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LVMH: Water Consumption in 2021

Industry: Fashion & Accessories
Current: ESG

LVMH consumed 4.41 million cubic meters of water in 2021, an increase of 1% over 2020
In 2021, LVMH’s Fashion and Leather goods business group consumed 43% of LVMH’s total water consumption
LVMH wants 100% of its strategic raw materials to be certified to the highest standards to protect water resources by 2026

Water is one of the critical factors of ESG (Environment, Social, and Governance). Fresh and clean water is increasingly endangered despite being considered a plentiful renewable resource mainly due to population growth and economic activity leading to an increase in water demands and pollution.

According to United Nations, if current consumption and production patterns do not change, there will be a 40% shortfall in water supply by 2030. Companies are expected to face increased scrutiny such as limits on water withdrawal and tight regulations over their water use as global water resources face increased stress.

Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction. Apparel and food & beverage industries are highly dependent on groundwater through supply chains. According to Aquastat, 19% of global freshwater withdrawals come from industry and energy.

In terms of water withdrawal, the beverage and bottled mineral water sectors need to be careful because groundwater is a raw material for them. Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.

LVMH Moet Hennessy Louis Vuitton SE (LVMH) is a manufacturer and marketer of luxury goods. LVMH markets products under the Christian Dior, Guerlain, Givenchy, Kenzo, Louis Vuitton, Celine, Emilio Pucci, Loewe, Nicolas Kirkwood, Make Up For Ever, and Zenith brand names.

In 2021, LVMH consumed 4.41 million cubic meters of water, an increase of 1% over 2020. LVMH’s Fashion and Leather goods business group consumed 43% of the total water consumed by the LVMH group followed by Wines and Spirits (30%), Selective Retailing (16%), Perfumes and Cosmetics (5%), and Watches and Jewelry (2%) in 2021.

By 2026, LVMH wants 100% of its strategic raw materials to be certified to the highest standards, ensuring the preservation of ecosystems and water resources, and zero sourcing in areas where there is a very high risk of deforestation or desertification.

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