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SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN HOW TO DRIVE CHANGE IN YOUR SUPPLY CHAIN

TO SECURE YOUR REPUTATION? Lausanne I MARCH 7–8, 2011

S U S TA I N A B L E LU X U R Y FORUM


WELCOME Lausanne I MARCH 7–8, 2011

SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

Good afternoon, We are very pleased to welcome you to the Sustainable Luxury Forum 2011. In creating this year’s forum, we built on the outcomes and participants’feedback of our first event held in September 2010; thus the theme “Sustainable Excellence In The Luxury Value Chain”. As a catalyst of change, our mission is to support luxury brands in their endeavor to adapt, innovate and grow in a world increasingly shaped by sustainable development issues. We aim to provide a platform for all industry partners, NGO and the academic world to anticipate trends, explore the organizational implementation of corporate sustainability and share insights from business initiatives and academic research that address social and environmental challenges. We invite you to foster a spirit of curiosity and collaboration; to learn from each other and to take mutual ownership for achieving common objectives. I would like to personally and warmly thank all partners and individuals who contributed to the organization of the Sustainable Luxury Forum 2011. We are all looking forward to working jointly with you on advancing your sustainability vision.

Kindly, Christopher H. Cordey Founding Director, Sustainable Luxury Forum

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THE FUTURE IS NOW! 4

Lausanne I MARCH 7–8, 2011

March 7 from 15.00 to 16.30

“Sustainable Consumption in 2050 – What roles can luxury brands play?” Workshop facilitated by Olivier Vilaca, World Business Council for Sustainable Development. In early 2010, the World Business Council for Sustainable Development released the Vision 2050 report – a holistic, optimistic and realistic vision of what a sustainable world does look like, how we can realize it, and what are the roles business can play in ensuring rapid progress toward that world. According to the report, in 2050, 9 billion people are living well, and within the limits of the planet. And the pathway to achieve this vision not only requires innovation by all means, but also radical transformations in lifestyles and consumption patterns. What can we learn from luxury brands to mainstream more sustainable lifestyles and consumption patterns? What roles can they play in co-driving these transformations? To address these questions participants will breakout in small groups before sharing back to the audience.


PARALLEL BREAKOUT SESSIONS SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

March 8 from 11.15 to 12.45 Global Facilitation: Dr Dorothée Baumann Parallel Breakout Session #1: Facilitated by Richa Mittal, Fair Labor Association. “Mapping Global Supply Chains in the Luxury Goods Industry: Increasing Transparency and Accountability.” Mapping a company’s supply chain is the first step for identifying and addressing potential social and environmental issues. Oftentimes, however, this is also a company’s first big challenge! Session #1 should appeal to participants which are engaging their organization towards Sustainable Excellence or currently developing a supply chain map. It will allow them to exchange expertise over the methods that increase the transparency of the supply chain. Parallel Breakout Session #2: Facilitated by Iris Van der Veken, Rosy Blue. “Social Issues in the Supply Chain: How can they be Identified, Addressed and Managed Sustainably?” Identifying and addressing social issues in the supply chain requires a profound knowledge of the local context. Social issues like child labor, discrimination, prostitution or freedom of association are often tied to complex social structures and their remediation requires holistic solutions. Session #2 should appeal to participants who have already identified social issues in their supply chain, who have supported organization doing so and who are keen on addressing them in a sustainable manner. Parallel Breakout Session #3: Facilitated by Giulia Carbone, IUCN. “Environmental Issues in the Supply Chain: How can they be Identified, Addressed and Managed Sustainably?” Due to varying national regulations, defining and mitigating environmental issues in global supply chains is particularly difficult. The workshop aims to demonstrate how a company’s environmental policy could be implemented in the entire supply chain. Session #3 should appeal to participants who are currently assessing the environmental standards in their supply chain and plan to harmonize standards globally or participants who have supported other organization doing so.

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SPEAKERS 6

Lausanne I MARCH 7–8, 2011

Dorothée Baumann HEC, University of Lausanne and University of Zurich

Dr. Dorothée Baumann is teaching as a PostDoc at HEC, Lausanne University and at the University of Zurich. She completed her PhD at the Chair for Foundations of Business Administration and Theories of the Firm at the University of Zurich in 2008. Currently, she is working and Dorothée earned her M.A. in Political Science from Rutgers University (Newark, NJ) (2002) and a Diploma-graduate degree in Management and Public Policy from the University of Constance (Germany) in 2003. Between 2004 and 2007, she worked as a project coordinator and EMEA coordinator for the Fair Labor Association. She oversaw the auditing process of large textile brands, conceptualized and managed capacity-building projects in China and India, and trained auditors. She also evaluated auditing results and developed methodologies for impact assessments. Between 2007 and 2009 Dorothée did consulting for various organizations including the UN Global Compact, The Guilé Foundation, The Aspen Institute, AccountAbility, and Global Demos. During her oneyear engagement with AccountAbility in 2008/2009, she moderated stakeholder dialogues in Bangladesh, Morocco, and Lesotho. Her current research interests are in business ethics, supply chain management, collaborative governance, and international relations.

Sylvie Benard

Sylvie Benard is Directrice de l’Environnement at LVMH. After Food Industry studies at Cornell University (US), she becomes Doctor-ingeneer in Agronomic sciences in 1983.

LVMH

She starts working for the LVMH group in 1983 as a researcher in food microbiology, at Hennessy. Later, she is in charge of the of the eaux de vie quality forecasts management and of sensory analyses. As of 1992, she simultaneously starts a mission on the environment for the Holding and in 1995 becomes the Environment Director of the group. She is a member of several associations linked to the environment and has been President of Orée untill march 2008. Member of the Committee of Strategic Orientation and of the Board of the Foundation for Research on Biodiversity, she also has been asked by the french Ministry of Environment and Sustainable Development to preside over a committee dedicated to the green growth career opportunities.


SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

Charles Chaussepied PIAGET

Charles Chaussepied is Director Corporate Sustainability at Piaget. He holds a MBA from the University of Montreal and a Master Degree in Finance from the Ecole Superieure de Commerce in Bordeaux. He has over 20 years of experience in leading positions especially in strategy development and implementation, Corporate Social Responsibility Projects and knowledge of the jewellery progress from sourcing/production to the retail. He also has over 14 years experience in the Luxury business, in jewellery. In 1992, he worked for Toshiba Consumer products in France as a General Manager, in charge of operations. He then held various management positions up to Managing Director for Grange SA in Lyon, France, between 1979 and 1992, and 1994 and 1996. From 1996 to 2002, at Orest, jewellery manufacturer, he was the President and CEO. Working at Piaget of the Richemont group since 2002, he currently holds the position of Director Corporate Sustainability and is a member of the Richemont CSR committee, Chair of the Standards Committee and the Responsible Jewellery Council.

Christopher H. Cordey THE SUSTAINABLE LUXURY FORUM

Christopher H. Cordey is Founding Director of The Sustainable Luxury Forum and CEO of WholeBeauty. Since 2008, he combines academic and CSR advisory activities focusing on the luxury and beauty industries. He is active in number of ethical audit projects with GoodCorporation and teaches to MBA students at Business School Lausanne on “Leading Change”, “Ethics and Sustainability in Business” and “Entrepreneurship”. He also lectures at International Management Institute in Ukraine and collaborates with Geneva University’s CSR Executive Education program. Previously he has spent 22 years in leading management and development role in the FMCG, Luxury and Beauty industries working for Philip Morris, Movado, Richemont and Clarins as well as SME; in Asia-Pacific, Western and Eastern Europe, Central Asia and Africa.

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SPEAKERS 8

Lausanne I MARCH 7–8, 2011

Sandor F. Czellar HEC Lausanne University

Sandor Czellar is Professor of Marketing at HEC Lausanne. He obtained his PhD from University of Geneva. After several years at HEC Paris, he recently returned to HEC Lausanne as a professor of marketing. His research focuses on consumer psychology and brand management, with a special interest in luxury brands. He also works on methodological improvements in consumer attitude assessment. His publications have appeared in leading international journals including Journal of Marketing Research and Journal of Consumer Psychology.

Eduardo Escobedo UNCTAD

Eduardo Escobedo is Economic Affairs Officer at the United Nations Conference on Trade and Development (UNCTAD). At UNCTAD he heads the business and biodiversity programme and coordinates the Cosmetic and Fashion Biodiversity Platform. Prior to joining the United Nations, Eduardo headed the Latin America and Caribbean Programme at the International Centre for Trade and Sustainable Development and acted as Managing Editor of four major periodical publications in Spanish and Portuguese published by the Centre. Eduardo has also work for the Mexican Government as a trade negotiator in Vienna, Brussels and Geneva, having been involved in the negotiation processes of the Free Trade Agreement between the European Union and Mexico signed in 2000, and the launch of the World Trade Organisation’s Doha Round of Multilateral Trade Negotiations.


SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

Jean-Paul Gaillard

Swiss citizen, born on April 24th 1954, studies in Switzerland, England and in the United States (MBA + 2 years of engineering + 2 years of law).

Ethical Coffee Company

International professional experience with profit center responsibility, including 6 years in operational position in the U.S., primarily focused on General Management, Marketing and Finance. Experience both within major multinational corporations such as Philip Morris and Nestlé as well as in medium-sized companies in the Watch and the Food industry. Strong experience in special situations management and in strategic changes. The best known experiences are the creation of Marlboro Classics for Philip Morris with an international expansion and the turnaround of Nespresso for the Nestlé Group. Definition and implementation of the business model, from the creation of the Club to the development of an autonomous group of companies active at the international level, leader in its field. Reorganization of the Food Division of Moevenpick , catalyze the sales of Ben & Jerry’s to Unilever, then bought by Nestlé. Today, at the head of an investment holding company, with a concentration in the field of sustainable development. At the operational level, currently founder and CEO of Ethical Coffee Company SA. The other main interests include skiing, aviation, psychology and history.

Mathias Leisinger

Mathias Leisinger is Head of Corporate Responsibility for the Kuoni Group since 2008. Born in Davos, Matthias got in touch with tourism already in his early years.

KUONI

After graduating the “Swiss Alpine Gymnasium” in Davos, he studied Geography, History and Political Science at the Universities of Zurich and Rouen (France). Between 2008 and 2010 he followed an extra-occupational MBA study in sustainability management at the Centre for Sustainability of the University Lüneburg (Germany). Since 2003 Matthias Leisinger has been working for Kuoni; starting as Corporate Responsibility Manager for Kuoni Switzerland, later for the Kuoni Group. He has been a member of the SIPPO advisory board since 2010, representing the tourism sector. 

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SPEAKERS 10

Lausanne I MARCH 7–8, 2011

Steve New SAID BUSINESS SCHOOL

Steve New is Program Director at the Centre for Corporate Reputation, at Saïd Business School, Oxford University. He began his career as an engineer, working for Rolls Royce plc while completing a degree in physics at Southampton University. In 1988, after working in management consultancy for Collinson Grant, he went to Manchester Business School where he completed his doctorate in 1993 on the use of visual interactive modeling for decision support in manufacturing. He taught at the Manchester School of Management, UMIST before joining Saïd Business School in 1996. For many years he has overseen the management component of Oxford‘s Engineering (Materials), Economics and Management degrees, and he was overall director of Saïd Business School‘s undergraduate programmes from 2002 to 2004. He is active in a number of projects to develop pedagogy. He works as a consultant for a range of organisations and is a regular speaker at industry conferences. He is a Fellow of Hertford College.

Guido Palazzo

Guido Palazzo is Professor of Business Ethics at HEC, University of Lausanne and a visiting fellow at the Universities of Oxford and Nottingham.

HEC University of Lausanne

His research deals with corporate responsibility in global supply chains. Guido Palazzo consults and teaches on business ethics and CSR at numerous multinational corporations such as Siemens, Daimler and Volkswagen. He also works with the WHO and various UN organizations on corporate responsibility related topics.


SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

Rémi Pulverail

Remi Pulvérail is Global Purchasing Director Naturals at Givaudan. He was brought up in Morocco, an experience he feels cemented his passion for travel, spices, and fragrances.

GIVAUDAN

After studying finance at the EDHEC Business School in Lilles, France, Remi spent 2 years as Private asset manager in Geneva (Crédit Agricole Suisse SA); he then moved for a 3 years period in the Reunion Island (Indian Ocean) as a financial controller for a regional hotel chain; He returned to Grasse in 1995, the French capital of perfumery, and has worked for Charabot, a fragrance & natural ingredient company, at the position of Sales director for Europe and Middle East. Remi Pulverail joined Givaudan in 2000 as Account Manager for L’Oréal. After 3 years he moved to the Purchasing area being in charge of Naturals for the Fragrance Division. Since 2007, the scope of his Purchasing function encompasses both Fragrances and Flavours. In his role, Remi & his Team are selecting suppliers for hundreds of natural ingredients in more 50 Countries around the globe. His team strives to develop close partnerships in the countries of origin. They have set up the Givaudan “ethical sourcing initiatives” and are currently managing more than 10 programs worldwide: Australia (Sandalwood), Venezuela (Tonka beans), Laos (Benzoin). In 2011, two major partnerships have been finalized: Ylang Ylang in Comores and Vanilla in Madagascar.

Auret Van Heerden FAIR LABOR ASSOCIATION

Auret van Heerden is President and CEO of Fair Labor Association. He brings more than 30 years experience in international human and labor rights to the FLA. He began campaigning for workers’ rights as a young student in apartheid South Africa and co-authored a book in 1976 that called for trade union rights for black workers. He served two terms as president of the National Union of South African Students. After graduating in industrial sociology from the University of the Witwatersrand in Johannesburg, he founded an institute that provided research and training services to trade unions and civil society groups. He was forced into exile in May 1987 after long periods of solitary confinement and torture. In 1988, Auret joined the International Labor Organization (ILO) and worked on its Program of Action against Apartheid in Geneva until 1994 when the new democratic South African government appointed him Labor Attaché in the South African Permanent Mission to the UN in Geneva. He returned to the ILO in 1996, where he worked on labor relations issues in 25 zone-operating countries and established a Swiss-funded project to improve labor relations in Special Economic Zones in China.

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SPEAKERS 12

Lausanne I MARCH 7–8, 2011

Davide Vassallo DuPont Sustainable Solutions

Davide Vassallo is Global Practice Leader for Sustainable Operations at DuPont Sustainable Solutions. His professional focus is on helping Corporations to improve efficiency and business performance while reducing the sustainability footprint. He has a wide experience in the Environmental and Sustainability Management field, Climate Change, Energy Efficiency, Life Cycle Assessment and Eco-labeling gained through his involvement in many projects embracing different industrial sectors: Oil & Gas, Transportations, Telecommunications, Manufacturing and Real Estate. He supported many leading national and international companies in facing Sustainable Development and Corporate Responsibility issues. He has published more than 50 papers for newspapers, environmental magazines and conference proceedings on Carbon Management, Life Cycle Assessment, Environmental Assessment and Sustainable Development. Davide Vassallo is an Environmental Engineer from Polytechnic of Turin (Italy).

Olivier Vilaca

Olivier Vilaca is Sustainable Consumption Workstream Leader at the World Business Council for Sustainable Development (WBCSD).

World Business Council of Sustainable Development

He manages the Sustainable Consumption and Value Chains program, lead by Nokia, Henkel, PepsiCo, Unilever and Coca-Cola. Prior to that he was Co-Investment Manager at the Global Fund to Fight AIDS, Tuberculosis and Malaria, one of the major donors on these three pandemics, and a Project Manager at Lafarge, the world leader in building materials. Olivier holds a PhD from the Swiss Institute of Technology of Lausanne (EPFL). He wrote several research articles and book chapters on globalization.


SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

Logistic • The Sustainable Luxury Forum 2011 will be held under the Chatham House Rule meaning that participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. • Let us know during the registration if you prefer a vegetarian meal. • Dress code is smart casual. • Thank you to switch off your mobile phone during the sessions. • Photography: we may take some pictures during the forum. Should we wish to use some of them, we will ask your written consent prior to doing so. • At the end of the forum we will hand out a short evaluation.

The SLF 2011 Team Founding Director: Academic Advisor: Special Advisor: Guest Relationship / Organization: On-site Coordination: Visual Facilitator: Rapporteur:

Christopher H. Cordey Dr. Dorothée Baumann Veerle Van Wauwe Aurélie Maurer Emilie Forbin Véronique Olivier-Martin Robert Crawford

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MAIN PARTNERS AND SUPPORTING ORGANIZATION 14

Lausanne I MARCH 7–8, 2011

We also thank Fassbind Hotels for their support.


NOTES SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

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NOTES 16

Lausanne I MARCH 7–8, 2011


SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN

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SUSTAINABLE EXCELLENCE IN THE LUXURY VALUE CHAIN HOW TO DRIVE CHANGE IN YOUR SUPPLY CHAIN

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Sustainable Luxury Forum 2011