IMPACTREPORT
2020

PEOPLAPPROACHPEOPLE

PLANET

Gucci Equilibrium is our commitment
to generate positive change for people
and our planet.
What we stand for and how we act towards one anotheris at the very core of who we are. Fuelling our creative
vision is a desire to empower people to live a life ofself-expression, so that everyone in our global
community is free to be their authentic and uniqueselves. Our combined differences are what allow us tothrive and we foster an environment that is respectful,inclusive and diverse, where everyone is consideredequal. This also means making sure that the people
who help create our collections are treated fairly along
our supply chain. Using our voice to stand up for social
justice in the world and generate positive change drives
us forward into a fair, just and equitable future for all.

Chyulu Hills REDD+ Project, Conservation International© Charlie Shoemaker

1

Employee activity in China in partnership with Artolution,
part of Gucci Changemakers Volunteering programme

PLANET

We look at the world around us in a holistic way
and believe that it is our duty to be sustainable,
responsible and accountable in everything we do.
We are dedicated to seriously reduce our footprint
along our entire supply chain and embrace climatesmart strategies to help protect and restore nature
for the future. What we cannot reduce ourselves,
we translate into conserving biodiversity and foreststhat lessen the impacts of climate change. To share
the progress we are making with our community, weare transparent about all the metrics that underpin
our ambitious targets that we are striving to achieveby 2025. These goals drive us forward every day todevelop eco-friendly sourcing solutions, low-impact
materials, manufacturing efficiencies and circularinnovations so that we can act for a better tomorrow.

STRIVING
LETTER FROM OUR CEO

Welcome to our inaugural Gucci Equilibrium Impact
Report. We have been reporting on our 10-year‘Culture of Purpose’ sustainability strategy, and theprogress we have been making, for some time now
through our annual Environmental Profit and Lossaccounting. With our new Impact Report we havedecided to spotlight some of the initiatives thatare translating our vision into action: illustrating
our motivation behind Gucci Equilibrium, and what
we have been doing to help generate positivechange for people and our planet.

MARCO BIZZARRI,GUCCI PRESIDENT AND CEO

2

Gucci has a deeply rooted commitment to besustainable, responsible and accountable, ineverything we do. Our footprint along our entire
supply chain has been significantly reduced; ourembrace of climate-smart strategies and innovation
has proven effective; and we continue to be forwardthinking, and forward-looking. Our pledge tomaintain carbon neutrality and our investments
towards natural climate solutions are made witha view to the future.

APPROACH

We are protecting and restoring nature – it is alinchpin in our strategy and a big part of how weare combatting climate change in the greater
world around us. We have also made our first steps
to support regenerative agriculture.
The goal is to source regenerative raw materials
for our collections from our own supply chain,
and we are supporting farmers around the world
to shift practices that replenish nature rather thandepleting it. It is the way forward for fashion.
Advancing inclusivity, equality and respect willlead to a stronger, more holistic future for fashion,
too. At Gucci, this is part of our culture. The factthat everyone in our community is free to be theirauthentic, unique and diverse selves is at the very
core of our values, and is what truly makes us global– beyond ethnicity, culture, gender, disability –visible or invisible. Our mission is to be a voice ofself-expression. Freedom makes us who we are. Ourcommitment to our principles – and to each other– makes us who we are. It is equally important that
where possible we can help enable systemic andmeaningful change beyond our own business.

PEOPLE

PLANET

Beyond the many events that have touched ourown communities, and the global community atlarge, there is an overriding message: we have an
opportunity to change and ‘do better’. This wasamplified by the Black Lives Matter movement andthe #StopAsianHate campaign calling for socialand racial justice. Our fashion industry must create
a new value proposition, one that includes people
and nature. That is the reason we launched Gucci
Equilibrium in 2018: to highlight this holistic balance
between people and our planet. It is our commitment
to create change.
This year, Gucci is celebrating our 100th anniversary,and while we are looking back on the past century,
we are also busy looking forward. Our innate
capacity for, and belief in, creativity and change
will help us continue to constantly evolve and renew
our commitment to sustainability, through 2021, andbeyond. Every day is a step forward, a step in the right
direction to build a future that is more sustainable,
equitable and just, for all. Where people and ourplanet are in equilibrium.

A company would amount to nothing without
values – real, deep-seated values, shared by all.
Over the past year, we have all lived through adefining moment of our generation – and I havebeen proud of the way the entire global communityof Gucci rallied together. We have stayed true to ourshared values during the pandemic; and supported
our employees, our suppliers, our customers, our local
communities, our healthcare workers and medicalorganisations worldwide.

FOR EQUILIBRIUM

ABOUT US
KEY NUMBERS

APPROACH

Innovative, progressive andinfluential, at Gucci we are creating
a wholly modern approach to fashion.
Under the leadership of President and CEO,Marco Bizzarri, and the vision of Creative Director,
Alessandro Michele, we have redefined luxury for the
21st century, further reinforcing our position as oneof the world’s most desirable fashion houses. Eclectic,
contemporary, romantic – Gucci collections represent
the pinnacle of Italian craftsmanship and are
unsurpassed for their quality and attention to detail.
Gucci is part of the global luxury group Kering,which manages the development of a series ofrenowned Maisons in fashion, leather goods,
jewellery and watches.

17,953 average number of
employees (full-time equivalent)

483 directly operated stores

GUCCI EQUILIBRIUM GUIDING
OUR WAY€7,441 billion in revenue in 2020

More than 20,000 people
work for Gucci, indirectly
throughout our supply chain

Gucci Equilibrium is our commitment to generate
positive change for people and our planet. Poweredby creativity and collaboration, we are reducing
our environmental impact and protecting nature,
while also prioritising inclusivity and respect, so thateveryone in our global Gucci community is free toexpress their authentic, diverse selves.

CONTENTSPEOPLEAPPROACHPEOPLE

PLANETAs we celebrate our 100th anniversary, we
are moving forward into the coming decadeswith an ongoing commitment to reinforce ourculture of purpose, demonstrating our values
through innovative pathways towards social andenvironmental sustainability. Gucci Equilibrium
unifies the principles we uphold and the actions wepursue to treat our world and each other better, for
our collective future.

ABOUT THIS REPORTWe are proud to share our first Gucci Equilibrium
Impact Report. In our report, we are highlighting
a selection of the initiatives we have created overthe previous years to generate positive change forpeople and our planet. All data included, except
where explicitly mentioned, covers the calendar year
2020. It reflects our performance across our stores,
offices, warehouses and factories where we havedirect operational control, as well as our supply chain.

PLANET

People + Planet

1

1. Creating a strong and caring culture 

8

1. Reducing our footprint 

16

Letter from our CEO2

2. Promoting equity for everyone

9

2. Focusing on sustainability all the way along our supply chain

17

About us3

3. Protecting craftsmanship and engaging suppliers

11

3. Going off the grid to put circular fashion on luxury’s map19

Our strategy

4

4. Coming together to CHIME FOR CHANGE 

12

4. Reducing, reusing, recycling20

Our approach5

5. Supporting positive change in communities

14

5. Conserving the natural world

22

Our journey

6

From empowering
people to protecting
our planet – there are
two main pillars in our
strategy…
Find out more about oursustainability strategy…

p4
3

In the fight for genderequality, we are somuch stronger when
we come together…
Discover the impact
we are making through
CHIME FOR CHANGE…

p12

Looking to the future 

23

Methodology & reporting24

Jackets made fromabandoned fishingnets, backpacks
buckled with recycledplastic…
Take a look at how we are
putting circular fashion on
luxury’s map with Gucci Off
The Grid…

p19

PEOPLEOUR FOCUS

Providing an inclusive andcaring working environment
Building a strong Gucci culture

Promoting diversity
and gender parity
Achieving gender pay equity forequivalent positions by 2025

Delivering positive impacts in ourcommunities and supply chain
Supporting our communities anddelivering transformationin our supply chain

Protecting our heritage
Investing in craftsmanshipand future talent

4

APPROACHPEOPLE

PLANETOUR STRATEGYOUR FOCUS

Combatting climate change
Reducing our overall footprint by 40%
and greenhouse gas (GHG) emissions
by 50% by 2025 and maintaining
carbon neutrality

Ensuring traceability andsustainable sourcing
Attaining 100% traceability
for our raw materials by 2025

Restoring ecosystems
Protecting and restoring
ecosystems around the world

Creating sustainable products
Developing new eco-friendly
sourcing solutions, materials
and processes

APPROACHPEOPLE

PLANETDRIVING REAL CHANGE
FOR THE BETTER
From the urgency of climate change and biodiversity
loss to the critical social issues that have risen to
the forefront – our world, and our industry, is at a
crossroads. Stepping away from the old, traditional
systems in fashion and embracing – and driving –
real, lasting change is part of a future we collectively
and quickly need to transition to.
Through Gucci Equilibrium, we are busy helping
to create this future, bringing deeply held principles
and innovative impactful actions together togenerate positive change for people and our planet.

HOW WE ACT FOR CHANGE
We have our own distinctive way of creating
positive change for people and our planet. It isrooted in our values and culture; all our decisions
and efforts are in unison.
We take a stand on the critical issues facing
our world today and stimulate conversation,and importantly, we take action.

OUR
5

Employee activity in Korea as part of Gucci
Changemakers Volunteering programme

Our action-based philosophy goes hand-in-handwith collaboration, so that we encourage greater andmore far-reaching change. We collaborate closely,
drawing on the diverse strengths and talents of the
Gucci community, and beyond, to help drive morechange for the better, faster. It is a universal truth –together, we can have a much bigger positive impact
than we ever could on our own.
This impact is amplified by constantly questioning
the status quo and continuously innovating. Our
combined differences are at the very core of
our value at Gucci and we champion inclusivity,
diversity and equality, so that everyone in our global
community can be their authentic, unique anddiverse selves.

We have creativity at our core and look to apply thisstrength to achieve breakthroughs in sustainability,
just as we do in our collections. Indeed, with Gucci
Off The Grid, we are going further to embedcircularity inside our collections.
We make groundbreaking changes across our supply
chain and, more broadly, always with an eye on thelong term. Gucci has been innovating for 100 years,
and we are looking toward the next 100.
This long view is also reflected in the value we placeon the craft skills that have always been at the heartof Gucci. To ensure these skills continue to be passed
on to artisans, we invest in protecting and enhancing
them. We are also helping to protect and restore
nature for the future generations to come.

WE FOCUS OUR ENERGYFOR MAXIMUM IMPACT
We focus on the issues that have the biggest positive
impact and where we have the greatest opportunity
to create long-lasting change. So, for example, whenlooking at how we can drive real improvementsfor people, we are doing a great deal to support
artisans and protect the craft skills at the heart ofour heritage and sector. We are also championing
gender equality through CHIME FOR CHANGE.

And when it comes to having a reduced impact
on the planet, we are, for instance, committing tocarbon neutrality across our entire supply chain forthe long term, and moving towards a ‘nature-positive’
approach. We are also focusing on increasing thesustainability of our supply chain and our products,
including creating circular collections.

WE HOLD OURSELVES ACCOUNTABLE
We make sure we hold ourselves accountable.
To this end we set clear goals and targets – fromachieving gender pay equity by 2025 to using 100%
green energy by 2022 in our direct operations – andassess ourselves against them, transparently. This
provides assurance for our stakeholders and also
encourages us to keep driving forward, based on aclear understanding of where we are and what wehave achieved, and how far we still need to go.
We ensure accountability both through internal
governance and external advisers and partners. In
2019, for example, we established a Global Equity
Board, responsible for driving and overseeing ourcompany culture and employee experience. We also
account for our entire environmental footprint, taking
responsibility for the impact both from our direct
operations and the entire supply chain. All of us at
Gucci play our part in this accountability. Individuallyand collectively, we have pride and passion forsustainability – for bringing the Gucci Equilibrium
way to life.

APPROACHPEOPLE

PLANET

2007

2008

2009

2010

2011

2012

Gucci has been SA8000-certificied since2007. The SA8000 standard ensuresthat business ethics, respect for people,
workplace health and safety, workers’ rights
and equal opportunity are upheld. We
are also a member of SAI’s Advisory Board(Social Accountability International).

We have been measuring and monitoring
the global environmental impact associatedwith our direct operations every year, focusing
on energy, water, paper consumption andwaste production. Between 2018 and 2020,
we have decreased the average consumptionof energy per employee by 10%.

We were awarded our first LEED (Leadershipin Energy and Environmental Design)certificate for sustainable buildings in 2009.
Today we have more than 30 certified retailand corporate buildings around the world.

Since 2010, Gucci packaging has been
made exclusively using FSC® (Forest
Stewardship Council) certified paper
from sustainably managed sources,
which ensures traceability. In 2020, welaunched our new sustainable packaging
created with strategic design choices,
including using recycled materials, toreduce the impact on nature.

In 2011, we received the ISO14001(Environmental Management System)
certification, and we started using ourEnvironmental Profit and Loss accounting
to measure our impact on the environment.
We extended the annual measurement of
our footprint to incorporate the entire supply
chain, analysing greenhouse gas (GHG)
emissions, water consumption, water and air
pollution, waste production and land use.

In 2012, we began experimenting with
innovative materials, such as using acompostable bio-plastic in our footwear.
Since then, we became the first luxury
brand, in 2016, to use ECONYL©
recycled nylon in ready-to-wear, and we
introduced ECODENIM and completely
animal-free footwear.

SA80002013

Together with Co-Founders Salma Hayek
Pinault and Beyoncé Knowles-Carter, welaunched CHIME FOR CHANGE to convene,
unite and strengthen the voices speaking out
for gender equality. To date, we have raised
nearly $17.5 million for 442 non-profit projects
worldwide, reaching more than 590,000
women and girls.

OUR JOURNEY

2014

In 2014, we began creating our first metal
and chrome-free leather products, launchedin 2015. Using alternative metal and chromefree tanning reduces the environmental
footprint compared to traditional methods.
We have scaled up metal-free leather from
0.2% to 26% of our total leather production asof 2020 , and we will continue to increase this.

FUR FREE

We launched our 10-year sustainability
strategy, Culture of Purpose. We
committed to ambitious targets, including
reducing our Environmental Profit and Lossaccount by 40% and achieving gender
parity by 2025.

In close collaboration with Kering, we havebeen working towards ensuring 100% of ourraw materials can be traced through ourentire supply chain by 2025. We achieved
95% traceability in 2020, and even higher
with some priority materials, such as
precious skins (100%) and leather (99%).

As part of our commitment to animal welfare,
we announced that we would no longer use
animal fur, and we stopped using angora.

We have been carbon neutral across our
supply chain since 2018, converting all our
remaining GHG emissions each year into
protecting and restoring biodiversity. We
protect craftsmanship skills for the next
generation and launched Gucci École
de l’Amour in 2018 to pass on the knowhow that is critical for our artisanal craft
and production methods. We also began
publicly sharing our commitments andprogress on GucciEquilibrium.com, and,in 2020, we reduced our total footprint by
44% and our GHG emissions by 47% since2015, relative to growth.

We launched our Gucci Changemakers
initiative and facilitated more than 2,000
volunteering projects, supporting more than
250 NGO partners. In addition, we launched
the Gucci Changemakers North America
Impact Fund and Gucci Changemakers
North America Scholarship programme. In
2019, we also established a Global Equity
Board, responsible for defining the vision andpriorities informing our company culture andemployee experience. We debuted the Gucci
Design Fellowship Programme, a collaboration
resulting in a learning experience for young
designers coming from 10 fashion schools
around the world.

In June, we launched our first Gucci
Circular Lines collection, Gucci Off The
Grid, which champions the regenerationof materials and textiles. We achieved
93% renewable energy across our direct
operations in 2020, avoiding over 60,000
tonnes CO2. We received the ‘Welcome.
Working for Refugee Integration’ award by
the UN Refugee Agency (UNHCR) for thesecond year in a row.

2015

2016

2017

2018

2019

2020

6

APPROACH

EOPL
7We rely on a vibrant luxury
and fashion sector tochampion creativity,
craftsmanship andsustainability.

OUR ARTISANS

PLANETOUR COMMUNITIESOUR INDUSTRY

We work with experts that use
their traditional craft to help
us develop elements of our
products.

PEOPLEWe engage with thecommunities where we live
and work. We do this throughtaking action locally andsupporting causes close to
our communities.

OUR PEOPLE
We count 17,953 people
as our colleagues aroundthe world, working inour offices, stores anddistribution.

OUR MODELS
We work with models to bringour collections alive. They arecollaborators, friends andmuses to us.

OUR SUPPLY PARTNERSOUR CUSTOMERS

We work with more than
20,000 people within
our supply chain on
an annual basis.

Our Gucci followers
and customers are an
integral part ofour community.

What we stand for and how we act
towards one another is at the very
core of who we are. Fuelling ourcreative vision is a desire toempower people to live a life ofself-expression, so that everyone in
our global community is free to be
their authentic and unique selves.
Our combined differences are what allow us to thrive
and we foster an environment that is respectful,inclusive and diverse, where everyone is consideredequal. This also means making sure that the people
who help create our collections are treated fairly
along our supply chain. Using our voice to standup for social justice in the world and generate
positive change drives us forward into a fair, just andequitable future for all.

KEY AREAS
Together, we are focusing on the criticalaspects that affect our employees, ourindustry and our community, including:• Promoting diversity and gender parity• Supporting the continuation ofcraftsmanship traditions• Offering our teams a sustainable
and caring working environment• Contributing to positive social impacts
and supporting transformation acrossour entire supply chain

IN THIS SECTION
1. Creating a strong and caring culture 

8

2. Promoting equity for everyone

9

3.	Protecting craftsmanship andengaging suppliers

11

4.	Coming together to
CHIME FOR CHANGE 

12

5.	Supporting positive change
in communities

14

APPROACHOUR 2025 COMMITMENTS
Offering our teams a sustainable
and caring working environment–
Supporting positive change from our
Gucci community in the wider world

OUR APPROACH
We are passionate makers, thought-leaders and,above all, dreamers. We imagine, we explore, webuild. Our journey is shaped by equity, empathy
and desire. Aimed towards sustainability and socialchange that impacts the wider world.
Our employees are invited to a purposefulplace, where their unique voice and talents arecelebrated and empowered in a joyful communityof changemakers. This inclusive and caring culture
helps us achieve more together.

A STRONG, POSITIVE CULTURE
What does it mean working for Gucci? Being who weare creates the fabric of Gucci. A place where ourunique selves nurture extraordinary collaborations.

PLANET

We offer opportunities to build an inclusive andopen community. One that is welcoming, accessible
and equitable, where anyone can participate andbelong. With imagination and curiosity, we push
the boundaries and develop new perspectives
to foster creativity.

WE ARE ALL IN THIS TOGETHER

Our inclusive and caring culture is based on thisshared vision, which not only informs our commitment
to equality in the workplace, but also among thebroader community we work with.

In Italy, we donated €1 million to the National Civil Protection
Department through Intesa Sanpaolo’s ForFunding crowdfunding
platform to reinforce Italy’s health services and the organisations
managing the emergency.

For example, in line with Kering’s commitment, we
care for the working conditions of talents and models
who work with us, hiring those aged over 18 at our
fashion shows and photo sessions and taking goodcare of their wellbeing.

Internationally, we contributed €1 million to the United Nations
Foundation COVID-19 Solidarity Response Fund. The Fund supports thelifesaving work of the World Health Organization (WHO) across many
countries, including activities to help track and understand the spreadof the virus; strengthen patient care and intensive care units (ICUs);
improve supplies for health personnel, including protective kits; andaccelerate the development of vaccines and therapies.

On 26 March 2020, we announced a €2 million donation to support
two crowdfunding campaigns to fight the COVID-19 pandemic.
We called on our global Gucci Community to join us in raising money
to provide health workers with equipment, and to fund the scientists
working on vaccines and treatments.

In addition to these crowdfunding initiatives, in Italy, our country of origin,
we also responded to the call launched by Camera Nazionale della
Moda Italiana with the project ‘Italia, we are with you’, a major solidarity
project to donate ventilators and other required equipment, like medical
surgical masks, testing reagents and protective clothing to meet thegrowing requirements of the country’s healthcare system.

BEST WORKPLACE 2020
Gucci, for the second year in a row, was officiallyawarded Best Workplace 2020 in Italy by Great
Place to Work, which analyses and certifies thebest work environments in the world. We are theonly company in the luxury industry to receive
this certification.
This result takes into consideration five main
criteria in analysing workplaces: credibility,
respect, fairness, pride and coherence.

1. CREATINGA STRONG ANDPEOPLE FIRSTThe COVID-19 pandemic has challenged us toreimagine an agile and inclusive environment, where
our people are empowered and trusted to perform
at their full potential. Where they feel engaged andproud to be part of the Gucci Community.
We have developed a flexible model for our offices,where our employees’ experiences move seamlessly
between physical and virtual spaces, with the rightcustomisation and alternance and in compliancewith strong safety protocols.
Our shift to digital has been particularly evident inlearning and development initiatives.
In 2020, learning went deeply digital and each
employee attended, on average, 18 hours of training,
resulting in more than one million courses attended.

KEY HIGHLIGHTS
On average 18 hours training per
employee in 2020–
More than 1 million digital learning
courses completed in 2020–
Over €2.5m donated to support
COVID-19 relief initiatives

8

PEOPLE

Courtesy of UNICEF

ENSURING GLOBAL EQUITABLEACCESS TO COVID-19 VACCINESIn December 2020, we donated $500,000 to UNICEF
USA, adding a further $100,000 on behalf of the
Gucci Community, to help ensure COVID-19 vaccines
are equitably procured and distributed in the mostvulnerable communities around the world. We areproud to share that much-needed vaccines havealready been distributed to countries including Ghana,
Cote d’Ivoire, Rwanda, Kenya and Cambodia, thanks
to the COVID-19 Vaccines Global Access (COVAX)
initiative, established by the WHO, UNICEF and otherpartners to guarantee equitable access to vaccines.

2. PROMOTINGEQUITY FOR EVERYONEAPPROACHOUR 2025 COMMITMENTS
Promoting diversity andgender parity–
Achieving gender pay equity
for equivalent positions in
Gucci by 2025

“I really believe that creativity anddiversity are inextricably linked in our
industry. And, the more you are exposed
to different views and experiences,the more you fuel the company’s
creativity, culture and growth.”
Marco Bizzarri,President and CEO of Gucci

9

PEOPLE

PLANET

OUR APPROACH

US RACE AND ETHNICITY, %Diversity, equity and inclusion are at theheart of our creative vision and passion for
positive change.

White 30.2
Hispanic or Latino 
28.9Black or African American 
15.7
Asian 14.3
I do not wish to answer 
4.9
Two or More Races 
4.4
Native Hawaiian or Other Pacific Islander  1.0
American Indian or Alaska Native 
0.5

Underlying our vision is our desire for all people
to live a life of self-expression and freedom that
fuels creativity, fosters innovation and reimagines
the future. We believe in empowering imagination
through our collective talent, driven by diverse
ideas set free in an inclusive culture.
We place diversity at the core of our company
culture and champion diversity in all its forms,
so that everyone in our global community can
thrive as their true and diverse selves. At Gucci,
diversity is any dimension, visible or invisible,
which can be used to differentiate groups andpeople from one another. We uplift each otherby recognising, respecting and celebrating whatmakes us different. Inclusion at Gucci means
creating and ensuring a sense of belonging where
each individual is valued and treated equitably,
allowing everyone to contribute, thrive anddevelop as who they are.

INCREASING INCLUSION AND
EMPLOYMENT OPPORTUNITIESFOR REFUGEESIn November 2020, we received the ‘Welcome.
Working for Refugee Integration’ award by theUnited Nations Refugee Agency (UNHCR) for
the second year in a row. The award recognises
companies that distinguish themselves in bothcollaborating with, and promoting, refugee
integration and employability in Italy. Since 2018, we
have worked with the Adecco Foundation for Equal
Opportunities and UNHCR on increasing inclusionand employability for refugees. Our #ForRefugees
programme trains and employs refugees in our
offices, factories and stores in Italy, providing
economic opportunity to marginalised individuals
and helping to foster inclusive communities.

Annual data provided by the People team at Gucci
from 2018 to 2020 with the percentages of gender
representation among Gucci’s global employees,
and Gucci’s global management. Totals may not
add up to 100% due to rounding. Data in thesecharts uses the gender categories male and female.
Gucci understands, respects and values that gender
identity and expression is not binary and is adopting
non-binary and gender-expansive language forself-identification.

GENDER DIVERSITY, %Female 
Male 

62.7
37.3

MANAGEMENT BY GENDER, %Female 
Male 

57.4
42.6

2. PROMOTINGEQUITY FOR EVERYONE
INCREASING DIVERSITY AND
INCLUSION ACROSS GUCCIIn 2019, we committed to further increase diversity
and inclusion across our company, with a focus on
management roles, while continuing to build on
our strong foundation of gender equality andfemale leadership.
We are building on this commitment
in a number of ways:
We are ensuring an inclusive workplace for all our
employees by providing ongoing training, learning
opportunities, resource groups and open dialogue
to increase communication, understanding andempathy. To date, more than 5,300 employees
completed Unconscious Bias Training as part ofthis commitment.

APPROACH

We are increasing diversity at the managementlevel in both corporate and retail, with specifictargets reflecting each global region. We havealso partnered with organisations specialising in
cultivating under-represented talent to develop
a more diverse pipeline for hiring.
We are working to achieve gender pay equity
for equivalent positions within the organisation
by 2025. We already disclose our progress in the
United Kingdom and in France, where we wererated 98/100 on the 2020 Gender Parity Index.

We are creating greater opportunities for disabled
people in our workplace and wider community.
Starting with a pilot project at some of our stores,
we are working on their accessibility to improve the
shopping experience for people with disabilities.
Our aim is to increase awareness of disability issues
and create more opportunities for disabled people
already in the company and those we will hire.
We are adopting non-binary and gender-expansive
language for gender self-identification internallyin some regions. We have adapted our ecommerce
website to include non-binary and gender-fluid
language.

PEOPLE

PLANETKEY HIGHLIGHTS
Pioneering with Parks
Gucci was the first brand in luxury fashion to join
Parks – Liberi e Uguali [Free and Equal] – anassociation of employers helping companies tocreate strategies to effectively implement valuesof diversity and inclusion inside and outside thecompany, with a specific focus on diversity insexual orientation and gender identity.

“The solution is not to place theunder-represented communities ona temporary pedestal, but to haveavailable all the platforms throughwhich to be heard.”
Sinéad Burke,
Inclusion and accessibility activist and writer

PRIORITISING DIVERSITY, EQUITYAND INCLUSION AT THE TOP OF
OUR CEO AGENDA
To further integrate and reinforce diversity, equity andinclusion (DE&I) throughout Gucci, we established a Global
Equity Board, responsible for defining the overall visionand priorities to inform our company culture and employee
experience. Led by President and CEO Marco Bizzarri, theGlobal Equity Board is comprised of a cross-section ofsenior leaders from inside and outside Gucci such as modeland activist, Bethann Hardison, Gucci’s Executive Advisor
on Global Equity and Culture Engagement, inclusion
and accessibility activist and writer, Sinéad Burke, andinternational development expert and activist,
Muna AbuSulayman.

The Global Equity Board is tasked with setting ambitious
targets, measuring our progress towards our established
DE&I goals and aligning with Kering’s broader DE&I mission.
Our global and regional Diversity & Inclusion Committees
work to ensure that the Board’s strategy is translated into
concrete activities and policies across Gucci.
2020 was a year of global reckoning on the issue of racial
justice. In the midst of the Black Lives Matter protests
around the world, Marco Bizzarri, and our Creative
Director, Alessandro Michele, alongside Gucci employees,
shared their commitment to combat racism and standin solidarity with the Black community. Gucci paused
all its operations in the United States on 4 June 2020
for employees to stand against racial injustice with thecommunity and recommit to being part of demanding
justice and fighting for equality.
Through Gucci’s Changemakers North America Impact
Fund, we also donated to The National Association for the
Advancement of Coloured People (NAACP), Campaign
Zero and Know Your Rights Camp to support their criticalwork in advancing racial justice. This support was inaddition to Kering’s donations to organisations on behalfof all its brands, including Gucci.

Bethann Hardison

10
Courtesy of the African American Policy Forum

Sinéad Burke

Muna AbuSulayman

APPROACH

PLANETSUPPORTING SOCIALENTREPRENEURSHIPAND CIRCULAR FASHIONOUR APPROACH
The fashion world has rapidly expanded andglobalised since we opened our first store in Florencein 1921. These changes can be a challenge to theprecious heritage of knowledge, craft skills andexperience built up over decades and passed on
through generations, particularly in Italy.
Because this heritage is at the heart of our future at
Gucci and for luxury as a whole, we invest in training
in craftsmanship skills and support the artisans, andour supply chain partners, so that the rare skills andbeauty we began to nurture 100 years ago will bestronger than ever 100 years from now.
We also ensure that the people who help create ourcollections are treated fairly along our supply chain.
While they are not directly employed by us, they
are part of our culture. We work closely with themto ensure that our environmental and social bestpractices are adhered to.

PEOPLEI was a Sari artisans

We first partnered with I was a Sari in 2018 toaccelerate our mission to promote gender equality
and circular fashion. I was a Sari is a Mumbaibased social enterprise focused on equipping
women from underprivileged communities with
luxury embroidery skills to support their financial
independence. They produce beautiful garments
and accessories through the creative re-use of
pre-loved saris, supporting a circular economy.
Since 2018, starting from our designers in Rome,many of our employees volunteered in skill-sharing,training I was a Sari artisans. 170 women have so far
been involved and, in 2020, we launched a special
embroidery training programme, available for
free, on a dedicated online platform to elevate theimpact of the project. As a result, I was a Sari has
made significant progress and is now producing
three times the output than in 2018 when thepartnership started.

OUR 2025 COMMITMENTS
Supporting the continuationof craftsmanship traditions–
Supporting transformation
across the entire supply chain

KEY HIGHLIGHTS
526 trainees at Gucci École
de l’Amour at the end of 2020

3. PROTECTING CRAFTSMANSHIP AND ENGAGING SUPPLIERSGUCCI ÉCOLE DE L’AMOUR
Launched in 2018, Gucci École de l’Amour isdedicated to passing on the knowledge andcultivating the skills that are so critical to ourartisanal craft and production methods. Hosted in
the Gucci ArtLab, our futuristic centre of industrial
craftsmanship, experimentation and innovation,
the school provides a range of unique initiatives
and learning experiences:
Craftsmanship School (Scuola dei Mestieri)
A six-month programme in the Gucci ArtLab,
educating trainees in the entire product design
and production process for leather goods.
Factory School (Scuola di Fabbrica)
A bi-monthly programme in Gucci factories, training
people to become production operators specialisingin specific leather goods manufacturing.
Technical Academy
An internal programme offering specific technicaltraining for Gucci employees working in different
departments and in our Gucci factories.

11

These courses are taught by specialist artisans,managers who dedicate part of their time to educating,and retired former colleagues. All are inspiring teachers
keen to pass on their own unique knowledge to the next
generation at the heart of luxury fashion.

SUPPLY CHAIN ENGAGEMENT
Our supply chain partners employ thousands of people
to help produce our collections. 95% of our suppliers
are based in Italy and many of them have supplied us
for two generations or more. We require all our partners
to meet our Code of Ethics and Gucci Sustainability
Principles, which are embedded in our supplier andsubcontractor contracts.
In 2020, we continued our work on social sustainability
as a member of a multi-brand committee set up by
the Camera Nazionale della Moda Italiana. Within
the committee’s framework, the Fair Wage Network
conducted an independent survey, ‘Social Sustainability
Report: a survey on wage practices among luxury
fashion suppliers in Italy’, and developed a Social
Sustainability Road Map to commit to fair wages andincreased workplace social sustainability across theluxury sector, which we adhere to.

Supporting women empowerment across our supply
chain is also important to us. In 2019, we joined thestudy ‘Supporting Women in the Luxury Supply Chain:
A Focus on Italy’, promoted by Kering, in collaboration
with the Camera Nazionale della Moda Italiana andthree specialised associations (BSR, Wise Growth andValore D) to understand the status of women working
in the Italian luxury supply chain and to identify
specific measures and programmes to support genderequality. Following this important research work, in
September 2020, our suppliers took part in a webinarorganised to discuss the results of the study and raiseawareness around gender equality throughout our
supply chain. Additionally, women employed in our
supply chain received an in-depth training session on
the issues of women’s empowerment at work, worklife balance, and self-awareness. This training has
continued in 2021.

‘SVILUPPO FILIERE’ PROGRAMMEThe COVID-19 pandemic put significant financial
strains on suppliers. It was important to support
them through this challenging time, and with Intesa
Sanpaolo, we were able to extend the Sviluppo
Filiere programme to our supply chain in 2020.
This meant that small- and medium-sized suppliersin our supply chain, which together employ morethan 20,000 people in Italy, received quick accessto a wide range of loans with very favourable terms.
More than 36% of our suppliers in Italy made use ofthis financing, and for some it was key to the survivalof their business. As of 31 December 2020, over€200 million in loans have been provided to our
suppliers through this programme.

4. COMINGTOGETHER TO
Ms. Foundation for Women, US
Supporting women ofcolour who have beendisproportionately impacted
by domestic violence, economic
hardship and additional
restrictions on reproductive
rights during the pandemic
African American Policy
Forum, US
Amplifying the voices of Black
women and girls calling forintersectional social justice

Global Fund for Women Fondo Semillas in Mexico
Supporting women
addressing increased
gender-based violence
and intensified genderinequities during
COVID-19

Rosa Fund, UK
Supporting
grassroots
organisations
adapting theirservices during
COVID-19

12

PLANET

More than $17.5m raised to support genderequality projects and advocacy since 2013–
Funded 442 projects with 162 partners in
89 countries worldwide–

Chayn Italia, Italy
Training local service
providers to reach
women experiencing
gender-based violence

Mothers2mothers, Ghana
Expanding health services
for mothers living with HIV

PEOPLEKEY HIGHLIGHTS

Global Fund for Women Mediterranean Women’s
Fund in Europe
Supporting women
addressing increased
gender-based violence andintensified gender inequities
during COVID-19

More than 590,000 girls and women
have benefited directly from CHIME FOR
CHANGE projects with non-profit partners,
additionally reaching more than three
million family and community members–
In 2020, we supported more than 80
grassroots organisations through nine
non-profit partners around the world,
directly impacting 28,379 women and girls

THE CHALLENGE
Global Fund for Women- HER Fund in Hong Kong
Supporting women
addressing increased
gender-based violence
and intensified genderinequities during
COVID-19

Equality Now, Algeria,
Egypt, Iraq, Jordan,
Lebanon, Morocco,
Palestine and Tunisia
Convening and training
activists working for
gender-equal laws

Our Gucci community fights for the safety, healthand human rights of girls and women worldwide,
and to support the next generation of leaders increating a more equitable world. Because none of
us can move forward if half of us are held back is thephilosophy driving our global initiatives dedicatedto gender equality.
From supporting hundreds of projects with non-profit
partners, to amplifying the voices of activists aroundthe world, through CHIME FOR CHANGE we are
uniting our global community to advance progress
towards a gender-equal future.

UN Women, Brazil
Strengthening women leadersand civic participation
Global Fund for Women- Fondo Elas in Brazil
Supporting women addressing
increased gender-based violence
and intensified gender inequities
during COVID-19

Artolution, Global
Promoting resilienceamong refugee
women and girls

APPROACHCHIME FOROUR RESPONSE:
CHIME FOR CHANGE
Building on our long-standing and deep commitment
to gender equality, we launched CHIME FOR
CHANGE in 2013, together with co-founders Salma
Hayek Pinault and Beyoncé Knowles-Carter, toconvene, unite and strengthen the voices of people
speaking out for gender equality around the world.
CHIME FOR CHANGE aims to inspire participation
in a collective community, bringing people together
across borders and generations in the fight forgender equality.

STAND WITH WOMEN
To combat the increase in gender-based violence
during the COVID-19 pandemic, CHIME FOR
CHANGE joined forces with the Kering Foundationin 2020 to launch #StandWithWomen, a campaign
calling for the global community to take a symbolic‘stand’ with women around the world. The campaign,
which was announced publicly by CHIME FOR
CHANGE Co-Founder and KERING FOUNDATION
Board Director, Salma Hayek Pinault, expanded
funding for organisations focusing on the safety,
health and justice of all women, including womenof colour, transgender women, indigenous womenand disabled women. #StandWithWomen directly
supported nearly 30,000 women and girls throughmore than 80 grassroots women’s organisations
working on the frontlines to meet the increased
needs of women and girls in Brazil, France, Hong
Kong, Italy, Mexico, the Middle East, North Africa, theUnited States and the United Kingdom through nonprofit partners including Chayn Italia, Equality Now,
Global Fund for Women, Ms. Foundation for Womenand Rosa Fund. CHIME FOR CHANGE’s direct
and expanded support was even more critical fororganisations during this time when gender inequities
have been magnified and global economic resources
concentrated elsewhere due to COVID-19.

“We stand in solidarity withwomen everywhere because
we cannot risk the progress wehave made in the long fight forgender equality.”
Salma Hayek Pinault,
CHIME FOR CHANGE CO-FOUNDER

2. COMING TOGETHERTO CHIME FOR CHANGE

APPROACH
According to UNAIDS, across Eastern and Southern
Africa around 20 million people are living withHIV – 59% of them women and girls. African
women are disproportionately affected by the
epidemic, but they are also leading the fight back.
The innovative m2m model has, at its heart,mothers living with HIV helping other mothers livingwith HIV. To this end, m2m employs and trains morethan 1,700 women living with HIV to be Mentor
Mothers, working across ten African countries.
The Mentor Mothers are frontline health workers,
delivering health services, advice and support towomen and their families at health facilities and in
local communities.

Courtesy of mothers2mothers

CHIME FOR CHANGE
MOTHERS2MOTHERS

In 2020, we launched a three-year partnershipwith m2m to support Mentor Mothers in Ghana.
This partnership builds on years of collaboration
between m2m and Gucci, including CHIME FOR
CHANGE co-founder, Salma Hayek Pinault, serving
as a global patron of m2m.
During the COVID-19 pandemic, m2m’s Mentor
Mothers have been recognised as essential
frontline health workers, and they have been able

SUPPORTING MOTHERS TO
HELP MOTHERS IN GHANA
During the COVID-19 pandemic, CHIME FOR
CHANGE continued critical funding for non-profit
partners, working with women-led grassroots
organisations on the frontlines to protect anduphold the safety, health and human rights ofwomen around the world, including the African NGO
mothers2mothers (m2m). Founded in 2001, m2m
works to eliminate mother-to-child transmission of
HIV during pregnancy, childbirth and breastfeedingby providing education and support to local mothers
living with HIV in sub-Saharan Africa.

“Thanks to Gucci and CHIME FOR
CHANGE, parents and caregivers in
my community now know the benefitsof early childhood development—
they are taking on board theselearnings by singing, playing andtelling stories to their children.”Faustina Aucansey,
Mentor Mother13
Courtesy of mothers2mothers

to continue providing adapted, face-to-face services
where possible, in accordance with the World HealthOrganization and national guidance. Our support
comes at a time when the needs for health andsupport services have increased due to the pandemic,
yet access to services and resources remains limited.
During the first year of our partnership,
m2m in Ghana has:
• Recruited, trained and deployed 19 Mentor
Mothers at health facilities and in local
communities• Reached 1,920 pregnant women, parents andcaregivers with education focused on earlychildhood development and reproductive,
maternal, newborn and child health• Reached 900 children (aged 0-3 years) with earlylearning opportunities• Educated 771 mothers-to-be on newborn careand child healthTogether we are working to advance and ensure
safe, equal healthcare for women in highly affected
communities, especially during this critical time.

PEOPLE

PLANET“Thanks to CHIME FOR CHANGE’s
support, we as Mentor Mothers areteaching our peers how to manage
illnesses, including the importanceof getting diagnosed for HIV andstarting treatment if they test positive.
Gucci and CHIME FOR CHANGE havebrought a great change to Ghana andhave played a key role in keeping mycommunity well. It is my hope that wewill be able to grow this programme.”
Juliana Narh Atua,
Community Site Coordinator5. SUPPORTING
POSITIVE CHANGE
IN COMMUNITIESOUR APPROACH

OUR 2025 COMMITMENTS
Contributing to positivesocial impacts

Building just and equitable communities requires
each one of us doing our part to take action on
issues including promoting social justice, protecting
the environment, enhancing education andsupporting health and well-being. This is the focus
of Gucci Changemakers; our growing communityof employees and non-profit partners dedicatedto lasting social and environmental change.
Through the many great contributions of ouremployee volunteers, we are making positive change
happen in local communities around the world.

Courtesy of Artolution

BUILDING VIRTUAL BRIDGES WITH ARTOLUTION
As part of a three-year partnership with Artolution, we have been collaborating
on interactive arts projects to promote reconciliation, healing and inclusion in
displaced communities around the world. Artolution was founded by artists Max
Frieder and Joel Bergner in 2009 as a community-based public art organisationthat fosters connections through creative, participatory and collaborative
artmaking. To further global collaboration and inspire creativity and change
among the next generation we developed Virtual Bridges together with theorganisation. This virtual workshop connected children and families of Gucci
employees with crisis-affected youth participating in Artolution’s programmes
around the world. Through collaborative and interactive storytelling,
participants were able to build relationships across borders and learn about
each other’s cultures and social contexts.
“It was remarkable to experience the creative sparks flying as young refugees/
migrants from South Sudan and Uganda connected with Gucci employees’
children in Italy and the United States, despite great physical and cultural
divides, eager to form new friendships! As we witnessed, collaborative artmaking
has a vital role to play in humanising others, educating us and building positive
relationships.” – Joel Bergner, CEO and CO-FOUNDER, Artolution

14

APPROACHEMPOWERING EMPLOYEES
To empower our employees around the world to
make a difference in their local communities, engage
directly with social causes and help create positivechange, we launched the Gucci Changemakers
Global Volunteering programme in 2019. The
programme allows every Gucci employee to devote
up to 32 hours of paid leave annually to volunteer
with non-profit organisations.

A NEW GENERATION OF
CHANGEMAKERS
Alongside the Global Volunteering programme, inMarch 2019, we announced a multi-year $5 million
Changemakers Fund and a $1.5 million scholarshipprogramme in North America.
Since its launch in 2019, through the Gucci
Changemakers North America Impact Fund andGucci Changemakers North American Scholarshipprogramme, we have invested more than $2 million
in multi-year grant funding to organisations andfinancial scholarship awards to students working
to promote social good in diverse communities
throughout North America.
Gucci Changemakers North America Impact FundThe 2020 recipients of the Gucci Changemakers
North America Impact Fund, which supports
organisations focused on four key areas of
impact: social justice and equity; arts and culture;
health equity and wellness; and education, were
unveiled in January 2020. The annual $1 million
grant fund to support community organisations
creating social impact across diverse communitiesin 12 cities in North America was awarded to
16 organisations, selected from an initial pool of
145 applications received.
Additionally, as part of our overall response to the
COVID-19 pandemic, Gucci provided $150,000 in
additional grants to our Impact Fund recipients toensure our non-profit partners on the ground could
continue to create positive social impact during
these unprecedented times.
Gucci Changemakers North America
Scholarship Program
The grant-making initiative is additionallystrengthened by the Gucci Changemakers
North America Scholarship Program, which aims
to provide opportunities for talented young peopleof diverse backgrounds to gain access to careers
in the fashion industry.

PEOPLE

PLANETOn June 2020, we announced the inaugural recipientsof the Gucci North American Changemakers
Scholarship programme – 20 outstanding young
people from diverse backgrounds who are pursuing
careers within fashion at undergraduate collegesor universities. Each changemaker received an
academic scholarship for up to $20,000 in addition
to mentorship and internship opportunities throughGucci America.
In June, we also announced the recipients of the Gucci
North America Changemakers X CFDA Scholars By
Design Program, an award of $20,000 per year for
four years to support two graduating high school
seniors who plan to study fashion design at a college
or university.

KEY HIGHLIGHTS
Gucci Changemakers North America Impact Fundrecipients, positively impacted the lives of more than
52,000 people across the 12 changemakers’ cities

CONTINUING TO MAKE
THE DIFFERENCE
Since launching Gucci Changemakers Volunteering,
we have supported over 250 non-profit organisations,organised more than 2,000 volunteering activities andregistered more than 1,800 volunteering applications
by our employees. During the COVID-19 pandemic, wemoved our efforts online: creating virtual volunteering
opportunities for our employees to keep supporting
communities in need, particularly those impacted by
the COVID-19 pandemic. To date, we have activated
250 online virtual volunteering activities.
“This importance of Gucci’s volunteerism cannot
be expressed in words. The time given by Gucci
employees is nothing less than heroic.” – Heather
Davis, Manager of Volunteer Engagement,
Opportunity Village“I volunteered with Opportunity Village because ofits mission for diversity and inclusion for the people
it serves with intellectual and related disabilities.
As a Gucci Changemaker, it is important for me that
I support and champion those in need, who may
not have a voice, and/or just need an extra hand. It
was an amazing experience and I look forward too
many more!” – Alexandre Malgouyres, Gucci EMEA
Communication Director, ParisAPPROACH

What we cannot reduce ourselves, we translate into
conserving biodiversity and forests that lessen theimpacts of climate change. To share the progress weare making with our community, we are transparent
about all the metrics that underpin our ambitious
targets that we are striving to achieve by 2025.
These goals drive us forward every day to develop
eco-friendly sourcing solutions, low-impact materials,
manufacturing efficiencies and circular innovations
so that we can act for a better tomorrow.

GUCCI’S ENVIRONMENTAL IMPACT
Gucci’s environmental impacts across the value
chain include not only greenhouse gas (GHG)
emissions but also water consumption, water andair pollution, waste, and land use at each stage of
our supply chain and linked to product end-of-life.

OPERATIONSAND RETAIL
AIR EMISSIONS

GHGs

LAND USE

WASTE

WATER
CONSUMPTIONWATERPOLLUTION

15

ASSEMBLYKEY AREAS
Together, we are focusing on the issues
on which we can have the biggest positive
impact, including:• Reducing our impact on nature andtackling climate change• Making our supply chain moresustainable• Increasing the sustainability of our
products, including circular fashioncollections• Reusing and recycling materials• Protecting and restoring biodiversity

IN THIS SECTION
1. Reducing our footprint 

16

2.	Focusing on sustainability all the way
along our supply chain

173. 	Going off the grid to put circular fashion
on luxury’s map19
4.	Reducing, reusing, recycling

20

5.	Conserving the natural world

22

RAW MATERIAL
MANUFACTURING PROCESSING

PLANET

PLANET

We look at the world around us in aholistic way and believe that it is ourduty to be sustainable, responsible
and accountable in everything we
do. We are dedicated to seriously
reduce our footprint along our entire
supply chain and embrace climatesmart strategies to help protect
and restore nature for the future.

PEOPLE

RAW MATERIALPRODUCTION

1. REDUCING OUR FOOTPRINTOUR APPROACH

OUR 2025 TARGETS
Reducing our total environmental footprint by
40%, from a 2015 baseline relative to growth–
Decreasing our greenhouse gas (GHG)
emissions by 50%, from a 2015 baseline
relative to growth, for Scopes 1, 2 and partof Scope 3 (transportation and distribution,business flights, fuel and energy-related
emissions) of the Greenhouse Gas Protocol–
Reducing an additional 40% of our Scope 3
emissions from purchased goods and services–
Using 100% renewable energy worldwide(stores, offices, warehouses, factories) by
the end of 2022

KEY HIGHLIGHTSOver 30 LEED-certified sites worldwide(corporate and stores)–
67% LED lighting for stores worldwide–
23 Building Management Systems instores worldwide–

93% renewable energy consumption
worldwide (corporate, stores,
warehouses, factories)–
35% of Gucci’s car fleet in 2020 was
electric or hybrid“Gucci is taking timely and decisive
action to protect humanity’s future byprotecting forests. I fully support andapplaud them for their leadership.”Dr. M. Sanjayan, Chief Executive Officer,
Conservation International

16

Climate change and biodiversity loss are two of thebiggest challenges we are facing collectively as asociety. Which is why we take our commitment to
reduce our impacts linked to our business activities
very seriously. We not only focus on our own
operations, but we also take responsibility for our
entire supply chain. On top of this, we have started
analysing consumer use and end-of-life of our
products through our Environmental Profit and Loss
(EP&L) account.
Our starting point is to lessen our footprint by
increasing our efficiency and using best practices,such as green energy, sustainable materials, circularapproaches and better manufacturing processes,
which contributes to the reduction of our overall
EP&L account. For any remaining GHG emissions,
we translate them into protecting forests andbiodiversity every year so that we are totally carbon
neutral, not only in our direct operations but acrossour supply chain too.

MOVING TO 100% RENEWABLE
ENERGY ON DIRECT OPERATIONS
We are increasing our energy efficiency andtransitioning to renewable energy for what we need.
We aim to use 100% renewable energy. We are wellon the way with this, achieving 93% green energy
consumption in our direct operations in 2020 (stores,
offices, warehouses and Gucci-owned factories)
compared to 83% in 2019. We have already achieved
100% renewable energy in 41 of the 49 countries weare located in so far.
By replacing non-renewable energy from fossil
fuels with green energy, we have reduced our CO2
footprint year on year, resulting in savings of 45,800
tonnes of CO2 in 2018, 59,200 tonnes in 2019 and60,100 tonnes in 2020.
We are also supporting our suppliers to switch overto green energy and increase their use year on year.
Currently, along Gucci’s supply chain, suppliers use
25% renewable energy, with a peak of over 50%
in leather manufacturing processes and 40% in
footwear manufacturing.

APPROACH

MAKING OUR STORES AND
OFFICES SUSTAINABLE
We are passionate about making our stores andoffices sustainable, so that they are not only greatplaces for people to visit and work in, but more ecofriendly too. To this end, we implemented guidelines
and best practices in all our stores to save energy
and reduce carbon emissions, while minimisingwaste and managing the quality of air.

PEOPLE

PLANET

Through our 360-degree strategy, we first avoid
and reduce the GHG emissions associated withour business activities as much as we can. We thencompensate for the remaining emissions every year
by investing in natural climate solutions. Our global
offsetting portfolio of REDD+ (Reducing Emissions
from Deforestation and Forest Degradation) projects
helps us mitigate climate change, creates a positive
economic and social impact for local communities
and helps protect wildlife and its habitat.

A first for luxury brands – we achieved theLeadership in Energy and Environmental Design(LEED) certification in 2009. LEED provides aframework to create healthy, highly efficient andcost-saving green buildings. It is globally recognised
as the leading certification for buildings and asymbol of sustainability excellence. As of 2020, ourtwo Italian headquarters located in Florence andMilan, our headquarters in Shanghai, and over 30
stores, mainly in China and in the USA, are LEEDcertified. In total, approximately 7% of our totalsites worldwide (stores and corporate) are certified
stores and we are aiming for 10% in 2021.

GHG EMISSIONS

Inside our stores and offices we have set up ecofriendly initiatives and energy-efficient technologies,
such as LED lighting across our stores to significantly
lower energy consumption and promote longerlasting lighting, and BMS monitoring systems (Building
Management Systems) to track energy consumption
and improve savings. Currently, 67% of stores use LED
lighting and 4% have been equipped with BMS. This
will increase respectively to 72% and to 5% in 2021.

GHG INTENSITY REDUCTION,
GHG/REVENUES %

9,6
8,3

7,4

6,2
REVENUESBILLION €

3,9

4,4

1,40

1,35

1,13
0,99
0,87

0,85

GHG M
TONNES
CO2

4%
2015

2016

2017

2018

2019

2020

-17%
-23%

2025 TARGET (-40%)

-37%
-47%

*	The graph depicts the trajectory related to Gucci’s 40% GHG
emissions reduction target in Scopes 1,2 and 3 of the Greenhouse Gas
Protocol. Gucci has an additional 50% target related to Scope 1 and
2 and controlled Scope 3 (upstream transportation and distribution,business air travel, and all fuel and energy associated emissions)

MAINTAINING CARBON NEUTRALITY,INCLUDING OUR SUPPLY CHAIN
Our climate strategy is underlined by our carbon
neutral approach, which has recently been bolstered
to go beyond carbon neutrality towards a naturepositive approach. As of 2018, we have been
entirely carbon neutral in our direct operations andacross the entire supply chain (Scopes 1, 2 and 3of the Greenhouse Gas Protocol). Our approach isstraightforward: we first avoid and reduce our GHG
emissions as a priority and then, as a final measure,translate all our remaining emissions every year into
protecting critical forests and biodiversity around theworld. What is unique is that we do not just address
our direct operations but include the GHG emissions
generated from our entire supply chain. Since thebulk of our emissions fall within the supply chain, as is
the case with all luxury and fashion brands, it is vital
we act responsibly in being accountable for theseemissions too.

Gucci Hub, Milan

POWERING OUR HQ WITH
THE HELP OF THE SUN
As part of our ongoing focus on switching to
renewable energy across Gucci, we installed
photovoltaic panelling on the rooftops of our main
Italian headquarters based in Florence and Milan.
The panelling directly converts sunlight into usablegreen electricity for these sites, so that we canpower our headquarters while reducing our directenergy consumption and carbon footprint. Thanks
to the panelling, in 2020 we directly produced
about 10% of the energy used in these sites.

2.
FOCUSING ONSUSTAINABILITY
ALL THE WAY
ALONG OUR
APPROACH

ENSURING TRACEABILITY

From leather to precious skins, plant fibres, gold andprecious stones – we take a strategic approach
for all the raw materials we use in our collections.
This includes adhering to our high standards ofsustainable sourcing and processing and developing
innovative solutions that are better for people andour planet.

As an example, fashion’s global leather supply chainsare complex and we have set up projects in our own
supply chain to help drive positive change every step of
the way. This starts with the detailed standards createdby our parent company Kering, which govern thesourcing and production of our leather. They include:

PEOPLE

PLANET• Avoiding the degradation and destruction ofnatural ecosystems• Ensuring the highest standards of animal welfare• Guaranteeing the ethical treatment of people
working in the supply chain• Promoting the ecological sustainability oflivestock production methods
We put a big emphasis on traceability since wewant to ensure our requirements are being met.
We have been working steadily towards our 100%
target for traceability up to the farm by 2025. In
2020, we achieved 99% traceability of leather up to
the country of abattoirs and we have continued tocarry out traceability audits among tanneries andabattoirs for visibility in their sourcing from farms.

PROMOTING MORE
ENVIRONMENTALLY FRIENDLYTANNINGAn important part of our commitment to sustainable
best practices is linked to tanning processes
and we promote metal or chrome-free tanning
as an alternative to traditional methods. Thisgreener solution reduces chemical use, water
consumption, waste and by-products from tanningand manufacturing, as well as saving energy andreducing associated greenhouse gas emissions. We
began using metal-free leather back in 2015 when
we launched a pilot for three iconic Gucci bag andwallet collections. We have scaled up metal-freeleather from 0.2% since then to 26% of our totalleather production in 2020, with a goal to achieve
100% metal or chrome-free tanning by 2025.

OUR 2025 TARGETS

Attaining 100% traceability forour raw materials–
Attaining 100% alignment with
Kering’s Standards for Raw
Materials and Manufacturing
Processes–
Developing new eco-friendly
and innovative sourcing
solutions, materials
and processes

17

OUR APPROACH

From the fields, farms, forests and mines where
our raw materials come from to the final products
in our collections – there are many opportunities
to enhance sustainability all the way along the
supply chain. We want to make the most of allthese opportunities so we can maximise positivechange for people and our planet. To this end, wework closely with our network of trusted suppliers,that are mainly located in Italy, to ensure thatenvironmental and social best practices areembedded throughout our supply chain.

Gucci ArtLab2. FOCUSING ON SUSTAINABILITY ALL
THE WAY ALONG OUR SUPPLY CHAINAPPROACH

95%

OVERALL ANIMAL-BASED
MATERIALS

97%

OVERALL PLANT-BASED
MATERIALS

97%

SUSTAINABLE MATERIALS100%

CERTIFIED PAPER76%

CERTIFIED VISCOSEORGANIC AND RECYCLED
COTTON

50%

27%

RECYCLED NYLON

We work closely with our suppliers andsubcontractors throughout our supply chain
to ensure they adhere to our standards. All our
suppliers and subcontractors must comply with
our Gucci Sustainability Principles and Code of
Ethics, and other key policies, such as Kering’s
Animal Welfare Standards.
To ensure continued compliance, we have arobust monitoring system for all our suppliers
and subcontractors, including regular audits by
specialists from Kering and third-party teams. If any
breaches are identified, corrective action plans are
put together. Follow-up audits are then conductedto ensure any non-conformance has been rectified.
In 2020, 825 Gucci suppliers were subject to at least
one full audit or a follow-up audit. In total, 1066
audits were carried out across our supply chain.
To help suppliers meet our Sustainability
Principles, we hold training seminars every
year. These seminars share best practices andinformation about our sustainability strategy andthe key impacts generated in our supply chain.
We want to help our suppliers to keep improving.

A FEW OF OUR SUSTAINABLE
MATERIALS AND PRODUCTS
Examples of sustainable materials andproducts include:• Gucci Off The Grid collection under Gucci
Circular Lines• ECO Denim in ready-to-wear• ECO and animal-free shoes

METAL-FREE LEATHER

26%• Straps and cases with recycled materials
for watches• Recycled palladium and ethical gold in
jewellery and metal accessories

ORGANIC SILK

21%

• Metal-free tanned leather• Certified paper and cardboard, and recycledmaterials, in packaging

RECYCLED SYNTHETICFIBRES

18%

SUSTAINABLE WOOL

18%

18

PLANET

PARTNERING THROUGHOUTOUR SUPPLY CHAIN

MATERIALS TRACEABILITYOVERALL TRACEABILITYPEOPLE

Gucci Off The Grid. Photography by Hollie Fernando,
styling by Ola Ebiti. Courtesy by HighSnobiety

CHAMPIONING SUSTAINABLE
RAW MATERIALS
We have been exploring ways to increasesustainability right at the start of our supply chain
where we source our raw materials. Through thecareful selection of our cotton, silk and wool, we
support production systems that do not deteriorate
natural ecosystems and local biodiversity but instead,promote soil health restoration and increase waterand biodiversity conservation overall.
Take for example one of our most important raw
materials – cotton. We have been busy replacing
conventional cotton with organic alternatives.
We are committed to continue increasing the quantityof certified organic fibres across our collections,ensuring that we are sourcing from supply chains
where environmentally and socially responsible criteria
have been adhered to every step of the way. We havetargeted to use 100% sustainable cotton by 2025.
For example in 2020, we launched an organic
cotton denim collection, and upcycled all theleftovers from cutting processes into new materials
under the Gucci-Up programme.
We are also working to identify and scale up
regenerative agriculture projects within our sourcing
regions, with the aim to source regenerative raw
materials for our products. Going beyond our own
supply chain, we are also incentivising farmers toswitch to regenerative agriculture through ‘carbon
farming’. We are championing a shift from thechemically intensive farming that traditionallyproduces fashion’s raw materials to agricultural
systems that actually replenish and strengthen
nature rather than depleting it.

3. GOING
OFF THEGRID TO PUTCIRCULARFASHION ON

APPROACHPEOPLE

PLANETOUR RESPONSE
Gucci Circular Lines champion the regeneration ofmaterials and textiles, wasting less and minimising
the use of new raw materials. Our first circularcollection under Gucci Circular Lines, Gucci Off
The Grid, is created using recycled, organic,
bio-based and sustainably sourced materials.
All in all, there are around 70 different products inthe collection, including accessories, ready-to-wear
and travel pieces. Everything is rethought, reused,refashioned – re-loved.
The collection’s main material is ECONYL®, which
has been 100% obtained from pre- and postconsumer waste, such as abandoned fishing nets
and carpets – including plastics that harm marine
life and old materials that will likely end up in landfills
and, instead, now regenerated into a new highquality yarn. Gucci was the first luxury brand to use
ECONYL® in 2016.
To further support a virtuous cycle, the ECONYL®
off-cuts are recovered and upcycled from Gucci Off
The Grid manufacturing into new ECONYL® and theleather scraps are upcycled as part of our Gucci-Up
programme.

Photo of Lil Nas X,
rapper, singer andsongwriter, sitting ina rustic treehouse,surrounded bya towering city,
wearing pieces from
Gucci Off The Grid

From first idea to last detail – with Gucci Off The
Grid, we are putting circularity at the heart of its
design and creation. Following the great successof the launch collection, we are lining up a second
collection for 2021.

Art Director:
Christopher
Simmonds.
Ph & Director:
Harmony Korine

GUCCI OFF THE GRID ECO FEATURES• Regenerated ECONYL® nylon as main material• Metal/chrome-free tanned leather

THE CHALLENGE
Gucci is establishing new ways on how sustainability
can power creativity and underline our values,
making the journey into the next years further andfurther away from fashion’s linear model, and to acircular one. We envision the future of sustainability
where circularity is not the exception to designand creation but integrated as part of the process.
A future where the beauty of old materials iscelebrated in an everlasting cycle, and new natural
resources are not a requisite for appeal and quality.

• Organic cotton, or recycled polyester, or
regenerated leather for interlining• Recycled brass alloys• Nickel-free and recycled and RJC CoC-certified
gold and palladium for finishing• Viscose sourced from sustainably managed
forests for twill• Recycled plastic for accessories• Recycled polyester for thread and tape for zippers• Bio-based content for soles of shoes• Solvent-free adhesives for manufacturing
processes• Recycled FSC® certified self-assembly box andrecycled nylon pouches for other packaging
component

19

4.
REDUCING,
REUSING,RECYCLING
APPROACHOUR 2025 TARGETS
Eliminating single-use plastics in B2C
packaging by 2025 and in B2B packaging
by 2030 through our Fashion Pactcommitment under Kering–
Maximising sustainable processes andmaterials, such as regenerated, organic,
recycled and bio-based materials–
Using 100% paper and wood-based
products that are certified from sustainably
managed forest sources

OUR APPROACH
The fashion industry generates a vast amountof waste every year, when much of it can bereused or recycled. The lives of precious natural
resources, raw materials and finished products
are foreshortened, when they can and shouldbe helped to last longer through new forms andfresh uses. To play our part in changing this,
we look to make the most of the opportunities
to reduce, reuse and recycle our raw materials
throughout the Gucci ecosystem.

USING PAPER WITH CARE
We make sure we use paper responsibly. Since
December 2017, we have been a member of
the Forest Stewardship Council (FSC®), andall our packaging and printed materials havebeen FSC® certified since 2010. We aim at
reducing office paper too, and we have internal
guidelines to promote less printing. In the past
three years, we have decreased the average
consumption of office paper per employee
by 17%.

CIRCULARITY WITH GUCCI-UP
We have a number of innovative projects
to embed circularity across our collections.
Through our Gucci-Up programme, we recoverand upcycle leather and textile offcuts createdduring manufacturing. From 2018 to 2020, thisled to around 27 tonnes of reusable leather
scraps, which were regenerated in collaboration
with NGOs and women-based projects, as wellas with social cooperatives in Italy to support
the training of people from marginalised groups
and their reintegration into their communities.

20

PEOPLE

PLANETTACKLING PLASTIC
We want to keep plastic within a circular
economy and out of the environment. To thisend, we have been actively reducing ourreliance on plastic overall while simultaneously
prioritising recycled and bio-plastics as amore sustainable substitute. We are also
working to better integrate plastic alternatives
into our products and throughout our entire
supply chain, including our offices, stores andproduction sites.
To guide us in our efforts we follow our parent
company Kering’s standard for plastics andapply it to all the plastic types we use in our
products, packaging and visual merchandising.
Some of the game-changing programmes
we have launched for plastics in the past
years include:• Banning PVC in all our products andpackaging since 2015
• Replacing virgin synthetic fabrics withrecycled alternatives, as we do in our Gucci
Off The Grid collection and in our Gucci
Green Packaging• Progressively switching virgin plastic forrecycled Acrylonitrile-Butadiene-Styrene(ABS) plastic in the heels of our shoes since2015 and using Thermoplastic Polyurethane(TPU), containing up to 50% bio-plastic
content, for the soles• Eliminate all virgin single-use plastics in our
product packaging for ecommerce and retail.
Any remaining plastic components comefrom recycled sources, such as hangers forour ready-to-wear collections from recycled
polystyrene or rain covers for shopping bags
from recycled polyethylene, and dust bags
and suit carriers made of recycled polyesterand regenerated cotton• Increasing the reuse of industrial packaging.
For example, launching our Take Backprogramme to reuse the plastic protective
boxes for our accessories – thereby avoiding
the production of one million new boxes
equalling 90 tonnes of plastic since launching
the project in 2019

4. REDUCING,
REUSING, RECYCLING

APPROACH

Gucci Women’s Fall-Winter 20-21

As part of our commitment to be moreenvironmentally friendly in everything we do, in2020 we launched our new Green Packaging forstores and online sales, in a shade of green chosen
by Gucci’s Creative Director, Alessandro Michele.
It has been created with strategic design choices
so that sustainability has been considered every
step of the way.

Tree planting in Milan

We also take responsibility for the GHG emissions
from the overall production of each show, including
any associated travel by guests and workers. For
our shows held in September 2019, and in January
and February 2020, we planted one tree for eachshow participant and worker to neutralise theemissions that had not already been addressed
through Gucci’s carbon neutral approach.

WASTING LESS LEATHERIN PRODUCTION
We look for innovative ways to optimise efficiencies
during the production and manufacturing of ourcollections. After all, this is not only better for the planet
and reduces our impact, but it is better for our business,
too. As an example, we launched our Gucci Scrap-lessprogramme to significantly reduce the footprint of ourleather manufacturing, compared to traditional methods.
By simply cutting the leather hide to size before tanning,
we are able to process only what we need for production,
while reducing the amount of energy, water andchemicals required to treat the material. This also reducestransport-related greenhouse gas (GHG) emissions fromtanneries to factories.

Featuring an ornate green decorative pattern
embossed onto our shopping bags and boxes, allpaper and cardboard comes from sustainably
managed forest sources. The unique green colour
decreases the use of inks and an uncoated paper
ensures it is fully recyclable. The shopping bag
handles are black torchon made of 100% recycled
polyester and knotted to avoid using glues, so it iseasier to separate and recycle. Natural-coloured
dust bags and suit carriers are made of a mix ofregenerated cotton and recycled polyester, finishedwith the black Gucci logo. Ribbons are 100%organic cotton and hangers for ready-to-wear are
made of recycled polystyrene.
We have also designed the packaging so that it issustainable for ecommerce – it has been created foreasier reuse and optimised transport, with a foldable
outer box that reduces the number of vehicles
needed during transport and, consequently, lowers
the associated carbon footprint. The fully recyclable
outer box has a double closing system to optimise
returns, the fillings are paper, and paper tape is used
to close the box.

So far, we have donated 7,000 trees to theMunicipality of Milan, contributing to urban
reforestation under the ForestaMi project.
Beginning in 2020, we have extended thesustainable management of our fashion shows
to digital events and advertising campaigns.

We are continuing to extend the Gucci Scrap-lessprogramme for our leather production, with 13 tanneries
participating in the programme in 2020, equalling
approximately 12,353 tonnes of CO2 avoided sincelaunching in 2018. Around 1.7 million kW of energy was
saved; 21 million litres of water and water effluents
entering the waste stream were avoided; 137 tonnesof leather scraps were reduced; and 295 tonnes ofchemicals, including 57 tonnes of chrome, were avoided.

21
Gucci Scrap-less

PLANET

CREATING NEW GREEN
PACKAGINGHOLDING SUSTAINABLE
FASHION SHOWSAs a fashion-first, we achieved ISO 20121
certification for our events, including fashionshows. This international standard provides
a framework and guidance for designing asustainable event from start to finish – taking into
consideration all the environmental, social andeconomic elements. Beginning with our Spring/
Summer 2020 show held in September 2019,
we measure and mitigate the environmental
impact of our fashion shows and optimise allplanning and processes involved so that they
are more environmentally efficient. This includes
sustainable sourcing and favouring materials thatcan be reused, recycled or rented; prioritisinglocal catering; avoiding single-use plastic;
donating leftover food; using green electricity
and LED lighting where possible; and choosing
more eco-friendly transport for our working staff,
models and guests.

PEOPLE

Gucci new sustainable packaging

APPROACHSUPPORTING COMMUNITIES

Rimba Raya REDD+ project,
Indonesia. Photo of local children
in Indonesia reading together

OUR APPROACH
Fashion’s traditional systems have had a hand in
impacting the world’s biodiversity and helping
reverse the trajectory of biodiversity loss is critical.
We are committed to leading a change across our
Gucci universe, and beyond, to proactively protect
and restore the natural world. To this end, we have
evolved our carbon neutral strategy to go towards anature-positive approach through Gucci’s Natural
Climate Solutions Portfolio, which conserves forests,
protects and restores mangroves, and improves land
management through regenerative agriculture. We
also support global wildlife conservation efforts.

CHAMPIONING CHANGE
Building on our commitment to total carbon neutrality,
Gucci’s new science-based Natural Climate Solutions
Portfolio focuses us on tackling climate change andchampioning regenerative agriculture. Our essential
aim is to protect and restore nature.
Our Natural Climate Solutions Portfolio outlines
key initiatives to protect forests and biodiversity,
including protecting critical forests around the worldfrom deforestation; safeguarding and restoring
mangroves; investing in regenerative agriculture
within our supply chain so that we will be able tosource regenerative raw materials for our collections;and incentivising farmers to shift to regenerative
practices more broadly through ‘carbon farming’.

Through the REDD+ projects we support, they deliver multibenefits to the local communities, including increased
livelihoods. As an example, the Chyulu Hills REDD+ projectprotects approximately 410,000 hectares in a volcanic
mountain range in south-eastern Kenya, representing a
critical ecosystem in a largely water-deficient arid andsemi-arid landscape. Vast wildlife, including populationsof the increasingly threatened African Elephant and thecritically endangered Black Rhino, roam this biodiverse area,
and it is also home to around 140,000 people including the
Maasai. Gucci’s support of this project will help generate
18.5 million tonnes of Verified Emissions Reductions (VERs)
over 30 years, and our investment will have a far-reachingpositive impact on the local communities and their wellbeing
too. Health and education infrastructure is improved and
86% of our funding is distributed to the community members
through the Chyulu Hills Conservation Trust.

To live up to our enhanced commitments, weare focusing on supply chain transformation, as
well as supporting initiatives that help mitigate
climate change, create a positive economic andsocial impact for local communities, and protect
endangered wildlife and their habitats.

TURNING OUR CARBON EMISSIONSINTO FORESTRY PROTECTION
Following the ‘mitigation hierarchy’, we first avoid
and reduce our greenhouse gas (GHG) emissions
in our own operations and across the supply chain
as much as we can then, as a final measure, we
compensate for our remaining emissions every year.
Since undertaking to translate our total annual
remaining GHG emissions, starting in 2018, into theconservation of nature, we have invested in selected
Reducing Emissions from Deforestation and Forest
Degradation (REDD+) projects that protect crucial
ecosystems.
To maintain our carbon neutral commitment, for2018, we invested in the Chyulu Hills REDD+ project,
the Alto Mayo REDD+ project, the Rimba Raya REDD+
project and the Southern Cardamom REDD+ project,
and, for 2019, we partnered with the Kariba REDD+
project and, once again, with the Chyulu Hills REDD+
project. For 2018 and 2019 combined, this equalled
the protection of approximately 1.9 million hectaresof important forests and biodiversity.

PLANETleather globally. In Patagonia, for example, we aresupporting woolgrowers to convert to regenerative
grazing, which promotes soil health and water
quality, increases biodiversity, adopts best practices
in animal welfare and sequesters carbon dioxide.

OUR COMMITMENTS
Maintaining carbon neutrality andmoving towards nature-positive–
Supporting the conservation
and restoration of vital ecosystems
around the world–
Advocating regenerative agriculture
in our own supply chain and beyond

PROTECTING AND RESTORING
CRITICAL WETLANDS“We want to be part of the solution for
nature and climate by mainstreaming
practices and systems that willtransform nature from being a victim ofclimate to becoming an actor to change
climate, which will ultimately determine
the future of our planet.”
Marco Bizzarri,
Gucci’s President and CEO

Above and beyond carbon neutrality, and as partof Gucci’s Natural Climate Solutions Portfolio, we
have also invested in the Honduras-based Muskitia
Blue Carbon REDD+ project through partner South
Pole. This project is restoring and protecting over
290,000 hectares of primary forests and mangroves,which store up to ten times more carbon than matureterrestrial forests.

ENCOURAGING REGENERATIVE
AGRICULTURE
We advocate agricultural systems that actually
replenish and strengthen nature rather than deplete
it, instead of the widely used chemically intensive
farming methods that traditionally produce fashion’s
raw materials.
As the first step in a broader, long-term strategy forregenerative agriculture, we are identifying andscaling up regenerative agriculture projects within
our sourcing regions, in order to source regenerative
raw materials for our collections.
Going beyond Gucci’s own supply chain, we arealso incentivising farmers to switch to regenerative
agriculture through ‘carbon farming’. Here, we
are funding regenerative projects for wool and

5. CONSERVING THE NATURAL WORLD
22

PEOPLE

Courtesy of The Lion’s Share Fund

CONTRIBUTING TO THE
CONSERVATION OF
ENDANGERED WILDLIFE
In 2020, we joined The Lion’s Share Fund, a uniqueinitiative raising much-needed funds to tackle thecrisis in nature, biodiversity and climate across theglobe. Led by the United Nations Development
Programme (UNDP) and a coalition of businesses
and UN partners, the Fund is an innovative conceptthat organically connects the business community
with on-the-ground action to protect wildlife andits natural habitat. Gucci’s ongoing contribution
to The Lion’s Share Fund is an important part ofour conservation strategy, In 2020, our donations
supported two emergency grants for wildlife
protection and recovery following the Australian
bushfires; contributed to actions for the long-term
conservation of the Leuser Ecosystem in Sumatra,
one of the most biodiverse environments left on
Earth; and helped communities across Africa,
Asia and Latin America that depend on wildlifebased tourism, and were hit hard by the COVID-19
pandemic, through development of skills alternative
sources of income and food security.

LOOKING TO
THE FUTURE
Over the past years, we have been
striving to meet the sustainability
targets outlined in our 10-year‘Culture of Purpose’ strategy.

Our commitment to generate positive change forpeople and our planet underlines our resolve toconstantly improve, as our values guide us to takeaction. We are always moving forward; and looking
to the future. How we adapt to, and create in, ourever-changing world, will help define this future for
Gucci, and for our industry.
Fostering an environment that is respectful, inclusiveand diverse, where everyone is considered equal, isfundamental to our ongoing strategy. Our combineddifferences not only reflect the world around us but
fuels creativity and imagination. We believe that the
fashion industry needs to reflect this paradigm too.

23

Building in wide-ranging representation as aprerequisite for the next generation entering ourindustry is essential and we will continue to support thisthrough our initiatives, like the Gucci Design Fellowship
programme where we give students from international
fashion schools hands-on professional experience,
while facilitating cultural exchange. We will also
continue to support community organisations focusedon increasing inclusion, diversity and gender equality
through our various initiatives.
Helping to build equality where we can in
the wider world is one of our core philosophies.
This will determine where we focus our ongoing
efforts. Supporting COVID-19 relief initiatives, andthe organisations combatting the lasting impactsof the pandemic, has been a main focus for us.
Now, it is essential that the vaccine is equitably
procured and distributed fairly in the mostvulnerable communities globally.

APPROACH

Gucci has answered UNICEF’s international callfor support and funding for COVAX, a global
collaboration organised to accelerate thedevelopment and production of, and equitable
access to, COVID-19 tests, treatments and vaccines.

We are also committed to ensure everyone has equal
opportunities at Gucci to create long-term careers,in every way we can. Our strategic ambition of‘Creating Opportunities for Disabled People’is a main priority over the next number of years.
We have created equitable access to employment,
partnered with grassroots organisations embedded
in regional disabled communities, and designed
a blueprint to reimagine physical places anddigital spaces. In 2021, we are launching a pilot
programme to improve and develop the accessibilityof our stores as well as strengthening our efforts
towards the meaningful inclusion of disabled people
across our workforce from retail to corporate.

PEOPLE

PLANETIn creating space for disabled people to have agency
and equitable access within our company, ourultimate goal is to develop and model best practice,so that we can shape how disabled people are seen,
heard and considered. Not just within our stores, or
our company, but in the world around us.
At Gucci we are building authentic value – value
for people, value for climate and value for nature.
Our relationship with the natural world, and our
impact on the planet, will continue to drive us
forward in the coming years. We want to be part ofthe solution for a better tomorrow. We will continue
to prioritise the avoidance and reduction of ourenvironmental impacts associated with our own
operations and the entire supply chain. Our new
science-based target for climate under Kering will
act as one of our benchmarks so that we reduce
our greenhouse gas emissions in alignment witha 1.5°C pathway by 2030. To help us achieve ourambitions, we will continue to develop eco-friendly
sourcing solutions, manufacturing efficiencies andlow-impact materials. Investing in innovation as adriver for sustainability will act as a facilitator. At thesame time, we will be protecting and restoring criticalforests, mangroves and biodiversity around the world.
We are also taking bigger steps to lower ourfootprint for raw materials production; supply chaintransformation is the next chapter in our sustainability
journey. We want to work with nature, not against it.
A pivotal part of our new Natural Climate Solutions
Portfolio champions regenerative agriculture.
We are supporting a shift from the chemicallyintensive farming that traditionally produces fashion’s
raw materials to agricultural systems that promote soil
health, water quality, increased biodiversity, animal
welfare best practices and carbon sequestration
for the long term. Over the next years, Gucci will besetting up regenerative agriculture projects in our
supply chain; our goal is to scale up projects within oursourcing regions, with the aim to source regenerative
raw materials for our collections. While we work
towards this goal, we will also support farmers inthis switch through ‘carbon farming’ more broadly.
Gucci is committed to help catalyse positive
outcomes for our planet and people. We are
driven by the critical issues that are creating ourcollective future and, through Gucci Equilibrium,
we will continue to evolve our strategy to meet theneeds and challenges of tomorrow.

METHODOLOGY
Gucci Equilibrium Impact Reportcovers a selection of the social andenvironmental commitments andactions we have made in our direct
operations and across our supply
chain. In addition to this overview,
we report on our commitment andprogress towards our sustainability
goals in many other ways throughout
each year, as well as through awide range of surveys and industry
rankings covering a broad array of
issues. For more detailed information
on Gucci’s and our parent company
Kering’s sustainability strategy andmethodology please refer to thefollowing documents and platforms.

24

GUCCI EQUILIBRIUM
Gucci Equilibrium is our commitment to generate
positive change for people and our planet. It unifies
the principles we uphold and the actions we pursue
to treat our world and each other better, for ourcollective future. Discover Gucci’s sustainability news
and articles on our efforts by visiting equilibrium.
gucci.com. For Kering sustainability news, visit
https://www.kering.com/en/sustainability/

KERING ENVIRONMENTAL
PROFIT AND LOSS (EP&L)
Gucci’s total environmental impacts associatedwith our business activities in our direct operations
and across our supply chain are rigorously calculated
on an annual basis. To do this we use Environmental
Profit and Loss (EP&L) accounting, which waspioneered by our parent company Kering.
An EP&L account measures greenhouse gas
emissions, air and water pollution, water
consumption, land use and waste production
along the entire supply chain, thereby making thevarious environmental impacts of Gucci’s activities
visible, quantifiable and comparable. Any variationof 2015-2019 EP&L data with respect to alreadypublished data is due to a periodical update of
EP&L coefficient as per Kering Methodology.

APPROACHPEOPLE

PLANET

These impacts are then converted into monetary
values to quantify the use of natural resources. By
measuring all our environmental impacts, we canfocus in on the most significant drivers of impacts
from our business and make better-informed
decisions. This data-driven approach allows us todevelop robust policies and programmes to reduceou r footprint and drive tangible, positive change.
With this deep knowledge, we can also respondto the risks and opportunities presented by any
environmental challenges.

KERING UNIVERSALREGISTRATION REPORTGUCCI DIGITAL EP&L

KERING INTEGRATED REPORTTo provide even greater transparency, we launcheda customised Gucci Digital EP&L in 2019. This open
source platform is a testimony to our underlying
philosophy of transparency, welcoming all formsof collaboration with our peers, across our industry.
It drives greater understanding of our sustainability
approach and enables different stakeholders in our
industry to leverage the EP&L through its underlying
data sets.

The report includes Kering’s annual financial
report, the report of the Board of Directors on
corporate governance, the internal control andrisk management procedures implemented by thecompany and the reports from the Auditors. The
report is developed for a range of stakeholders,
including employees, local communities, nongovernmental organisations (NGOs), customers,
investors and government.

The report delivers a comprehensive view of
Kering’s global value creation gained from its
creative, financial, environmental, ethical andsocial dimensions.

KERING SUSTAINABILITYPROGRESS REPORT
Kering’s report outlines the key projects andprogress achieved from 2017 to 2020 as partof Kering’s 2025 sustainability strategy.

& REPORTING

“WE ARE BUILDING AUTHENTIC VALUE ACROSS OUR BUSINESS AND IN
THE WIDER WORLD – FOR PEOPLE, FOR CLIMATE AND FOR NATURE.”
Marco Bizzarri, Gucci President and CEO