Luxury brand LVHM says 2030 decarbonisation efforts could cost €270m

Among the costs identified in latest CSRD report are up to €170m in energy efficiency measures, and €55m on renewables

French luxury goods firm LVMH has estimated that its new decarbonisation efforts could cost it €270m by the end of the decade.  

The owner of brands including Louis Vuitton updated projected spending on its carbon reduction initiatives after updating its climate targets last year. 

Among its new commitments is the goal to cut absolute Scope 1 and 2 emissions by 68% by 2030, compared with 2023 base year. 

LVMH achieved its previous target – to halve them by 2026 – two years ahead of schedule.  

The firm has also pledged to source 100% of its energy from renewable sources by 2026 and maintain that level through to 2030. 

LVMH estimated it will cost between €235m and €270m to implement its transition plan between 2025 and 2030. 

The disclosure was included in the firm’s second report under the Corporate Sustainability Reporting Directive.  

Among the costs detailed in the report were €160m to €170m towards energy efficiency, along with €45m to €55m on renewable energy. 

A further €25m to €35m was earmarked for energy conservation.  

When it comes to value chain emissions, LVMH is now aiming for a 32.5% reduction in absolute Scope 3 energy and industry emissions between 2023 and 2033. 

The firm also revealed that the sustainable finance taskforce it established in September would focus on estimating the costs linked to addressing these emissions. 

“Partial findings in relation to the financial quantification of Scope 3 are expected in late 2026,” it said. 

LVMH revealed that some of its brands have already started in this direction, including Christian Dior Couture, which has done work around calculating carbon abatement costs.