Kering's Material Innovation Cuts Emissions in Luxury Fashion
Kering reports one-third emissions cut through recycled materials and regenerative sourcing
Kering, the French luxury group that owns Gucci, Saint Laurent and Bottega Veneta, has reduced absolute greenhouse gas emissions by one-third since 2022. The company attributes most of this reduction to recycled inputs and materials sourced from regenerative agriculture. This represents measurable progress from a materials strategy that has been building for more than a decade.
The June 2024 figures include a 4% reduction in direct operations and electricity emissions. More significantly, emissions linked to land and agriculture fell by 28%. For a luxury business where raw materials generate roughly 70% of the total carbon footprint, this shift confirms that upstream sourcing decisions carry more weight than operational efficiency alone.
The results reflect long-term investments rather than short-term initiatives. Kering has systematically redesigned what its brands purchase and how they source materials, particularly at Gucci. Consequently, what began as isolated product launches has evolved into procurement systems with traceability, pre-reserved orders and centralized validation.
Recycled gold, circular nylon and regenerative agriculture programs underpin the strategy
Kering's approach combines several distinct programs. In 2017, the group launched a central purchasing program for gold that prioritizes recycled gold or metal from Fairtrade and Fairmined artisanal mines. This consolidated sourcing model gives the company more control over material origins and associated emissions.
In June 2020, Gucci introduced Off The Grid, the first collection in its Circular Lines initiative. The range uses recycled, organic and bio-based materials, including ECONYL nylon manufactured from recovered plastic waste. This material choice reduces reliance on virgin petroleum-based inputs. Moreover, offcuts from Gucci Off The Grid production feed back into the ECONYL supply chain through a pre-consumer fabric take-back program, creating a closed-loop system for nylon waste.
Leather scraps from Gucci production are recovered and upcycled through the Gucci-Up program. This addresses waste from one of the brand's highest-volume materials. Meanwhile, Kering established a Material Innovation Lab in Milan that has identified over 600 manufacturers offering lower-impact materials for designers. This gives creative teams viable alternatives without compromising quality or aesthetics.
The Kering Accelerator for Regenerative Materials, introduced in 2024, focuses on scaling sourcing of cotton, wool and cashmere from regenerative farming systems. These agricultural methods aim to improve soil health, increase biodiversity and sequester carbon. The program has achieved traceability of at least 98% of regenerative materials back to their country of origin. This level of visibility is unusual in fashion supply chains, where multiple intermediaries often obscure material origins.
Public commitments set specific targets for recycled and regenerative materials by 2035
Kering's environmental policy for 2024 to 2025 includes quantified targets. The company aims to reach 40% recycled materials in ready-to-wear by 2035. It also plans to source 19% of materials from regenerative agriculture by the same deadline. These percentages provide clear benchmarks against which progress can be measured.
The company frames materials as the primary lever for reducing its environmental footprint because raw materials account for approximately 70% of total emissions. This explains why Kering has concentrated resources on sourcing innovation rather than only pursuing energy efficiency in stores, offices or logistics. The latter matters, but the former delivers larger absolute reductions.
Kering Eyewear has applied similar principles to accessories. The division introduced Re|Ace, a 100% recycled acetate made from pre-consumer acetate scraps. Preliminary study results suggest at least a 50% reduction in carbon emissions compared to conventional acetate production for one kilogram of material. This demonstrates that materials innovation extends beyond fashion textiles into hard goods.
Industrialized procurement systems replace one-off sustainability claims
What distinguishes Kering's approach is the shift from pilot projects to integrated procurement. Early sustainability initiatives in fashion often involved limited-edition collections with minimal supply chain impact. In contrast, Kering has embedded material requirements into purchasing protocols, design briefs and supplier agreements.
Traceability systems now track materials to country of origin for the majority of regenerative inputs. Centralized sourcing programs for gold and other materials create economies of scale. The Material Innovation Lab provides designers with vetted alternatives, removing the burden of individual material research. These mechanisms turn sustainability from a marketing claim into a procurement discipline.
Furthermore, the closed-loop system for ECONYL offcuts shows that circular models can work at commercial scale. Instead of sending nylon scraps to landfill or incineration, Gucci returns them to the material manufacturer for reprocessing. This requires coordination between production facilities, logistics providers and material suppliers, but the resulting system reduces both waste and demand for virgin inputs.
The 28% reduction in land and agriculture emissions indicates that regenerative sourcing is beginning to affect overall footprint. These are early results, given that the Accelerator for Regenerative Materials launched only in 2024. However, they suggest that farming practices can be changed through buyer influence when supported by traceability and technical assistance.
What Kering's emissions data reveals about luxury supply chains
- Absolute greenhouse gas emissions fell by one-third between 2022 and mid-2024, with recycled materials and regenerative agriculture driving most of the reduction.
- Land and agriculture emissions dropped by 28%, confirming that upstream sourcing decisions have greater impact than operational efficiency in luxury fashion.
- At least 98% of regenerative materials are now traceable to country of origin, providing visibility that is uncommon in fashion supply chains.
- Kering's Material Innovation Lab has identified more than 600 manufacturers offering lower-impact materials for use in design and production.
- The company targets 40% recycled materials in ready-to-wear and 19% regenerative agriculture materials by 2035, providing quantified benchmarks for progress.
- Preliminary data shows Re|Ace recycled acetate reduces carbon emissions by at least 50% compared to conventional acetate for eyewear production.
Commercial implications for UK businesses and supply chains
Kering's results matter beyond luxury fashion. They demonstrate that material substitution can deliver significant emissions reductions when implemented systematically. For UK manufacturers, this creates both opportunity and pressure. Brands increasingly expect suppliers to offer recycled or regenerative alternatives, and those who cannot may lose contracts.
Supply chain transparency is becoming a competitive requirement. Kering's 98% traceability for regenerative materials sets a precedent that other buyers will reference. UK businesses selling into fashion, retail or consumer goods should therefore assess whether they can document material origins and associated emissions. Companies that cannot provide this information face exclusion from tenders and preferred supplier lists.
The shift toward centralized purchasing programs affects supplier relationships. When a major buyer consolidates material sourcing, it reduces the number of suppliers it works with. This creates opportunities for those selected but poses risks for those outside the program. UK suppliers should consider how to position themselves for inclusion in such schemes, including investment in certifications, traceability systems and lower-impact production methods.
Regenerative agriculture is gaining traction as a sourcing requirement. UK textile manufacturers, clothing brands and retailers should monitor whether their own suppliers are adopting regenerative practices. Those who source cotton, wool or other agricultural materials may need to support farmers through technical assistance or premium pricing to enable the transition. Kering's Accelerator model provides one example of how buyers can facilitate this change.
Closed-loop recycling systems require coordination across multiple parties. For UK manufacturers, this means establishing take-back logistics, sorting processes and partnerships with material recyclers. It also means designing products for disassembly and material recovery. Businesses that develop these capabilities early will be better positioned as circular economy requirements expand.
Procurement is increasingly tied to sustainability performance. Public sector buyers in the UK already use carbon reduction criteria in tenders, particularly through PPN 06/21 requirements for carbon reduction plans. Private sector buyers are moving in the same direction. Companies that can demonstrate material innovation, emissions reductions and supply chain traceability will have advantage in competitive bidding.
The 70% figure for materials-related emissions is not unique to luxury fashion. Many product-based businesses find that raw materials and manufacturing dominate their carbon footprint. Therefore, operational energy efficiency alone will not achieve deep decarbonization. UK businesses should prioritize material substitution, supplier engagement and product redesign if they want to achieve significant emissions cuts.
Material innovation labs and supplier databases are becoming standard infrastructure. Kering's identification of 600 lower-impact manufacturers shows the scale of research required. UK businesses may need to invest in similar capabilities or access shared resources to identify viable alternatives. Industry associations, trade bodies and consultancies can help smaller companies access this information without building internal teams.
How recycled inputs and regenerative materials fit into UK net zero strategies
UK businesses face increasing pressure to decarbonize supply chains. The government's net zero commitment, combined with private sector pledges, means that emissions reductions must extend beyond direct operations. Kering's approach demonstrates that material choices offer a practical route to achieve this.
Recycled materials reduce emissions by avoiding the energy and inputs required to produce virgin alternatives. For example, Re|Ace acetate cuts emissions by at least 50% compared to conventional production. Similar savings apply to recycled metals, plastics, textiles and other materials. UK manufacturers should identify which materials can be substituted and work with suppliers to secure recycled options.
Regenerative agriculture addresses emissions from land use and farming. This is particularly relevant for businesses sourcing cotton, wool, leather or other agricultural materials. Regenerative practices improve soil carbon storage, reduce synthetic fertilizer use and enhance biodiversity. However, transitioning farms requires investment and technical support. Buyers can facilitate this through long-term contracts, premium pricing and knowledge sharing.
Traceability systems are essential for credible emissions reporting. Kering's 98% traceability for regenerative materials provides confidence that claims are substantiated. UK businesses should implement systems to track material origins, production methods and associated emissions. This supports both regulatory compliance and customer expectations. Carbon reporting requirements increasingly demand this level of detail.
Centralized purchasing programs create leverage with suppliers. By consolidating material demand, buyers can set minimum standards, negotiate better terms and support suppliers through transitions. Smaller UK businesses can achieve similar effects through collective purchasing with peers or by joining industry-wide sourcing initiatives. This approach reduces individual business risk while driving sector-wide improvement.
Material innovation requires collaboration between designers, buyers and suppliers. Kering's Material Innovation Lab connects creative teams with vetted alternatives. UK businesses should establish similar processes to ensure that design decisions support sustainability goals. This might involve training for design teams, supplier workshops or access to material libraries. The goal is to make lower-impact materials the default choice rather than a special effort.
Long-term targets provide direction and accountability. Kering's 2035 goals for recycled and regenerative materials create clear milestones. UK businesses should set similar quantified targets aligned with science-based decarbonization pathways. These targets inform procurement strategies, supplier negotiations and capital investment decisions. They also provide a framework for measuring progress and communicating results to stakeholders.
Policy context and regulatory developments affecting material sourcing
UK and EU regulations are increasingly addressing materials and supply chain emissions. The EU's proposed Ecodesign for Sustainable Products Regulation will set material efficiency requirements for textiles and other product categories. Although the UK has left the EU, businesses selling into European markets must comply. This creates a common regulatory floor that affects sourcing decisions.
Extended Producer Responsibility schemes in the UK require businesses to fund the collection and recycling of packaging and, increasingly, textiles. This makes material choice a financial decision. Products designed for recyclability and made from recycled content face lower compliance costs. Consequently, material innovation becomes a cost control measure as well as an environmental action.
Carbon border adjustment mechanisms may extend to materials and products in future. If implemented, these would impose tariffs on imports based on embedded emissions. UK businesses should therefore track the carbon intensity of materials and consider sourcing from lower-emission suppliers. This reduces both regulatory risk and potential cost exposure.
Public procurement policy in the UK explicitly rewards carbon reduction. PPN 06/21 requires suppliers to demonstrate credible carbon reduction plans. Businesses that can show material substitution, recycled inputs and supply chain emissions cuts will score higher in tenders. This creates a direct commercial incentive for the approaches Kering has adopted.
Investor expectations also drive material innovation. Financial institutions are increasingly assessing climate risk and supply chain sustainability. Companies with transparent, lower-impact sourcing are viewed as lower risk. This affects access to capital, insurance costs and stock valuations. UK businesses should recognize that material strategy is becoming a financial performance factor.
Where to find further information on materials innovation and regenerative sourcing
The Department for Energy Security and Net Zero provides guidance on business decarbonization and net zero strategy. Its resources cover supply chain emissions, material efficiency and circular economy approaches relevant to UK businesses.
The Waste and Resources Action Programme offers practical tools and case studies on material efficiency, recycled content and circular business models. WRAP works across sectors including textiles, packaging and manufacturing to support businesses in reducing material waste and emissions.
The Soil Association certifies organic and regenerative agriculture in the UK. Its standards and guidance help businesses understand regenerative farming principles and identify certified suppliers. This is particularly useful for companies sourcing cotton, wool or other agricultural materials.
The Institute of Environmental Management and Assessment provides professional standards and training for environmental practitioners. IEMA resources cover supply chain management, carbon accounting and sustainability reporting relevant to material sourcing decisions.
Businesses seeking support with sustainable procurement or net zero programs can access guidance and tools to implement material efficiency strategies. These resources help companies develop sourcing criteria, engage suppliers and measure progress toward emissions reduction targets.