Kering is a French multinational corporation that operates in the apparel, footwear, and accessories design sector. The company was founded in 1963 by Francois Pinault and has since become one of the world's leading luxury goods companies, with a portfolio of brands that includes Gucci, Saint Laurent, Bottega Veneta, and Balenciaga, among others. Kering is committed to sustainability and has set ambitious goals to reduce its environmental impact, including decarbonisation and the use of renewable energy.
One of Kering's key sustainability initiatives is its commitment to decarbonisation. The company has set a target to reduce its greenhouse gas emissions by 50% by 2025, compared to its 2015 baseline. To achieve this goal, Kering is implementing a range of measures, including energy efficiency improvements, the use of renewable energy, and the adoption of low-carbon technologies.
Corporate energy is another area of focus for Kering. The company is committed to reducing its energy consumption and increasing its use of renewable energy sources. Kering has set a target to source 100% of its electricity from renewable sources by 2025, and has already made significant progress towards this goal. In 2019, the company sourced 75% of its electricity from renewable sources, up from 50% in 2018.
One of the ways that Kering is increasing its use of renewable energy is through the use of corporate power purchase agreements (PPAs). A PPA is a long-term contract between a company and a renewable energy provider, which guarantees a fixed price for the electricity generated by the renewable energy project. By entering into a PPA, Kering is able to secure a reliable and cost-effective source of renewable energy, while also supporting the development of new renewable energy projects.
Kering has already signed several PPAs for renewable energy projects, including wind and solar projects in the United States and Europe. In 2019, the company signed a PPA for a wind farm in Norway, which will provide 100% of the electricity needs for Kering's Norwegian operations. The wind farm is expected to be operational by 2021 and will generate approximately 280 GWh of renewable energy per year.
In addition to its use of PPAs, Kering is also investing in renewable energy projects directly. The company has installed solar panels on the roofs of its facilities in Italy, reducing its reliance on grid electricity and generating renewable energy on-site. Kering has also invested in a wind farm in India, which will generate renewable energy for the local grid and support the development of renewable energy infrastructure in the region.
Overall, Kering's commitment to sustainability and its focus on decarbonisation and renewable energy are key drivers of the company's success. By reducing its environmental impact and increasing its use of renewable energy, Kering is not only improving its bottom line, but also contributing to a more sustainable future for the fashion industry and the planet as a whole.