The luxury sector has faced times of uncertainty in recent months, with changing consumer habits and volatile tariff policies from President Trump threatening to destabilize the market. But Kering, the owner of fashion houses like Gucci and Bottega Veneta and one of the largest luxury conglomerates in the world, is betting on sustainability to weather any upheavals.
“We don’t see sustainability as a cost. It’s an investment,” said Marie-Claire Daveu, chief sustainability and institutional affairs officer at Kering.
Daveu, who joined the group in 2012, said the group’s sustainability strategy was defined in 2017. Part of that strategy is to reduce its greenhouse gas emissions by 40% by 2035, she said. The group has taken measures such as instituting regenerative agriculture among its suppliers of raw materials and participating in a pilot program with the Science Based Targets Network. In April, Kering unveiled its water-positive strategy to decrease water-related risks through initiatives such as adopting recycled materials and new materials made through regenerative agriculture.
Taking sustainability into account has become table stakes for companies seeking to attract top talent and retain investors, Daveu said.
“For employees, [sustainability is] also very important if you want to attract, above all, the young generation,” she said. “In the risk management approach, [investors] will ask you, ‘What is your resilience of the supply chain? What is happening for human rights in your supply chain?’ Because everyone is very conscious about the fact that you can destroy the brand equity very quickly if you don’t care about this kind of topic.”
Kering has shown signs of struggle since 2022 when Alessandro Michele left his role as creative director of Gucci, which is responsible for roughly 60% of Kering’s overall operating profits. In February, Sabato de Sarno stepped down as Gucci’s creative director after a two-year stint during which the brand saw slumping sales. In April, Kering reported Gucci sales fell 25% on a comparable basis during the first quarter of 2025, while the group’s overall sales declined 14%.
Kering will introduce significant shakeups to its top roles in 2025. Demna, the Balenciaga enfant terrible, will take over Gucci, while Pierpaolo Piccioli, who left Michele’s current house, Valentino, in 2024 after 16 years as creative director, will take over Balenciaga. Both will assume their new posts in July. On Monday, Kering announced that Luca de Meo will succeed François-Henri Pinault as CEO, effective in September.
Daveu said that Demna will continue to introduce innovative sustainability measures when he takes on the top role at Gucci. At Balenciaga’s Fall/Winter 2022 runway show, he unveiled a coat made from Ephea, a mycelium-based leather alternative.
“Demna is pushing crazy things. … The first time we say it’s mycelium, people have the feeling that, under water, the coat will disappear,” she said. “On the sustainability side, he has a strong conviction, and it’s very interesting to work with him and be challenged. It’s not only with the creative director, it’s for all the people. Once you join Kering, you have to be aligned with the sustainability vision.”
Daveu said Kering is also looking to foster innovation in up-and-coming talents. In June, the group showcased the winners of its first Kering Generation Award X Jewelry at a ceremony in Las Vegas. The initiative challenged participants to transform often discarded materials into jewelry. Lee Min Seo of South Korea won the student award for her transformation of leather from Korean janggu drums into a jewelry collection, while Chinese brand Ianyan won the startup category for its use of fractured opals.
“You first need to have an environmental impact. The second criteria is that you’re sure that what is done will also be scalable,” said Daveu. “Because when we say that we need to change the paradigm in our industry, it’s really key to have something that we can put at scale.”
Sustainability also means making products that stand the test of time, Daveu said. In 2021, Kering acquired a 5% stake in luxury resale platform Vestiaire Collective. Luxury brands like Valentino and Oscar de la Renta have also created their own secondhand resale platforms in recent years.
As sustainability has become more top of mind for corporations, there is also growing competition for finding innovative paths for sustainability in luxury. In June, Parfums Christian Dior, part of Kering’s chief rival LVMH, announced a partnership with packaging manufacturer Axilone to create recycled magnets for its perfume packaging. That same month, Chanel launched Nevold, a new recycling platform.
“To be able to have sustainability, you also need quality. To have a great level of repair is also part of the clients’ experiences in luxury,” said Daveu. “When we speak about the more commercial consumer, they don’t ask questions specifically about sustainability, but they trust the brand. So for them, when they buy a Bottega Veneta bag or a Gucci bag, we can say that sustainability is really around the quality — the fact that you take care of the people and the planet is really part of the DNA of the product.”
