Understanding the total impact of the Kering Group
Traditional financial metrics don’t give you the full picture about your impact and so could mean risks in your operations or supply chain are at worst missed and at best not quantified properly. Kering Group wanted to make sure they had tight control of their environmental impact throughout their supply chain.
Michael Beutler, Kering Sustainability Operations Director, discusses with Malcolm Preston, PwC Global Sustainability Leader and Dan Schwarzmann, PwC Clients & Markets Leader how Kering adopted the Total Impact Measurement & Management framework with its EP&L and embedded it into its business.
Kering Group found that 75% of its environmental impact was from the transformation of raw materials into its products. It realised that when it came to Sustainability, looking at its operations only gave a ‘tip of the iceberg’ view - to reduce risks and manage more effectively, it needed to go deeper.
Watch: Environmental impact gives you a new perspective on your business
Michael Beutler, Kering Sustainability Operations Director, talks about developing an EP&L to measure the impact of supply choices - with more than traditional financial metrics to go on, business has a holistic view to take control and manage its impact.
Watch: Using impact measurement to drive decision making
Hear Michael Beutler, Kering Sustainability Operations Director, talk about how understanding the environmental impact drives a different approach to decision making and a different set of outcomes.
There is certainly an obligation to manage those resources wisely for your shareholders, for all your stakeholders, and that’s really what this is about, how to manage your resources and how to do it in the best way.
Watch: Why business has an obligation to manage its resources well.
Hear Michael Beutler, Kering Sustainability Operations Director, talk about using natural capital to properly measure business risk and opportunity - it's not always easy… almost the more difficult it is the more value there is in the exercise itself, because that means not all aspects of the business are fully understood.
Almost the more difficult it is the more the value is in the exercise itself, because that means you don’t really understand all the aspects of your business that might be important.
Watch: Measuring impact is the way forward & how to make it a success.
Michael Beutler, Kering Sustainability Operations Director, believes traditional financial performance measures seem primitive in comparison to natural capital and impact measurement - senior management commitment and grassroots passion are the building blocks of success.
Actual business success lies back in the parts of your business that you see the least - having that transparency to those parts is key.
Watch: Using TIMM as a risk radar – internalising the externalities
Malcolm Preston, PwC Global Sustainability Leader, talks about using total impact as a way to monitor risks and approach internalising externalities.
If it’s stretched in this part of the world, if I source here, here’s the ramifications - it’s not just environmental cost, it’s also stress on that resource and obviously where there’s more stress, there’s more risk.
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