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Loro Piana

Loro Piana is part of LVMH.

More information about the LVMH Group can be found on the company’s website.

 

The information we hold on LVMH was last updated on 11 January 2017 

 

 

 

 

 

 

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1. Ethical code?  -  yes

LVMH’s Supplier’s Code of Conduct can be found on the company’s website.

2. Living wages?  -  no

LVMH’s website does not make any reference to living wages nor fair wages in supplier factories. 

The company has also been unable to supply us with any further information on this matter.  We said to LVMH in an email dated 17 December 2012:

‘Your supplier code of conduct makes commitments on wages but does not explicitly commit to paying workers in your supply chain a “living wage”.   Is there a particular reason for this?  Has LVMH done any research to assess how much workers in supplier factories (particularly outside the EU) are actually paid and whether their wages could be considered a ‘living wage’ in the countries in question?’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

3. Factory address list?  -  no

P.34 of the LVMH Annual Report 2015 provides a percentage of LVMH suppliers located in each world region but the company does not provide any further information as to the location of their suppliers.

4. Thorough factory checks?  -  making progress

P.35 of the LVMH 2015 Annual Report provides information on the ethical supply chain audits the group conducts, most of which are preformed by external auditors, but some of which are done in house:

‘A total of 1,027 social and/or environmental audits were performed on 877 suppliers in 2015. More than 90% of these audits were managed by third-party specialists, and 561 were related exclusively to social criteria.’

However, it is difficult to find any further information on whether the audit programme covers all supplier, whether audits are unannounced and whether they include confidential interviews with workers selected by the auditor and not by management.

5. Factory check results published?  -  making progress

P.34 of the LVMH 2015 Annual Report provides a summary of the audits that were conducted.  The company does not provide a detailed breakdown of audit results but does provide a headline figure on the number that were ‘in line with the group’s standards’ on p.35. 

6. Worker complaint procedure?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

7. Checks on suppliers of suppliers?  -  making progress

LVMH’s Supplier Code of Conduct states:

‘We require strict compliance with these standards on the part of all our suppliers, their factories, subcontractors, as well as their own suppliers.’

However, we could not find any evidence that LVMH is actually conducting audits or checks at factories and mills further down the supply chain.

8. Reuse or recycle scheme?  -  no

LVMH brands do not have any schemes in place for consumers to reuse or recycle unwanted LVMH clothing.

9. Sustainable cotton?  -  making progress

LVMH brand Thomas Pink has started to use some sustainable cotton and other LVMH brands are expected to follow.  P.39 of LVMH 2015 Environmental Report states:

‘LVMH and its Maisons continued to strive to obtain sustainable cotton supplies in 2015… It is in keeping with this approach that Thomas Pink mapped its cotton procurement chain. Based on the data gathered, the Maison is now reviewing the solutions to implement in order to improve its cotton procurement. For instance, the Maison has adhered to the Better Cotton Initiative (BCI), which has established a standard aimed at promoting more sustainable cotton growing. Thomas Pink has set itself the goal of using 50% of BCI-certified cotton by 2019. Other Group Maisons will join the initiative during 2016.’

10. Eliminating toxic chemicals?  -  no

LVMH’s LVMH 2015 Environmental Report makes a brief reference to tackling the use and discharge of toxic chemicals in its supply chain but does not make any specific commitment to eliminating bad practices:

‘The LVMH Group also collaborates with our luxury brands on this issue, as part of a working group that deals with improving the management of chemicals in our supply chains’ (p.41).

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