Opening Cloud Pino: A Series Of Sustainable Measures For Opening Clouds

After a year, Francois Francois-Henri Pinault came to Tsinghua University with environmental issues.

Pino is

Group Chairman and chief executive officer of Kering Group, Kai Yun group owns luxury brands such as Gucci, Stella McCartney and Paris.

As part of the third Sino French environment month, Pino went to Beijing to participate in the discussion of the environmental challenges faced by enterprises.

This is very familiar with the second generation of leaders in the open cloud.

A grand ceremony or art auction.

In recent years, you may hear from frequent luxury brands such as luxury brands and Zara, H&M and other fast fashion brands that they talk about environmental issues, from organic cotton, recyclable wool to energy saving shops.

Between 2000 and 2014, global fashion production doubled, regardless of luxury brands or fast fashion.

"Fashion is the second major source of pollution after oil". Before this sharp view was put forward, the brand was not ignorant.

Vogue 2007 has discussed "sustainable fashion" in recent years. However, the attitude of the various environmental organizations in the world is becoming more and more active. They not only take actions such as parades and sit INS, but also expose the dark side of the fantasy fashion by social media, and put pressure on fashion companies.

Some fashion companies begin to value their environmental image in the public and are willing to make new investments in environmental issues.

Although they will not disclose all commercial sensitive information such as raw material access and production environment for public supervision, they still tend to amend themselves and grasp the dominant power in game theory.

Of course, the premise is to believe that sustainability is ultimately rewarding.

In these fashion companies that are willing to talk about environmental issues, opening the cloud is one of them.

In the cloud report, carbon emissions also have the same weight as ping efficiency, electricity supplier revenue and exchange rate fluctuations, while the Sustainable Development Department of Kai Yun group has expanded from 15 to more than 50.

Gucci, Bottega Veneta, Saint Laurent, Stella McCartney and so on, all the brand CEO year-end dividends are closely linked to green environmental protection, and personnel departments are asked to throw environmental problems to the interviewees.

At the same time, it will expand its control over supply chain, such as purchasing raw material factories, and selecting partners with the same environmental protection concept.

Pino believes that sustainability is beneficial to every aspect of the company, such as employee pride.

And even shareholder approval.

However, it is not easy to achieve environmental protection in the increasingly fashionable fashion industry. Kai Yun's first sustainability report released this spring shows that three indicators - carbon emissions, waste emissions and water consumption have not reached the original target.

In Beijing, reporters interviewed Pino and talked about a series of sustainable measures for opening the cloud.

Reporter: in 2012, we announced the strategic goal of sustainable development.

How long was the plan prepared before it was launched?

Pino: the idea of sustainability begins with PUMA.

We saw that the first E P&L in the fashion industry began to try and popularize in 2010.

Without natural resources, it is difficult to become a modern business.

From water, electricity to cotton and rare animal skins, the fashion industry, which relies heavily on raw materials, has worsened the environment and is regarded as the second major source of pollution after oil.

Therefore, it is imperative to pursue sustainable strategies at the corporate level.

I believe that business is the culprit of environmental degradation, but it will also become its solution.

Reporter: analysis report of Kai Yun released "environmental profit and loss statement" this set of quantitative natural capital evaluation method is mainly led by who set up?

Pino: it worked with PWC, an accounting firm, to quantify the impact of the group on the environment.

In short, if you can't measure it, you can't manage it.

The environmental profit and loss account contains six major contents: greenhouse gas effects, air pollution, water pollution, waste of water resources, sewage treatment, and changes in ecosystem services.

These are places where we can reduce environmental damage through artificial measures such as raw material innovation, technology and purchasing inspection in the existing production process.

Reporter: Kai Yun released the first sustainability report this year, including carbon emissions, waste emissions, water consumption and other indicators are not up to standard.

Is this outcome in your expectation? Is the goal set too idealistic?

Pino: indeed, the goal set at the beginning of 2012 is considered bold in the whole industry.

The sustainability report released in May reveals the efforts made by Kai Yun group to achieve its goals and the challenges it is still facing.

We acknowledge that much remains to be done.

Some goals need to be changed by the entire supply chain system, such as agriculture and mining.

At this time, the influence of a single group is limited.

If we want to reduce carbon emissions, waste emissions and water consumption by 25%, not only do we need to make adjustments in our operations, we also need to innovate the supply chain, change the production system of raw materials, and drive suppliers to act together.

We will announce the next stage of sustainable strategy at the end of 2016, including new sustainable goals.

Interviewer: you said more than once, "in fact, 93% of our ecological footprint is outside the boundaries of the cloud and can be traced back to the supply chain.

If we want to improve our ecological footprint, we must work together with our partners. "

What are the strategies for opening up the cloud?

{page_break} Pino: when we are in the era of resource tightening, we have to reflect on the status quo -- where does the raw materials come from? Does the supplier provide suitable working environment? How can the environmental damage be reduced to the minimum when the fabric is produced? Is the energy saving measures of the shop effective?

We are now trying to find breakthroughs in the supply chain, such as developing new procurement models to reduce environmental damage, but the difficulty lies in ensuring product quality.

Sometimes we have found some way to deal with it, but it is worth discussing whether it is economically viable as a huge group such as cloud.

People will tell you, "we all know how to be sustainable, and the price is higher than 20%-25%".

But our team does not always find the answer. When it comes to technological problems, we need to find foreign aid.

I believe that it is better to work with industry to open up the way of breakthroughs in sustainability.

I also believe that education can bring about fundamental changes. For example, the round table forum we held at Tsinghua University last week can provide new ideas for the younger generation of students.

Reporter: Virgin founder Richard Branson praised the environmental profit and loss statement. What is the applicability of this methodology for enterprises outside the luxury industry?

Pino: "environmental profit and loss statement" can be seen as a breakthrough in sustainable development, but it is impossible for a family to fail. This is why we are so insistent on sharing methodology.

Several companies have expressed willingness to participate, we can not name, but this assessment mode needs to be adjusted according to their respective industry and company situation.

At the personal level, I joined the The B Team (B The), a group of business leaders organized by Richard Branson. One of its goals is to achieve net zero emissions by the end of the year, which means that the greenhouse gases emitted by their enterprises will be completely offset.

The group also lobbied the COP21's multi government commitment to achieve this ambitious goal.

Reporter: Stella McCartney of Kai Yun has continuously accepted environmental auditing in the past three years. Not long ago, it released the environmental profit and loss statement independently.

What support does the group provide to the brand in terms of sustainability? What are the environmental ideas and ways of Stella McCartney that can be applied to other brands of Kai Yun?

Pino: in 2013, the Stella McCartney pilot project "Clean by Design" has now been used by several other brands.

According to the "environmental profit and loss statement" data, the process of fabric finishing and dyeing has generated huge waste of water and energy.

Up to now, most of the suppliers - 25 of the fabric workshops in Nova, Italy - have been certified - to save 10%-30% resources and to invest in almost 3 years in return.

Sustainability is originally the Stella McCartney brand gene.

A designer who advocates "vegetarian" ism advocates sustainable energy and never uses any leather fabrics.

All of us are laughing at us when we just started, but to date, it has proved that environmental protection is not necessarily at the expense of revenue.

Reporter: Stella McCartney is the second independent brand of the environmental profit and loss list, besides Puma.

Will other brands keep up with the release of reports? What criteria do they need to meet in terms of environmental protection before issuing independent reports?

Pino: sustainability is one of the core strategies of opening up the cloud. The target audience covers all the brands of the group.

But whether or not to publish depends on the decisions of various brands.

Reporter: from manpower to capital, few luxury companies or groups will invest so much in sustainability.

The returns may not be reflected in the profit figures in the short term. How long and short term returns are satisfactory?

Pino: the commitment made by Kai Yun in sustainability is not aimed at improving return on investment.

We believe that it is the key to solving global problems such as population growth, resource constraints and temperature changes.

In the long run, sustainable strategy is bound to bring advantages to enterprises in market competition.

But it is not tomorrow, but a longer future.

I believe our investment in technology will be rewarded in a few years, because they are actually saving costs.