The world’s most powerful luxury houses have placed decarbonisation at the centre of their corporate strategies. Kering, LVMH, Hermès, Chanel, and Prada have each committed to science-verified emission reduction targets, pledging to achieve carbon neutrality within the next decade.
The Scale of the Problem
The fashion industry accounts for between 2% and 8% of annual global greenhouse gas emissions, according to the United Nations Environment Programme – more than international aviation and maritime shipping combined. The sector released approximately 1.2 billion tonnes of CO₂ in 2018, and projections indicate this could reach 2.8 billion tonnes annually by 2030. Material production and raw material processing alone generate roughly 68% of the sector’s Scope 3 emissions.
McKinsey’s 2024 analysis found that most fashion brands could reduce their greenhouse gas emissions by more than 60% for less than 1% to 2% of revenues. Yet progress remains uneven. Fashion Revolution’s 2024 report revealed that just four out of 250 major brands disclose targets aligned with the UN’s call for a 55% absolute reduction by 2030 from 2018 levels.
Science-Based Targets: The New Standard
The Science Based Targets initiative (SBTi), established in 2015, has become the benchmark for corporate climate commitments. By 2025, over 10,000 companies worldwide had set science-based targets. In the fashion sector, approximately 47% of the world’s 250 largest brands now hold SBTi-validated targets – up from 34% the previous year.
SBTi requires companies to examine their entire supply chain, calculate current emissions, and establish reduction targets derived from climate science. For fashion brands, where Scope 3 emissions typically represent 90% or more of total output, this presents a formidable challenge.
Brand-by-Brand Progress
Kering – parent company of Gucci, Saint Laurent, and Balenciaga – has achieved a 34% reduction in greenhouse gas emissions, cutting Scope 1 and 2 emissions by 71% and achieving a 52% Scope 3 intensity reduction since 2015. The group sources 100% renewable electricity through RE100, with 95% of raw materials traceable to origin. Roughly 72% of its cotton is organic or recycled, and 60% of wool comes from regenerative sources. Kering has expanded regenerative agriculture across 1 million hectares and committed to net-zero by 2050.
LVMH, the world’s largest luxury conglomerate, launched its LIFE 360 programme with quantified objectives for 2023, 2026, and 2030. The group has achieved a 37% reduction in Scope 1 and 2 emissions and a 16% reduction in Scope 3 energy and industry emissions. Scope 3 accounts for 97% of LVMH’s total carbon footprint. The group has regenerated, preserved, or restored 4.3 million hectares of land and earned a CDP triple “A” rating for climate, forests, and water. Louis Vuitton repairs 600,000 products annually; 79% of Berluti’s leather goods are repairable.
Hermès has reduced Scope 1 and 2 emissions by 63.4% compared to 2018, targeting 100% renewable energy across all operations by 2030 and carbon neutrality by 2050. The house maintains an internal carbon price of €40 per tonne of CO₂e and has been a shareholder in the Livelihoods carbon fund since 2012, investing in large-scale nature-based solutions.
Chanel became one of the first luxury houses to secure SBTi validation for net-zero emissions by 2040 – requiring a 90% absolute reduction across all scopes from a 2021 baseline. Interim milestones include halving operational emissions and cutting value-chain emissions by 42% by 2030. Total emissions have dropped to approximately 1.12 million tonnes CO₂e, roughly 10% lower than 2021 despite business growth. Emissions linked to cashmere, leather, and gold fell by roughly 20% in 2024.
Prada measured its carbon footprint for the first time in 2020, setting a 2019 baseline. SBTi approved a 29.4% reduction in Scope 1 and 2 emissions by 2026 and a 42% Scope 3 reduction by 2029. The company exceeded its Scope 1 and 2 targets in 2025 and reported total emissions of approximately 303.2 million kg CO₂e.
The Circular Economy Imperative
Carbon neutrality requires more than emissions reduction. The Ellen MacArthur Foundation estimates that every second, the equivalent of a rubbish truckload of clothes is burnt or buried in landfill. Only about 1% of materials used to make new clothing are recycled into new garments.
The luxury sector is responding. The global second-hand fashion market is projected to reach $350 billion by 2027. In a single quarter of 2025, 17 fashion brands launched resale programmes. The European Union is accelerating this shift through regulation, mandating 55% municipal waste recycling by 2025 and 60% by 2030 under the Waste Framework Directive.
The Carbon Offset Question
All five houses employ carbon offset strategies. Hermès’ Livelihoods carbon fund invests in reforestation and mangrove restoration. Chanel treats offsets as a last resort, focusing on measurable reductions first. Nature-based solutions can provide an estimated 37% of the mitigation needed until 2030 to meet Paris Agreement targets, according to the World Bank. However, concerns persist about offsetting as a delaying tactic and reports of land grabs and human rights abuses in some projects.
The Investment Gap
The TEHA Group estimated that €4.4 billion is needed by 2030 for the European fashion sector to meet its decarbonisation targets. Yet 58% of suppliers cannot afford the required investment. The Fashion Pact – a coalition of more than 55 CEOs across 160 brands – has launched a European Accelerator with CHANEL, Kering, Moncler, and Prada to unlock finance and build supplier capacity.
The 2030 Test
The luxury sector’s decarbonisation pledges represent the most ambitious climate commitments the industry has ever made. The science-based framework provides credibility. The real test lies not in what brands achieve within their own walls, but in how effectively they transform the thousands of suppliers, manufacturers, and logistics partners that constitute their extended value chains. With the 2030 deadline now four years away, the next reporting cycle will determine whether these promises translate into measurable atmospheric impact.
