Luxury brand Gucci is set to launch a circular fashion center in Italy as it looks to anticipate a European regulation that would force companies to limit the environmental impact of their operations.
The “circular center” aims to promote change in the Italian fashion industry’s production models, according to Gucci, which is owned by Kering, the French luxury goods group. This requires coming up with new solutions to increase circularity, from raw materials and design to production and logistics, the fashion house said. The research and development center studies ways to improve circularity, including better strength and recycling of products, as well as waste and pollution.
Kering did not quantify the environmental benefits of the center, but said it should promote the use of scarce natural resources and reduce emissions of greenhouse gases that contribute to global warming. Initial estimates suggest, for example, that the center could reduce emissions by up to 60% from controlling Gucci’s leather-goods production, Kering said.
The center, based in Gucci’s home region in Tuscany, includes Gucci’s production sites and all the care facilities in the region, including Italian suppliers of raw materials as well as manufacturers of finished products. The center’s activities would later expand to Kering’s other brands before opening up to the wider fashion sector.
The group said it is seeking funding from the Italian government for the initiative.
“The fashion industry needs to take drastic measures to accelerate a deep transformation and rethink the way we produce and consume,” said Marie-Claire Daveau, Kering’s chief sustainability officer.
“The creation of our circular center is a big step in this direction,” said Ms. Daveau, adding that Italy was a good place to start the center as the country is home to Keyring’s most famous product and know-how.
The center should act as a precursor to new models that will become mandatory under European laws in the coming years, Kering said. Last year, the European Union launched a plan to reduce the environmental damage of the clothing industry, a major contributor to global emissions.
Clothing should be “long-lasting and reusable and made from highly recycled fibers,” the group said in its plan; Labeling, however, should make it easier for consumers to assess the impact of their purchases. In the coming years, new regulations will be developed to implement the measures.
Some countries move faster than others. France has passed legislation requiring retail companies to disclose to consumers the environmental impact of their products, the amount of recycled materials, the use of renewable energy in their production and recycling. The regulation will apply to large companies with annual revenues of more than 50 million euros ($53.4 million) from early 2023, and will apply to smaller players from next year.
The center is not the first time Kering has been at the forefront of sustainability. In the year The 2019 fashion agreement, presented by group CEO Francois-Henri Pinault, sets targets for a lower environmental impact in the industry, including matching the United Nations’ targets to reach net-zero carbon emissions by 2050. Members of the Convention. Kering’s luxury peers include Prada SpA and France’s Chanel, as well as fast fashion companies such as Spain’s Inditex and sportswear brands such as Germany’s Adidas AG and Puma SE.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
