Kering SA is a France-based company that specializes in retail and luxury goods distribution. The company operates through two core segments: LUXURY, which operates the Luxury Group division of PPR SA and designs, manufactures, and markets luxury items, such as ready-to-wear clothing, leather goods, shoes, watches, jewelry, fragrances, and cosmetics products; and Sport & Lifestyle segment, which designs and develops footwear, apparel, and accessories under the brand names Puma, Volcom and Electrics.
In publishing an Environmental Profit & Loss (E P&L) statement (which calculates the environmental impact of the company’s operations as well as the operations of its suppliers) across all of its brands, Kering has established itself as a leader in corporate environmental accounting and stewardship. To this end, the company has implemented a number of programs and policies that address the issues material to its business and the luxury goods industry at large including carbon emissions, land use, waste, and water use. In each of these issue areas, Kering has taken direct steps to mitigate its footprint and has worked closely with industry partners, Non-Governmental Organizations, and local organizations to drive more sustainable industry-wide policies. Beyond these environmental factors, the company has also employed progressive chemical safety and supplier codes, both of which go beyond the scope of their respective legal compliance frameworks to target harmful substances or practices that may be regulated in the future. Moreover, Kering is candid about the challenges it faces in accomplishing such aggressive goals. The company recognizes the systemic nature of many of these challenges and continually implores its industry peers to partner in efforts to address these global challenges.
Kering has been critiqued for its corporate governance and structure. Namely, the company has faced shareholder dissent for some of its decisions and party transactions.
Industry: Consumer Discretionary
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.