CONSUMER & STAKEHOLDER ENGAGEMENT
Towards Responsible and Honest Luxury
INTERNAL GOVERNANCE
MAJOR COMMITMENT
Establish a D&G Sustainability Committee: Responsible for executing the sustainability strategy and championing monitoring, reporting and transparency.
STRATEGIC RECOMMENDATION
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Recruit a Sustainability Committee, including a C-Suite executive.
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Ensure compliance with the strategy, workforce code of conduct, and external regulation.
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Make decisions by majority voting and submissions to the Board for key recommendations.
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KEY POSITIONS
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Corporate Sustainability Reporting Head: Manages reporting commitments, timeline implementation and strategy alignment.
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Sustainability Metrics and Strategy Analyst: Manages data collection and analysis across strategy initiatives.
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Senior Sustainable Investments Associate: Manages the D&G environmental fund.
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Senior Sustainability Communications Head: Manages brand collaboration, communications & outreach and responsible for implementing the D&G Sustainability Education Academy.
MAJOR COMMITMENT
Establish a digital employee education platform: the D&G Sustainability Education Academy.
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STRATEGIC RECOMMENDATION
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Upskill existing staff by implementing a digital learning platform for employees from all departments to learn about D&G's sustainability strategy.
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Educate employees about D&G's major environmental challenges, the sustainability strategy and upcoming initiatives.
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The Academy will be managed, implemented and updated by the Sustainability Communications Head.
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PROJECTED IMPACT
People
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Retain and attract talent with free sustainability education for all employees.
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Foster a culture of accountability and place social and environmental conviction at the heart of D&G's workforce.
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Planet
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A committed Sustainability Committee and mobilised workforce increases the likelihood that the strategy will be implemented and will deliver the highest possible environmental benefit.
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Profit
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Expertise in human capital required to provide a competitive advantage.
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Onboarding 4 full-time equivalent collaborators specialized in sustainability will have an approximate total cost of £235,000 per year (Glassdoor, 2021):
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Corporate Reporting Head: £ 50,000 / yr
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Sustainability Strategy Analyst: £ 72,000/yr
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Senior Sustainable Investments Associate: £ 69,000 / yr
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Sustainability Communications Head: £ 45,000 / yr
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Timeline
Q1 2021: Recruitment process begins for the Sustainability Committee.
Q4 2021: All roles are filled and the Committee is implemented.
BRAND COLLABORATIONS
MAJOR COMMITMENT
Create long-term partnerships through ground-breaking sustainability programmes that pioneer transformative solutions and generate high public impact.
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STRATEGIC RECOMMENDATION
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MIT Climate CoLab: A sustainability ideathon aimed at sourcing business ideas to tackle waste and pollution generated by the industry. A collaboration between D&G and MIT Climate CoLab, a leading organisation in innovation and climate change.
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Transizione Verde: Milan Fashion Week X Dolce and Gabbana: Fashion weeks are a key traditional component as well as a major value proposition for brand and product marketing. However, they extract a high environmental toll. A partnership between Milan Fashion Week and Dolce and Gabbana would highlight innovative initiatives to reduce environmental externalities of the events and allow D&G to step into the spotlight for its commitment to sustainability.
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PROJECTED IMPACT
People​
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Innovative marketing opportunity to establish D&G as a big improver committed to a compelling new value proposition.
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Harness collective intelligence of industry experts, scientists and innovators to address complex social issues in the supply chain.
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Planet
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Contribute to the discovery of new strategies to reduce the impact of Fashion Weeks.
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Reduction of carbon emissions from fashion shows.
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Profit
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The MIT CoLab investment of $10,000 per annum would fit within existing advertising budgets and yield new and recaptured consumer interest.
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Leverage expertise and achieve competitive advantage by demonstrating high levels of commitment to sustainability.
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Achieve free additional marketing benefits of a highly publicised event attended by influencers and celebrities.
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Timeline
Q4 2022: Climate CoLab: 3-year partnership (2022 – 2025)
Q2 2026: Milan Fashion Week: 1-year partnership (2026 Event)
CORPORATE REPORTING
MAJOR COMMITMENT
Commit to radical transparency by measuring and publicly reporting impact across the whole supply chain with annual Environmental Profit & Loss Accounting (EP&L).
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STRATEGIC RECOMMENDATIONS
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Environmental footprinting: Quantify D&G’s GHG emissions, waste production, water usage, water and air pollution and land use.
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Estimating impact: Translate emissions and resource consumption to real-world consequences.
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Valuing impact: Place a financial value on socio-economic outcomes for everyday people.
PROJECTED IMPACT
People
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Placing a financial value on the environmental impact on people’s wellbeing shifts focus to consider the holistic impact of the business
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Build credibility among stakeholders by prioritising transparency around the environmental and social impacts of D&G’s business
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Improve employee moralEnhanced reputation among customers
Planet
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Improving mitigation strategy by identifying major carbon-emitting sources by adhering to reporting such as CDP and deploying alternative R&D, employee commuting procedures
Profit
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Identify cost savings: formally measurement and reporting may illuminate opportunities to boost operational efficiency​
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Timeline
Q4 2021: Sustainability Committee begins to collect collects business, financial, and supplier data to feed into the analysis
Q4 2022: The Committee follows PwC’s EP&L valuation methodologies to complete the first annual report
SOCIALLY RESPONSIBLE VENTURES
MAJOR COMMITMENT
Finance, support and promote next-gen innovation into the sustainable development of the industry.
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STRATEGIC RECOMMENDATION
Launch D&G Environmental Fund:
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Establish an Environmental Fund of €5 Million to support a resilient recovery from COVID-19 and Build Back Better.
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Fund project innovation in industry-specific indicators such as packaging and circularity.
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Quantify and evaluate project impact with Verified Emissions Reduction methodology (VER).
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PROJECTED IMPACT
People
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Enhancing development potential of climate risk locations and industries
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Improved engagement with Job Opportunities
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Planet
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Development of High Conservation Value (HCV) areas through sustainable development and community empowerment through funding
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Preservation of nature through funding eco-friendly and sustainable technology innovations
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Global Decarbonization Enabler
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Profit
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Increase resilience by investing in solving D&G's future problems
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Carefully selected equity investments may generate financial returns in an increasingly sustainability-oriented market in light of political commitments and mandatory ESG disclosures
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Innovative marketing opportunity may result in new and recaptured revenues by publicising the initiative.
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In the context of D&G rising annual revenues and net profits (€888.42 million revenue in 2018 growing by 4.9% to €1.38 billion in 2019 with a net profit of €80 million and EBITDA of €168 million), the commitment is affordable and can be implemented gradually to prevent significant financial burden on the short term business functioning.
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Timeline
Q4 2021: Senior Sustainable Investments Associate is hired and the fund is established.
