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DISCOVER THE EDGE ... HOW TO BUILD AN E P&L
The E P&L has given us a new way to look at our business. By creating the E P&L, we have discovered new opportunities to innovate, to become more efficient and to reduce the impact we have on the environment. These are opportunities that would have remained invisible without our E P&L.
Kering now want to enable more companies to develop their own E P&Ls, which is why we are open-sourcing our methodology.
The benefits of an E P&L are growing, and we encourage all companies, in our sector and beyond, to use this methodology and begin their own E P&L journey.
For the full, detailed methodology please download our full report.
Our methodology has evolved significantly from our pilot E P&L with PUMA in 2011. The results of that brand-level report and the Kering Group E P&L published here are not directly comparable, but both were driven from the same desire to understand the edge of our business – our supply chain.
1 DECIDE WHAT TO MEASURE
Identifying what parts of the business to include in the scope of an E P&L.
2 MAP THE SUPPLY CHAIN
Outline the production processes for each product, from the production of raw materials through to product assembly.Identify suppliers and acquire initial data about their business and activities carried out for the brand.
3 IDENTIFY PRIORITY DATA
Identify the data requirements for the E P&L and select the best approach to gather this data throughout the supply chain.
4 COLLECT PRIMARY DATA
Collect environmental and other non-environmental data from suppliers and the brands. Support suppliers in collecting the right information. Validate collected data and extrapolate apply it within across groups of similar suppliers.
5 COLLECT SECONDARY DATA
Complete data using best available sources.
6 DETERMINE VALUATION
Determine the changes in the environment and the resulting costs of these impacts on people.
7 CALCULATE AND ANALYSE YOUR RESULTS
Value the impacts on people and present results of the E P&L.
A new name for a new identity
Kering can be pronounced and understood as ‘caring’.
The new name describes our attitude towards our brands, people, customers, stakeholders and the environment.
The change of name is also an opportunity to reaffirm the Group’s international dimension while acknowledging its origins in the Brittany region of France.
In Breton ker means ‘home’ and ‘place to live in’.
Kering is therefore the family home which our brands and our employees inhabit.
Our new emblem is an owl, a sign of wisdom.
It represents the visionary side of the Group, our ability to anticipate trends and spot potential.
A discreet and protective animal, it is a powerful symbol for a company that guides and nurtures its brands and people.
The new identity is the outcome of the transformation of our business, begun several years ago.
No longer a diverse financial conglomerate, Kering is a cohesive, integrated and international Group.
The B Team
Dear Peter
We are excited to share that Kering, one of our leading companies, has just released the results of their first group-wide Environmental Profit and Loss Account (EP&L).
What’s more, they have open-sourced the full methodology so that companies can learn how to value their impacts and dependencies on natural capital.
We all know that business depends greatly on natural capital. But its activities also come at significant cost; contributing to water and air pollution, large-scale deforestation and other forms of land and sea degradation, biodiversity loss and unprecedented human-induced climate change.
Traditional accounting, while effective at managing financial value, does not track or measure environmental impacts and dependencies. Understanding the positive and negative impacts of your business on the environment is crucial, not only for sustainability, but for better decision making and business strategy.
New valuation methods, like the EP&L, are redefining success in business, by assigning a monetary value to all environmental material impacts, across the supply chain.
Kering, which encompasses 22 brands including Gucci, Puma and Stella McCartney, has worked tirelessly to carry out a group-wide EP&L. By using this information to track progress and reduce negative impacts, from greenhouse-gas emissions to water use, while innovating with new materials and processes, the EP&L will help Kering make better decisions and manage risk.
To learn more about how valuing natural capital can benefit your business and start your own journey towards true accounting watch the full webcast of Kering’s release and explore the methodology here.
The B Team
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