Lesson 1: Climate Change and the Luxury Industry

Climate change is the defining challenge of our time — and the luxury industry is both a contributor to and a victim of its effects. The rising temperatures, unpredictable weather patterns, and shifting seasons driven by climate change threaten the very landscapes, crops, and craftsmanship traditions that give luxury its meaning.

The vineyards of Cognac, the lavender fields of Provence, the alpine pastures where cashmere goats graze, the coastal ateliers where master craftspeople have worked for generations — all of these are vulnerable to the accelerating effects of a warming planet.

LVMH recognises that addressing climate change is not optional. It is a business imperative, a creative imperative, and a moral responsibility. The Climate pillar of LIFE 360 reflects our commitment to reducing our environmental footprint, transitioning to renewable energy, and building resilience across our value chain.

How Climate Change Affects Luxury

The luxury industry faces climate risks across its entire value chain — from raw material sourcing to retail operations.

SUPPLY CHAINOPERATIONSBRAND & HERITAGE
Changing rainfall patterns affect crop quality for wines, cognac, and botanicalsRising energy costs from fossil fuel dependency increase operational expensesIconic landscapes associated with Maisons face transformation or loss
Extreme weather disrupts logistics and sourcing from vulnerable regionsExtreme heat affects working conditions in ateliers and retail environmentsConsumer expectations around climate action shape brand perception
Species loss reduces availability of rare botanical ingredients for perfumeryCarbon pricing regulations increase costs across manufacturingClimate litigation risk grows for companies without credible climate plans
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