With consumer interest piqued and the regulatory environment developing, the option of a brand staying silent or doing little is diminishing. Progress is happening across the luxury industry – it may appear slow, but it is steady.
In chapter two, we look at the data around the brands that sell through the FARFETCH marketplace and their advancement in improving their environmental and social impact – from the major players of the luxury establishment to the emerging brands that were born at a time where conscious issues are centre stage.
As of 31 Dec 2021, over 220 luxury brands highly rated by Good On You are sellers on the FARFETCH marketplace.
56 brands improved their score in 2021 at least one of the areas assessed (People, Planet, Animal).
42 brands improved their Planet rating, 46 their People rating and 26 their Animal rating.
30% of brands that sold on the FARFETCH marketplace in 2021, sold at least one conscious product.
48% of brands reviewed as part of a more detailed Good On You study publicly list details of their final-stage suppliers.
35% of the brands now have a living wage definition and methodology in place.
44% of these brands now measure their carbon footprint, while 35% have taken action to reduce their emissions.
More than 50% of the brands have some form of circularity initiative – however many tend to focus on easy wins like take-back schemes rather than waste minimization or building circularity into their products.
In just a few years, GANNI has grown into an established, global fashion name. Key to its brand image is a transparent, pragmatic approach to becoming more conscious over time. Co-founder Nicolaj Reffstrup tells us a little about the ongoing progress the business is making to improve its sustainability position across its operations.
Lorenzo Bertelli by Brigitte Lacombe
"My priority, as Head of Corporate Social Responsibility, is to lead the Prada Group towards a decade of sustainable development not only from an economic point of view, but according to our strategy which is based on three pillars: planet, people and culture.
The first pillar, dedicated to the planet, is linked to environmental impact reduction goals, including the attainment of carbon neutrality for all Prada operations starting from 2022 and the targets approved by the Science-Based Targets initiative (SBTi) for reducing Scope 1, 2 and 3 greenhouse gases emissions, extensive use of alternative low-impact materials for both finished products and packaging, and an approach more geared toward circularity for the materials used in production and production scrap. The strategy also focuses on raw material traceability and continuous improvement in social and environmental standards along the supply chain, thanks to close collaboration with suppliers, also for the purpose of reducing their environmental footprint.
We are also continuing to boost initiatives to promote and enhance diversity, including advancement of an inclusive culture based on respect for each person at every level of the organization and in the fashion industry at large. The “for People” pillar comprises a long-term investment to preserve craftsmanship and develop new talents, also thanks to the activity we conduct through what we call our Prada Academy. Respect for and protection of the Group‘s employees and business partners is another key element, along with greater monitoring of their engagement levels to improve personal and professional wellness.
The third pillar of the strategy, “for Culture”, summarizes the Group‘s constant investment in the preservation and dissemination of Italian and international cultural heritage as well as the natural and scientific ones, reiterating the Group‘s active role as educator even in those areas of research.”
“For sure, we can also directly link this appetite to the excellent response of our audiences to the Prada Re-Nylon collection, made of regenerated nylon products which are created through the recycling and purification of plastic collected from oceans - like fishing nets - and landfills, as well as textile fiber waste globally. The project was first presented in 2019 and the product line expanded in 2020, to reach a complete product family made of accessories, RTW and footwear. In 2021, despite the difficulties caused by the pandemic, the Prada Group succeeded in totally converting from virgin nylon to regenerated nylon and extending the Prada Re-Nylon collection in part to its partnership with Adidas – launched at the beginning of 2022 – confirming, once again, Prada Group‘s commitment to finding lower environmental impact solutions involving prominent partners.”
“Even if it’s very difficult to give such an answer, I foresee three main challenges in the near future: first of all engaging our supply chain in our sustainable journey; second, find lower environmental impact alternatives for our main raw materials that can answer to high standards of quality and performances and third, explain to our customers and our audiences, all the complexity of our sustainability standards and their implementation in our products and operations.”
This conscious luxury 22 report (the “Conscious Luxury 22 Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Conscious Luxury 22 Report that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our 2030 goals, expectations about our business and the luxury industry, our environmental, social and governance goals and initiatives, including with regard to diversity and inclusion and responsible sourcing, planned activities and objectives, our strategic priorities and objectives, future and current trends in the luxury fashion industry, the preferences of consumers and luxury sellers concerning environmental, social and governance matters, demographic trends, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “likely,” “see” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the impact of the COVID-19 pandemic on our business operations, the increasing impact of and focus on environmental, social and governance matters could increase our costs, harm our reputation and adversely affect our financial results, and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2021, as such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and on our website at http://farfetchinvestors.com. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. You should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this Conscious Luxury 22 Report relate only to events or information as of June 16th, 2022, the date of this Conscious Luxury 22 Report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.