Written By Olivia Heithoff
Kering is a leading global luxury group headquartered in Paris, managing a portfolio of iconic brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen. Known for blending heritage with innovation, Kering operates at the forefront of fashion, leather goods, and jewelry. The company is also widely recognized for its strong commitment to sustainability, guided by its well-constructed strategy and unique ESG approach. With ambitious goals like net-zero emissions by 2050 and 100% renewable electricity sourcing, Kering continues to redefine luxury through creativity, responsibility, and a long-term vision.
Kering is a part of the $327.5B Luxury Goods market, which has been experiencing significant growth post-Covid-19 pandemic. This growth is spurred by growing demand for high-end fashion, premium accessories, and exclusive brand experiences in China, the United Arab Emirates, and the United States, with Italy and France being European industry leaders (Straits Research, 2025). However, the rapid increase that occurred post-Covid is now incurring negative effects on the industry, resulting in the overexposure of the industry’s products. This conflicts with the exclusivity aspect that has driven the purchase of luxury goods in previous years. Eventually, the slow-down will result in growth rates reducing from around 6% to 1-3% annually (Balchandani et al., 2025). However, this slowed growth should be of little concern for the market, as it represents a normalization after the robust growth in recent years; additionally, long-term growth still appears to be positive (D’Arpizio et al., 2025). Despite the declining growth, there is still potential for expansion through other industry trends.
A recent trend that has emerged within the luxury goods industry is the transition to sustainability practices. A growing global demand for eco-friendly practices and products has pushed brands, especially luxury brands, to adopt sustainable solutions. Common practices now include utilizing environmentally friendly raw materials and reduced utility consumption, causing luxury brands to not only meet regulatory standards but also cater their brand to environmentally-conscious consumers. This allows for growth, adding value to luxury brands; not only are they selling an exclusive, high-end product, but also supporting an important cause. Along with the shift to sustainability, the luxury goods industry will continue its growth through the global shift to online channels and e-commerce (Luxury Goods, 2025). In all, many key catalysts will allow for the continued expansion of the industry, despite the dropping growth rate in the coming years.
As Kering is a leader in sustainable practices and the reporting of those practices, they have been consistently recognized for their efforts. However, this raises the question of how these efforts are evaluated. Evaluating ESG practices begins with examining how companies are ranked by trusted external systems. ESG rating agencies provide valuable insight into how well a company is performing across all dimensions. These rankings, combined with an analysis of stated sustainability goals and actual disclosures, offer a well-rounded view of a company’s commitment to ESG practices. The two leading ranking systems that provide company ratings for ESG reporting are MCSI and Sustainalytics. MCSI, short for Morgan Stanley Capital International, is known for its broad coverage, included qualitative reports, and clear statement of leaders and slackers, whereas Sustainalytics contains sector-specific factors and unpredictable risks, leading to its ranking as the “Best ESG Rating Provider” according to ESG Investing (Within ESG, 2022). Therefore, by examining Kering’s performance through reputable ESG rating systems like MSCI and Sustainalytics, consumers can gain a clearer, more objective understanding of the company’s true commitment to sustainability and responsible business practices. This understanding is crucial to consumers who want to center their purchases around their values and support a brand with strong ESG efforts.
Kering has consistently been recognized as a global leader in sustainability and ESG performance by multiple leading ESG rating systems. Notably, it has been listed in the S&P Dow Jones Sustainability Indices, which tracks the performance of leading companies in sustainability and corporate responsibility, for its worldwide leadership in ESG practices over twelve consecutive years. Further, Kering has earned a top rating from MSCI for the past four years and received a “low risk” assessment from Sustainalytics, among others. This long-standing recognition reflects Kering’s position as an early and consistent frontrunner in ESG practices. For instance, it has been included in the Corporate Knights Global 100 World’ Most Sustainable Corporations for eight straight years and featured in the FTSE4Good Index for the past decade (ESG Performance, 2025). Altogether, the caliber and consistency of these accolades highlight Kering’s deep-rooted commitment to sustainability, where ESG principles are not just adopted, but embedded into its core strategy and operations.
Kering’s sustainability strategy has adopted a three pillar approach: care, collaborate, and create. The “care” pillar is defined by Kerings efforts to reduce its environmental footprint. This is evident in their future objectives; aiming for a ninety percent reduction of scope one and two greenhouse gas emissions and a seventy percent decrease in scope three in the next five years, along with being completely net-zero by 2050. The “collaborate” pillar refers to their combined efforts with company stakeholders to ensure maximized performance and maintain their carefully-crafted reputation. Kering works to “preserve their rich heritage” through supplier training programs, as well as initiatives that work to spread cultural awareness in local communities. Additionally, there are programs that work to both support women, such as the Leadership Gender Diversity Program, as well as create a positive work environment, such as their Talent Development efforts. The “create” pillar emphasizes the leadership that Kering has had within ESG efforts within the luxury goods industry, as they have sought to drive change within the industry through their innovation and sharing of its knowledge. The creation of Kering’s Material Innovation Lab in 2013 has led to the development of environmentally-friendly fabric alternatives. Furthermore, their collaborations with Fashion for Good-Plug and Play accelerator worked to aid startups and support their growth, while ensuring that it embraces sustainability (2017-2025 Roadmap, 2025). Through its comprehensive framework, Kering not only reinforces its commitment to sustainability but also sets a powerful example for innovation and responsibility in the luxury fashion industry.
Kering’s unwavering dedication to sustainability and ESG leadership has solidified its position at the forefront of the luxury goods industry. By integrating environmental responsibility into every facet of its business, from ambitious emissions targets and innovative material development to stakeholder collaboration and industry-wide impact, Kering exemplifies how luxury and sustainability can coexist. Despite a projected slowdown in market growth, the company’s forward-thinking approach and deep-rooted values position it for continued success in an evolving global landscape. As consumer preferences shift toward transparency and purpose-driven brands, Kering’s strategy not only protects its legacy but also paves the way for a more responsible and resilient future in luxury.
Citations:
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