LVMH demonstrates its sustainable ambitions in China
LVMH is strengthening its Life 360 energy reduction strategy with the signing of a new agreement with its business partner Hang Lung Properties, owner of more than one hundred shopping centres in the most strategic cities in the Chinese market.
By Eva Morletto28 octobre 2022
The agreement's main objective is to harmonise the environmental and energy policies of LVMH and its partners, with the implementation of joint actions. The agreement includes a commitment by Hang Lung Properties to reduce its energy consumption by 18% by 2025. To achieve this goal, this major Chinese real estate player will put in place several measures, including turning off lights in shops outside of opening hours and setting up meters to monitor consumption.
At the same time, the French luxury goods giant is committed to controlling the energy consumption of its shops and manufacturing units, as well as sourcing 70% of materials within 500 km.
This agreement is part of the projects and strategies designed for the LVMH Life 360 plan - the group's environmental compass - which aims to reduce greenhouse gas emissions by 50% by 2026, taking the carbon emissions generated by the group in 2019 as the starting point.
While implementing these measures in its own factories, offices and shops may seem like an easily achievable initiative, it is less so for commercial premises owned by external companies, such as Hang Lung Properties in China. Founded in 1949, Hang Lung Properties is a real estate specialist with a strong presence in Hong Kong and throughout China, and is the landlord of major internationally known commercial centres such as the luxury Plaza 66 in Shanghai.
The agreement will commit both signatories to make transparent all energy consumption data, a process that is sometimes complicated between tenants and lessors. In the Hang Lung shopping centres in China, LVMH has opened 90 shops dedicated to 26 of the group's brands. The partnership is signed for three years and may be renewed.
The agreement was unveiled at the 360 in Stores event on October 25 and 26, an event which, among other things, honoured the seven winners for the best energy practices applied in LVMH shops.
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