed
strategy to improve its material efficiency.
The first step was to merge the men’s andwomen’s collections, minimising the environmental impact of production. The next
step was to design two seasons’ collections
simultaneously, so Summer and the following Fall are designed at the same time. This
allows for much greater efficiency in termsof materials used across the collections – adecrease in types of fabrics used and a reduction in metres of fabric used for sampling because the same fabrics are being used more
widely. This merging of seasons and genders
also keeps continuity, ensuring that clothes
and accessories fit together from one season to the next and remain relevant to boththe Balenciaga universe and in the wearer’s

wardrobe over a longer period of time.
Balenciaga’s Summer and Fall 21 collections
use both certified sustainable materials andsignificant upcycling of second-hand clothes.
The concept was to create something extraordinary from the most ordinary of inputs. Of theplain materials used in the collection, 93.5
percent are either certified sustainable according to Kering Standards or upcycled fromits own obsolete fabrics and from purchased
deadstock of military surplus boots, motorbike trousers and women’s leather shoes.
One hundred per cent of the print bases havesustainable certifications.

CIRCULARITY AMBITION Coming Full Circle

2.3 MAKING MANUFACTURING
PROCESSES CLEAN AND EFFICIENT
The Ellen MacArthur Foundation’s Vision of a Circular Economy for
Fashion calls for products to be manufactured using “safe and recycled
or renewable inputs”. By safe, we mean free from hazardous substances,and Kering has been phasing out such hazardous chemicals in our supply
chain. We were among the first in luxury to implement a Manufacturer
Restricted Substance List, which goes beyond the industry standard toinclude chemicals used in the production process so as to minimise theirimpact on workers’ health and on the environment, not just on the finishedproduct. As part of the RE100 initiative, led by the Climate Group and theCarbon Disclosure Project, which we joined in 2020, Kering has pledged touse 100 per cent renewable energy by 2022, switching to, and investing in,renewable energy suppliers; and producing renewable energy on our own
sites through rooftop solar panels.
Another key pillar of circularity is that waste and pollution are eliminated from production
processes. Overall, according to the Global Fashion Agenda and McKinsey report Fashion
on Climate, the fashion industry is responsible for 4 per cent of the world’s greenhouse gas
emissions. The main environmental issues occur in the textile mills, with dyeing and printing
using significant volumes of water and chemicals. Spinning and weaving are also energy
intensive. To tackle these issues, Kering joined the Clean by Design initiative in 2015 and wehave introduced the programme to a number of our suppliers with impressive results.

24

CIRCULARITY AMBITION Coming Full Circle

25

Clean by Design
Clean by Design was launched in 2009 by the Natural Resources Defense Council, a leading NGO in environmental protection, specifically to target water pollution and carbon
emissions caused by the fashion industry. Clean by Design provides a clear methodology
to manufacturers and textile mills on how to save water and energy and how to reduce
chemical inputs, while also improving overall efficiency. Kering joined the project in 2015,
working with 25 Italian mills which specialise in processes such as spinning and dyeing
who are our key suppliers.
Between 2015 and 2018, we saved 8,000 tonnes of carbon a year, an average reduction of 19
per cent of greenhouse gas emissions, and made a transition towards natural gas or woodin place of oil. It made sense to extend the programme to other suppliers, including six
wool and silk workshops in 2017 and two Italian jeans manufacturers in 2018. In February
2021, as part of our ongoing commitment to increase collaboration across the industry,
Kering joined forces with other brands in partnership with the Apparel Impact Institute(Aii) to bring Clean by Design to a further 20 Italian manufacturers. We aim to invite more
luxury brands to join us in this collaborative “Made in Italy” effort, as it is a challenge thatneeds to be met across the industry. We cannot do this alone, but we will lead by example.

CIRCULARITY AMBITION Coming Full Circle

Working with Legambiente,
Italy’s leading
environmental NGO
Kering’s Made in Italy Clean by Design project announced
in February 2021 in collaboration with Burberry and Stella McCartney and led by the Apparel Impact Institute is
being overseen and coordinated on the ground by the
Italian environmental NGO Legambiente.
This is the first time Italy’s leading environmental NGO
has worked with the clothing and textile industry, eventhough our industry has one of the biggest impacts on
air quality and the health of our waterways. It will use ascientific approach to the analysis of data to ensure theprocess is being run correctly and transparently.
The programme, funded by the three brands and open toothers to join, is designed to develop real and concrete
actions to improve the efficiency and sustainability ofthe mills taking part. It also raises awareness across the
Italian textile industry that it is possible to clean up, improve efficiency and reap financial rewards.
The Aii Clean by Design programme is a continuous process which goes far beyond the initial energy and conservation measures to bring circularity and closed-loopsystems to manage water waste legally and efficiently.
While this initial collaborative programme will start withsome 20 mills, it will be an ongoing process, with more
mills added as more brands come on board to fund it
within their supply chains. Mills are not used exclusively
by one brand, so to extend the reach of Clean by Design
this must be a shared effort and a shared investment.
Ultimately, the main incentive for mills to get involved
is that they will save on energy and fuel costs, improving their efficiency and performance. As the programme
spreads, particularly with the credibility Legambiente
brings, so, too, will the reputations of the mills involved.

“We cannot do
this alone
but we will leadby example.”

26

CIRCULARITY AMBITION Coming Full Circle

Zeroing in on microfibre pollution
The impact of microfibre pollution on the health of humans and the environment is a key concern
for the textile industry. Exact figures have yet to be established, but it is evident that a high percentage of microfibre pollution found in the oceans and carried in the air originates from clothes, notjust from synthetics but from natural fibres too. We need to work both on eliminating toxic chemical use as well as the release of microfibres and microplastics from our production processes.
Kering is currently partnering with The Microfibre Consortium in a collaborative approach between
manufacturers and brands to address and outline the emerging need for a better understandingof microfibre pollution and its negative impact in aquatic and atmospheric environments. The
consortium is calling on the collective industry to measure, map, guide and reduce the levels of
microfibre shedding.
The Kering Materials Innovation Lab is launching a pilot in 2021 to test an industrial scale microfibre filtration system in Kering’s supply chain. The results and feedback from this pilot will be
used to further optimise and refine the filter and to validate efficiency in capturing microfibres.
The findings will be open to the rest of the industry.
Kering is looking for solutions. We are convinced that the best solution is to prevent leakage as
early as possible in the product life cycle, in the first instance by working on ecodesign, such as
using the highest quality of material and long fibres that are more durable, with specific fabricstructures, material compositions, fibres, yarns and dyeing processes for more durable products,
at the same time as limiting microfibre shedding.
Eliminating microfibres has to be an open source and collective approach. At Kering, we require
our suppliers to comply with our Sustainability Principles, and they must implement mitigation
measures to reduce microfibre leakage at the manufacturing phases, including:• preferred use of continuous and/or reinforced fibres;• use dyeing, finishing and cutting processes that preserve fibre yarn strength and reduce fibre
irregularities;• choose washing processes that reduce microfibre leakage (closed-loop or microfibre filters);• and increase pre-washing and filtering of the finished product in the manufacturing plant.

“Eliminating microfibres
has to be an open
source and collective
approach.”27

CIRCULARITY AMBITION Coming Full Circle

3

MAKINGPRODUCTIONPROCESSES
MORE EFFICIENT
28

To accelerate more rapidly towards a circular
economy for fashion, efficiency in production
processes and use of resources will continue tobe paramount. Kering’s Materials Innovation
Lab is a central hub for all the brands to access acomprehensive library of materials that are recycled
or made from non-hazardous and renewable inputs.
To achieve a circular fashion model, we are
addressing the entire system across our brands
and pooling resources to reduce waste, eliminate
single-use plastic and ensure best practice. We do not
destroy product or surplus materials but make surethat they can be reused, recycled and repurposed. To
better predict sales and minimise excess inventory,
we are using artificial intelligence technology.

CIRCULARITY AMBITION Coming Full Circle

The Materials Innovation Lab
The Kering Materials Innovation Lab (MIL) serves as a central hubthat connects both suppliers and brands to access to materials, processes and technical support that create a circular fashion system.
The Lab, based at Kering’s Italian headquarters in Milan, was set up
in 2013. At its heart is a library of thousands of materials that provide
sustainable and innovative solutions and which conform to the Kering Standards. All our creative teams can organise visits to the MIL
to research specific areas of textile sourcing. It is a unique resource.
The MIL studio itself is an expression of its practices, with recycledmaterials used in its interiors, including Solid Textile Board wall panels made from overstock Kering fabrics.
As an integral part of making our processes circular, the MIL is looking at processing technologies (dyeing, printing, finishing, treatments et cetera) and the manufacturing and processing of the material itself. Its main focus is ready-to-wear textiles. One example ofrecycled materials being used is regenerated wool, which is madeusing the skill and expertise of the mills in Prato in Italy. The mills
are able to produce a specific colour of wool by carding different
coloured fibres together without the need to re-dye it, saving onwater and chemical use.
There are other innovative solutions being piloted at the MIL, including textile-to-textile recycling solutions via mechanical processing(which maintain quality standards that are usually compromisedin these processes) and fledgling but promising chemical recycling
technologies now entering the market. For synthetic fibres more
specifically, since 2015 Kering has been supporting a pioneering
start-up, Worn Again, to bring to market a revolutionary innovationin clothing production and recycling. This new technology addresses
the major obstacles in textile-to-textile recycling.
The MIL is piloting innovative solutions such as recycling branded orlogo fabric by shredding it and re-weaving it into a new material; andshredding overstock fabric to create high-quality padding to replace
recycled polyester or down. There is also a take-back scheme to collect polyamide scraps from production to be fed into a closed-loopsystem and reintroduced to the cycle. This applies not just to textiles
but also to trimmings, including zips, buttons and buckles, too.
In the MIL ecosystem, collaboration with prominent organisations,such as Kering’s innovation partner Fashion for Good for scouting ofinnovators and piloting circular projects, is key; among many othercollaborations is the Full Circle Textile Project that brings together
the relevant stakeholders across the spectrum of chemical recyclingof cellulose-based textiles, to bring structure to the innovation process, test their output with industry experts and best enable thescaling of the technology.

“A specificcolour of wool
can be made bymixing different
recycled/regenerated
yarns together
without the needto re-dye it.”29

CIRCULARITY AMBITION Coming Full Circle

30

Bottega Veneta: circular design and improving
waste management in stores
Bottega Veneta is committed to finding themost effective means to transition towards
a circular economy.

its ready-to-wear and leather goods collections. Regarding jewellery, Bottega Veneta islooking into recycling old prototypes in silver.

Its design team attended a training session
with Circular.Fashion to learn how best to
apply the principles of circular design in its
design processes. In addition, Bottega Veneta
fulfils circularity criteria in the choices of its
raw materials. For example, it has sourced
cashmere from the South Gobi project inMongolia (a pioneer project by Kering that
accompanies the herders towards fully regenerative practices, see 2.1 Working with
Nature) for years, has introduced biodegradable polymer and recycled plastics in its shoecollections in addition to recycled nylon in

To complement these efforts on the productside, Bottega Veneta has also studied the circularity of its stores in depth: in collaboration
with a specialist consulting firm, Bottega Veneta researched its stores worldwide to study
how recyclable and non-recyclable waste in
the stores could be better managed with acircular approach. This allowed them to identify the value lost in stores today and understand how recyclable packaging has a value
as a resource when collected to be recycled.
To begin with, they analysed the current stateof the waste generated in stores. Eight waste
flows were identified and valued with regards
to their volume and their frequency including
goods packaging, beverages for clients, lunch
for staff, cleaning supplies, back-office supplies, ordinary maintenance, visual merchandising, and store refurbishments.
This study has allowed Bottega Veneta to
not only assess waste management in-store
but also understand the actions that must
be taken to prevent the production of waste.
These range from the use of returnable glass
bottles for water; the circular design and disposal of visual props to identifying materials
that can easily be re-circulated and standardising energy efficiency at a global level.

CIRCULARITY AMBITION Coming Full Circle

3.1 REDUCING UNNECESSARY
PRODUCTION AND ELIMINATINGSINGLE-USE PLASTIC
A circular system is designed to create a thriving fashion industry that
not only avoids negative impacts on nature, but actively enhances theenvironment. We recognise the need to take steps to reduce unnecessary
production and monitor the volume of textiles we bring into the cycle in
the first place. To this end, Kering is working across our brands to bringgreater transparency and efficiency in an effort to share resources andmaterials. To speed up this work, we are investing in artificial intelligence
better to predict sales forecasts and manage purchasing and productionlevels. By using technology, we can more accurately anticipate demandand seasonal trends to avoid unwanted production of excess stock.

Tackling single-use plastic packaging
In 2019, as part of the Fashion Pact, the global coalition of companies and suppliers committed to stopping global warming, restoring biodiversity and protecting the oceans, we pledged
to end single-use plastics in our business to consumer (B2C) packaging by 2025 and businessto business (B2B) by 2030. We see the removal of single-use plastics across the industry asa priority, and have set even more ambitious and rigorous targets internally.
While there has been significant progress at B2C and e-commerce level with a move fromplastic to cardboard (from FSC or recycled sources), the elimination of packaging when suppliers and third parties are involved requires systemic change across the supply chain andour warehouses. Our brands are examining where they can eliminate plastics starting withobvious steps such as removing plastic fillers from e-commerce or replacing protective plastic on items like glasses with tissue paper, before moving onto bigger, more complex areas.

“By using technology,
we can anticipate demand
to avoid productionof excess stock.”

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CIRCULARITY AMBITION Coming Full Circle

3.2 REUSE/UPCYCLE/RECYCLE
Destroying excess inventory, products and materials makes no sense.
Such practices are out of kilter with our environmental policies and values.
For the past two years, Kering has been building a pioneering centralised
dashboard to track stock levels across all our brands and coordinate ways
to sell it, reuse it or otherwise recycle it. Using data analysis, we are able tomonitor how much unsold stock each of our brands has and where it is in
the world. Our brands continuously assess their inventory and take a rangeof actions to decrease their unsold stock levels. Options include friends
and family sales for all Kering employees, and finding ways to reuse or resell
the stock in their own outlets. We also invest in pilot schemes to researchways to recycle obsolete stock that can’t otherwise be sold.
Kering is also working on overstock fabrics, including a system to share stocks of unused
fabrics from one brand to another. But where there is no other option, for example withlogo-branded textiles that cannot otherwise be sold or reused, we are finding creative ways
to upcycle or recycle. We are developing new technologies to sort and disassemble complex
clothes and shoes with CETIA, an engineering centre located in south-west France. CETIA isfocusing on new technologies to find ways to robotically disassemble shoes, trainers, bags
and complex luxury clothes, so that the resulting components can be recycled or reintroduced
as raw materials. Learning how a product is taken apart will help our teams to rethink how
they design, to make it easier and more efficient for a product to be disassembled, ensuringthat recycled materials become a viable resource for the future.
Over the past two years, Kering and our brands have contacted 100 partners and set up
65 initiatives which are creating business opportunities around sorting, selling and recycling
clothes and accessories. We are committed to teaching new skills in an emerging sector of
the fashion and textiles industry that is centred on clothing disassembly and upcycling. We
are working with social impact companies on the same approach to reuse show sets andstore displays. We also support social enterprise schemes to train people in upcycling skills
including Le Relais, for used fabrics and uniforms, and Tissons la Solidarité, which is a community-based network that creates skills and jobs around reusing and upcycling garments.

32

CIRCULARITY AMBITION Coming Full Circle

Gucci: Round and round
Gucci has a number of innovative schemes totackle circularity across its business. ThroughGucci-Up, the House reuses and/or recycles
scraps, helping make leftover materials
obsolete. Between 2018 and 2020, some
27 tonnes of leather scraps were recovered
and regenerated in collaboration with NGOs
and social cooperatives in Italy. Also in 2020,
25 tonnes of leather offcuts were collected
and reused as fertiliser. Yet another leather
project was launched in the same year topromote upcycling through anonymisation.
Now, all Gucci’s discontinued non-brandedfabrics and leathers are reused internally or
through external channels, such as donatingthese materials to non-profit organisations.
Since 2015, Gucci has been working with
Green Line, an Italian company specialising in the collection and recycling of textile
scraps for reintroduction into fashion supply
chains – 290 tonnes were collected from Gucci’s suppliers between 2018 and 2020 alone.
Since 2019, Gucci has reused protective
boxes for transporting its accessories to re-duce the number of new boxes it makes. Thisis a relatively simple step with the potential
for huge impact. Gucci has already been able
to reuse one million of its protective boxes,
with a saving of about 90 tonnes of plastic
since it launched.
In 2016, Gucci became the first luxury brandto use Econyl©, a fabric made from regenerated fishing nets and old carpets, for its readyto-wear collections. Econyl© is also the principal material used in its recent Gucci Off theGrid, the House’s first collection under Gucci
Circular Lines, which is itself a determinedeffort to create fully circular products, taking
into consideration everything from the recycled and recyclable materials the collectionuses its packaging, and even the Econyl©
scraps from manufacturing, which are collected and re-spun into new Econyl© yarn.
Gucci is committed to maximising its use ofrecycled precious metals accessories’ hardware and jewellery by 2025, thus reducing
the mining and extraction environmental
impacts associated with virgin raw materials.

33
Already, since the end of 2019, Gucci has met
its 100% target for the use of recycled palladium coating for metal hardware for accessories, including bags, belts and shoes, and,in 2020, Gucci recovered about 17 tonnes ofprecious metals (brass and gold) from leftover and discontinued accessories’ hardware.
With the launch of its New Green Packaging
in 2020, Gucci has also eliminated virgin single-use plastic in its retail and e-commerce
packaging. The new product packaging is fully
recyclable; the paper is uncoated and comesfrom sustainably managed forest sources.
Any remaining plastic components are fromrecycled materials, such as the shopping bags
handles made from recycled polyester which
are knotted to eliminate the use of glue.
Gucci is committed to upcycling and to regenerated materials, cornerstones of its
strategy to support a circular economy. It
is moving away from the traditional linear
model so that circularity is integrated into
its entire value chain.

CIRCULARITY AMBITION Coming Full Circle

La Réserve des Arts
In 2017, Kering set up a partnership with La Réserve des Arts, a not-for-profit association that supports the cultural and creative sector in the development of the circular economy and social enterprise. This platform for raising awareness on reuse andtraining in ecodesign and cultural entrepreneurship collects materials from theatres,
galleries, museums and the fashion and luxury sector and makes them available toits members – independent craftspeople, artisans and students. When it is no longer
needed, material from show sets, from shop windows and visual merchandising anddead stock is collected and revalued (for example, all branding is removed, it is cleaned
and so on), before being redistributed at affordable prices as a way of supporting theindependent craft sector.
The La Réserve des Arts shops sell everything from discarded buttons and beads tooffcuts of wood, rolls of obsolete fabric and bundles of hangers. With its workshops, inParis, Pantin and Marseilles, which members can both use and access materials from, it
acts as a laboratory for creative people to find innovative ways to use recovered waste.
It also provides training on the circular economy for culture and the value of materials
as well as giving skills in upcycling. In addition, La Réserve des Arts teaches its trainees
how to talk about their work so that they can be ambassadors for the circular economy.
La Réserve des Arts works alongside several of Kering’s houses on collecting and revaluing activities as well as ecodesign consulting projects.
With the support of Kering, a former volunteer with La Réserve des Arts in Paris is setting
up a sister organisation in Milan with a similar mission to reuse waste from the luxury
and cultural sectors to support emerging makers with materials and training to build
a business from their craft.

34

CIRCULARITY AMBITION Coming Full Circle

35

Saint Laurent: revitalising leather leftovers
Saint Laurent is applying a circular approachconsidering efficient use of materials, reuse
and recycling.
The leather goods division has first started
to embrace those concepts by developing
dedicated programmes.
First, the majority of the leather cutting
has been progressively moved within Saint
Laurent’s own ateliers to give access to themost advanced technology and globally
improve cutting efficiency. Surplus leather

from a handbag line can be also reused to
produce small leather goods items such as
wallets and cases. This is, for example, thecase for the Monogram line and is currently
in development for other lines.
In the past few years, looking for innovativeand sustainable solutions, Saint Laurent has
also started to give a second life to its leather cutting leftovers through an exclusive
partnership in order to make new leather
materials in place of virgin materials. The
latest handbag created with this upcycled

leather will be launched for Fall 21 in theSunset line.
This innovative approach has been extended
beyond products and today most new storesopening in Europe, the Middle East and Africa are equipped with flooring in the back ofhouse that is made from leather offcuts fromprevious collections. Through this approach,the brand gives a second life to its leather
cutting leftovers and avoids consuming virgin materials; both aspects are significantly
reducing environmental impacts.

May 2021