Key Terms — Flashcards
Review the following terms. These concepts are central to LVMH’s traceability strategy and appear across regulatory documents, supplier communications, and client-facing sustainability content.
| TERM | DEFINITION |
| Traceability | The ability to track a product or material through every stage of its supply chain — from raw material extraction to finished product — with verified, documented evidence at each step. |
| Transparency | The commitment to openly sharing information about supply chain practices, environmental performance, and social impact with clients, regulators, investors, and the public. |
| Supply Chain Due Diligence | The process of identifying, assessing, and addressing human rights and environmental risks throughout a company’s supply chain. Required under the EU Corporate Sustainability Due Diligence Directive (CSDDD). |
| Digital Product Passport (DPP) | A digital record linked to a physical product that contains verified information about its materials, origin, environmental footprint, repairability, and end-of-life options. Required under EU regulation by 2030. |
| AURA Blockchain | LVMH’s proprietary luxury blockchain platform, co-founded with Prada Group and Richemont, providing tamper-proof digital records of product authenticity and provenance for participating Maisons. |
| Blockchain | A decentralised, distributed digital ledger that records transactions in a way that cannot be altered retroactively — providing a reliable, tamper-proof foundation for supply chain traceability. |
| Tier 1 / Tier 2 Suppliers | Tier 1 suppliers are direct suppliers to LVMH Maisons. Tier 2 suppliers are the suppliers of those suppliers — further back in the supply chain, often where the greatest traceability challenges lie. |
| Greenwashing | The practice of making misleading or unsubstantiated claims about the environmental benefits of a product or company. Transparency and traceability are the primary defences against greenwashing accusations. |