LVMH partnership enforces energy “sobriety measures” as French cosmetic sector urges power cutback

26 Oct 2022 --- Soaring energy costs in France are biting cosmetic companies, eliciting a need to cut back and find innovative ways of consuming less energy. LVMH Moët Hennessy Louis Vuitton has linked up with Hang Lung Properties – its first partnership as part of its policy to reduce energy consumption. Also, France’s beauty federation, Fédération des Entreprises de la Beauté (FEBEA), is taking “energy sobriety” measures and calling for robust EU policy and price caps.

“To preserve production capacities and employment, it is essential that the [French] government be able to achieve, in European negotiations, a decoupling of the price of gas and electricity and to establish a ceiling price on the gas used for the production of electricity,” highlights Emmanuel Guichard, general delegate at FEBEA.

Last month Elisabeth Borne, prime minister of France, placed a cap on the increase in gas and electricity tariffs of 15% for households, small businesses and small municipalities into 2023.

Finding solutions for climate and energy
LVMH organized “LIFE360 in Stores,” an event to call for action on fighting climate change. During the event, the Group commenced a three-year-long partnership with Hang Lung Properties, the owner of 100 malls in China. Hang Lung Properties has committed to cutting its energy consumption by 18% by 2025.

Reportedly, Hang Lung Properties has committed to cutting its energy consumption by 18% by 2025 by turning off shop lights outside business hours and ensuring the presence of electricity meters. In turn, LVMH commits to sourcing 70% of its materials within a radius of 500 km of its manufacturing plants.

“This initial agreement is groundbreaking in scope and consolidates efforts to achieve the LVMH Group’s announced target of a 10% cut in energy consumption worldwide by October 2023, in line with French government recommendations,” shares the company.

The group also aims to reduce its environmental impacts while ensuring consumer and employee health by improving indoor air quality, for example, by installing air quality sensors in all stores.

The business move will enable LVMH to quickly achieve its environmental objectives via the standards set by LIFE 360.

French cosmetic company efforts
On the other hand, FEBEA consulted with its members as the French government announced its energy sobriety plan, waiting to confirm that companies in the cosmetics sector have long been making efforts toward responsible and environmentally sustainable consumption.

It found that 96% of responding companies had already implemented energy sobriety measures, and a third confirmed that they had reduced their energy consumption over the past ten years.

“Among the concrete measures that cosmetics companies have already deployed in their energy sobriety approach: closing doors open to the outside comes first (97%), followed by switching off lights (93%), adapting temperature in premises tied with raising employee awareness (90%), encouraging sustainable mobility (83%) and optimizing existing industrial tools (79%). In addition, a third of the responding companies already use renewable energies,” outlines the association.

Moreover, FEBEA reports that 43% of cosmetic companies plan to invest in the installation of photovoltaic parks, the development of geothermal projects and biomass boilers. Also, 70% of cosmetic companies want to invest in reducing energy consumption, such as installing LED lighting or destratifiers in warehouses, optimizing heating circuits or recovering calories from cold units to produce hot water.

FEBEA commitments
To achieve energy sobriety, the FEBEA has signed the EcoWatt charter to rely on warning messages on energy consumption peaks and promote measures to reduce it for its members. Company employees will also undergo a training program to relay awareness-raising messages to ensure good practice.FEBEA found that 96% of responding companies had implemented energy sobriety measures.

“EcoWatt’s objective is to know when to reduce its electricity consumption to avoid cuts, especially during cold spells in winter,” shares the French government.

Additionally, the FEBEA has launched an awareness campaign for consumers about eco-gestures that are easy to adopt in the bathroom at the end of the month. The government deploys the “each gesture counts” campaign. The intention is a collective effort toward energy sobriety.

“Turn down the heating, turn your appliances on or off when not in use, delay the start of your washing machine in the afternoon or at night or even install a programmable thermostat. Every gesture counts to save energy, now and in the long term,” suggests the French government’s campaign.

“Alongside these efforts, the FEBEA warns of the economic consequences for companies in its sector in the face of rising energy costs. Many cosmetic companies, including small and medium-sized enterprises and intermediate-sized enterprises, are faced with a surge in their bills,” concludes the association.

Round table and awards
The Group also hosted a round table focused on the importance of an energy efficiency plan for Paris at the event. LVMH commits to sourcing 70% of its materials within a radius of 500 km of its manufacturing plants.

At the event, 24 employees from LVMH Maisons were invited to present sustainability solutions for store materials, air quality, energy, lighting and interior design – to create synergies and initiate long-term projects. As a result, seven Maisons received “LIFE360 in Stores Awards” for best practices and actions to reduce their environmental impact.

“These awards specifically celebrate the best Energy Efficiency Plan for the year ahead, aligned with our recent announcement that the entire Group is stepping up actions to immediately and concretely contribute to France’s efforts to reduce energy consumption,” says Valade.

Notable participants at the event also included Marc-Antoine Jamet, president of Champs-Elysées Committee; Eleonore de Boysson, region president, Europe and Middle East, DFS; Olivia Polski, deputy mayor of Paris for trade, craft, self-employed professionals, applied arts and fashion; and Hélène Valade, LVMH environment development director.

Observing alternatives
Across the board, other players in the personal care industry have been spearheading initiatives to survive the energy crisis.

Kimberly-Clark, a manufacturer of personal hygiene products including Andrex, Kleenex and Huggies, joined forces with Carlton Power, who is to supply hydrogen to the company’s manufacturing facility at Barrow-in-Furness in the UK.

Additionally, as Europe faces uncertainties regarding Russian gas supplies, Evonik has been substituting up to 40% of natural gas with liquefied petroleum gas and coal alternatives at its German sites, which produce personal care chemicals.

By Venya Patel

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