Clothing and luxury goods giant Kering has gone to great lengths to put a financial value on its environmental impacts, and although question marks remain, it is an impressive effort
Kering Group's consolidated Environmental Profit and Loss methodology and group accounts for 2013 were published recently by the multi-billion-dollar clothing group, owner of Puma, Gucci, Saint Laurent, Stella McCartney, Sergio Rossi and other luxury brands. Kering declares that it is pioneering this tool to calculate the group's environmental cost to society.
The EP&L is both a report of Kering's impacts and a DIY manual for converting environmental impact into financial value. Kering explains: "EP&L is a new way of estimating the cost to society of the changes in the environment resulting from businesses’ activities across the entire supply chain." Generously, Kering has developed an open source methodology, for the benefit of the market. At the same time, Kering hopes to make a strong contribution to the Natural Capital Coalition's Natural Capital Protocol development.
Valuation of natural capital is being pursued in many forms by different organisations as companies seek ways to express their environmental impacts and accountability in full, including what are now referred to as externalities – the often hidden positive and negative indirect impacts of corporate activity. Indeed, this is not Kering's first EP&L report. Puma delivered a company EP&L account back in 2011 and this new...