History

Although the history of the LVMH Group began in 1987 with the merger of Moët Hennessy and Louis Vuitton, the roots of the Group actually stretch back much further, to eighteenth-century Champagne, when a man named Claude Moët decided to build on the work of Dom Pérignon, a contemporary of Louis XIV; and to nineteenth-century Paris, famous for its imperial celebrations, where Louis Vuitton, a craftsman trunk-maker, invented modern luggage. Today, the LVMH Group is the world’s leading luxury goods company, the result of successive alliances among companies that, from generation to generation, have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest. These companies now form a powerful, global Group in which the historic companies share their expertise with the newer brands, and continue to cultivate the art of growing while transcending time, without losing their soul or their image of distinction.

From the 14th century to the present

FINANCIAL HIGHLIGHTS

EXECUTIVE AND SUPERVISORY BODIES; Statutory Auditors AS OF February 9, 2026

(2)  Until the close of the Shareholders’ Meeting of April 23, 2026.

(3)  Independent Director.

(4)  Appointed by the SE Works Council on December 10, 2025, with effect from the close of the Shareholders’ Meeting on April 23, 2026.

(5)  Renewal of term of office as an Advisory Board member proposed at the Shareholders’ Meeting of April 23, 2026.

Simplified organizational chart of the group as of december 31, 2025

The organizational chart below is “simplified” insofar as its objective is to present the direct and/or indirect control structure of brands and trade names by the Group’s main holding companies, rather than a complete presentation of all Group shareholdings.

1.     Wines and Spirits

In 2025, revenue for the Wines and Spirits business group accounted for 7% of the LVMH Group’s total revenue. Champagne and wines made up 58% of this revenue, while cognac and spirits accounted for 42%.

1.1         Wines and Spirits brands

Moët & Chandon, Dom Pérignon, Ruinart, Krug, Veuve Clicquot, Hennessy, Château d’Yquem, Glenmorangie, Clos des Lambrays… The origins of all these world-famous estates are inextricably linked to the appellations and terroirs of the world’s most prestigious wines and spirits. Whether they are in Champagne, Bordeaux or other wine regions, these Maisons – many of which date back more than a century – all share a powerful culture of excellence.

1.2         Competitive position

1.2.1       Champagne

In 2025, shipments of LVMH champagne brands were down 4.3% from 2024, while shipments from the Champagne region decreased by 2.2% (source: CIVC). LVMH’s market share thus amounted to 22.1% of total shipments, compared to 22.6% in 2024.

Champagne shipments, for the whole Champagne region, break down as follows:

(Source: Comité Interprofessionnel du Vin de Champagne – CIVC).

1.2.2       Cognac

In 2025, volumes shipped from the Cognac region were down 15.2% from 2024 (source: BNIC), while volumes of Hennessy shipped saw a sharper decline, down 24.2%. Hennessy’s market share of volumes shipped from the Cognac region decreased by 5.7 points to 48% in 2025, from 54% in 2024. The Company remains a leader in cognac and premium international spirits in the United States, China and other important markets for cognac (South Africa, Nigeria, the United Kingdom, etc.).

Cognac shipments, in number of bottles, excluding bulk, both for the industry and for LVMH, are as follows:

(Source: Bureau National Interprofessionnel du Cognac – BNIC).

1.3         Primary production methods, supply sources and subcontracting

1.3.1       Champagne

The Champagne appellation covers a defined geographic area classified A.O.C. (Appellation d’Origine Contrôlée), which covers the 34,000 hectares that can be legally used for production. There are essentially three main types of grape varietals used in the production of champagne: Chardonnay, Pinot Noir and Meunier.

The Group owns 1,684 hectares under production, which provide 20% of its annual needs. In addition, the Group’s Maisons purchase grapes and wines from winegrowers and cooperatives on the basis of multi-year agreements; the largest supplier of grapes and wines represents less than 10% of total supplies for the Group’s Maisons. LVMH’s champagne houses, along with their partner grape suppliers, are steadily building up their use of sustainable winegrowing practices for Viticulture Durable en Champagne certification.

In addition to its effervescence, the primary characteristic of champagne is that it is the result of blending wines from different years and/or different varieties and land plots. The best brands are distinguished by their masterful blend and consistent quality, achieved thanks to the talent of their wine experts.

Weather conditions significantly influence the grape harvest from one year to the next. The production of champagne also requires aging in cellars for around two years, or even more for premium, vintage and/or prestige cuvées. To protect themselves against crop variations and manage fluctuations in demand, but also to ensure consistent quality year after year, LVMH’s champagne houses regularly adjust the quantities available for sale and keep reserve wines in stock, mainly in storage tanks. As maturation times vary, the Group constantly maintains champagne inventories in its cellars for future sales.

The making of champagne involves extremely rigorous processes in order to ensure absolute consistency in quality from year to year. Moët & Chandon fully operates its Mont Aigu site, with its vat room, bottling line, cellars, disgorging area and packaging workshop supplementing the production capacity of Moët & Chandon’s historic facilities in Épernay. The historic production sites of Veuve Clicquot, Ruinart and Krug are in Reims.

Dry materials (bottles, corks, etc.) and all other components of containers and packaging are purchased from non-Group suppliers. In 2025, the champagne houses also used subcontractors for about 44 million euros of services, notably pressing, co-packing, handling and storing bottles.

In order to drive innovation and develop expertise in its production processes, the Group inaugurated its research and development facility in Oiry in 2021, which is open to all its Maisons.

1.3.2       Cognac

The Cognac region is located around the Charente River basin. The vineyard, which currently extends over more than 85,000 hectares, consists almost exclusively of the Ugni Blanc varietal, which yields a wine that produces the best eaux-de-vie. This region is divided into six vineyards, each of which has its own qualities: Grande Champagne, Petite Champagne, Borderies, Fins Bois, Bons Bois and Bois Ordinaires. Hennessy selects its eaux-de-vie essentially from the first four vineyards, where the quality of the wines is more suitable for the preparation of its cognacs.

Charentaise distillation is unique because it takes place in two stages: a first distillation (première chauffe) and a second distillation (seconde chauffe). The eaux-de-vie obtained are aged in oak barrels. Cognac results from the gradual blending of eaux-de-vie selected on the basis of vintage, origin and age.

Hennessy – which carries out all of its production in Cognac – inaugurated a state-of-the-art bottling and packaging plant named Pont Neuf in 2017. The design of this 26,000-square-meter facility reduces its environmental footprint and optimizes working conditions to an extent never achieved previously.

Most of the cognac eaux-de-vie that Hennessy needs for its production are purchased from a network of approximately 1,600 independent producers, a collaboration which enables the Company to ensure that exceptional quality is preserved as part of an ambitious sustainable winegrowing policy. Hennessy directly operates about 180 hectares, providing for less than 1% of its eaux-de-vie needs.

With an optimized inventory of eaux-de-vie, the Maison can manage the impact of price changes by adjusting its purchases from year to year under the contracts with its partners. Hennessy continues to control its purchase commitments and diversify its partnerships to prepare for its future growth across the various quality grades.

Like the Champagne and Wine businesses, Hennessy obtains its dry materials (bottles, corks and other packaging) from non-Group suppliers. The barrels and casks used to age the cognac are also obtained from non-Group suppliers. Hennessy makes only very limited use of subcontractors for its core business: aging, blending and bottling eaux-de-vie.

1.3.3       Other wines and spirits

Outside of champagne and cognac, the Group owns a range of rare brands of spirits and still and sparkling wines whose quality and uniqueness relies on careful production and/or selection of raw materials, as well as long-standing expertise in complex development and aging processes that combine excellence, innovation and tradition.

1.4         Distribution

Moët Hennessy has a powerful and agile global distribution network, thanks to which the Wines and Spirits business group continues to expand the presence of its portfolio of brands in a balanced manner across all geographies. Part of this network consists of joint ventures with the Diageo ⁽¹⁾ spirits group, governed by agreements that have been in place since 1987, which help strengthen the positions of the two groups, improve distribution control, enhance customer service and increase profitability by sharing distribution costs. In 2025, 21% of champagne and cognac sales were made through this channel.

1.5         Highlights of 2025 and outlook for 2026

Highlights

2025 confirmed the slowdown in demand observed since 2023, following several exceptional years. The Wines and Spirits Maisons continued to invest in the long-term desirability of their brands and launched a program aimed at boosting efficiency and reducing costs.

LVMH’s champagne houses held their market share at 22% by volume, and updated their organization to boost efficiency while ensuring each Maison remained in control of its own management. Dom Pérignon launched a new marketing platform based on its historic links with artists and unveiled a limited edition designed in collaboration with Takashi Murakami. Moët & Chandon rolled out its new brand colors and enjoyed a high-profile presence as a key partner of Formula 1®’s Grand Prix races. It unveiled a limited edition by designer Pharrell Williams and special festive bottles wrapped in red and pink for the end-of-year holiday season. The Maison celebrated Benoît Gouez’s 20th anniversary as Cellar Master, presenting an edition comprised of seven outstanding Grand Vintage Collections and a bottle of Collection Impériale Création No. 1 designed for the occasion. Veuve Clicquot maintained its value strategy, with the launch of a new visual identity for its La Grande Dame 2018 cuvée and a creative collaboration with Jacquemus, which had a strong media impact. The Maison continued to roll out its Sun Club strategy, promoting new daytime opportunities to enjoy its products, in particular in Japan, Australia and France, and affirmed its support for women entrepreneurs through its Bold program. Ruinart confirmed the success of its flagship Blanc de Blancs champagne and raised the profile of its beautifully transformed site at 4 Rue des Crayères in Reims with an artistic program featuring Julian Charrière and Sam Falls. In October, Krug unveiled “Every Note Counts”, a new musical encounter launched in collaboration with composer Max Richter. In addition, the Maison confirmed the strength of its fundamentals and presented Krug Grande Cuvée 173^e Édition, Krug Rosé 29^e Édition and Krug Clos du Mesnil 2009.

Chandon received unprecedented acclaim for its expertise in sparkling wine and its commitment to sustainable agriculture, winning 86 awards and medals in five major international competitions. Chandon California also received Regenified™ (Level 4) regenerative agriculture certification. Still wines produced by Moët Hennessy Wine Estates performed well in a challenging economic environment. Provence rosé wines continued to outperform the rosé category worldwide. Château d’Esclans confirmed its global leadership, showing good resilience in the United States. Minuty saw a rapid pick-up in its key markets. Cloudy Bay continued to stand out as a benchmark in Sauvignon Blanc wines, achieving exceptional results in all regions. Terrazas de los Andes received excellent ratings from critics for the quality of its wines and confirmed the upmarket strategy of its portfolio. Napa Valley icon Joseph Phelps continued to strengthen its position in the United States with a second “Your Invitation to Acquire” campaign and the launch of its Insignia 2022 vintage. Ao Yun strengthened its position as the best red wine produced in China with the launch of its 2021 vintage.

Hennessy celebrated its 260th anniversary. The Maison raised its profile through collaborations with its powerful cultural ambassadors, as seen in the outstanding success of its “The Decision” campaign featuring LeBron James. However, the situation remained challenging in its two main markets – the United States and China – which were also held back by the introduction of new customs restrictions. In South Africa, Hennessy maintained its positive momentum, driven by a new chapter of the “Made for More” campaign. In 2025, the Maison stepped up its environmental and social commitments – a key component of its pursuit of excellence – with progress in the Living Landscapes program, the roll-out of positive impact initiatives via Living Communities and the renewal of its main international certifications.

Glenmorangie launched “Once Upon a Time in Scotland”, a major marketing campaign featuring legendary actor Harrison Ford. Ardbeg opened Ardbeg House on the Isle of Islay, a magnificent setting offering an immersive experience of the brand’s unique atmosphere. Belvedere vodka continued to ramp up its innovative momentum with the release of Belvedere Dirty Brew, a new blend crafted with certified organic coffee. Luxury vodka Belvedere 10 confirmed its leadership. Eminente rum ramped up its growth in Europe, fueled by the launch of Carta Oro.

Outlook

The Wines and Spirits business group is approaching 2026 with the same determination it showed in 2025, and will continue to invest in its Maisons and affirm its leadership in its key categories: cognac, champagnes, single malt whiskies and Provence rosé wines. Conscious of the potential challenges on the horizon – as exemplified by tariffs in the United States, anti-dumping measures in China and unfavorable exchange rates – the Maisons will take a pragmatic approach and focus on strengthening their fundamentals: their unique expertise, the exceptional quality of their products, the strength of their distribution networks and the desirability of their brands.

2.     Fashion and Leather Goods

In 2025, revenue for the Fashion and Leather Goods business group accounted for 47% of LVMH’s total revenue.

2.1         Fashion and Leather Goods brands

In the luxury fashion and leather goods sector, LVMH holds a portfolio of brands that are primarily French, but also include Italian, Spanish, British, German and American companies.

The Fashion and Leather Goods business group comprises Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, Rimowa and Patou. While respecting the identity and autonomous management of these brands, LVMH supports their growth by providing them with shared resources.

Parfums Christian Dior, Perfumes Loewe, Parfums Kenzo and Parfums Givenchy are included in the Perfumes and Cosmetics business group.

2.2         Competitive position

In the Fashion and Leather Goods sector, the luxury market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands. LVMH’s brands are present all around the world, and it has established itself as one of the most international groups. All these groups compete in various product categories and geographic areas.

2.3         Design

Working with the best designers, while respecting the spirit of each brand, is a strategic priority: the creative directors promote the Maisons’ identities, and are the artisans of their creative excellence and their ability to reinvent themselves. As a means to continually renew this precious resource, LVMH has always been committed to supporting young designers and nurturing tomorrow’s talent, in particular through the LVMH Prize for Young Fashion Designers, which each year honors the work of an up-and-coming designer displaying exceptional talent and outstanding creativity.

LVMH believes that one of its essential assets is its ability to attract a large number of internationally recognized designers to its Maisons.

2.4         Supply sources, manufacturing and subcontracting

As of 2025, Louis Vuitton has twenty-nine workshops for finished leather goods – eighteen in France, four in Spain, four in the United States and three in Italy – which manufacture most of the Maison’s leather goods. In addition to manufacturing and model-making for leather goods, Louis Vuitton’s workshops in Italy handle all development and manufacturing processes for all types of footwear, as well as development for certain accessories (textiles, jewelry and eyewear). In addition to leather goods manufacturing, Louis Vuitton’s workshops in Spain also handle all leather goods accessories (belts and straps). Louis Vuitton uses external manufacturers only to supplement its manufacturing.

Louis Vuitton purchases its materials from suppliers located around the world, with whom the Maison has established long-term partnership relationships. The supplier strategy implemented over the last few years has enabled the Maison to meet its requirements in terms of volume, quality and innovation while engaging its suppliers in a CSR approach. This strategy is the result of a policy of focusing on and supporting the best suppliers while limiting Louis Vuitton’s reliance on them. Accordingly, the leading supplier in the leather market accounts for around 22% of Louis Vuitton’s leather supplies; the leading supplier in the metal parts market accounts for around 25% of its metal parts supplies.

Christian Dior’s production capacity and use of outsourcing vary very widely depending on the product. In leather goods, Christian Dior works with companies outside the Group to increase its production capacity and provide greater flexibility in its manufacturing processes. In ready-to-wear and jewelry, it purchases supplies primarily from non-Group businesses.

Most of the other Maisons in the Fashion and Leather Goods business group have workshops in their countries of origin or in Italy, which cover only a portion of their production needs. Furthermore, the LVMH Métiers d’Art segment protects and partly develops the Maisons’ access to raw materials and world-class expertise in leather goods and hardware.

Generally, the subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand’s country of origin, France, Italy and Spain.

Lastly, fabric suppliers for the different Maisons are often Italian, but on a non-exclusive basis. The designers and style departments of each Maison ensure that manufacturing does not generally depend on patents or exclusive expertise owned by third parties.

2.5         Distribution

Controlling the distribution of its products is a core strategic priority for LVMH, particularly in the luxury Fashion and Leather Goods sector. This control allows the Group to retain retail margins, and guarantees strict control of the brand image, sales reception and environment that the brands require. It also gives the Group closer contacts with its customers so that it can better anticipate their expectations, thereby offering them unique shopping experiences.

In order to meet these objectives, LVMH has the premier international network of exclusive boutiques under the banner of its Fashion and Leather Goods brands. This network included around 2,300 stores as of December 31, 2025.

2.6         Highlights of 2025 and outlook for 2026

Highlights

The Fashion and Leather Goods business group showed good resilience with local customers with respect to 2024, which had been boosted by strong growth in tourist spending, particularly in Japan. Driven by a desire to offer their customers exceptional products and experiences, LVMH’s Maisons continued to pursue creativity, very high quality, masterful craftsmanship and retail excellence.

Louis Vuitton continued to demonstrate powerful creativity, exceptional craftsmanship and unique in-store experiences. Shows by Nicolas Ghesquière and Pharrell Williams took viewers on a memorable voyage, celebrating the spirit of travel and reimagining the Maison’s most iconic designs. The emblematic creative collaboration with Takashi Murakami made a vibrant comeback, with the « re-edition » collection at the start of the year featuring colorful designs created 20 years ago, and the new Artycapucines collection unveiled at Art Basel Paris. The Louis opened in downtown Shanghai in June. This spectacular space, in the shape of a cruise ship, redefines the luxury experience, with a one-of-a-kind store, fine dining at the Café Louis Vuitton and the immersive Visionary Journeys exhibition, reimagining the spirit of travel. A unique new cultural experience also opened at the end of the year in a multi-floor space in Seoul, celebrating the city’s singular fusion of tradition, culture, art and modernity. In September, the Maison unveiled La Beauté Louis Vuitton, its new cosmetics segment, led by globally acclaimed makeup artist Dame Pat McGrath. This collection reflects an approach that blends refinement, sustainability and exceptional craftsmanship. Louis Vuitton embarked on a new adventure in high-performance sports, becoming an Official Partner of Formula 1®. To mark this new partnership, the Maison created 24 unique trophy cases – one for each of the season’s Grand Prix races – illustrating the expert skills of its trunk-makers and leatherworkers. The Maison was featured at the France Pavilion during the World Expo in Osaka, where its immersive installation showcasing its craftsmanship and its close ties with Japan drew a record number of visitors. Its new campaign, “The Spirit of Travel”, shone a spotlight on its iconic luggage and China’s most fascinating landscapes.

Christian Dior embarked on a defining new chapter in its history, welcoming Jonathan Anderson as Creative Director of its Haute Couture, Men’s and Women’s collections. His first two shows were met with particularly high acclaim, attracting a record audience and garnering enthusiastic reviews. Jonathan Anderson won Designer of the Year for the third year running at the Fashion Awards 2025. For her final Dior Cruise collection, Maria Grazia Chiuri drew inspiration from Italian cinema and costume balls. Kim Jones’s final Dior Homme collection paid tribute to the Maison’s Haute Couture heritage. Victoire de Castellane’s latest jewelry designs were showcased in the new Diorexquis collection and new additions to the Rose des Vents line, which celebrated its 10th anniversary. In leather goods, Lady Dior elevated its desirability with a new marketing campaign and the well-received 10th edition of “Dior Lady Art”, with 10 artists reinterpreting the iconic bag. The range was further expanded with the successful launches of the Dior Toujours Vertical and D-Journey lines. Three major new store openings took place during the year: “House of Dior” locations embodying French elegance in the heart of Manhattan, New York and Beverly Hills, Los Angeles, and a stunning sculptural building in Beijing designed by Christian de Portzamparc in the new Sanlitun district. With its high-profile presence at the World Expo in Osaka, Christian Dior took visitors on a poetic odyssey through the Maison’s dreamlike universe, showcasing its legacy of expert craftsmanship. Lastly, the Maison carried on its beloved annual tradition of crafting spectacular façades and enchanting window displays to celebrate the end-of-year holiday season at 30 Avenue Montaigne and around the world.

Loro Piana turned in a remarkable performance, continuing to offer products of the highest quality. To celebrate its 100th anniversary, its first-ever exhibition was unveiled at the Museum of Art Pudong in Shanghai at the beginning of the year. In the second half of the year, to celebrate its ties to New York, the Maison staged a highly visible installation at Bergdorf Goodman and reopened its newly extended and magnificently redesigned New Bond Street store in London. An exceptional new fabric, Royal Lightness, was added to Loro Piana’s range of finest fibers, known as “Excellences”, and the Loro Highlands capsule collection paid tribute to equestrian elegance. Its partnership with Team Europe – winner of golf’s prestigious Ryder Cup – reflected the Maison’s steadfast commitment to the world of sports.

Celine saw an influx of promising new creative energy with the arrival of its new Creative Director, Michael Rider, whose first two shows received a warm welcome and raised the Maison’s profile. Its New Luggage and Soft Triomphe bags, unveiled at the Spring 2026 show, together with accessories (silk and charms), got off to a good start.

Fendi celebrated its centenary, hosting a coed runway show staged by Silvia Fendi at the Maison’s new “Solari” location in Milan, launching the iconic Mamma Baguette bag, unveiling its Eaux d’Artifice high jewelry collection and opening the striking Palazzo Milano store – a fusion of Roman heritage and Milanese design. Maria Grazia Chiuri was appointed Chief Creative Officer of Fendi in October.

Loewe’s first collection designed by Jack McCollough and Lazaro Hernandez was presented in October and enthusiastically welcomed by the press and buyers. The Maison showcased its powerful innovative momentum through striking reinterpretations of its iconic lines, including a collaboration with the Josef & Anni Albers Foundation and the launch of the Madrid bag in tribute to the city where it was founded. The 10th anniversary of the Puzzle line was celebrated through a range of initiatives. The store network expanded, with a first flagship store opening in Australia and new Casa Loewe stores in Shanghai, Paris’ Avenue Montaigne and Tokyo Ginza.

Marc Jacobs released an exclusive electric-pink version of the Maison’s signature Stephen Sprouse x Marc Jacobs Tote Bag. In the second half of the year, the Maison unveiled a creative collaboration for its limited-edition Joy capsule collection.

Givenchy held its first runway shows of collections designed by Sarah Burton, which were warmly welcomed by the press and customers alike, and recognized for their creativity at the British Fashion Awards. Women’s ready-to-wear saw growth after its collections arrived in stores at the end of August. A new flagship store opened on Rue François 1^er in Paris in July.

Kenzo presented its Men’s and Women’s shows separately for the first time in eight years, in January and March, respectively. The Spring/Summer 2026 collection was unveiled in June amid the Art Nouveau decor of legendary Parisian restaurant Maxim’s.

Berluti was boosted by demand for its iconic footwear designs, particularly the Alessandro, Fast Track and Shadow models, and by growth in ready-to-wear. The Maison continued to affirm its vision of the “remarkable allure” that has become its signature, embodied by Victor Belmondo. The visual enhancement of its store network continued.

Rimowa showcased the excellence of its hardshell luggage through a limited-edition suitcase designed in collaboration with Rick Owens, as well as its successful Original Backpack and initiatives featuring its Essential range. Other highlights of the year included the launch of a sunglasses collection in partnership with Mykita, the debut of the Maison’s new Groove line of leather bags and the redesigned Never Still line. The Maison continued to roll out its flagship stores in major international capitals.

Pucci presented its Spring/Summer collection in Portofino, highlighting its Italian identity and revisiting its iconic prints. Naomi Campbell starred in the campaign promoting its Fall/Winter collection.

Outlook

Driven by a determination to create supremely desirable collections and the highest-quality products, LVMH’s Maisons will continue to pursue creativity and masterful craftsmanship. Louis Vuitton will focus its attention in 2026 on its spirit of innovation and the ongoing pursuit of excellence through its designs and stores. New collections and dedicated window displays will celebrate the 130th anniversary of its legendary Monogram canvas. The Maison will continue to showcase its cultural vision, crafting dreams and ever more unique experiences for its customers. Balancing the Maison’s timeless legacy with contemporary reinvention, Christian Dior will continue to invest to keep on making the magic it is known for under its new Creative Director, Jonathan Anderson, whose first collections arrive in stores in the first quarter of 2026. The Cruise collection runway show will be held in May in Los Angeles. Loro Piana will open its newly renovated store in the heart of Vienna, Austria, before inaugurating a new store in Omotesando, Tokyo in the second half of the year. Celine will continue with the creative refresh of its Women’s collections, revisiting pieces that exemplify its signature chic and promoting its core leather goods lines. Celine’s new Men’s collection will be unveiled in June 2026. At Fendi, Maria Grazia Chiuri will unveil her first Women’s collection in Milan in February. The Maison will also return to the Haute Couture scene in July. Loewe is approaching 2026 with a highly dynamic innovation plan. The influx of fresh energy and creative direction driven by Jack McCollough and Lazaro Hernandez will inject fresh impetus into all of the Maison’s collections and designs. Three new flagship stores will open on Via Monte Napoleone in Milan, Rue du Faubourg Saint-Honoré in Paris and Madison Avenue in New York. Rimowa will celebrate the reopening of its flagship in Cologne, where the Maison was founded. Berluti will continue to renovate and selectively expand its store network, particularly in the Middle East.

3.     Perfumes and Cosmetics

In 2025, revenue for the Perfumes and Cosmetics business group came to 8,174 million euros, accounting for 10% of LVMH’s total revenue.

3.1         Perfumes and Cosmetics brands

LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous French brands, including Parfums Christian Dior, Guerlain, Parfums Givenchy and Kenzo Parfums. The Group also owns other beauty brands, including Benefit Cosmetics, Fresh, Acqua di Parma, Loewe Perfumes, Make Up For Ever, Maison Francis Kurkdjian, Fenty Beauty by Rihanna and Officine Universelle Buly.

3.2         Competitive position

LVMH’s Beauty division has maintained its global competitive position thanks to the success of its fragrances, particularly in Europe and the United States, and the recovery in makeup in the United States, despite the ongoing impact on the skincare market of the economic situation in China.

3.3         Research

Established in 1981, LVMH Recherche is a research and innovation center for the LVMH Group’s Perfumes and Cosmetics brands.

LVMH Recherche aims to shape the future of sustainable and digital beauty. Innovation is central to the Group’s commitment to offering unrivaled product performance, unprecedented sensory experiences and new uses by investing in key new areas for the future while taking into account social and environmental impacts.

Spread across five sites around the world (Hélios in Saint-Jean-de-Braye, Kosmo in Paris, and Asian innovation centers in Tokyo, Shanghai and Seoul), LVMH Recherche’s 670 employees (including researchers, chemists, biologists, toxicologists and pharmacists) deliver over 1,000 exceptional products every year in the skincare, makeup and fragrance categories. These very high-quality products are developed with the greatest respect for the environment and in keeping with each Maison’s sensory signature and unique identity.

Innovation and openness to the world are pillars of the strategy pursued by LVMH Recherche (400 patent families), which works with a number of public bodies (including universities, the French National Scientific Research Center [CNRS] and the French National Institute of Health and Medical Research [INSERM]) and private-sector organizations (notably startups, SMEs and mid-tier enterprises) in France and abroad. LVMH Recherche has gradually created a powerful innovation ecosystem whose aim is to identify the most promising technological advances and accelerate their development by building strategic partnerships in new scientific fields as varied as sustainable farming, biotechnology, cellular biology, advanced materials, new processes, big data and artificial intelligence.

3.4         Supply sources, production and subcontracting

The six French production centers operated by Parfums Christian Dior, Guerlain and LVMH Fragrance Brands meet almost all the manufacturing needs of the four major French Maisons. The other Maisons have some of their products manufactured by the Group’s other brands, with the remainder subcontracted externally.

Dry materials, such as bottles, stoppers and any other items that form the containers or packaging, are acquired from suppliers outside the Group, as are the raw materials used to create the finished products. In certain cases, these materials are available only from a limited number of French or foreign suppliers.

Most product formulas are developed at the LVMH Recherche laboratories in Saint-Jean-de-Braye (France), but the Group may also acquire or develop formulas from specialized companies.

3.5         Distribution and communication

The presence of a broad spectrum of brands within the business group generates synergies and represents a market force. The volume effect means that advertising space can be purchased at competitive rates, and better locations can be negotiated in department stores. The use of shared services by subsidiaries increases the effectiveness of support functions for worldwide distribution and facilitates the expansion of the newest brands and their access to new markets. These economies of scale permit larger investments in design and advertising, two key factors for success in the Perfumes and Cosmetics business group.

The Group’s Perfumes and Cosmetics brand products are sold worldwide, mainly through “selective retailing” channels (as opposed to mass-market retailers and drugstores), although certain brands also sell their products in their own stores and on their own e-commerce sites. Excellence in retailing is key to the Group’s Perfumes and Cosmetics Maisons. It requires expertise and attentiveness from beauty consultants, as well as innovation at points of sale. As of December 31, 2025, the network of directly operated Perfumes and Cosmetics stores consisted of over 700 stores.

To meet the expectations of younger generations, who are looking for originality, as well as demand for a connected in-store and online experience, all brands are accelerating the implementation of their online sales platforms, particularly on their own sites, and stepping up their digital content initiatives. Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers.

3.6         Highlights of 2025 and outlook for 2026

Highlights

Maintaining a robust innovation policy and a highly selective retail approach, the Perfumes and Cosmetics business group continued to demonstrate the strength of its Maisons and the relevance of their market positioning.

Parfums Christian Dior showed outstanding resilience in the face of a volatile economic environment and a cyclical slowdown in the market. The Maison strengthened its leadership position in its strategic markets, buoyed by the performance of its iconic lines. Sauvage retained its place as the world’s best-selling fragrance, while Dior Homme, reinterpreted by Francis Kurkdjian, maintained its strong momentum. Iconic women’s fragrances J’adore and Miss Dior continued to grow, in particular thanks to the new version of J’adore Eau de Parfum and the successful launch of the new Miss Dior Essence. La Collection Privée experienced robust growth in all markets. Makeup was driven by the success of innovative additions to the flagship Forever, Rouge Dior, Dior Addict and Backstage ranges. Skincare was boosted by the launch of Dior Prestige Les Nectars de Rose as well as by innovations and a revamped marketing campaign for the Capture line. Honoring its purpose of “Making the world a happier, more beautiful place”, Parfums Christian Dior increased the use of regenerative agriculture techniques for the flowers and plants grown to produce its fragrances and highlighted its commitment to protecting biodiversity, in particular via partnerships with WWF.

Guerlain confirmed the acceleration in its major markets, in particular the Middle East, Japan, South Korea, South Asia, Europe and the United States. Fragrance was the Maison’s main growth driver, buoyed by the success of Florabloom in the Aqua Allegoria collection, Shalimar L’Essence – celebrating the Shalimar line’s 100th anniversary – and the L’Art et La Matière collection. Innovations in its Abeille Royale serum and Rouge G lipstick also helped drive growth. The Maison also continued to champion sustainable beauty, with notable initiatives in 2025 including the launch of the first cellulose-based packaging for its Orchidée Impériale Blue skin cream and the development of the Women for Bees program in China.

Parfums Givenchy focused on promoting its iconic lines, in particular its L’Interdit women’s fragrance, which was boosted by the launch of the new L’Interdit Parfum version. The Maison also unveiled a new interpretation of its Gentleman Society Ambré men’s fragrance, with Formula 1® driver Pierre Gasly as its ambassador. Makeup was driven by the new Prisme Libre Glow Serum foundation and the success of Le Rouge Velvet Matte lipstick, whose design echoes the brand’s couture heritage. Benefit’s innovative momentum was exemplified by the launch of its new POREfessional foundation, which became an instant bestseller, marking the Maison’s strategic entrance into the largest makeup category. Maison Francis Kurkdjian continued its international expansion, including two new stores in the United States. The Maison launched its new Kurky fragrance and the My Very Intimate Perfumes collection. It also stepped up marketing for its iconic Baccarat Rouge 540, for which it unveiled the Édition Millésime version, encased in a Baccarat crystal bottle. The Perfume: Sculpture of the Invisible exhibition at the Palais de Tokyo in Paris looked back at 30 years of Francis Kurkdjian’s creations. Loewe Perfumes confirmed its solid growth path, driven by the excellent performance of its iconic Botanical Rainbow line and an acceleration in its already strong international growth. The year also saw the launch of the Crafted Collection, a series of three new fragrances celebrating the Maison’s expert craftsmanship. Acqua di Parma reaffirmed its Italian heritage through its fragrances and its traditional craftsmanship. The Maison unveiled two new eaux de parfum: Colonia Il Profumo and Buongiorno, with the latter becoming its greatest ever success. Its Art of Living range was enriched with the La Terrazza Italiana and Antelao collections. Make Up For Ever broke new ground with the launch of its Super Boost range, new additions to HD Skin and the success of its Artist Color pencils. Kenzo Parfums expanded its range with the new Flower and Kenzo Homme Indigo fragrances, as well as the relaunch of the unisex L’Eau Pure fragrance, which reflects the Maison’s commitment to sustainability. Fresh refocused its strategy on showcasing its fundamentals, reaffirming the importance of natural ingredients as nutrients for skin, and concentrated its initiatives on the United States and China, both key markets for skincare. Fenty Beauty continued its expansion in China and the rollout of its haircare range. Officine Universelle Buly opened two new stores in Paris and its 21st store in Japan. The Maison unveiled a number of innovations, including new scents for its oils and soaps as well as the Baume des Muses Métallique, an exceptional piece that artfully combines accessories and cosmetics.

Outlook

In 2026, LVMH’s Maisons will continue to invest in their strengths, focusing on innovation and excellence in their products, their desirability and a selective approach to their retail networks. Parfums Christian Dior will build on the vibrancy of its iconic lines, further innovation for ever more effective products, its ongoing quest for excellence and an increasingly selective retail approach. The Maison will also capitalize on close collaboration with Dior Couture and the arrival of JW Anderson. Guerlain will benefit from additions to its fragrance lines. Parfums Givenchy will focus on promoting its iconic L’Interdit, Gentleman and Irresistible lines, and on accelerating the development of its niche fragrances in La Collection Particulière. A launch in the lip segment will boost the makeup category. At Kenzo Parfums, the year will see marketing initiatives focused on the Maison’s iconic lines, in particular Flower by Kenzo. Benefit aims to strengthen its position in the foundation category and maintain its global leadership in brow beauty thanks to major innovations. Maison Francis Kurkdjian intends to consolidate its positioning in its key markets, and will continue to support the cornerstones of its fragrance wardrobe. Building on the success of its exhibition in Paris, the Maison aims to extend the exhibition to locations outside France. Loewe Perfumes will continue its international expansion, crafting an ever more exclusive customer experience. Acqua di Parma will celebrate its 110th anniversary with a tribute to the city of Parma and the launch of a travelling exhibition. Make Up For Ever will roll out its new brand identity to all its customer touchpoints. Fresh will continue to showcase its expertise and will innovate to enhance its iconic Soy and Kombucha lines. Fenty Beauty will celebrate its ninth anniversary and consolidate its positioning. Officine Universelle Buly will build on its growing international presence, opening new, high-profile locations in Europe and Japan.

4.     Watches and Jewelry

In 2025, revenue for the Watches and Jewelry business group accounted for 13% of LVMH’s total revenue.

4.1         Watches and Jewelry brands

LVMH’s Watches and Jewelry Maisons are some of the most emblematic brands in the industry. They operate in jewelry and watches with Tiffany & Co., Bvlgari, Chaumet, Fred, TAG Heuer, Hublot, Zenith, Repossi and L’Epée 1839. These Maisons are guided by a steadfast pursuit of excellence, creativity and innovation.

4.2         Competitive position

The jewelry market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands and companies from many different countries.

The watchmaking market consists of major international players and is divided into a number of segments including traditional watches and smartwatches. The luxury watch market consists of a handful of major international groups as well as smaller independent brands.

LVMH’s brands are present all around the world, and it has established itself as one of the international leaders.

4.3         Design, supply sources, manufacturing and subcontracting

The Watches and Jewelry group designs most of its models in its own studios, but may also sometimes use third parties.

At its Swiss workshops and manufacturing centers, the Group assembles a substantial proportion of the watches and chronographs sold under the TAG Heuer, Hublot, Zenith, Tiffany & Co., Bvlgari and Chaumet brands; it also designs and manufactures mechanical movements such as El Primero and Elite by Zenith, Heuer 02 by TAG Heuer, Unico by Hublot and Solotempo by Bvlgari; and it manufactures some critical components such as dials, cases and straps.

The Group’s jewelry businesses mainly rely on multi-brand or mono-brand production sites in France, Italy and the United States. Furthermore, Tiffany & Co. is also involved in the upstream diamond processing chain, particularly in Belgium, Cambodia and Vietnam.

The subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand’s country of origin, the United States, Italy, France and Switzerland.

4.4         Distribution

The business group, which enjoys a strong international presence, has reaped the benefits of its excellent coordination and pooling of administrative, sales and marketing teams. A worldwide network of multi-brand after-sale services has been gradually put in place to improve customer satisfaction. LVMH Watches and Jewelry has a territorial organization that covers all markets.

The business group is focusing on the quality and productivity of its retail networks and on developing its online sales. It selects multi-brand retailers very carefully and builds partnerships so that retailers become genuine brand ambassadors when interacting with end-customers. In an equally selective approach, the Maisons also continue to refurbish and open their own directly operated stores in buoyant markets in key cities.

The Watches and Jewelry brands’ directly operated store network comprised 969 stores as of year-end 2025 at prestigious locations in the world’s largest cities.

4.5         Highlights of 2025 and outlook for 2026

Highlights

For the Watches and Jewelry business group, the priority remained focused on innovating, showcasing its icons, enhancing the desirability of collections and pursuing quality-driven retail development. Managing expertise was another key priority.

Tiffany & Co. continued to focus on its iconic lines as part of its elevation strategy. Hardwear and Knot in particular experienced strong growth. The Maison’s portfolio of iconic pieces was enriched with the Sixteen Stone collection and the Bird on a Rock line, launched in August, whose very good performance attested to the growing desirability of its designs. Tiffany & Co. had a record year in high jewelry. The Blue Book 2025 Sea of Wonder high jewelry collection was a major success. The collection showcased Tiffany & Co.’s powerful creativity, infused with the rich heritage handed down by its first designer, Jean Schlumberger. Tiffany won two awards (the Jury’s Special Prize and the Heritage Prize) at the first Grand Prix de la Haute Joaillerie in Monaco, in recognition of the Maison’s past and present excellence in jewelry-making. The program aimed at renovating locations and rolling out the new store concept continued, illustrated by two magnificent achievements: the Maison’s first flagship store in Europe, on Via Monte Napoleone in Milan, which received the Prix Versailles, followed by the Tokyo Ginza flagship. Renovated stores – which account for nearly a third of the total network since Tiffany & Co. joined LVMH – showed solid growth, as did The Landmark on New York’s Fifth Avenue, which achieved steady growth for the third consecutive year.

Bvlgari achieved another record year. 2025 kicked off with the Year of the Snake festivities in Shanghai and a large-scale art exhibition featuring the work of Chinese and international artists. The new Polychroma high jewelry collection, unveiled in Italy, China, Japan, the United States and the Middle East, generated record sales of multi-million-dollar pieces. The Kaleidos exhibition at Tokyo’s National Art Center showcased the Maison’s creative universe and its unique expertise in colored gemstones. New collections were added to each of its three major iconic lines (Serpenti, Divas’ Dream and B.zero1). The Octo Finissimo Ultra Tourbillon timepiece – which set a new record for the world’s thinnest tourbillon watch – and the new Serpenti Aeterna collection of jewelry watches were presented at the Watches and Wonders trade show. New flagship stores were opened in Milan, Los Angeles, Miami, Tokyo and Riyadh, boosting sales momentum in these key markets. Bvlgari inaugurated its expanded Valenza site, which became the world’s largest and most sustainable jewelry manufacturing facility, powered entirely by renewable energy.

For the first year of its partnership with Formula 1, TAG Heuer returned as official timekeeper and extended its contract with the Red Bull Racing team and its four-time world champion driver Max Verstappen. The new “Designed to Win” marketing campaign was launched, showcasing the brand’s ties to the world of sports. The Maison expanded its range with new high-end editions of the iconic Monaco and Carrera, featuring split-second and flyback complications, and, at the end of the year, chronometers equipped with a proprietary carbon-composite hairspring, a revolutionary innovation by TAG Heuer. The Maison took back direct control over its distribution in South Korea and Mexico.

For the 20th anniversary of its Big Bang collection, Hublot released a limited edition of five exceptional models fusing the design of the original watch with that of the current Big Bang Unico. Following the Watches and Wonders trade show, anniversary celebrations continued throughout the year, with Kylian Mbappé and Usain Bolt making appearances at Dubai Watch Week and Art Basel Miami. The new “Own It” marketing campaign was launched in May. The MP-17 Meca-10 Arsham Splash, designed in collaboration with American artist Daniel Arsham, was unveiled in October in Singapore.

Zenith commemorated its 160-year history, unveiling the G.F.J. chronometer, a tribute to its founder reflecting the Maison’s historic contribution to watchmaking excellence. The design won the Chronometry Prize at the 25th Geneva Watchmaking Grand Prix. Meanwhile, Zenith continued to modernize its unique manufacturing facility in Le Locle.

Faithful to its pioneering spirit, L’Epée 1839 revisited the Swiss cuckoo clock, breathing new life into this quintessential symbol of Switzerland’s clockmaking tradition.

Chaumet developed its emblematic Bee de Chaumet jewelry line, which performed well. Embodying its legacy as a jeweler inspired by nature, the Maison unveiled its Jewels by Nature high jewelry collection at an inaugural event held in Marbella, Spain, before continuing its world tour. These ties to the natural world were also celebrated in “Ode to Living Nature”, an experience presented at the World Expo in Osaka, which drew over one million visitors. The Maison underscored its commitment by entering into a partnership with WWF and launching its first jewelry made from 100% responsibly sourced, traceable gold.

Fred focused on injecting fresh energy into its iconic collections: Force 10 enjoyed major success with the launch of Force 10 Rise and the extension of its partnership with the French Open, while Chance Infinie developed a new aesthetic. The Maison cemented its positioning as the “Sunshine Jeweler”, unveiling new high jewelry pieces in two collections: 1936 and Soleil d’Or Sunrise. It continued to expand its retail network.

Repossi launched the new Blast jewelry collection and strengthened its ties with contemporary art through a collaboration with American artist Sterling Ruby. The Maison expanded significantly in Asia during the year, notably in South Korea and Japan.

Outlook

Building on their success, the Maisons will continue to make targeted investments in innovation, the development of their iconic lines, desirability and in-store excellence. In 2026, Tiffany & Co. will continue to deliver on its elevation strategy built around its iconic lines as well as renovating its stores, with the aim of continuing to enhance its desirability and the quality of its customer experience. A varied program of events will highlight the Maison’s exceptional creativity, heritage and craftsmanship. Bvlgari will focus on renovating its most iconic stores and expanding its range in its signature lines. The Maison will launch a high jewelry collection in Milan in March. In watchmaking, two new models will join the Serpenti collection and the Octo Finissimo watch will receive a major upgrade. TAG Heuer will focus on chronographs and partnerships with Formula 1. The Maison will unveil major innovations in mechanical movements in its Monaco and Carrera collections and open a new case-making facility in Cornol, Switzerland. Hublot will celebrate its partnership with UEFA at the Champions League final and add to its Big Bang and Classic Fusion collections. Zenith will bring fresh innovations to its Chronomaster and G.F.J. lines. Chaumet will unveil a new, nature-inspired high jewelry collection. Fred will celebrate its 90th anniversary by launching the Monsieur Fred Golden Light high jewelry collection and promoting its iconic lines. Repossi will celebrate the 40th anniversary of its arrival on Place Vendôme and open a store in London.

5.     Selective Retailing

In 2025, revenue for the Selective Retailing business group accounted for 23% of LVMH’s total revenue.

The Selective Retailing business group comprises Sephora, the world’s leading selective beauty retailer; Le Bon Marché, a Paris department store with a unique atmosphere; and travel retailer Duty Free Shoppers (DFS), which caters specifically to international travelers.

5.1         Competitive position

Distribution in the beauty sector is highly fragmented, served by major specialist retail chains, department stores, websites and independent perfume retailers.

5.2         Distribution and digitalization

Sephora markets beauty products. Its stores are organized around dedicated spaces for perfume, makeup, skincare and haircare, and services. Customers are free to try products out and beauty advisers are on hand to provide personalized recommendations. The quality of this concept has enabled Sephora to gain the confidence of perfume and cosmetics brands.

With its distribution network of 2,242 stores present in 35 countries as of December 31, 2025, its websites, mobile apps and strong social media presence, the Maison creates an omnichannel beauty experience that is increasingly innovative and personalized and offers customers an interactive, flexible, seamless shopping journey.

DFS has developed its business through partnerships with international tour operators and major luxury brands. Through its airport concessions and its city-center Galleria stores, which currently account for about two-thirds of its revenue, DFS is particularly present in the United States and at tourist destinations in the Asia-Pacific region.

5.3         Highlights of 2025 and outlook for 2026

Highlights

Sephora once again posted solid revenue growth in 2025, against a particularly high basis of comparison. At DFS, initiatives to streamline operations helped improve profitability, despite business activity still being held back by prevailing international conditions.

Sephora turned in a solid performance, continuing to gain market share and reaffirming its powerful brand and its effective, resilient business model. Growth was particularly strong in Europe, the Middle East and Latin America. Business continued to grow in North America. In a still challenging Chinese market, the strategic focus was on further differentiating Sephora’s range of products and services, particularly in makeup, as well as building loyalty and enhancing the in-store experience. These initiatives yielded very encouraging outcomes as store traffic gradually picked up.

Makeup remained the top category by sales volume, followed by skincare, fragrance and haircare. Fragrance, meanwhile, showed the strongest momentum thanks to a number of product innovations and new applications, such as mists and layering. Exclusive brands, which made up nearly half the brand portfolio, were the most significant source of growth. Rhode – the “native online” makeup and skincare brand founded by Hailey Bieber, launched in North America followed by the United Kingdom – was Sephora’s biggest-ever launch. The Maison also continued with its partnership strategy, as demonstrated by the new “We Belong to Something Beautiful” campaign with Lady Gaga’s Haus Labs brand.

Sephora continued to invest in its omnichannel strategy and expand its retail network, opening around a hundred locations in 2025. This expansion was particularly dynamic in the United Kingdom, with five new stores delivering outstanding performance. A new flagship store opened in São Paulo, while a new store concept was rolled out in North America. The Maison continued to develop its Sephora experience concept in Asia, exemplified by a new store in Bangkok and the renovation of existing stores in China. Meanwhile, the app continued to establish itself as Sephora’s “digital flagship”, offering an enhanced experience.

Sephora continued to grow its community of 80 million active members around the world and strengthen its brand, which has ranked among the world’s top 100 brands for several years running. The “Sephoria” world tour continued, with events in Milan, Shanghai, Paris and Dubai.

The Maison reaffirmed its values and its commitment to environmental and corporate social responsibility. For the third year in a row, Sephora renewed its partnership with the Rare Beauty brand to mark World Mental Health Day.

With tourism recovering more quickly in some markets than others, DFS focused on improving its profitability, notably by streamlining its store network and undertaking targeted marketing initiatives. Its Abu Dhabi airport store and the Galleria in Okinawa, which celebrated its 20th anniversary, continued to attract high footfall and strong demand. Revenue grew in Hong Kong and Macao thanks to a strategy of forging stronger partnerships with iconic brands, renovating stores, launching exclusive products and running high-impact events and initiatives at key locations, such as Four Seasons Macao.

Le Bon Marché once again posted revenue growth, driven by its differentiation strategy focused on a continuously renewed selection of exceptional products, exclusive partnerships and concepts, and a rich array of cultural events. Highlights of the year included the Le La Serpent exhibition, which gave carte blanche to renowned Brazilian artist Ernesto Neto; the light-heartedly offbeat Je T’aime Comme Un Chien exhibition; the Tout Beau et Tout Bronzé exhibition held over the summer; and the Rock’n’Drôle exhibition in September, created with Antoine de Caunes, which took visitors on a humorous journey through the history of rock. Babel, a stunning new performance choreographed by Mourad Merzouki and Le Bon Marché’s third night-time show, was a major success. With its exceptional range of culinary products and gourmet experiences, La Grande Épicerie de Paris achieved revenue growth, particularly among international customers. The Group strengthened the organization of its department stores in March 2025 by implementing a shared governance structure for Le Bon Marché and La Samaritaine, which will continue its development while drawing up its business model for the future.

Outlook

In 2026, Sephora will continue to pursue its strategy of differentiation through products and experiences, and will continue to expand its store network to sustain growth and win market share. The Maison will focus on seeking out growth opportunities across all of its geographical markets, including the most mature, as well as launching in new countries such as Croatia in Europe and continuing to expand in the United Kingdom, Latin America and Southeast Asia. In North America, Sephora will continue to open new stores and pursue its renovation program, rolling out its new store concept. In China, its new strategy will feature a number of exclusive brand launches and store renovations. The Maison will focus on developing its “Only at Sephora” selection and brand collaborations, following the model of Rhode, which will continue to be rolled out. Its omnichannel strategy will be further reinforced to ensure a seamless user experience and personalized, high-quality advice at every step of the customer journey, notably through the global rollout of its skin scan and shade finder tools. The Maison will continue to inspire its community, with the now iconic “Sephoria” event to be held in a number of capital cities, and to reward customers, with the rollout of the “My Sephora” loyalty program. Spurred on by the conviction that its people, and in particular its beauty advisors, are the key to its success and its ability to deliver excellence in the customer experience, the Maison will continue to prioritize career development and training, with Sephora University and advanced new tools underpinned by technology and artificial intelligence. Lastly, the Maison’s commitment will be embodied in initiatives promoting inclusion – a core component of its global mission. DFS will further focus on its clienteling activities, showcase its selection of high-quality products and launch targeted initiatives. An agreement was signed in January 2026 with China Tourism Group Duty Free to acquire DFS’ business in Greater China, in particular the Gallerias in Hong Kong and Macao. Le Bon Marché will strive to further enhance the quality of its exclusive selection focused on desirability and uniqueness. The Maison will launch a new loyalty program in September 2026 to attract and satisfy an ever more demanding customer base. The legendary department store on the Left Bank of the Seine will continue to host unique artistic events, starting with an exhibition by Chinese artist Song Dong, a major figure in contemporary art. La Grande Épicerie de Paris will showcase regional specialties and develop its range of artisanal products and services.

6.     Other activities

“Other activities” include, in particular, the Les Echos group, which comprises leading French business and cultural news publications; Royal Van Lent, the builder of high-end yachts marketed under the brand name Feadship; and Cheval Blanc and Belmond, which operate a collection of exceptional hotels and hospitality activities.

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1.     General framework for preparation of the sustainability report

1.1         Basis for preparation of the Sustainability Report

The Sustainability Report for fiscal year 2025 has been drawn up in accordance with Directive (EU) 2022/2464 as regards corporate sustainability reporting (CSRD), as transposed into French law in Order No. 2023-1143 of December 6, 2023.

Annual sustainability disclosures are prepared in accordance with European Sustainability Reporting Standards (hereinafter “ESRS”), Article L. 233-28-4 of the French Commercial Code and the Taxonomy Regulation. In accordance with Delegated Act 2025/1416 adopted by the European Commission on July 11, 2025 (the “quick fix” act), the LVMH Group adopted the transitional measures required for fiscal year 2025 (see §1.2).

Application for fiscal year 2025

The Sustainability Report is based on the ESRS in force and the various recommendations of the European Securities and Markets Authority (ESMA) and European Financial Reporting Advisory Group (EFRAG) as of the date of preparing the statement. The information it contains has been prepared in an evolving regulatory environment characterized by a desire to clarify and simplify the implementation of disclosure obligations.

In particular, some information is sensitive to methodological choices, assumptions and/or estimates used in their preparation and to the quality of the external data used. This concerns primarily disclosures relating to the value chain and the climate impact (Scope 3) and water impact associated with the Group’s activities. Such assumptions, estimates or other forms of judgment made on the basis of the information available or the situation prevailing at the date at which the Sustainability Report is prepared may subsequently prove different from actual events. As a result, the targets, objectives, means of action and results set out in the paragraphs relating to the topical ESRSs are based on indicators that depend on assumptions and estimates associated with changes in methodology and the level of scientific knowledge.

Other disclosures cannot be estimated due to the complex nature of EU regulations, the level of scientific understanding and limited access to reliable data from a number of internal and external sources. This is the case for qualitative disclosures concerning substances of concern and releases of pollutants.

As explained below, the scope of consolidation for the sustainability statement is the same as for the Group’s consolidated financial statements, with the exception of the fiscal year’s acquisitions. The Group is working on expanding this scope to include activities under operational control, as specified in ESRS E1, E2 and E4 (e.g. GHG emissions, quantities of pollutants and sites associated with material biodiversity matters), pending application guidelines from standards-setting bodies and market practices.

Scope of consolidation

The LVMH Group’s operations covered by this Sustainability Report correspond to the activities of the parent company and fully consolidated subsidiaries, apart from acquisitions carried out in the course of the year, which can take up to 12 months to include in the Group’s consolidated sustainability reporting. Acquisitions during the period are presented in the Group’s consolidated financial statements (see “Financial statements – Consolidated financial statements”, Note 2). The effect of these acquisitions on the Group’s 2025 data, calculated on a pro rata basis as of the date of acquisition, is deemed insignificant. Jointly controlled companies and companies where the Group has significant influence but no controlling interest and those accounted for using the equity method are considered part of the Group’s value chain.

Certain paragraphs of the Sustainability Report provide more specific details on sustainability information related to the Group’s value chains, both upstream (Group suppliers in particular) and downstream with customers (see §4 below, “Method for identifying impacts, risks and opportunities”).

In preparing the Sustainability Report, the Group did not use the options provided by ESRS 2-BP-1 §5-d and e.

1.2         Disclosures in relation to specific circumstances

As part of the process of drawing up the Sustainability Report, certain information requires the use of time horizons, assumptions, estimates or other forms of judgment.

Time horizons

In accordance with ESRS 1, the Group applies the following time horizons:

●   one year (short-term), in line with the Group’s financial statements;

●   two to five years (medium-term);

●   more than five years (long-term).

Use of transitional provisions

In accordance with ESRS 1, the Group has opted to apply the following transitional measures:

●   Value chain: The Group has made partial use of the phase-in provisions permitted related to quantitative and qualitative information about its value chain. However, this sustainability statement may use estimates for information reported concerning the Group’s upstream or downstream value chain. These estimates are detailed in the ESRS topic-specific sections with their definition, calculation method, scope, level of accuracy and, where applicable, how they could be improved.

●   Phased-in disclosure requirements: The Group has adopted all the phase-in provisions linked to the anticipated financial effects from risks and opportunities related to the five ESRS environmental standards (as presented in the table below) as well as those under ESRS S1 – “Own workforce”, solely for non-employees and only the information relating to the percentage of employees taking part in career reviews, for all employees (as presented in the table below).

Changes in preparation or presentation of sustainability information

The indicators are provided for fiscal year 2025 in comparison with fiscal year 2024 and the baseline year, where applicable. This information is provided in each topic-specific paragraph concerned, where applicable. The information required by GOV-4 “Statement on due diligence”, DR IRO-2 “Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement”, and ESRS 2 Appendix B “List of datapoints in cross-cutting and topical standards that derive from other EU legislation” has been moved to the appendix to the Sustainability Report to improve readability.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Where applicable, this sustainability statement sets out the recommendations followed under the TCFD (Task Force on Climate-Related Financial Disclosures) and TNFD (Taskforce on Nature-Related Financial Disclosures) frameworks.

2.     Governance

2.1         Role of administrative, management and supervisory bodies

The Board of Directors is the strategic body of the LVMH SE. Its key priorities are enterprise value creation and the defense of the Company’s interests. It endeavors to promote long-term value creation by the Company and protecting its corporate interests, focusing in particular on the social, environmental and climate issues facing its business. The members of the Board of Directors and their skills and experience are presented in the “Corporate governance” section, §1.1.1 and 1.1.2.

Its main assignments are as follows:

●   set the Company’s and the Group’s broad strategic direction and ensure that it is put into practice, in particular, on the recommendation of Executive Management, as regards environmental and social responsibility, taking into account the climate issues faced by their businesses;

●   promote a policy of economic development consistent with a corporate social responsibility approach based, in particular, on respect for human rights and protection of the environment in which the Group operates;

●   monitor developments in markets, the competitive environment and the key strategic priorities facing the Group;

●   ensure that the major risks to which the LVMH SE is exposed with regard to its structure and objectives are taken into account by management;

●   ensure that procedures to prevent corruption, particularly influence-peddling risks, are implemented;

●   monitor the performance of systems related to data protection and ethics;

●   ensure that a non-discrimination and diversity policy is in place within the Group’s governing bodies, the gender equality objectives of which it sets at the proposal of Executive Management;

●   disseminate the shared values that guide the Company and its employees, and govern relationships with consumers as well as with partners and suppliers of the Company and the Group;

●   ensure that the Group adapts to changes in the business environment, defines senior executives’ responsibilities and delegated authority.

In addition, the Board of Directors includes a Lead Director who is kept informed of any social, environmental and governance-related questions from shareholders.

2.2         Information provided to and sustainability matters addressed by the Group’s administrative, management and supervisory bodies

The Board of Directors has set up several committees, each specializing in a matter of importance: a committee in charge of performance audit, a committee in charge of compensation, and a committee in charge of sustainability and governance.

Each of the Board’s committees is involved in the process of drawing up and monitoring the Company’s and the Group’s non-financial strategy with regard to the topics within their fields of expertise.

The involvement of the administrative and management bodies and their work in relation to these sustainability matters are presented in the “Corporate governance” section, §1.2.2.5.

These three committees may work together on subjects concerning environmental, workforce-related and social responsibility. To that end, they may organize one or more joint meetings a year promoting a coordinated and consistent approach to work on these cross-cutting topics.

Concerning environmental, workforce-related and social responsibility matters, the committees’ main assignments are as follows:

Performance Audit Committee

●   monitor the process of preparing and checking sustainability information as well as the process implemented to determine which information to report pursuant to regulations;

●   present the Board of Directors with the report drawn up by the firm tasked with certifying sustainability reporting;

●   monitor and ensure the existence, pertinence and application of internal control, risk management (including social and environmental risks) and internal audit procedures, make recommendations to Executive Management on the priorities and general direction of Internal Audit, and analyze the Company’s and the Group’s exposure to risks, including social and environmental risks;

●   verify the independence of the firm tasked with certifying sustainability reporting and monitor the performance of its assignment;

●   oversee the procedure for selecting the Company’s Statutory Auditors, as well as the procedure for selecting the firms responsible for certifying sustainability reporting; and make recommendations on appointments to be proposed at Shareholders’ Meetings.

Compensation Committee

●   issue recommendations regarding the qualitative and quantifiable criteria applied to the variable portion of compensation for senior executive officers, which will take account, besides financial objectives (quantifiable), of strategic and managerial criteria (qualitative) as well as criteria related to corporate social responsibility and sustainability (quantifiable and qualitative), including one criterion directly related to the undertaking’s climate objectives;

●   periodically assess whether financial and non-financial criteria are met. These assessments will then be used to determine the variable portion of compensation paid to senior executive officers and define, where applicable, the conditions to be met for them to exercise their options to subscribe for or buy shares and vest the bonus shares, subject to performance conditions, awarded to them.

Sustainability & Governance Committee

Sustainability

●   assist the Board of Directors in defining the Company’s and the Group’s broad strategic direction with regard to ethical, workforce-related, environmental and climate-related matters, and ensure that it is put into practice;

●   assist in defining and ensuring compliance with the rules and values laid down in the LVMH Code of Conduct, which must be followed by senior executives and employees, as well as other codes and charters resulting from that Code;

●   review the performance of systems related to (i) the privacy of customers and employees, and (ii) ethics and compliance;

●   monitor the functioning of whistleblowing systems put in place within the Group and ensure the implementation and monitoring of systems related to duty of vigilance and respect for human rights;

●   review the environmental, workforce-related and social information contained in the Management Report of the Board of Directors and submit its opinion on this information to the Board.

Governance

●   identify, as part of the procedure for selecting Directors and in accordance with its diversity policy, the skills and expertise, particularly financial and non-financial, expected of potential Directors and considered key priorities for the Company;

●   give its opinion on the diversity policy applicable to members of the Board of Directors, the gender equality policy applicable to the Group’s governing bodies, the description of the goals of those policies, the terms of their implementation and the results obtained over the fiscal year covered to prepare the Board of Directors’ report on corporate governance;

●   discuss all matters related to corporate governance, and issue an opinion on the general policy for the allocation of options and bonus shares within the Group, and on its policy for employee savings and share ownership.

2.3         Integration of sustainability-related performance in incentive schemes

Senior executive officers

On the recommendation of the Compensation Committee, LVMH’s Board of Directors sets the terms for allocating annual variable compensation for senior executive officers.

Compensation paid to the Chairman and Chief Executive Officer, in addition to fixed compensation, includes a variable annual component based on the achievement of financial (quantifiable), strategic and managerial (qualitative) and CSR- and sustainability-related (quantifiable and qualitative) objectives.

For the fiscal year ended December 31, 2025, the criteria used to determine variable compensation for the Chairman and Chief Executive Officer are broken down as follows:

●   50% of total variable compensation depends on financial (quantifiable) criteria relating to growth in the Group’s revenue, operating profit and cash flow relative to the budget trajectory for the year in question;

●   50% of the total variable compensation is based on criteria related to strategy, management, corporate social responsibility and sustainability, broken down as follows:

-   criteria related to strategy and management (qualitative): 70%;

-   criteria related to CSR and sustainability (quantifiable and qualitative): 30%.

In 2025, quantifiable and qualitative criteria related to corporate social responsibility and sustainability were centered on the following points:

●   supporting communication on ethics and building capacity on audit teams and the duty of vigilance;

●   stepping up the Group’s commitment to environmental protection, in particular through the LIFE 360 program;

●   driving specific investment in preserving craftsmanship and expertise.

The method used for assessing performance was reviewed by the Compensation Committee. Based on this assessment, the Board of Directors considered that the objectives had been met.

The objectives are set each year by the Compensation Committee, which is made up entirely of independent members except a Director representing the employees, who is not independent, and published when this compensation is allocated.

The variable portion is capped at 250% of the Chairman and Chief Executive Officer’s fixed compensation.

In addition, senior executive officers of the Company are eligible for bonus share plans put in place by the Board of Directors for employees of the Company and/or employees and senior executive officers of affiliated companies and are subject to the same rules governing such plans, with the proviso that (i) they may only be awarded bonus shares subject to performance conditions and (ii) the total number of bonus shares awarded to senior executive officers of the Company over the course of a fiscal year may not exceed 15% of the number of shares granted by the Board of Directors over that fiscal year.

The vesting of bonus shares is subject to a continued service condition under which recipients must still be with the Group on the date the shares vest and subject to the achievement of performance conditions. Performance criteria for bonus share plans are fixed by the Board of Directors and concern the LVMH Group as a whole.

For the plans in place starting in October 2022, these criteria are (i) 85% financial criteria and (ii) 15% non-financial criteria relating to the Group’s social and environmental responsibility, and in particular are based on progress achieved in implementing the LIFE 360 program adopted by the Group in 2021. This program contains specific objectives for protecting biodiversity, combating climate change, promoting circular economy practices and ensuring product traceability, to be achieved by 2030, with intermediate milestones to be reached before then (2023, 2026 and 2030) and annual monitoring.

An ad hoc committee consisting of the chairmen of the Board of Directors’ three committees meets to assess the Group’s specific trajectory and progress toward meeting the objectives and, consequently, to determine the percentage of shares to be vested on the basis of non-financial criteria.

2.4         Risk management and internal controls over the Sustainability Report

The main risks identified to date by the various departments involved in relation to sustainability information are the completeness and integrity of data, the accuracy of estimation results, and the availability of data on the upstream and/or downstream value chain.

To ensure the quality of non-financial data, reporting protocols are established by the departments involved. They are updated annually and communicated to the various contributors at the Maisons at the start of the data collection process. Moreover, the calculation methodology for the different indicators and consolidation rules are defined in advance, thereby ensuring that the reporting processes set by each department and their continuity are applied uniformly. The processing of estimates is also specified in the report. In addition, specific training may be organized for people involved in collecting and/or producing data.

Lastly, controls to detect and resolve any inconsistencies are carried out by each department involved (Environment, Human Resources, etc.) within the Maisons and at the Group level. These complement those directly integrated into the reporting tools.

In 2026, the Group Internal Control Department will be tasked with reviewing the methodological approach used by the Maisons in preparing the mapping of major risks (including in particular the risk assessment criteria) and documenting LIFE 360 and CSRD reporting processes.

3.     Strategy

3.1         Strategy, presentation of the Group and its activities

This paragraph sets out the Group’s business groups in addition to its values and operating model to give a better understanding of how sustainability is incorporated into its strategy, as well as how it manages the associated impacts, risks and opportunities.

The LVMH Group was formed from the merger of Moët Hennessy and Louis Vuitton in 1987. Mr. Arnault became the leading shareholder and Chairman and Chief Executive Officer in 1989, with the ambition of making LVMH the world leader in luxury.

Today, the LVMH Group has built its leading position through a unique portfolio of 75 exceptional Maisons, operating in six business segments. Each of them creates products that combine high-level expertise with a strong heritage, drawing their momentum from a spirit of innovation and openness to the world.

The Group helps its Maisons grow over the long term, based on respect for their specific strengths and individuality, underpinned by common values and a shared business model. LVMH provides them with all of the resources they need to grow in terms of designing, manufacturing and selectively retailing their products and services.

Business group overview

Through its Maisons, the LVMH Group comprises a diversity of businesses and is the only group that operates simultaneously in all the major luxury sectors, namely Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing and Other activities (See “Business overview, highlights and outlook”).

Key figures (as of December 31, 2025)

Geographic presence (as of December 31, 2025)

The values of a deeply committed Group

Driven by the mission of LVMH and its Maisons to craft dreams, the Group puts heart and soul into everything it does. Its core identity is based on the fundamental values that run through it and are shared by all its people.

Being creative and innovative: The fundamental values of creativity and innovation are pursued in tandem by the Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future, developing within the Group while staying true to their roots and their unique heritage, in order to craft products that will stand the test of time. Throughout the years, the creativity and innovation that are part of the Group’s DNA have been the keys to its Maisons’ success. They open up an infinite range of possibilities to be explored through new technology, one of the Group’s major growth drivers.

Delivering excellence: Within the Group, quality can never be compromised. Because the Maisons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself.

Cultivating an entrepreneurial spirit: The Group’s agile, decentralized structure fosters efficiency and responsiveness. It encourages individuals to take initiative by giving everyone a significant level of responsibility. The entrepreneurial spirit promoted by the Group makes risk-taking easier and encourages perseverance. It requires a pragmatic approach and the ability to motivate staff to achieve ambitious goals.

Taking action to make a difference: Every action taken by the Group and its employees reflects its commitment to ethics, corporate social responsibility and respect for the environment. These commitments drive the Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, the Group is committed to ensuring that its products, and the way they are made, have a positive impact on its entire ecosystem and the places it operates, and that it is actively working to build a better future.

Operating model

LVMH has adopted a unique model to ensure the development and autonomy of each of its Maisons in keeping with their identity. The Group makes available to them all the resources required to create, manufacture and distribute products and services that exemplify excellent quality and uphold the highest ethical, social and environmental standards.

Decentralized organization: The structure and operating principles adopted by LVMH ensure that Maisons are both autonomous and responsive. As a result, they are able to build close relationships with their customers, make fast, effective and appropriate decisions, and motivate Group employees for the long term by encouraging them to take an entrepreneurial approach.

Internal growth: The LVMH Group prioritizes internal growth and is committed to developing its Maisons, and encouraging and protecting their creativity. Staff play a critical role in a model of this kind, so supporting them in their career and encouraging them to exceed their own expectations is essential.

Vertical integration: Designed to cultivate excellence both up- and downstream, vertical integration ensures control of every stage of the value chain, from sourcing to production facilities and selective retailing. It also guarantees strict control of each Maison’s brand image.

Creating synergies: Resources are pooled at Group level to create intelligent synergies while respecting each Maison’s independence and autonomy. The combined strength of the LVMH Group is leveraged to benefit each of its Maisons.

Securing expertise for the long term: The Maisons that make up the Group cultivate a long-term vision. To preserve their distinctive identities and excellence, the Group and its Maisons have developed a range of initiatives to pass down skills and expertise, and promote craft trades and design professions among younger generations.

Balance across business segments and geographies: The LVMH Group has the resources to sustain regular growth thanks to the balance across its business activities and a well-distributed geographic footprint. This balance means that the Group is well positioned to withstand the impact of shifting economic factors.

Innovation dedicated to excellence: LVMH owes its long-term success to its pursuit of excellence. In an ever changing world, innovation is a powerful tool for achieving this, making the Group’s products ever more appealing and the experiences it offers its customers ever more unforgettable. Driven by its employees, the Group’s innovation is based on several pillars: its in-house R&D centers, its network of startups, its partnerships with the world of academia and numerous expert companies.

3.2         Involving stakeholders

Rethinking creation, preservation and the development of expertise, production, use and reuse, in order to bring about positive social and environmental impacts and reduce the Group’s negative impacts requires collective action and commitment. In this spirit, by working in synergy with its ecosystem, thanks to the input and buy-in of stakeholders, LVMH and its Maisons are taking action to build the luxury industry of tomorrow.

This dynamic is intended to create a virtuous circle of shared progress and mutual benefit across all territories where LVMH has a presence. It strengthens trust between the Group and all its stakeholders, such as customers, suppliers, institutions, local authorities, international organizations and non-governmental organizations.

The Group’s approach to stakeholder dialogue and engagement is guided by a genuine spirit of partnership. To identify and implement innovative action programs designed to address challenges and achieve its strategic objectives, the Group acts as either an initiator or a coordinator of dialogue on key issues. Alongside this approach, the Group is strongly committed to the principle of autonomy whereby some Maisons are free to structure and oversee their own approaches to engaging with targeted issues, in partnership with their respective ecosystems.

The main types of stakeholders with whom the Group enters into dialogue (monitoring, consultation, engagement) are as follows:

1.     NGOs and nonprofits representing civil society;

2.     Scientific experts and representatives from the academic world;

3.     Sector organizations and peers;

4.     Suppliers and subcontractors;

5.     Shareholders and investors;

6.     Customers;

7.     Public and international institutions;

8.     Employees, unions representing workers (including within the value chain);

9.     Economic partners.

Stakeholder consultation takes place at various levels and is essential in strengthening the Group’s sustainability action plans. It also plays a foundational role in shaping due diligence mechanisms.

Examples of current initiatives across the Group and its value chains by stakeholder type

The above table sets out a list of initiatives undertaken by the Group to dialogue with stakeholders on sustainability matters. The information is presented for illustrative purposes: it is not exhaustive and does not encompass all measures adopted. Furthermore, it is presented in greater detail in the sections of this report that cover specific environmental, social and governance matters.

3.3         Responsible, sustainable model for value creation

Driven by its mission of crafting high-quality products and services, LVMH’s business model draws on human, creative and financial capital, as well as natural materials, to create exceptional items that stand the test of time, according to different stages of value creation:

Design: LVMH capitalizes on the creativity of its employees, whether creative directors, cellar managers (Wines and Spirits), fragrance designers (Perfumes and Cosmetics) or architects. These creative visionaries are the guardians of each Maison’s heritage. Each of them draws on this heritage to design products and spaces that renew the offer proposed by Maisons while also respecting their heritage, being firmly open to the world, and remaining committed to sustainability, innovation and the passing on of vital skills and knowledge.

Supply chain: LVMH cultivates excellence from the very beginning of its value chains by opting where possible to source raw materials that limit environmental impact and involve local communities. For certain supply chains, LVMH promotes adopting regenerative practices to create a positive impact, helping nature and local communities alike.

Production: LVMH’s long-term commitment is also reflected in its safeguarding of skills and expertise to preserve the identities and excellence of its Maisons. A range of initiatives have been developed to promote craft trades and pass on skills and expertise. LVMH and its Maisons prioritize energy efficient production methods, taking care to limit the consumption of natural resources without ever compromising the quality of products.

Transportation and logistics: The Group and its Maisons manufacture products which are produced mainly in France and Italy and then transported to 81 countries throughout the world. Optimizing logistics by geographic region is a constant consideration for LVMH Maisons in order to limit their environmental impact. By the same token, opting for local transportation methods that generate lower greenhouse gas emissions is another way the Group contributes to its continuous improvement approach.

Retail and customer experience: Controlling the distribution of its products is a core strategic priority for LVMH. The Group has a world-leading network of exclusive boutiques under the banner of its brands, with the aim of consistently delivering full satisfaction and excellence in the customer experience. For all its business sectors, LVMH strives to achieve optimal environmental management of its store network, which is also an essential component of its close ties with each customer base and allows it to offer unique shopping experiences.

Circularity: LVMH and its Maisons approach value creation from a circular economy perspective, which is reflected in both widespread adoption of sustainable design and repair, and in the development of synergies. Resources are pooled at Group level to create intelligent synergies while respecting each Maison’s autonomy and with the goal of enhancing the sustainability of products and their components. LVMH and its Maisons are also committed to ensuring their activities have a positive impact on local communities, working in collaboration with local stakeholders.

Business model – LVMH Group (75 Maisons, 81 countries) – Figures for 2025

4.     Identifying impacts, risks and opportunities

4.1         Method for identifying and assessing impacts, risks and opportunities

4.1.1       Description of the processes to identify and assess material impacts, risks and opportunities

Dedicated governance arrangements have been put in place under the aegis of the Executive Committee to oversee and operationally implement the CSRD within the Group, including the creation of specific bodies: a dedicated Management Committee led by the Director of General Administration & Legal Affairs and the Chief Financial Officer who report back to Executive Management and a Steering Committee. These committees consist of representatives from the following departments: Purchasing; Ethics and Compliance; Group Controlling, Reporting & Consolidation; Environmental Development; Social Development; Duty of Vigilance; IT & Technology; Legal; Operations; CSR and Human Resources.

In keeping with the requirements of the Corporate Sustainability Reporting Directive (CSRD), the LVMH Group carried out a double materiality assessment (DMA) in 2024, the methodology of which was in accordance with the expectations set out in the European Sustainability Reporting Standards (ESRS), a delegated act published in July 2023, and the recommendations laid down in the EFRAG Materiality Assessment Implementation Guidance. In 2025, a review of the DMA conducted by the Steering Committee, chaired by the Director of General Administration & Legal Affairs and the Chief Financial Officer, confirmed that the material matters identified remain relevant.

The purpose of the double materiality assessment – a cornerstone of the CSRD – is to identify sustainability matters reflecting the following:

●   existing or potential positive and negative material impacts on people and the environment connected with the business of the Company and its value chain (impact materiality – inside-out perspective);

●   material financial impacts – both positive (opportunities) and negative (risks) – connected with sustainability matters that affect or could affect the Group’s financial performance (financial materiality – outside-in perspective).

The Group plans to have the materiality assessment reviewed annually by the Steering Committee responsible for sustainability matters and updated every three years, or when a major change of scope occurs.

All the methodologies used are described in the following paragraphs and the results of the analysis confirmed by these bodies.

This process of identifying, assessing and managing impacts, risks and opportunities follows a specific procedure. It is not currently incorporated into the overall risk management process at Group level.

Sustainability risk is treated in the same way as other types of risk.

4.1.2       General approach

Scope, phasing and key assumptions

To cover all of the Group’s activities while taking into account their specific characteristics, the double materiality assessment has been undertaken across eleven value chains: “Wines and Spirits,” “Fashion,” “Leather Goods,” “Watches,” “Jewelry,” “Perfumes and Cosmetics,” “Selective Retailing,” “Media, Communications, Events and Shows,” “Hospitality, Luxury Tourism and Parks,” “Food & Beverage, Patisseries” and “Yacht Building.”

The value chain for each of the aforementioned activities has been mapped, creating a global vision for the Group and highlighting the business models, industry sectors, upstream and downstream value chain segments and stakeholders affected. Impacts connected with the Group’s own operations and the value chain, including those connected with business relationships, have been considered across all geographies.

The process of identifying material impacts, risks and opportunities (IROs) was broken down into four key steps:

The first step consisted of identifying LVMH’s sustainability matters based on: (1) matters previously identified by the Group; (2) information specific to the Group’s various businesses; (3) the Group’s business model and value chain; and (4) ESG topics, subtopics and sub-subtopics listed in the ESRS.

The identification and assessment of impacts, risks and opportunities is based on the following:

-   sources of sector information: studies, peer practices, benchmarks, etc. (e.g. SASB, rating agency questionnaires);

●   internal sources of information regarding analyses of the Group’s activities and products, including existing impact and risk analyses;

-   consolidation of the views and interests of external stakeholders (consumers, local communities, civil society, nature, etc.) through in-depth bibliographical analysis and interviews.

In accordance with the requirements of ESRS, the following choices were made when the list of IROs was drawn up:

●   impacts, risks and opportunities identified and assessed are considered at “gross” level, i.e. without taking into account any action plans put in place;

●   risks and opportunities often arise from impacts. This means that, for each impact, the “counterparty” in terms of risk or opportunity must be considered.

Lastly, in addition to integrating the results of regular discussions with stakeholders (see §3.2 above) in order to take stakeholders’ interests and perspectives into account in evaluating IROs, the Group ran a dedicated interview-based consultation with eight external stakeholders, including (i) representatives from non-governmental organizations (NGOs) with expertise in environmental, social and governance matters and (ii) investors. These stakeholders were identified and ranked on the basis of their expertise and understanding of the impacts of the activities of the Group and its value chain. This targeted consultation aims to make the double materiality assessment more robust by means of a qualitative and strategic perspective of the stakeholders/experts involved.

4.1.3       Assessment of IROs

Assessment of impacts

Impact materiality was assessed using two variables required by ESRS, ESRS 1 and ESRS 2: severity (scale, scope and irremediable character) and likelihood. In terms of the potential negative impacts on human rights, severity takes precedence over likelihood. Each severity and likelihood criterion was assessed on the basis of a score from 1 to 4. Three time horizons were considered: short term (less than one year, aligned with the financial statements), medium term (between one and five years) and long term (over five years). The valuation of long-term impacts (i.e. aggravation of a negative impact or reinforcement of a positive impact) was adjusted by applying a coefficient. Combining these scores and coefficients allowed a final score from 1 to 4 to be given, which was then used to prioritize the impacts.

Assessment of risks and opportunities

Financial materiality was assessed using two variables required by ESRS 1 and ESRS 2:

●   severity, i.e. potential scale of financial effects;

●   likelihood of occurrence.

Severity was assessed on the basis of a score from 1 to 5 and likelihood from 1 to 4. As with impacts, a number of different time horizons were also considered, notably by including a coefficient to reflect the long-term improvement or deterioration in a financial effect. Each variable was either allocated a score or used as a coefficient. Combining these scores and coefficients allowed a final score from 1 to 5 to be given, which was then used to prioritize risks and opportunities.

Setting and reviewing thresholds

Each score was reviewed and validated by members of the CSRD Steering Committee (see §4.1 above).

Materiality thresholds were determined based on the following criteria and signed off by the Steering Committee:

●   alignment and continuity with the Group’s strategy and previous impact, risk and opportunity assessments;

●   materiality of the information for affected stakeholders and users of sustainability information.

Once the final results had been consolidated, the CSRD Steering Committee presented and explained the methodology used for the double materiality assessment to the Performance Audit Committee and the Sustainability & Governance Committee on November 26, 2024.

4.2         Material impacts, risks and opportunities and relationship to strategy and business model

Brief description of impacts, risks and opportunities

The Group’s activities involve exposure to various risks that are the object of regular risk management and identification, notably within the context of regulatory reforms. Each year, they are included in the “Risk factors and management” section.

The business model may create impacts, risks and opportunities, which are identified and assessed using a specific methodology and time horizon (see also §4 below for more information about the methodology used for identifying material impacts, risks and opportunities) which can be summarized as follows:

●   Impacts, risks and opportunities related to environmental matters:

-   contribution to climate change related to GHG emissions (ESRS E1);

-   risks associated with pressure on raw materials due to climate change and availability of water (ESRS E1);

-   environmental impacts in terms of water withdrawal, pollution and biodiversity focused on upstream mining and agricultural activities, particularly during the extraction of raw materials (ESRS E2, E3 and E4);

-   management of waste and unsold items (ESRS E5);

-   production of exceptional items that stand the test of time as part of a sustainable design approach resulting in the creation of new circular services (ESRS E5).

●   Impacts, risks and opportunities related to social matters:

-   impacts in terms of social integration and fulfillment through work (ESRS S1 and S2);

-   protecting and passing on expertise (increasing employability) (ESRS S1 and S2);

-   impacts on working conditions, in particular for the most vulnerable workers (physical risks and safety risks relating to specific activities, seasonal work, etc.) (ESRS S1 and S2);

-   reputational risk in terms of failure to uphold workers’ rights (ESRS S1 and S2);

-   risk of loss of expertise and rare skills in traditional crafts (ESRS S1 and S2);

-   opportunity for influence and growth (Group attractiveness) (ESRS S1);

-   contribution to equal opportunity through professional integration and boosting the local economy (creating jobs) (ESRS S3);

-   conflicts of use in upstream agricultural and mining activities (access/water and soil pollution) (ESRS S3);

-   impact in terms of use of elements/cultural codes belonging to communities (ESRS S3);

-   impact in terms of expanding access to culture (ESRS S4);

-   impact on health for Perfumes and Cosmetics and Wines and Spirits activities (ESRS S4);

-   impact by means of marketing and advertising practices (dissemination of stereotypes) (ESRS S4);

-   opportunities to develop products and services taking all singularities into consideration (ESRS S4).

●   Impacts, risks and opportunities related to governance matters:

-   contribution to protecting animal welfare; risks of sanctions or reputational risk associated with failure to observe the ethical standards promoted by the Group.

To manage the impacts, risks and opportunities and increase its resilience and competitiveness, LVMH has drawn up specific action plans (LIFE 360, the CSR Roadmap, the Convergence program, etc.), which are implemented by all the Maisons. A continuous improvement process is defined that aims to cover all its value chains.

The table below sets out the material impacts, risks and opportunities identified by the Group and their relationships with the strategies developed and implemented by it.

Correlation between material impacts, risks and opportunities and specific action plans

(–)  Negative impact

(O) Opportunity

(R)  Risk

Policies related to impacts, risks and opportunities

LVMH’s strategies and the associated action plans contribute fully to the Group’s vigilance approach through which LVMH identifies, prevent and mitigates risks to human rights and fundamental freedoms, human health and safety, as well as the environment, at every stage in the value chains of Group business activities.

Oversight of the Group’s vigilance approach relies on a dedicated governance structure involving every level of the Group, from the Board of Directors right down to operational communities within the Maisons, and a department focused solely on the duty of vigilance, which also regularly reports on its activities to the Sustainability & Governance Committee of the Board of Directors.

The Group’s vigilance approach is described in the “Risk factors and management” section of this Universal Registration Document and the due diligence statement can be found in the appendices to this Sustainability Report.

1.     General environmental policy

The LVMH Group environmental policy, which itself dates back to 1992, is designed to fulfill three purposes:

●   prevent and/or reduce environmental impacts by precisely measuring the impact of the Group’s activities on the climate, biodiversity (in soil and ecosystems) and water resources, covering Scopes 1, 2 and 3;

●   strengthen the intrinsic qualities of LVMH products (product sustainability and transmissibility), adopting the circular economy model;

●   promote positive impacts on the environment and society using creativity and innovation to change practices, while also encouraging other operators in the luxury sector.

It is based on a regularly updated analysis of the materiality of the environmental matters that it plans to address. In 2024, this analysis was completed using a double materiality assessment, in compliance with CSRD requirements. In 2025, a review of the DMA conducted by the Steering Committee chaired by the Director of General Administration & Legal Affairs and the Chief Financial Officer confirmed that the material issues identified remain relevant.

Measurement of the Group’s Climate, Water and Biodiversity footprints fueled the creation of LIFE 360 (LVMH Initiatives For the Environment – 360), a specific and proactive program of actions. Launched in 2021, this program includes objectives to be achieved by 2023, 2026 and 2030 that relate to the climate, biodiversity, circularity and traceability. The aim of this program is to create products that are in harmony with nature, with no negative impacts on resources and the climate. When the report was released on the level of achievement of objectives for 2023, these aims were publicly restated at the LIFE 360 Summit at UNESCO on December 14, 2023: “We are introducing a new vision for luxury that combines performance and commitment, while respecting the environmental equilibrium, and continuing to inspire dreams,” explained Mr. Arnault, Chairman and Chief Executive Officer for the Group, in his closing speech. On December 10, 2025, 32 sustainability initiatives – selected by an external firm from among 187 applications put forward by 41 Maisons – won LIFE 360 Awards.

1.1         Organization of the Group’s environmental approach

1.1.1       Governance related to environmental strategy

LVMH actions support the ten principles of the United Nations Global Compact, which the Group joined in 2003, and its Sustainable Development Goals.

The Board of Directors – the Company’s strategic body – is responsible for implementing the LIFE 360 environmental strategy, based on the opinions of the Sustainability & Governance Committee. The Board of Directors set up this committee, including within its role the provision of support in defining the broad strategic direction of the Company and the Group with regard to ethical, environmental and workforce-related matters, as described in the “General information” section, §2, “Governance”.

On the recommendation of the Compensation Committee, the Board of Directors sets the Chairman and Chief Executive Officer’s annual variable compensation, one of the criteria for which is linked to delivery of the LIFE 360 program commitments.

The Environmental Development Department – which reports to Antoine Arnault, Director of Image & Environment and a Member of LVMH’s Board of Directors and its Executive Committee – is responsible for implementing the LIFE 360 environmental strategy at a Group level and the environmental action plans included in the Sustainability Report. Since 2021, Antoine Arnault has delivered an annual report on the progress of the five LIFE 360 action plans at the annual Shareholders’ Meeting.

The Environmental Development Department also has these duties:

●   provide reporting on environmental data within a precisely defined scope and based on specific consolidation rules (see §1.4). The reporting system was implemented in 2001 and consists of four questionnaire types that were updated in 2024 to gather new information consistent with CSRD requirements;

●   use this reporting to provide updates on the Group’s environmental strategy, thus contributing to its non-financial performance. In 2025, the Group was included in the main indices based on responsible investment criteria: FTSE4Good Global 100, Sustainalytics (13.6) and S&P Global ESG (63/100). In 2025, LVMH was awarded a triple A rating by the CDP.

●   identify world-class measurement tools and methodologies and carry out forward-looking analysis to help the Maisons safeguard against risks and seize opportunities in each main business group, and in hospitality activities;

●   train employees and raise environmental awareness at every level of the organization via the LIFE Academy in particular;

●   monitor regulations around the world and ensure compliance with associated requirements;

●   share LVMH’s environmental experience at international summits and build proactive partnerships, which may have an influence on other players in the luxury sector.

1.1.2       Implementation of the environmental strategy within the Maisons

The Environmental Development Department is responsible for implementing the five LIFE 360 program action plans within each of the Group Maisons, and for monitoring these plans using the following methods:

●   each Group Maison includes the LIFE 360 program in its strategic plan and reports on its progress within its Management Committee. Some of the Maisons have incorporated LIFE 360 into dedicated processes (with indicators that reflect the specific characteristics of their key issues), such as: “Our Committed Journey” for Louis Vuitton, “Living Soils, Living Together” for Moët Hennessy, “In the Name of Beauty” for Guerlain and Sustainable Development for Bvlgari;

●   each Maison relies on the Sustainable Development Departments and internal environmental expertise when implementing their environmental program. The Maisons are responsible for collecting, monitoring and consolidating environmental data within their own scope of activity. By signing a letter of representation, they commit to the quality and completeness of the environmental data sent to the Group annually in preparation for this report;

●   the Maisons’ variable compensation policies may include performance objectives related to sustainability;

●   each year, the Environmental Development Department sends each Maison a table in which to report an overview of the progress made on the LIFE 360 program. This department also organizes a review of the LIFE 360 results based on a random selection of 75 Group Maisons providing a representative sample of its business groups, attended by the Maison President and its Head of Sustainability, as well as the LVMH Group’s Director of Image & Environment and Head of Environmental Development.

LVMH’s environmental experts (Group and Maisons) make up a network of nearly 200 people, known as the Environment Committee, which meets twice a year, in order to:

●   share the analysis of LIFE 360 results for each business group;

●   discuss best practices;

●   carry out a review of environmental innovations implemented within the Maisons, and identify possible synergies to broaden their scope.

1.2         The LIFE program

1.2.1       Origin of the approach

Signed in 2001 by the Group’s Chairman and Chief Executive Officer, the Environmental Charter (whose principles have now been integrated into the LVMH Code of Conduct) is the founding document for LVMH’s five key principles with regard to the environment:

●   striving for high environmental performance;

●   encouraging collective commitment;

●   managing environmental risks;

●   designing products that factor in innovation and environmental creativity;

●   making a commitment that goes beyond the Company.

Launched in 2011, the LIFE program puts these goals into practice. It was designed to step up environmental integration within the brands’ strategy and help develop new coordination tools. Roadmaps were used to implement the program, fixing quantified objectives shared across the Maisons.

The LIFE 360 roadmap covers the period from 2021 to 2030. With the Maisons’ shared desire to further accelerate progress, it was developed in 2020 by assessing previous roadmaps, analyzing the Group’s environmental footprints, and completing other preparatory work, including:

●   priorities set jointly with the Maisons and via the various consultative bodies: the LVMH Science Committee; the Future of Luxury Commission (established in July 2020 and made up of leading outside figures from various disciplines); and work sessions with students and young employees;

●   analyzing the extent to which LVMH’s environmental policy has contributed to the achievement of the United Nations Sustainable Development Goals (SDGs), in particular SDG 3 (“Good health and well-being”), SDG 6 (“Clean water and sanitation”), SDG 9 (“Industry, innovation and infrastructure”), SDG 12 (“Responsible consumption and production”), SDG 15 (“Life on land”) and SDG 17 (“Partnerships for the goals”);

●   securing approval for the prioritization of objectives and their terms of implementation at presentations to members of the Executive Committee and the Sustainability & Governance Committee.

1.2.2       LIFE 360 objectives

This roadmap, the fruit of the work described above, was unveiled at the 2021 Shareholders’ Meeting. The results for fiscal year 2024 were presented at the Shareholders’ Meeting of April 17, 2025, as has been the case for the roadmap since 2021. The LIFE 360 program sets out objectives for 2023, 2026 and 2030 and charts a course for creating products that embody the Group’s environmental ambitions. It is structured around five strategic action plans:

●   Taking action for the climate: Climate matters are material for the Group in two ways: its activities emit greenhouse gases (GHGs), and it faces physical risks (affecting the availability and cost of raw materials in particular) as well as transition risks. To confront this risk, the Group has adopted a transition plan, whose carbon trajectory is in line with the Paris Agreement. This plan was initially approved by SBTi (Science-Based Targets initiative) in December 2021 and subsequently renewed in 2025 after the objectives for Scopes 1 and 2 were achieved two years ahead of schedule, and to reflect required updates to the organizational and methodological scope (new categories in the GHG Protocol, changes in the baseline, etc.). The new objectives aim to achieve a 68% reduction in the Group’s Scope 1 and 2 energy-related greenhouse gas emissions by 2030 (baseline: 2023), a 27% reduction in Scope 3 emissions from agricultural practices by 2030 (baseline: 2023) and a 23% reduction in Scope 3 emissions from industrial processes by 2030 (baseline: 2023). Actions are concentrated on reducing Scope 1 and 2 emissions (energy conservation and energy efficiency) and making a positive impact by maximizing the proportion of renewable energy used in the Group’s energy mix (objective: exclusive use of renewable or low-carbon energy by production sites, logistics centers, administrative sites and stores by 2026). Reduction of Scope 3 emissions (mainly linked to raw material purchases and transportation) involves a number of action plans relating to sustainable product design, regenerative agriculture, responsible marketing and supporting suppliers through their environmental transition (LIFE 360 Business Partners launched at year-end 2023) (ESRS E1).

●   Protecting biodiversity: As LVMH’s activities are intimately linked to nature, the Group regularly measures and assesses its impact and dependencies on natural resources. The objectives laid down in this action plan are designed to avoid and reduce impacts (in terms of artificialization, withdrawals and/or pollution of soils, water resources, and ecosystems) and restore to the environment whatever is taken from it: zero deforestation and ecosystem conversion within its operations and supply chains by 2026; 100% of strategic supply chains to be subject to the most rigorous standards by 2026; a regenerative agriculture plan to restore 5 million hectares of flora and fauna habitats by 2030. The Group continues to roll out its Animal Welfare Charter published in 2019 and is working on a new raw materials sourcing charter. The Biodiversity program was supplemented in 2023 by adding a dedicated water resource protection policy aimed at achieving a 30% reduction in the Group’s water withdrawal (Scopes 1 and 3) by 2030 ESRS E2, E3 and E4.

●   Promoting circular design: Adopting the circular economy model in the production and management process is a way of reducing the consumption of natural resources and the climate impact. The goal of this action plan is to adopt circular economy principles in relation to products, packaging and operational waste and to contribute to the biodiversity and climate transition plans. In terms of the products, the objective is both to implement sustainable design (reaching 100% of new products sustainably designed in 2030, with a reduced environmental footprint from extraction of materials to their processing) and circular services (repair and refills) for all Maisons. The objective for implementing circular services was achieved in late 2023, in line with LIFE 360 expectations. The specific characteristics of LVMH Maison products (intrinsic quality and transmissibility) support the implementation of reuse, recovery, repair and recycling processes and over time will enable the launch of new product and service ranges. Packaging strategy will follow this same circularity trajectory, with an objective of zero fossil-based virgin plastics by 2026. As regards waste generated in operations, Maisons’ production sites are also subject to specific objectives, for example to roll out certified environmental management systems across all production and logistics sites by 2026. ESRS E5.

●   Ensuring traceability and transparency: The action plan aims to roll out dedicated traceability initiatives covering all strategic raw materials by 2030 and tools for sharing environmental and/or social information at product level. It supports the “Climate”, “Biodiversity” and “Circular Economy” action plans by reporting the environmental origin of products and their degree of sustainable design ESRS E4.

These four strategic action plans are accompanied by a fifth plan whose objectives are designed to mobilize stakeholders around the LIFE 360 priorities, in particular:

●   employees, with the aim of designing environmental training programs tailored to the specific characteristics of the Group’s businesses and providing training on sustainability matters to 100% of employees by 2026;

●   customers, with an objective of all new products having a dedicated information system by 2026;

●   strategic suppliers, with CSR clauses to be included in 100% of contracts and subject to verification by 2030, while offering an action program to help them reduce their carbon, water and biodiversity footprints (LIFE 360 Business Partners);

●   researchers, with a commitment to designing a dedicated sustainable luxury research and innovation program; this commitment was upheld in 2023, with the creation of the scientific innovation and research center LVMH Gaïa. LVMH is also supported by two external scientific research committees that enrich and guide the environmental policy and action plans. The first committee handles the supply of animal-derived raw materials, and the second deals with regenerative agriculture.

1.2.3       Results for 2025 of LIFE 360 objectives

Overview of results for LIFE 360 “Climate”

(a)  In 2024, the Group had achieved its previous objective – a 50% absolute reduction by 2026 against a 2019 baseline – two years early.

(b)  See §2.4, “Energy”, for the calculation methodology.

(c)   Recalculated value at constant scope and methodology with respect to 2025.

Overview of results for LIFE 360 “Biodiversity” (including water)

The 2025 results for certification of strategic raw materials are provided in §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)”.

Overview of results for LIFE 360 “Circular Design”

Overview of results for LIFE 360 “Traceability and Transparency” (as % of quantities purchased)

1.3         Training and LIFE Academy

LVMH’s ability to drive continuous improvement in its environmental performance is closely tied to the Group’s success at making sure that its more than 211,000 employees understand their role as active participants in achieving this goal. The Group and its Maisons are thus working to train and raise awareness among employees as well as members of the management bodies with regard to the conservation of natural resources, biodiversity and climate change, undertaking to provide training on sustainability matters to 100% of employees by 2026.

Employee training and skills development are essential to implementing LIFE 360 and managing impacts, risks and opportunities linked to environmental matters.

Since 2023, the Group has established an educational body, LIFE Academy, offering a catalog of environmental training designed with input from subject matter experts, with a focus on two key areas:

●   “Essentials”: Generalist training for all employees aimed at developing an overview of environmental matters (climate, biodiversity, resources, etc.);

●   “Expert”: Specialized training aimed at specific business lines to boost skills and reinvent professional practices.

In 2024, LVMH strengthened its “Essentials” training by launching a new “Environment Essentials” e-learning module for all Group employees, now available in nine languages. This training constitutes the core knowledge that all employees must possess and understand. In 2025, over 20,000 employees took this module, which is now open to the Group’s Business Partners and suppliers.

The “Expert” training program includes courses tailored to specific professions, such as sustainable product design and packaging for stylists, developers and those in marketing roles; responsible sourcing and animal welfare for buyers; managing chemicals for quality and compliance teams; and sustainable store construction for architects.

What is unique about the LIFE Academy approach is that it is not just about learning but about putting that learning into practice. This is reflected in the design of the training programs, in which thinking together about real-life cases, sharing best practice among peers and drawing up action plans all play an important role.

On October 1, 2024, the Group opened the first LIFE Academy training campus on the site of Association de la Vallée de la Millière, founded by Yann Arthus-Bertrand. In opening La Millière, a haven of biodiversity with an educational focus located close to Paris, LVMH stepped up its ambitions in the area of training. The La Millière site also enables the Group to raise awareness among a wider audience, including schools, nonprofits and NGOs. In opening this site, LVMH is reaffirming its desire to share its knowledge and expertise more widely. This constitutes an integral part of the Group’s “Joining forces” philosophy, which encourages open and inclusive collaboration with all stakeholders. Passing on environmental knowledge is key to amplifying the collective impact of the Group’s actions and building a sustainable future.

More than 1,700 talented individuals from the Group’s Maisons have undertaken environmental awareness training at La Millière since it opened. As part of the LIFE 360 Business Partners Program, LVMH extended its comprehensive training approach to Business Partners and suppliers by opening up the LIFE Academy to them.

Initiatives rolled out in the second half of 2025 at their request include the following:

●   the LIFE 360 Climate Masterclass, run with the help of Carbone 4 in support of the shared effort to reduce the Group’s Scope 3 emissions, enabled 500 suppliers and LVMH employees to connect using an innovative and engaging professional video capture system;

●   webinars on EUDR (European Union Deforestation Regulation), including a session in Italian aimed at tanners and focusing on water issues, and a session in English with a more general approach to the regulation.

Employees having completed environmental training

(a)  Baseline: 2019. Indicator calculated on the basis of all Group employees. The reporting scope does not include employees who have been with the Group for less than one year and takes into account all apprenticeship formats.

1.4         2025 reporting scope and methodology

1.4.1       Reporting scope and rules

Data are collected either by Maison or by site (stores, administrative sites, production sites and logistics centers), according to the following rules:

●   Maisons: A Maison is included in environmental reporting if it is included in financial reporting. Following an acquisition, the acquired entity is included in environmental reporting one year after its inclusion in financial reporting.

●   Sites: The Group’s new sites are added to the environmental reporting scope in the year following their acquisition or their opening. Only sites under operational control are included in the environmental reporting. Operational control by the Group is defined as the total authority of at least one subsidiary over implementing operational policy at the site.

●   Divested entities (Maisons and sites): Entities disposed of during the fiscal year (between January 1 and December 31 of Year N) are excluded from the reporting scope for Year N.

The collected data are made up of at least nine months of actual data, and in most cases more than ten months of actual data. Actual data are complemented by extrapolated data, using, for example, data for the previous year corrected by business activity.

In 2025, reporting for environmental indicators covers the following scope:

Maisons

In 2025, as the scopes of financial and environmental reporting were brought into closer alignment, Maisons covered by environmental reporting accounted for more than 99.8% of Group revenue. Jewelry Operations, Paris Match and LVMHappening were brought into the scope of environmental reporting, while Patou, Buly and Cova did not report in 2025.

Acquisitions completed by the Group in 2025 were included within the scope of already consolidated Maisons and accounted for 0.0268% of Group revenue.

Production sites, logistics sites and administrative sites

In 2025, the Group continued with the efforts of the last few years to cover all sites within its reporting scope. Over 99% of production and logistics sites are covered, and across all site types, over 97% of sites are covered:

(a)  Including newly added sites belonging to Jewelry Operations, Paris Match, LVMHappening, etc.

(b)  Mainly consisting of regional administrative sites of Perfumes and Cosmetics Maisons where fewer than 20 people work.

Total store floor space

The total store floor space was included within the reporting.

Energy consumption, water withdrawal, waste management and calculation of Scope 1 and 2 greenhouse gas emissions for total floor space for stores without actual data are estimated to ensure the scope is exhaustive. For floor areas with no real data, the estimation method is based on coefficients calculated from real data, which is then used to estimate the relevant data for these areas.

84% of the store floor space covered in the reporting uses actual energy consumption data:

(a)  The change relative to 2024 is due to a review of procedures for consolidating Maisons including Tiffany and Christian Dior Couture.

1.4.2       Reporting methodology

In 2010, the Group implemented the environmental platform that collects the data required for the calculation of LVMH LIFE 360 environmental strategy performance measures.

The system used for environmental reporting is an SaaS platform made up of four types of questionnaire:

●   LIFE 360 questionnaire: Indicators used to monitor the LIFE 360 strategy;

●   questionnaire about upstream and downstream transportation;

●   questionnaire about raw materials;

●   site questionnaire covering site- and store-specific data: water and energy use, refrigerant leaks, waste production (quantity, type and treatment of waste), etc.

In total, more than 1,600 information types are collected by each Maison.

All of the calculation and consolidation rules and the checks are defined in the LVMH environmental reporting protocol.

To calculate the Group’s Scope 3 carbon footprint, the additional data required are sent by the Maisons through the reporting system for financial data (media service purchases, fixed assets and investments) and HR data (employee travel).

The collected data are checked, consolidated and validated by the Maisons and then the Group. The checks (units, vs. previous year, by activity, etc.) are enhanced every year to ensure data consistency.

The Maisons can access the dashboards that display the LIFE 360 indicators to make it easier to validate them ahead of Group consolidation.

2.     Climate change (LIFE 360 – Climate)

2.1         Addressing issues related to climate

2.1.1       Methodology for the assessment of impacts, risks and opportunities

As part of the process of analyzing impacts, risks and opportunities and assessing their materiality, the whole of LVMH’s value chain (upstream, own and downstream) and organizational scope (six business groups covering eleven businesses) was reviewed. The impacts of climate change are covered in the climate transition plan (CTP) (see §2.2 below), through locked-in emissions, identified key sources and the direction of business over the next few years. The assessment of risks and opportunities is described below. This assessment is based on the most stringent standards relating to risk and opportunity analysis, such as TCFD.

The Group’s assessment of risks and opportunities took into account all physical risks (both chronic and extreme), the four categories of transition risk (legal, market, technology and reputation) and four categories of opportunities (circularity, regenerative practices, renewable energy and responsible marketing).

The analysis, launched in 2022, is updated annually. A scoring methodology was used to determine the materiality of risks or opportunity. This involves assessing the materiality of a risk or opportunity based on a number of criteria, the key parameters of which are as follows:

●   severity: this parameter represents the degree of vulnerability to a given risk or opportunity, i.e. the impact it could have on revenue;

●   probability: this parameter assesses exposure to a given risk or opportunity and serves to determine the degree of certainty as to whether or not that risk or opportunity will materialize in the future;

●   aggravation: this parameter measures changes in a given risk or opportunity over time.

To assess each criteria, an analysis is completed by climate scenario, over the medium and long term. It is undertaken based on three main scenarios. These scenarios are underpinned by the work of the IPCC (Intergovernmental Panel on Climate Change) and key agencies such as the IEA (International Energy Agency):

●   SSP5-8.5 (+4°C): Current growth trends continue and the political, economic and societal environments remain unchanged. Climate change accelerates, triggering conflicts over resource ownership as well as political and social instability;

●   SSP1-1.9 (+1.5°C) – Energy conservation: The Paris Agreement targets are met, mainly as a result of increased awareness about environmental issues. Respecting the planet’s limits becomes a core consideration guiding production value chains and consumer behavior;

●   SSP1-1.9 (+1.5°C) – Technology: Achievement of the Paris Agreement targets is mainly dependent on technological breakthroughs to remove carbon from production processes. Regulations and drastic tax measures are crucial to a successful outcome, fueling conflict over resources.

Financial effects were described both qualitatively and quantitatively by assessing the increase in costs over time based on the Group’s business projections. This analysis involved both specific geospatial data (covering individual sites) and averaged regional data (covering the source region for a given material). Integrating the financial effects of these scenarios in the Group’s short-, medium- and long-term financial forecasts is one of the key priorities of the new Sustainable Finance task force, launched in 2025.

Discussions were held with all stakeholders involved in the value chain, including representatives of non-governmental organizations (NGOs) with expertise in environmental, social and governance matters, and investors (see the “General information” section, §4.1.2), as well as various Group departments, in order to pre-select risks and opportunities to be analyzed in detail.

2.1.2       Results of the assessment of risks and opportunities

Risks

For risks on sites operated by LVMH, all chronic and extreme physical risks were analyzed via a platform that uses highly accurate geospatial data to perform forward-looking environmental analysis. Each site has been scored based on its exposure to each risk category. The overall level of exposure of Group sites to each risk category is summarized in the table below:

Average exposure of Group sites by risk category

Each category of risk was assessed based on several different time horizons and climate scenarios. To support decisions concerning the Group’s investment strategy, the choice of time horizons was coherent with the lifespan of assets for financial purposes.

This analysis covered over 7,000 Group sites and stores, equal to 99.3% of the total scope, and is updated annually. It also meets the needs of the environmental taxonomy by contributing to the alignment assessment (identification and analysis of vulnerability to risks related to climate change).

For risks involving the value chain, and in particular key sources of greenhouse gas emissions (transportation and raw materials), the physical risks (chronic and extreme) and transition risks (legal, market, technology and reputation) included in the detailed analysis are presented below.

Physical and transition risks in the value chain

The following risks have been identified as material:

Opportunities

The study did not highlight any material opportunities.

2.1.3       Overview of the assessment of risks and opportunities

The risk analysis highlighted a number of areas of uncertainty related to the impact of climate scenarios, notably concerning regulatory developments, raw material prices and the ability to adapt infrastructure to cope with extreme weather events. This uncertainty mainly affects assets in high-risk regions and some supply chains that are particularly sensitive to climate-related events. However, these assets are fully integrated into the Group’s overall strategy, which includes investment decisions aimed at boosting resilience to the identified risks. Adaptation actions are already in place and incorporated into the climate transition plan as well as at the most vulnerable sites.

In terms of adaptability, the Group is well equipped to adjust its strategy and business model in the short, medium and long term in response to climate-related risks. In the short and medium term (i.e. between now and 2030), immediate steps are being taken to comply with new environmental regulations and reduce carbon emissions, thus ensuring continued access to reasonably priced funding. Over the long term (2050), the strategy will be focused on renovating and optimizing existing assets, with the option of redeploying resources and dismantling infrastructure that is obsolete or has become too vulnerable. These adjustments will enable the Group to maintain a strong position in the face of the challenges posed by climate change while ensuring a sustainable return on investment.

2.2         Climate transition plan

The reporting scope is described in §1.4.1 above.

The LVMH Group is fully committed to achieving the greenhouse gas emissions reduction targets set out in the Paris Agreement and recognizes the fundamental importance of climate change mitigation, which is the main focus of its climate transition plan.

The climate transition plan set out below covers the scope of emissions submitted to SBTi in connection with the Group’s carbon reduction objectives. The climate transition plan is updated annually.

Climate change adaptation is also recognized as a key priority at Group level and is incorporated into the climate transition plan.

2.2.1       GHG emission reduction targets

As part of LIFE 360, the Group has committed to a carbon reduction trajectory. The trajectory was validated by the SBTi in 2021. In accordance with the SBTi methodology, in July 2024 LVMH submitted new absolute emissions reduction targets differentiating forest, land and agriculture (FLAG) emissions and industrial emissions (energy and industry) within Scope 3. These reduction targets were approved by SBTi in late December 2024. The Group also updated its baseline year (2023) and expanded its scope to include all emissions required under the Greenhouse Gas Protocol ⁽¹⁾.

The SBTi methodology for calculating carbon emissions reduction trajectories is aligned with science, ensuring that the approach chosen by LVMH is methodologically robust. The Scope 1 and 2 target is aligned with the level of ambition the sector is expected to achieve under SBTi to limit global warming to 1.5°C. Scope 3 targets are aligned with the level of ambition the sector is expected to achieve under SBTi to limit global warming to 1.5°C for FLAG emissions and to well below 2°C for emissions from energy and industry.

The reduction targets approved by SBTi are as follows:

●   68% reduction in energy-related GHG emissions (in absolute value) for the Group (Scopes 1 and 2) between 2023 and 2030;

●   100% of energy from renewable sources or low-carbon sources by 2026 at production sites, logistics centers, administrative sites and stores, maintaining this rate through to 2030;

●   32.5% reduction in absolute Scope 3 energy and industry emissions between 2023 and 2033, equating to a 23% reduction between 2023 and 2030;

●   39% reduction in absolute FLAG emissions between 2023 and 2033, equating to a 27% reduction between 2023 and 2030.

It should be noted that, to ensure consistency with Scope 1 and 2 targets and previously disclosed Group targets, the Scope 3 reduction targets have been projected out to 2030 assuming a linear reduction.

These are gross targets, which means GHG removals, carbon credits and avoided emissions are not counted as means of achieving them. The GHG emissions targets used are expressed using the market-based methodology.

With effect from 2030, LVMH plans to update its baseline year and target year footprints every five years, in accordance with ESRS requirements.

Similarly, LVMH is committed to updating its commitments as new scientific recommendations emerge and reference agencies update their methodologies.

2.2.2       Decarbonization initiatives

To achieve its carbon reduction objectives, the Group has worked closely with the Maisons to draw up a transition plan with various measures to address emissions sources across the entire scope of the Group’s objectives.

It should be noted that calculating reductions in carbon emissions involves a degree of uncertainty because of the variability of data, assumptions used in calculations and economic forecasts. To mitigate these uncertainties, the Group has developed a detailed carbon accounting methodology aligned with the GHG Protocol. This methodology follows a continuous improvement approach under which values are updated as and when new, more accurate data become available.

The action plan set out below applies to the scope of the Group’s carbon reduction objectives.

Scopes 1 & 2

Scope 1 emissions are those generated mainly through the combustion of fuel oil and natural gas, as well as the leaking of refrigerant fluids. Scope 2 emissions are those generated indirectly from energy use, mainly electricity used in stores and at the Group’s production sites.

The action plan for reducing Scope 1 and 2 emissions is made up of four levers presented which are presented in the table below:

●   energy conservation;

●   energy efficiency and energy transition;

●   use and production of renewable energy;

●   refrigerant gases.

The waterfall chart below shows identified carbon reduction levers and actions and their contribution to achieving the 2030 SBTi targets.

2030 Scope 1 and 2 carbon reduction levers (base: 100)

The Group is aiming to reduce the proportion of renewable energies from renewable energy certificates and increase the proportion of renewable energy generated on site, and continuing with its actions in relation to energy conservation and energy efficiency.

The table below details planned actions to achieve the target:

These actions are gradually being implemented between now and the target year, 2030.

Scope 3

Scope 3 covers emissions indirectly generated by the Group. These mainly arise from purchases of goods and services from suppliers (notably of raw materials), transportation, waste, and the use and end-of-life treatment of sold products.

The action plan for reducing Scope 3 emissions covers five key areas which are presented in the table below:

●   circularity;

●   sustainable transport;

●   supplier initiatives;

●   regenerative agriculture;

●   responsible marketing and Green IT.

Focusing on these areas will enable the Group to transform its portfolio of products and services and develop low-carbon products by using less carbon-intensive materials and developing circularity from the design phase onwards.

The waterfall chart below shows identified carbon reduction priorities and their contribution to achieving the 2030 SBTi targets. The following projections are based on growth and scope assumptions that may change over time.

2030 Scope 3 carbon reduction levers (base: 100)

The table below details planned actions to achieve the 2030 Scope 3 target:

The actions listed in the above table contribute not only to climate change mitigation but also to adaptation.

These actions are gradually being implemented between now and the target year, 2030.

The “Innovation” lever includes actions that cannot yet be precisely quantified and/or identified, such as the development of new technologies and new materials, in particular through the contribution of LVMH Gaïa.

2.2.3       Description of progress made

Results achieved in 2025 in connection with the Group’s carbon reduction objectives are as follows:

2.2.4       Investment and funding to implement the transition plan

The climate transition plan is designed to improve the Group’s resilience and business performance by reducing certain energy costs through energy conservation, energy efficiency gains and the transition to renewable energy. However, the plan also carries additional costs in the form of both operating and capital expenditure.

The processes in place to ensure the plan is funded and aligned with the Group’s financial planning are set out below in §2.2.5. While implementation of the transition plan is not dependent on public funding or subsidies, it may be re-evaluated based on the performance of the market or the Group.

In 2025, as part of the LIFE 360 strategy, LVMH updated its estimation of the future cost of implementing the climate transition plan, in particular for short-term Scope 1 and 2 carbon reduction initiatives. The table below summarizes significant future amounts of additional operating expenses and capital expenditure (OpEx and CapEx) related to the climate transition plan over the life span of the relevant commitments, i.e. out to 2026. Operating expenses are cumulative for the period 2025 to 2030; capital expenditure is the planned total over the period.

Quantifying the investment needed to implement the Group’s Scope 3 carbon reduction initiatives is one of the three key priorities of the new Sustainable Finance task force, launched in September 2025 at an event attended by the Chief Financial Officers and Heads of Sustainability of the Group’s Maisons, together with the Group’s Chief Financial Officer and Group’s Director of Image & Environment.

Given the complexity and diversity of the Group’s business activities, the methodology for quantifying investments will be continuously improved over time. The methodology for quantifying investments must take into account the following:

●   increase in predicted volumes;

●   changes in prices (e.g. of certified or recycled materials);

●   external factors (availability of industrial capacity, technological innovation, etc.);

●   each action’s contribution to the potential reduction.

Partial findings in relation to the financial quantification of Scope 3 are expected in late 2026.

At the same time, some pilot Maisons are already quantifying their carbon reduction costs. For example, Christian Dior Couture developed a tool in 2025 for quantifying the financial impact of its climate transition plan across its entire value chain. Using this approach, the Maison calculated a carbon abatement cost for each initiative, enabling it to prioritize planned investments in conjunction with the Maison’s Finance Department.

2.2.5       Alignment with and embedding in the overall operating strategy and financial planning

The climate transition plan is embedded in the operating and financial strategy as well as the Group’s operating processes.

At the LIFE 360 Summit in December 2023, the Group Chairman and Chief Executive Officer set out his vision of what a luxury goods company must become in light of the green transition: “While not relinquishing either our DNA – creative excellence – or the need to protect the planet, we are nurturing a new vision for luxury that combines performance and engagement. In this new vision, luxury will continue to inspire dreams while respecting the environmental equilibrium.”

From this perspective, business strategy and environmental strategy are two sides of the same coin. In the words of the Head of Environmental Development, the Group’s LIFE 360 environmental strategy is “fully embedded into our overall strategy and the strategies of all our Maisons, with this program at the heart of the Group’s creative approach, production and logistical systems.” The “Crafting a New Luxury” white paper sets out the Group’s vision and strategy for developing a business model that will enable it to achieve the most ambitious Paris-aligned carbon reduction objective.

Embedding the transition plan into the operating strategy

Environmental matters are fully incorporated into the Group’s strategic plan. The latter is the product of strategic plans drawn up by the various Maisons, which include an environmental dimension. In their strategic plans, the Maisons set out business development objectives consistent with environmental and carbon reduction objectives.

The Group’s environmental objectives are directly shared by the Group’s Environmental Development Department with the relevant teams and departments, depending on the topic in question (operations, marketing, etc.).

Aligning the transition plan with financial strategy

The transition plan is aligned with the Group’s financial strategy in three ways.

Carbon Fund: This mechanism enables the Group to set Scope 1 and 2 carbon reduction expenditure targets for the Maisons in line with their Scope 1 and 2 emissions. Each Maison is required to spend a minimum amount on carbon reduction initiatives. This amount is equal to each Maison’s Scope 1 and 2 emissions multiplied by a unit price per metric ton of carbon (set in 2025 at 90 euros per metric ton of CO₂ equivalent [tCO₂e]). Since 2016, the Group has invested around 134 million euros in 1,043 projects. Over the course of 2025, LVMH invested around 28 million euros in 177 innovation projects avoiding more than 400,000 tCO₂e for an estimated theoretical expenditure of 19 million euros (2025 emissions x 90 euros per metric ton).

Budget process: In 2024, the Group’s Finance Department launched a new process for collecting budget requests associated with the Maisons’ climate plans, which will be adjusted as part of the work carried out by the Sustainable Finance task force (see below) to establish a long-term process.

CapEx consultation: CapEx requests with a potential environmental impact are submitted by financial controllers to the Environment Department for an advisory opinion. This ensures that significant capital expenditure is consistent with the transition plan.

Sustainable Finance task force: In September 2025, the Group set up a task force jointly chaired by Antoine Arnault, Director of Image & Environment, and Cécile Cabanis, the Group’s Chief Financial Officer, bringing together the Maisons’ Chief Financial Officers and Environment Directors. This task force, whose work will begin in 2026, has identified three major projects:

●   refine work to comprehensively quantify the financial impact of the transition plan, carbon reduction initiatives and risks and opportunities so they can be incorporated into financial planning;

●   update governance arrangements for indicators and trajectories to mirror those applicable to the financial statements;

●   improve the efficiency and accuracy of the process for consolidating and analyzing environmental data.

2.2.6       Governance and approval process for the transition plan

The Board of Directors is the strategic body of the Company. It is primarily responsible for driving long-term value creation and protecting its corporate interests, focusing in particular on the social, environmental and climate issues facing its business.

As part of this approach, the Board of Directors ensures that the Group’s transition plan is implemented and works with Executive Management to guide its development.

Approval process

The approval process is described in §1.1.1, “Governance related to environmental strategy” above.

Implementation of the Transition Plan

The processes to implement the transition plan are described in §1.1, “Organization of the Group’s environmental approach” above.

Skills and training in climate issues for members of the management team

The skills and training of management team members are described in the “General information” section, §2.1.

Climate-related compensation

The proportion of variable compensation paid to senior executive officers is based on achievement of objectives related to corporate social responsibility and sustainability as shown in the “Corporate governance” section, §2.1.2.2.

Meanwhile, top executives at all LVMH Maisons are incentivized via a performance share plan that includes objectives related to LIFE 360, including climate objectives.

Twelve Maisons also have financial incentive policies tailored to their specific environments, including criteria related to sustainable development and, in particular, climate. By way of illustration:

●   Celine: with effect from 2025, variable compensation for each Management Committee member and Regional President is tied to social and environmental criteria. These criteria are specific and tailored to each role;

●   Hennessy: Incentives are calculated on the basis of four indicators – financial results, operational excellence, workplace safety and sustainability. The sustainability indicator includes two sub-targets, one being reducing total energy consumption (corrected for weather conditions). In addition, the incentive agreement includes an additional social bonus to support the Maison’s efforts to reduce its carbon footprint, calculated on the basis of Scope 1 and 2 GHG emissions per standard case, including one quantitative target;

●   Sephora: The objective of reducing greenhouse gas emissions by 7% between 2024 and 2026 has been set by the Chief Marketing Officer, a member of the Executive Committee;

●   A number of Maisons have also incorporated criteria related to environmental training (including climate-related issues) into their incentive agreements, such as Parfums Christian Dior, Berluti, Maison Francis Kurkdjian, Le Bon Marché and LVMH Fragrance Brands.

2.2.7       Assessment of potential locked-in GHG emissions

Locked-in emissions correspond to potential future emissions from the operation of assets or the use of products sold by LVMH. LVMH has undertaken an initial analysis to estimate these emissions.

Locked-in emissions from assets are measured across the entire operating life span of existing and planned assets owned or controlled by LVMH that represent significant sources of emissions. When calculating locked-in emissions, LVMH includes energy consumption at its stores, production sites, logistics centers and office buildings. Locked-in emissions from sold products relate to products with a life span of over three years where emissions from use are significant.

The analysis shows that, thanks to planned carbon reduction actions, locked-in emissions from assets and sold products are unlikely to compromise the Group’s carbon reduction trajectory. For assets, energy efficiency improvements, process electrification at new production facilities, energy conservation and the transition to 100% renewably sourced electricity will help mitigate these emissions. Locked-in emissions from sold products are likely to be mitigated by improvements in the energy and electricity mix in countries where those products are used.

Furthermore, transition risks related to assets and products with locked-in emissions are considered limited. For assets, the risk of increases in production costs as a result of higher prices is mitigated by the energy conservation plan and energy efficiency improvements to real estate assets.

2.2.8       Environmental Taxonomy-alignment plan

In view of the activities concerned by the Taxonomy Regulation at this stage, only operating expenditures – in particular in relation to real estate – are analyzed for the purposes of the LVMH Group’s reporting (see §7, “Environmental taxonomy” below).

In 2025, 14% of the LVMH Group’s eligible CapEx was taxonomy-eligible, 3 percentage points higher than in 2024. The Group is working on setting an alignment target. The Group is pursuing a number of initiatives in connection with its energy conservation and efficiency goals through real estate purchases.

The transition funding plan includes spending to reduce carbon from buildings owned by LVMH (Scopes 1 and 2: renovation and energy efficiency improvements to buildings), which also contribute to alignment according to the Environment taxonomy.

2.2.9       Significant CapEx related to fossil fuels

LVMH has not made no significant investments in activities related to coal, oil or gas production and has no plans to make any such investments in the coming years.

2.2.10          Exclusion from Paris-aligned Benchmarks

The Group is included in responsible finance benchmarks, including in particular Paris-aligned Benchmarks (PABs). LVMH is not involved in any activities that meet the exclusion criteria set out in Articles 12.1 ⁽²⁾ and 12.2 ⁽³⁾ of Commission Delegated Regulation (EU) 2020/1818 of July 17, 2020.

2.3         Climate change mitigation and adaptation

2.3.1       Climate policy

Combating climate change is a major focus of LVMH’s environmental policy. It constitutes one of the four pillars of the LIFE 360 strategy described above in §1.2. The Group’s “Climate Change Mitigation and Adaptation Policy” applies to all Group businesses and geographies and covers the entire value chain.

Mitigation policy

The mitigation policy corresponds to the climate transition plan (see §2.2 above).

The Group has often played a pioneering role in this area. In the early 2000s, for example, it took part in testing the carbon assessment method that would later become the Bilan Carbone®. In 2015 it was also the first luxury company to set up an internal carbon fund. The carbon fund helps the Group fund its Scope 1 & 2 emissions reduction policy, which includes energy conservation, energy efficiency and greater use of renewable energies at production and logistics sites, administrative sites and stores. Over the past two years, LVMH has helped develop the sector-specific “ACT Fashion” methodology, which was finalized in November 2024.

Based on its overall carbon footprint updated annually with the assistance of an outside firm, LVMH mapped out a carbon trajectory in line with the Paris Agreement. This carbon trajectory was first approved in December 2021 by leading international third-party organization the Science-Based Targets initiative (SBTi), a coalition that brings together the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wildlife Fund (WWF). LVMH’s new trajectory, reflecting changes in the Group’s organizational scope since 2021 and the differentiation of FLAG (Forest, Land and Agriculture) emissions, was approved by SBTi in November 2024.

Over and above the Group’s overall commitment, six of its Maisons – Louis Vuitton, Moët Hennessy, Parfums Christian Dior, Guerlain, Make Up For Ever and Tiffany & Co. – have now secured approval from the SBTi for their carbon trajectories across their own scopes, confirming their goals built into each Maison’s strategy: “Our Committed Journey” for Louis Vuitton, “Living Soils” for Moët Hennessy, “Beauty as a Legacy” for Parfums Christian Dior and “In the Name of Beauty” for Guerlain. For its part, Tiffany & Co. has pledged to procure 100% of electricity for its own operational requirements from renewable sources and removing commodity-driven deforestation from all its supply chains by 2030.

Adaptation policy

The adaptation policy is closely linked to the mitigation policy and is integrated into the climate transition plan (see §2.2 above).

The policy uses the same segmented approach:

Real estate assets

Every year, the Group updates its analysis of physical risks linked to the geographical location of around 7,000 sites and stores using a specialized platform. Based on this analysis, sites are classified by exposure and investments are allocated to improve their resilience.

Circularity and responsible sourcing

The sourcing policy (see §5.2.1 below) takes into account high-risk geographic regions identified through in-depth analysis with the aim of diversifying sourcing regions.

LVMH Circularity (see §6.2 below) is another key element of the Group’s adaptation policy, whereby materials are reincorporated into the production process via a closed-loop recycling approach to limit the use of natural resources.

Sustainable transport

As a result of measures to reduce the carbon impact of transportation described in the climate transition plan (see §2.2.2 above), limiting reliance on fossil fuels and forms of transport with the highest emissions, the Group has become more resilient to the associated transition risk. In particular, a policy of managing the air/sea ratio has been put in place in the perfumes and cosmetics sector.

Regenerative agriculture

The regenerative agriculture practices the Group has implemented (see §5.2 below) help improve soil resilience, particularly as regards water retention in light of the risk of drought.

2.3.2       Actions and resources used

Implemented and planned actions and their impacts, costs and timelines are set out in the climate transition plan (see §2.2 above).

Mitigation

To achieve the require carbon reductions across Scopes 1, 2 and 3, LVMH has set up task forces run by its business areas to address key sources of emissions. For example, the Energy and Sustainable Store Planning task forces are focused on Scope 1 and 2 reductions, while the strategic materials (cotton, leather, wool, cashmere) task forces and the Transportation, Media and Green IT task forces are working to improve measurement and implement actions specific to their objectives.

Scopes 1 & 2

Concerning Scopes 1 and 2, the Group’s actions to mitigate the impact of its activities on energy consumption are concentrated in the three key areas as set out in the climate transition plan: energy conservation, energy efficiency and energy transition, and the use and production of renewable energy. By 2025:

●   the Maisons gradually increased their on-site renewable electricity production capacity. Bvlgari’s new jewelry production site, Manifattura Valenza in Italy, opened in April 2025, has a geothermal energy production system as well as 4,100 solar panels covering up to 50% of the site’s energy requirements;

●   installing on-site energy production solutions also enables the Group’s hotels to reduce GHG emissions from their operations while building greater resilience. Solar panels installed on the roof of the Cheval Blanc Randheli hotel and on an offshore platform came into service in 2025, enabling the hotel to reduce its reliance on fossil-fuel-powered generators. The Cheval Blanc Seychelles desalination plant supplies the hotel with its own drinking water and is powered completely by electricity produced by on-site solar panels;

●   like many Maisons, Loewe has improved energy efficiency in its stores: since October 2024, it has installed more than 129 smart energy meters that can identify and monitor actions to optimize consumption;

●   the new Parfums Christian Dior store in Nice, the new Maison Francis Kurkdjian store in Paris and the new Louis Vuitton store in Bangkok all achieved LIFE in Architecture certification.

Scope 3

The Group’s efforts to reduce Scope 3 emissions are structured around five key areas, as described in §2.2.2, “Decarbonization initiatives”, above. By 2025:

●   Louis Vuitton’s Olympe project is a strategic initiative to optimize the Maison’s supply chain, notably by centralizing raw material purchases and inventory management. As well as improving inventory management and time to market, the project has enabled the Maison to reduce material losses (down 30% year on year in 2024) as well as raw material transportation requirements, thereby influencing two major sources of GHG emissions. Lastly, this project also aims to introduce a closed-loop waste processing approach for supplier packaging by 2030;

●   Maisons in the Wines and Spirits business group maintained their excellent performance on sustainable shipping, with less than 0.2% of shipments sent by air. After achieving a rail modal share of 39% in 2024, Belvedere continued with Rail Transport Shift, an initiative aimed at significantly increasing rail use for shipping finished products from the distillery to the central warehouse;

●   the Green IT task force’s remit was expanded to include five more Maisons and now covers 90% of the Group’s Maisons. In 2025, the task force met its target of reducing emissions from information technology per user by 20% one year ahead of schedule, and updated its target in line with the Group’s climate trajectory;

●   one of the priorities of the new Press and Communications/Environment task force launched in November 2025 is to reduce the carbon impact of events;

●   climate was the subject of the first LIFE 360 Business Partners Masterclass. This remote awareness and training session was followed by over 500 suppliers and members of the Group’s purchasing community;

●   lastly, all circularity and regenerative agriculture initiatives implemented are respectively described in §6.2, “Management of resource outflows”, and §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)” above.

LVMH does not make use of carbon offsetting (i.e. buying carbon credits linked to projects to avoid or sequester emissions to offset those emissions still produced by the Group). However, the goal of achieving global net-zero emissions by 2050 raises the question of the role of carbon credits, which the SBTi Net Zero standard proposes should be used once reduction targets have been met. Against this backdrop, the Maisons are trialing various types of offsetting.

Adaptation

In 2022, LVMH began carrying out a double materiality assessment of climate-related impacts, risks and opportunities for the Group so as to refine the identification of key environmental matters (see §2.1.1 above).

Thanks to its analysis of climate-related risks and its work on the environmental taxonomy, the Group is able to identify exposed sites and draw up adaptation plans. More generally, the Group is also conducting an analysis of the various issues involved in adapting to climate change. Winegrowing activities are notably included in the review. In the medium term, changing winegrowing practices is the main component of the Group’s adaptation strategy.

Several solutions are available for European vineyards depending on the climate scenario, from altering harvest dates to developing different methods of vineyard management (such as widening rows, increasing the size of grapevine stocks and employing irrigation in certain countries) and testing new grape varieties. For vineyards in Argentina and California, the main issue is the availability of water (see §4 below).

More broadly, innovation – a key component of the Group’s mitigation policy – also plays a part in LVMH’s adaptation policy: new regenerative farming practices (see §5.2 below), the switch to new materials derived from biotechnologies and the use of biomimetics provide opportunities for reducing greenhouse gas emissions while simultaneously diversifying procurement sources and reducing the Group’s exposure to climate change. The Matières à Penser (Food for Thought) materials library and the Maison/0 partnership with Central Saint Martins dedicated to innovation and sustainable creativity will help drive new solutions at the Group’s Maisons.

2.3.3       Associated objectives

Objectives related to climate change mitigation

The Group’s objectives related to climate change mitigation are described in the climate transition plan (see §2.2.1, “GHG emission reduction targets”, above). These are summarized below:

The Group’s three climate objectives are supported by objectives linked to the other pillars of the LIFE 360 strategy:

●   energy (energy conservation, energy efficiency and renewable energy): see §2.4, “Energy”, below;

●   circularity: see §6.2, “Management of resource outflows” below;

●   biodiversity: see §5 below, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)”.

Objectives related to climate change adaptation

Pending the establishment of measurable objectives related to climate change adaptation, the Group is proactively monitoring the effectiveness of its policies and actions with regard to the impacts, risks and opportunities associated with climate change and the environment more generally. A process has been put in place to regularly monitor greenhouse gas emissions reduction initiatives and energy efficiency across the Group’s operations. This process includes carrying out annual audits, analyzing energy consumption and reviewing identified climate-related risks within the various business groups of LVMH. For example, the Group aims to improve energy efficiency in its stores to avoid higher energy costs, particularly for electricity. The target is to halve consumption to 300 kWh/m² by 2030 (relative to a 2021 baseline).

2.3.4       Indicators and results

Indicators

The indicators associated with each objective are defined as follows:

Methodology for calculating the carbon footprint

Every year, LVMH publishes its Scope 1, 2 and 3 carbon footprint in accordance with the methodology laid down in the GHG Protocol and updates the calculated footprint for its baseline year (2023) to reflect changes in both carbon accounting methodology and organizational scope (resulting, for example, from the acquisition or disposal of entities or the opening or closing of sites or stores). By annually updating the baseline year carbon footprint, the Group is able to track its progress on carbon reduction relative to the target trajectory, in accordance with the GHG Protocol and SBTi rules. The carbon footprint is published both in absolute terms in year N and relative to the updated baseline and N-1 year.

Thanks to its “Cascade” reporting platform, the Group has been collecting and centrally managing environmental data for over 20 years. Therefore, calculations are based on actual measurements, where available, and, when they are not, calculations are based on extrapolations ensuring that the Company’s perimeter is respected in terms of data coverage. The data used by GHG Protocol category is set out below:

The emissions factors used in calculating the Group’s carbon footprint are taken from recognized sources: The ADEME carbon footprint database, the IEA, Ecoinvent, DEFRA and specific life cycle analyses. These emissions factors are regularly updated as knowledge advances and databases are updated. While biogenic GHG emissions are calculated, they are not reported separately since they are not relevant.

Calculating a carbon footprint involves a degree of uncertainty associated with the relevance of the data gathered and the emissions factors used. Out of a desire for continuous improvement, LVMH is taking the following steps to improve the completeness and accuracy of its carbon footprint and more accurately measure the impact of actions implemented:

●   rolling out a dedicated carbon platform to measure the carbon footprint and manage the action plan (rollout in progress);

●   regularly updating the calculation methodology;

●   observing a protocol aimed at collecting physical rather than monetary or estimated data;

●   building a database of emissions factors that also incorporates life cycle analyses carried out by suppliers and Maisons to model efforts undertaken across the value chain.

In 2025, in particular:

●   the organizational scope and the database of Group-operated sites and stores were updated.

●   a new methodology based on physical data, notably including site surface area covered by construction work rather than the previously used monetary data, was developed for calculating GHG emissions from capital goods (Category 3-2).

●   GHG emissions from the distribution of media content (Category 3-1, “Purchased goods and services”) were calculated for the first time using the in-house MIKE tool based on specifically collected data.

GHG emissions by scope

FLAG emissions from agricultural activities are explicitly referred to in the table below.

(a)  Recalculated values and change at constant scope and methodology with respect to 2025. Total market-based GHG emissions calculated in 2024 for that same year equaled 7,720,985 tCO₂e – a difference of over one million tCO₂e relative to the recalculated 2024 value, reflecting changes in the methodology used to calculate the carbon footprint in 2025 for purchases of services and real estate.

The proportion of Scope 1 GHG emissions related to a regulated emissions trading system was equal to 7% in 2025 (7% in 2024).

GHG emissions by business group

(a)  Due to eliminations, the sum of business groups is not equal to the total.

GHG emissions from upstream and downstream transportation by mode of transport in 2025

The table below shows the detailed 2025 results by upstream transportation category (transport of raw materials and components toward production sites; only the main components and raw materials are taken into account), downstream transportation and distribution (transport of finished products from production sites to distribution centers and points of sale) and transportation not directly paid for by LVMH:

Overview of GHG emissions

Total change in GHG emissions (Scopes 1, 2 and 3) – Absolute value and economic intensity

(a)  Reported revenue adjusted for changes in the operational scope (acquisitions, disposals) and for Maison revenue not integrated in environmental reporting.

(b)  Recalculated values and change at constant scope and methodology with respect to 2025. (The methodology used to calculate the carbon footprint and the changes made in 2025 are indicated above.) Total market-based GHG emissions calculated in 2024 for that same year equaled 7,720,985 tCO₂e.

2.4         Energy

2.4.1       Energy policy

The energy policy falls under the climate policy and is presented in §2.3.1 above.

2.4.2       Actions and resources used

Energy-related actions and resources fall under the climate policy and are presented in §2.3.2 above.

2.4.3       Associated objectives

Energy-related objectives are summarized in the table below.

The objective of 100% renewable electricity in 2026 is aligned with the Paris Agreement and science-based and was approved by SBTi in 2024.

2.4.4       Indicators and results

Indicators: The indicators associated with each objective are defined as follows:

Results: Energy consumption by business group in 2024 and 2025

(a)  Recalculated value and change at constant scope and methodology with respect to 2025. (The methodology used to calculate the carbon footprint and the changes made in 2025 are indicated above.) Total energy consumption calculated in 2024 for that same year equaled 1,759,210 MWh.

Energy consumption by business group and by energy source in 2025

(a)  Due to eliminations, the sum of business groups is not equal to the total.

LVMH does not have any activities in high climate impact sectors. As such, it does not publish energy intensity data.

Energy efficiency in 2025

(a)  Recalculated value and change at constant scope and methodology with respect to 2025. This metric now takes into account the Group’s total energy consumption as well as the proportion of low-carbon energy. The proportion of renewable energy calculated in 2024 for that same year equaled 71%.

2.5         Supporting the principles of the Task Force on Climate-Related Financial Disclosures (TCFD)

In June 2017, the Financial Stability Board, established by the G20, published recommendations issued by the Task Force on Climate-Related Financial Disclosures (TCFD) aimed at providing a clear, comparable and consistent framework for the assessment and disclosure of climate-related information while enabling companies to disclose more information to stakeholders. Understanding that inadequate information can lead to assets and capital allocation being incorrectly assessed, financial decision-makers are increasingly asking companies to (i) manage their exposure to climate-related risks and (ii) reduce their contribution to climate change.

In 2019, as part of its previous LIFE 2020 program, LVMH commissioned a survey to establish how closely the Group’s practices were aligned with the TCFD recommendations. This survey highlighted both the robustness of the objectives that had been set and how much progress remained to be made on incorporating climate-related issues into governance, corporate strategy and risk management. These conclusions were taken into account when the LIFE 360 action plan was drawn up.

At the end of 2020, LVMH committed to support the TCFD principles and embarked on a process of continuous improvement to implement its recommendations. In 2022, LVMH updated its analysis of physical and transition risks relating to climate change by applying the scenario analysis method and studying the related financial consequences. The disclosures resulting from this update are provided in this report, in the public response to the CDP Climate Change 2025 questionnaire, for which LVMH earned an A score (CDP Scores and A Lists) and in the Group’s most recent CSR report, available on LVMH’s website.

A breakdown of the corresponding information is set out in the following table:

3.     Pollution

3.1         Addressing issues related to pollution

LVMH is implementing a strategy to fight water and soil pollution, created in collaboration with the Kunming-Montreal Global Biodiversity Framework, the European Union action plan “Moving towards zero pollution in Europe”, the REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations and the cosmetic products directive. LVMH has also followed the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). The environmental impacts and risks linked to water and soil pollutants and to the use of substances of concern and of very high concern are assessed using:

●   water and biodiversity footprints, which include an ecotoxicology indicator;

●   indicators of water pollution: organic, nitrogen and phosphorus;

●   continuous monitoring of the substances used to manufacture products.

This information covers LVMH operations and certain of its supply chains and is consolidated annually.

As part of the double materiality assessment, two material risks of the Group’s activities have been recognized:

●   reputational risk in the event of a controversy linked to chemical pollution from substances of concern within its own operations or those of its value chain;

●   sanctions and penalties in the event of non-compliance with regulations relating to substances of concern.

The Group is working on reducing or prohibiting the use of the substances that present the highest risks to human health, as well as to water and soil pollution, within its operations and value chain, and reducing as far as possible organic and inorganic sources of pollution. The Group is specifically targeting the following potential impacts:

●   Soil pollution:

-   own operations: Pollution arising from the use of inputs in the production and processing of raw winegrowing materials (vineyards in the Wines and Spirits business group);

-   supply chain: Pollution arising from the use of inputs in the production and processing of agricultural, winegrowing and livestock farming commodities (raw materials for the Wines and Spirits and Fashion and Leather Goods business groups).

●   Water pollution:

-   own operations: Pollution arising from the use of inputs in the production and processing of raw winegrowing and livestock farming materials (vineyards, direct distillation and winemaking operations for the Wines and Spirits business group, and tanneries, textile manufacturing and finishing and crocodilian farms for the Fashion and Leather Goods business group).

-   supply chain:

-   Pollution arising from the use of inputs in the production and processing of agricultural, winegrowing and livestock farming commodities (raw materials for the Wines and Spirits and Fashion and Leather Goods business groups).

-   water pollution associated with the extraction and processing of mineral raw materials (raw materials for the Watches and Jewelry business group).

●   Substances of concern and very high concern: Potential ecosystem pollution arising from the use or end-of-life management of substances of concern or very high concern (Fashion and Leather Goods, Perfumes and Cosmetics) as well as their potential impact on consumer health in cosmetic products.

3.2         Preventing soil pollution

3.2.1       Policy related to potential soil pollution

As part of the Group’s operations, the following activities are considered material to soil pollution:

●   own operations: Pollution arising from the use of inputs in the production and processing of raw winegrowing materials (vineyards in the Wines and Spirits business group);

●   supply chain: Pollution arising from the use of inputs in the production and processing of agricultural, winegrowing and livestock farming commodities (raw materials for the Wines and Spirits and Fashion and Leather Goods business groups).

For over twenty years, Moët Hennessy has been committed to a policy of reducing and optimizing the use of chemicals at its vineyards (pesticides, herbicides and fertilizers), in conjunction with its vineyard certification program and now supported by its “Living Soils, Living Together” program. LVMH, Moët Hennessy and the Maisons are working together to manage these topics: implementing the best technologies to reduce usage, selecting the least harmful substances, monitoring and consolidating the quantities in use, and setting objectives.

●   Herbicides: Moët Hennessy is rolling out a policy that aims to drastically reduce the use of herbicides in its vineyards, with a target of managing 95% of surface areas without herbicides.

●   Pesticides: Moët Hennessy is implementing a policy to reduce the use of insecticides, in particular by using biocontrol agents, which stimulate plants’ natural defense mechanisms through microorganisms, chemical mediators (including pheromones) or natural substances. Some treatments remain mandatory in some terroirs, for example against flavescence dorée in Cognac, which has now been extended to the Champagne region. Affected Maisons have received training and train their own partners in the preventive management of these diseases to limit such treatments.

●   Fertilizers: Moët Hennessy prioritizes the use of organic rather than synthetic fertilizers, as doing so offers benefits for soil structure as well as water quality.

Moët Hennessy has rolled out consultation processes with local residents, which are presented in the “Social” section, §3.2, “Rights of local communities”.

Pollution linked to the production and processing of raw materials in the supply chain for the Wines and Spirits and Fashion and Leather Goods business groups is also covered by a specific action plan for certification and implementation of regenerative agriculture practices, presented below in §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)”, ensuring that the use of plant protection products is reduced.

In compliance with regulatory requirements, plant protection products and fertilizers are stored in such a way that any accidental leaks are contained. Emergency procedures are defined within the environmental management systems implemented at LVMH sites and suppliers for the Group.

3.2.2       Actions and resources used

In 2025, Moët Hennessy has continued to implement the environmental certification for vineyards to guarantee the reduction or elimination of chemical inputs. In 2025, 99.9% of LVMH vineyards had already been certified. In 2025, Château Galoupet (Provence) achieved Regenerative Organic Certification (ROC), the highest distinction in regenerative agriculture. This organic certification also confirms that vineyards are managed in accordance with the regenerative agriculture principles. Meanwhile, the Chandon estate in California obtained Regenified regenerative agriculture certification in 2024.

Additionally, vineyards also monitor the use of inputs by calculating a Treatment Frequency Indicator, used to measure the degree to which plant protection products were used, both conventional products and biocontrol agents (which simulate plants’ natural defense mechanisms). In this area, there are also opportunities to make progress by improving plant protection treatment equipment, for example by using confined sprayers with recovery panels which can reduce the amount of product used by 30-40% while also delivering a much more targeted treatment.

Moët Hennessy also draws up a detailed annual inventory of plant protection products used at vineyards owned by the Group. Active substances are assessed based on the following metrics:

●   TOA: Acute toxicity (acute health risk indicator);

●   TOC: Chronic toxicity (chronic health risk indicator);

●   TERRA: Impact on biodiversity;

●   AQUA: Impact on water.

The substances are then ranked according to their toxicity using an overall score. Following the launch of a pilot project in Argentina in 2024 to test the methodology, a study was also undertaken in Champagne in 2025 at Moët & Chandon, Veuve Clicquot and Krug vineyards owned by the Group. This analysis was also undertaken at some winegrower partners to better understand how they use inputs so as to be able to advise them appropriately.

Concerning fertilizers, the number of units of nitrogen used at the Maison’s vineyards is also monitored. Nitrogen is applied taking into account weather conditions so as to minimize runoff into the soil and the water table. Measures to promote the use of organic rather than synthetic fertilizers have been put in place, as doing so offers benefits for soil structure as well as water quality. Some Maisons opt to fertilize their vines using only organic fertilizer: Ao Yun (China), Chandon Australia, Numanthia (Spain), Château Galoupet and Château Esclans (Provence) and Veuve Clicquot and Krug (Champagne).

The human resources allocated to these actions are equivalent to 20 full-time equivalent staff members. In 2025, the financial resources dedicated to funding this transition in vineyards totaled 30 million euros (31 million euros in 2024).

The Fashion and Leather Goods Maisons are rolling out programs for raw material certification and for the transition to regenerative agriculture, particularly for cotton, which is well-known for its consumption of plant protection products. The results are presented below in §5.2.4, “Related metrics”.

3.2.3       Associated objectives

The Group has set the following voluntary objectives regarding soil pollution:

Potential soil pollution related to the Wines and Spirits businesses

The objectives related to sustainable winegrowing certification, which include the topic of soil pollution, also cover grape suppliers and are presented below in §5.2.4, “Related metrics”.

Potential soil pollution related to the Fashion and Leather Goods businesses

The contribution to reducing soil pollution for the Fashion and Leather Goods businesses stems from the certified raw materials purchasing program and the transition to regenerative agriculture presented below in §5.2, “Management of the impact on ecosystems, soil, and plant and animal species”.

3.2.4       Indicators and results

Management of metrics related to soil pollution

None of the pollutants listed in Annex II of Regulation (EC) No. 166/2006 of the European Parliament and of the Council emitted to soil are used above the thresholds set with the exception of copper for the following Maisons (total of 8.1 metric tons of copper, compared to 9.1 metric tons in 2024): Hennessy, Château d’Yquem, the champagne houses, Chandon Argentina, Chandon do Brasil, Domaine Chandon Australia, Domaine Chandon Ningxia China, Château d’Esclans, Château Galoupet, Château Minuty. Copper is used as a plant protection agent as part of the green transition and the gradual reduction of synthetic pesticides.

In 2025, the results were as follows:

Wines and Spirits

(a)  In 2024, these figures pertained only to French vineyards, and exceptional use was due to heavy rainfall in Champagne in 2024.

(b)  In 2025, the scope included all of the Group’s vineyards; the use of herbicides concerned the following vineyards: Cloudy Bay, Chandon Argentina and Terrazas de los Andes, Chandon California, Chandon Australia, Champagne, Château d’Esclans.

(c)   This reduction was a result of improved reporting and favorable weather conditions.

Fashion and Leather Goods

See the table entitled “Certification of strategic supply chains in 2025” in §5.2.4, “Related metrics” below.

3.3         Preventing water pollution

3.3.1       Policy related to water pollution

LVMH has rolled out an overall strategy for water pollution prevention. It includes the following topics, which are considered material:

●   LVMH Group operations: Discharge of effluent containing organic pollutants from winemaking and distillation processes, and crocodilian farms (risk of eutrophication); discharge of effluent containing organic and mineral pollutants from tanneries for the Fashion and Leather Goods business group;

●   supply chain: Extraction and processing of mineral raw materials for the Watches and Jewelry business group; discharge of effluent containing organic pollutants (risk of eutrophication) and mineral pollutants during processing, particularly for the Fashion and Leather Goods business group (tanneries, textile manufacturing and finishing, metalwork, etc.).

The Group’s other activities do not have a material impact on water pollution.

Eutrophication is the excessive buildup of algae and aquatic plants caused by excess nutrients in the water (particularly phosphorus), which reduces water oxygenation and adversely affects the environment. The parameter used is the Chemical Oxygen Demand (COD) calculated after treatment of effluents from the Group’s own plants or external plants with which the Group has agreements, as well as indicators of nitrogen and phosphorus pollution. The following operations are considered treatment: city and county wastewater collection and treatment, independent collection and treatment (aeration basin), and land application. All of LVMH’s operations that generate the highest COD are equipped with facilities for treating and minimizing organic pollution. LVMH also ensures that the relevant industrial plants treat their organic nitrogen and phosphorus loading.

LVMH is a member of the ZDHC (Zero Discharge of Hazardous Chemicals) trade association, which aims to promote best practices concerning the use of dangerous substances and the quality of discharged wastewater at textile and leather manufacturing sites, in particular for dyes. LVMH has drawn up a detailed roadmap that encompasses LVMH’s production sites as well as key suppliers of Maisons in the Fashion and Leather Goods business group. All concerned production sites (tanneries and Loro Piana production sites) must test the quality of their wastewater discharge and share a “ClearStream” report in order to monitor their performance (see §3.4.4, “Indicators and results”, below). If a production site is non-compliant, it must share a corrective action plan, including a specific timeline.

The Maisons in the Wines and Spirits business group implement the policy described in the previous paragraph to manage the risks of soil and water pollution with regard to winegrowing. In addition, the Maisons also implement an effluent treatment policy for all facilities concerned, in particular the distilleries, with the exception of the Ardbeg distillery, which discharges its effluent untreated in accordance with local regulations. The aim is to reduce the load of organic pollution as far as possible. Technical itineraries in use at vineyards owned by the Group are notably analyzed using an indicator assessing their impact on water quality (AQUA). In addition, the Maisons also implement an effluent treatment policy for all facilities concerned, in particular the distilleries. The aim is to reduce the load of organic pollution contained in effluent as far as possible.

The Watches and Jewelry Maisons work in partnership with their suppliers to reduce water pollution, both from mines and metalworking activities, notably by implementing RJC certification, which incorporates several criteria on water management and the use of polluting substances.

Lastly, in compliance with regulatory requirements, hazardous products are stored in such a way that any accidental leaks are contained. Emergency procedures are defined within the environmental management systems implemented at LVMH sites and suppliers for the Group.

3.3.2       Actions and resources used

The relevant Group sites use external treatment plants managed by local authorities and/or have their own wastewater treatment systems. For example, the Loro Piana production site at Quarona is a textile production and finishing facility that is strategic at a Group level in terms of water pollution management. The site has longstanding practices for treating polluted effluents, and in 2024 it installed new technologies to further improve effluent treatment and to recycle part of its effluent. A wastewater treatment plant was constructed in 1987, and an ozonation system was set up in 2008 to remove dye residue from wastewater and reduce pollutants, like phenols, halogens and COD. In 2019, a membrane bioreactor was installed at this plant, which has reduced organic pollution by 98%. Lastly, by introducing two reverse osmosis systems – one in 2020 and the other in 2025 – the wastewater is purified to a high degree. Thanks to continuous efforts based on these new systems, around 30% of water was recycled in 2025 by reintroducing it into the production cycle, representing a sustained increase relative to previous years.

Lastly, coverage for environmental risks amounted to 3 million euros as of December 31, 2025. This amount corresponds to the financial guarantees required by law for Seveso upper-tier establishments.

3.3.3       Associated objectives

The contribution to reducing water pollution related to plant protection products in the vineyards for the Wines and Spirits businesses is linked to the contribution to reducing soil pollution presented in the previous paragraph.

LVMH has set a number of voluntary objectives as part of its strategy to reduce water pollution.

(a)  The following are included in the scope:

-  for leather: the Roux and Heng Long tanneries, plus the Nuti Ivo, Lloyd, Papete, Everest and Riba Guixa tanneries, which were added in 2025;

-  for textile: Loro Piana.

The ZDHC program’s Manufacturing Restricted Substances List (MRSL) is a list of chemicals whose intentional use is prohibited in the treatment of textiles, in particular leather. It is more restrictive than EU regulations. The substances covered are as follows:

3.3.4       Indicators and results

Management of metrics related to the use of substances of concern

In 2025, the Fashion and Leather Goods Maisons continued to voluntarily roll out the ZDHC program, including with their suppliers, in particular as regards monitoring wastewater quality in operations using wet processes (tanneries, textile manufacturing and finishing). Five of the eight objectives set for 2026 were achieved by 2025, with the following results:

(a)  The following are included in the scope:

-  for leather: the Roux and Heng Long tanneries, plus the Nuti Ivo, Lloyd, Papete, Everest and Riba Guixa tanneries, which were added in 2025;

-  for textile: Loro Piana.

(b)  Reduction arising from a change in methodology in relation to the inclusion of subcontractors.

In 2025, the Watches and Jewelry Maisons rolled out RJC certification to their gold supply chain; the results are presented in the table entitled “Certification of strategic supply chains: Results in 2025” in §5.2.4, “Related metrics”.

Tables summarizing organic pollution in effluent for LVMH operations in 2025

(a)  Value and change at constant scope.

(b)  Increase linked to improved reporting.

(c)   Increase linked to the inclusion of the Nuti Ivo, Lloyd, Papete, Everest and Riba Guixa tanneries.

(d)  Decrease linked to improved reporting.

(e)  Reduction arising from improved treatment of wastewater at the Belvedere distillery.

The following Maisons emit some of the substances listed in Annex II of Regulation (EC) No. 166/2006 of the European Parliament and of the Council above the thresholds set:

●   COD (Chemical Oxygen Demand, a parameter representative of organic pollution) totaling 3,096 metric tons: Château d’Yquem, Domaine Chandon California, Domaine Chandon Argentina, Glenmorangie (Tain distilleries), Ardbeg, Château Cheval Blanc, Cloudy Bay, Château d’Esclans, Minuty;

●   Total P (total phosphorus), 8 metric tons: Belvedere, Glenmorangie (Tain distilleries) and Ardbeg;

●   Total Cu (total copper), 0.2 metric tons: Ardbeg.

3.4         Avoiding substances of concern and substances of very high concern

3.4.1       Policy related to substances of concern and very high concern

At the Group level, substances of concern and very high concern are considered material with regard to potential ecosystem pollution (product use and end-of-life treatment for the Perfumes and Cosmetics, Selective Retailing and Fashion and Leather Goods business groups) and their potential impact on consumer health in cosmetic products. LVMH is motivated by a constant desire to protect the health and safety of its stakeholders as well as to preserve ecosystems by avoiding or reducing the use of chemicals of concern and of very high concern. To achieve this, the Group pursues a proactive policy and is continuously looking to offer products of the highest quality, through research and innovation and high standards, in the selection of materials and through the implementation of expertise in its activities, supported by a chemical product risk management strategy for chemicals in products and materials used in production facilities centered on three main strategies:

●   The Product Restricted Substances List (PRSL) for the Fashion and Leather Goods and Watches and Jewelry business groups: this standard, which applies to products and all raw materials used by the Maisons, goes beyond global regulatory requirements (such as those of the EU’s REACH regulation, including the list of substances classified as carcinogenic, mutagenic or reprotoxic, Category 1A or 1B – Annex XVII). It is regularly updated in response to ongoing monitoring of scientific developments.

●   The ZDHC’s Manufacturing Restricted Substances List (MRSL) for chemical products used on leather and textile products from the Fashion and Leather Goods and Watches and Jewelry business groups: Compiled and updated by ZDHC, this list aims to ensure upstream compliance of chemicals purchased and used at production sites. In 2019, LVMH joined the ZDHC (Zero Discharge of Hazardous Chemicals) trade association, which aims to promote best practices concerning the use of dangerous substances and the quality of discharged wastewater at textile and leather manufacturing sites, in particular at tanneries and facilities that use wet processing for textile production. In accordance with these documents and the associated protocols, textile and leather manufacturers undertake to:

-   implement sustainable management of chemicals with the aim to gradually reduce and eventually eliminate the use of the riskiest substances;

-   optimize production processes to reduce the risks associated with the use of chemicals;

-   check the efficacy of management and procedures in place by means of routine analysis of hazardous substances in discharges.

In collaboration with other luxury goods brands, LVMH is working to develop a method for verifying the sustainable management of chemicals in galvanizing processes involved in the production of metal parts for leather goods and jewelry products. The PRSL and the MRSL are shared with all suppliers and subcontractors in the form of a letter of undertaking.

●   The Perfumes and Cosmetics business group and its suppliers comply with international regulations in terms of safety and ecotoxicology, in particular Regulation (EC) No. 1223/2009, relating to cosmetic products, and Regulation (EC) No. 1907/2006 (REACH). These regulations must be applied before using any raw material in a cosmetic product. The Maisons’ products must meet rigorous internal requirements covering development, quality, traceability and safety for consumers. By adopting a proactive risk prevention process, the Perfumes and Cosmetics business group remains ready for changes in international regulations that maintain consumer safety and protect the environment. This process relies on opinions issued by international scientific committees and industry group recommendations. Industry developments are monitored on an ongoing basis to ensure that LVMH’s charters (for ingredients used in cosmetics and perfume making) are kept up to date, listing substances that are banned or subject to restrictions in the formulation of cosmetic products and fragrances. The Group’s holistic, rigorous approach to ensuring that ingredients are safe, healthy and sustainable also extends to its packaging, taking into account the circular economy and end-of-life treatment of its products. This approach aims to limit and/or eliminate the use of packaging containing substances that are hazardous, controversial or of concern through a dedicated LVMH packaging charter covering the entire life cycle of perfume and cosmetics packaging.

Maisons in the Perfumes and Cosmetics business group fully screen all substances and ingredients. Among the substances of very high concern because their harmful effects on the environment, defined on the basis of a classification as PBT (persistent, bioaccumulative and toxic) or vPvB (very persistent and very bioaccumulative), only the following substances have been identified:

1)   Cyclic silicones

●   D5: Decamethylcyclopentasiloxane PBT (Article 57d)/vPvB (Article 57^e) of the REACH regulation;

●   D6: Dodecamethylcyclohexasiloxane PBT (Article 57d)/vPvB (Article 57^e) of the REACH regulation.

These substances were banned in the LVMH cosmetic ingredients sourcing charter in January 2019. Reformulation of existing products for all types of applications (leave-on and rinse-off) is in the process of being finalized.

The LVMH Group’s position enabled anticipation of the ban on D5 in rinse-off products in January 2020. Similarly, the EU regulation published on May 17, 2024 will ban the use of D5 and D6 silicones in leave-on products as of June 2027.

2)   PFAS

Due to their toxic effects on human health and the environment, halogenated products – which include PFAS – have been banned from intentional use in Group products since 2009 under the LVMH cosmetic ingredients and packaging sourcing charters.

Maisons in the Fashion and Leather Goods and Watches and Jewelry business groups abide by in-house standards that prohibit or restrict the use of certain substances in products placed on the market, as well as their use by suppliers. These documents are shared with all suppliers and subcontractors in the form of a letter of undertaking. They are committed to their implementation:

●   the LVMH Product Restricted Substances List;

●   the Manufacturer Restricted Substances List (MRSL).

In accordance with these documents and the associated protocols, textile and leather manufacturers undertake to:

●   implement sustainable management of chemicals with the aim of gradually reducing and eventually eliminating the use of the riskiest substances;

●   optimize production processes to reduce the risks associated with the use of chemicals;

●   check the efficacy of management and procedures in place by means of routine analysis of hazardous substances in discharges.

In collaboration with other luxury goods brands, LVMH is working to develop a method for verifying the sustainable management of chemicals in galvanizing processes involved in the production of metal parts for leather goods and jewelry products.

3)   Linear silicones

These substances were added to the candidate list of substances of very high concern in 2025:

●   L3: Octamethyltrisiloxane vPvB (Article 57^e) of the REACH regulation;

●   L4: Decamethyltetrasiloxane vPvB (Article 57^e) of the REACH regulation;

●   TMF or M3T: 1,1,1,3,5,5,5-heptamethyl-3-[(trimethylsilyl) oxy]trisiloxane vPvB (Article 57^e) of the REACH regulation.

These substances are classified because of their impact on the environment; for this reason, they are not used in our rinse-off products. Ongoing efforts are underway to improve the composition of our formulas from an environmental perspective, and we are working on substitute solutions.

3.4.2       Actions and resources used

Since 2024, LVMH Perfumes and Cosmetics’ research team has been using an IT tool for managing reformulations as part of plans to stop using substances of very high concern.

Since 2024, the LVMH Perfumes and Cosmetics research team have implemented the IPC (Interaction Packaging Contenu) certification system, which allows for systematic checks to be performed, on the basis of supplier documentation and certificates as well as tests by in-house labs, on substances of concern contained in packaging materials that are in permanent contact with the cosmetic product. If the packaging materials used pose no risk to consumer safety, this is recorded by a toxicologist in the in-house systems by granting an IPC certificate.

The Group operations concerned, including the tanneries and suppliers of the Fashion and Leather Goods Maisons, continue to roll out the ZDHC program. LVMH supports its partners by offering training and by covering the costs of the first year of certification, which came to 40,000 euros in 2025.

3.4.3       Associated objectives

LVMH has set the following voluntary objectives as part of its policy to control use of substances of concern and of very high concern:

Overview of objectives related to the use of substances of very high concern

(a)  The following are included in the scope:

-  for leather: the Roux and Heng Long tanneries, plus the Nuti Ivo, Lloyd, Papete, Everest and Riba Guixa tanneries, which were added in 2025;

-  for textile: Loro Piana.

As part of the policy for controlling the use of substances of very high concern (SVHCs), the Perfumes and Cosmetics business group has set the objective of including these substances in its cosmetic ingredients and packaging sourcing charters once they are added to the candidate list. This also enables the Maisons to comply with REACH requirements and prepare for and anticipate future inclusions of substances in the authorization list by gradually phasing them out of their products.

3.4.4       Indicators and results

In accordance with Article 57 of Regulation (EC) No 1907/2006 of the European Parliament and of the Council (REACH) and with Appendix VI, Part 3 of Regulation (EC) No 1272/2008 of the European Parliament and of the Council, the only substances identified are presented in the table below and pertain to the Perfumes and Cosmetics and Fashion and Leather Goods business groups.

In 2025, the Fashion and Leather Goods Maisons continued to roll out the ZDHC program, in particular as regards monitoring substances used in wet processes (tanneries, textile manufacturing and finishing) with the following results:

(a)  The following are included in the scope: the Nuti Ivo, Lloyd, Papete, Everest, Riba Guixa, Tanneries Roux and Heng Long tanneries for leather and Loro Piana’s production site for textile, i.e. all LVMH sites relevant to this objective.

(b)  The increase is due to a change in scope (inclusion of subcontractor activities for the production of some formulas).

(c)   A conservative approach has been adopted for suppliers of polyamide and polycarbonate used in spectacle lenses. Suppliers cannot systematically guarantee that the presence of these additives always equates to less than 1,000 ppm. According to REACH registration documents, they do not report a value for these substances but state that they “may exceed 1,000 ppm”. As a precaution, LVMH uses a value of 1,100 ppm for the materials in question.

(d)  Increase arising from implementation of the supplier engagement action plan.

(e)  Reduction arising from ongoing implementation of the product reformulation plan.

4.     Water and marine resources (LIFE 360 – Water)

4.1         Addressing issues related to water

Under pressure from both population growth and the consequences of global warming, water is a resource in high demand. Restrictions on its use mean specific action plans are needed. It is an essential component of the Group’s activities. This makes it a strategic resource that contributes directly to the high quality of products developed by LVMH, and the Group has a responsibility to take action to preserve it. LVMH calculates its water footprint using specific, recognized pressure and sensitivity indicators such as the EF 3.0.2 and IMPACT 2002+ databases and the Aqueduct, WWF Water Risk Filter, Plasteax (Mismanaged Waste Index) and AWARE methodologies. By calculating its water footprint in this way, the Group is able to identify which sites and raw materials are associated with the highest impact and highest risk, and/or are located in areas of high water stress, both within LVMH’s operations and across the Group’s value chain. Discussions with local communities and administrations are systematic at all of these sites.

The following risks and impacts are considered material:

●   own activities: Contribution to the depletion of water resources arising from water withdrawal by the Group’s operations, particularly in areas at water risk (Wines and Spirits, mainly vineyard irrigation in LVMH owned vineyards, especially in Argentina and California, and hospitality activities);

●   sourcing raw material: Contribution to the depletion of water resources arising from water withdrawal by the Group’s supply chain, particularly in areas at water risk (Wines and Spirits and Fashion and Leather Goods);

●   risk of decline in agricultural yields affecting supplies of raw materials needed to manufacture the Group’s products in the event of a reduction in water resources or restrictions on use (all business groups).

Areas of high water stress are identified using the WWF’s Water Risk Filter. Water consumption at these sites is presented in §4.2.1 below.

LVMH is always working to improve measurement of water consumption across the Group’s value chain using constantly refined pressure indicators and increasingly accurate location methods to plan its operations and supply chains.

4.2         Management of issues related to water

4.2.1       Policy related to water

With respect to material impacts and risks and the Group’s LIFE 360 environmental strategy, LVMH implements a policy and action plans to reduce specific water withdrawals for the most water-intensive activities within its operations (irrigation of the Group’s vineyards, hospitality sites, tanneries, etc.) and in the upstream value chain (production and processing of raw materials), particularly in areas of high water stress. The downstream value chain does not contribute significantly to the Group’s water footprint.

LVMH Group operations

The Group’s environmental policy, which aims to reduce water withdrawals, covers the following topics:

●   reducing irrigation requirements by rolling out best practices and technologies, particularly in Argentina and California vineyards, and continuing to roll out the regenerative agriculture program, launched in 2021, across the Group’s vineyards, with the aim of improving the quality of soil and thereby its ability to capture and retain water;

●   reducing water withdrawal, particularly at sites located in areas of high water stress, by implementing more efficient technologies and practices at the Group’s hospitality sites (water-saving device, water-efficient washing equipment, etc.). LVMH is also working on reducing water withdrawal by its operations located in areas of lower water stress, such as by rolling out water recycling systems at distilleries and Loro Piana workshops, as well as more efficient technologies at tanneries and farms.

Supply chains

In addition, the Group’s value chain, which accounts for 95% of its water footprint, is also covered by a policy and action plans aimed at the following:

●   helping to deploy more efficient technologies to reuse treated wastewater and recover rainwater within the value chain;

●   continuing with the Group’s raw materials certification and regenerative agriculture program, launched in 2021, across the cotton, wool, leather and beet supply chains;

●   raising awareness among customers through environmental labeling, which is in the process of being rolled out across the Group’s products.

Lastly, LVMH joined the CEO Water Mandate in 2023, a United Nations organization aimed at sharing and implementing best practice in water management. As it did for biodiversity, LVMH took part in official testing of the SBTN approach, which includes defining specific objectives for some watersheds, in particular for grape production in the Cognac region and cashmere production in Mongolia.

The risk of decline in agricultural yields affecting supplies of raw materials needed to manufacture the Group’s products in the event of a reduction in water resources or restrictions on use is managed by evaluating the stress level annually using the Water Risk Filter for each supply region and identifying the most exposed regions.

4.2.2       Actions and resources used

In 2024, Chandon Argentina and Terrazas de los Andes, which account for 39% of the Group’s water withdrawal, launched a study with WWF to explore and highlight local water-related issues in Mendoza Province (Argentina) and analyze the future impact of climate change.

This study identified new opportunities to reduce water withdrawal for irrigation purposes in both the Group’s own operations and those of grape providers. Because of the dry, desert-like climate (approximately 200 mm of rain per year) in the Mendoza Province, vineyard irrigation requires authorization and is regulated and is essential for winegrowing.

Following a sector analysis, WWF confirmed that winegrowing remains the best socioeconomic option for the region due to its high added value and optimized water usage compared with other activities. It was also emphasized that the Chandon and Terrazas vineyards are three to four times more water-efficient than the average of the region’s winegrowers because they systematically use precision irrigation. This approach – in standard use at vineyards owned by the Group – relies on drip irrigation as well as the collection of specific data: weather data, measurements of soil water retention, satellite analysis of vegetation vigor and field sampling to assess water stress at each vineyard. A team of agronomists specializing in irrigation carry out this work for six months before drawing up tailored irrigation recommendations for vineyards owned by the Group. The aim is to align irrigation with the actual needs of vines and variation in rainfall while maintaining expected levels of yield and grape quality. Work has also been undertaken with winegrower partners of Chandon Argentina and Terrazas de los Andes and the Province to support the rollout of the Provincial Water Plan, including actions to transition winegrowing to more efficient systems (notably drip irrigation). In 2025, Chandon Argentina organized three meetings that brought together nearly 80 people, including representatives from 30 competitor winegrowers and the Department for Irrigation, with the goal of distributing the Provincial Water Plan and engaging with winegrower partners. Two training sessions were also organized for winegrower partners of Chandon to raise their awareness of climate change and explain the broad outline of the water plan and the drip irrigation method. In 2025, WWF also undertook a study in the Provence region to understand issues related to water management in winegrowing. This study highlighted the importance of working with winegrower partners to roll out regenerative winegrowing practices to foster improvements in the water cycle and soil quality.

Two years ago, Hennessy launched a program to optimize its water withdrawal across all scopes. It began in 2023 by calculating its footprint across its entire value chain as well as conducting a business continuity risk analysis in light of the impacts of climate change on water withdrawal. It has worked as a pilot for the Group with SBTN with the goal of achieving a 30% reduction in water withdrawal across all scopes (by 2030 relative to a 2019 baseline) as well as capitalizing on nature-based solutions (planting hedges with the 1000 Palisses program) to increase soil water reserves in the face of climate-related hazards like drought and flooding.

In 2025, Hennessy’s entire senior management team received training in strategic issues related to water, with a particular focus on issues specific to the Charente watershed and potential solutions such as water reuse and soft hydrology, which are the next solutions to be studied by the program. Hennessy has already exceeded its target, set by the Group, of reducing water withdrawal by 30% in both 2024 and 2025.

In light of lengthening droughts and accelerating soil erosion following intense rainfall, in 2022 Château Galoupet adopted an operational hydrology approach at its vineyard to increase the soil’s capacity to retain rainwater and reduce runoff velocity. The Maison mainly uses natural landscaping to slow water runoff and create small retention basins. In 2025, it restored over 3,500 square meters of wetlands and developed nearly 500 meters of stepped weirs, 5 buffer basins and 13 temporary ponds. These features reduce soil erosion by 85% and help retain around 2,000 cubic meters of water in the soil each time it rains.

In 2025, Belvedere reduced its water consumption by 22% from 2019 using a new purification process to recycle wastewater and residual water from rectification processes. The Maison has secured ISO 46001 certification, confirming its use of a water management system at its production site.

4.2.3       Associated objectives

The voluntary objectives set by the Group are directly linked to the policy of reducing water withdrawals and material impacts, in particular by integrating the Wines and Spirits, Fashion and Leather Goods and Hospitality business activities and supply chains.

4.2.4       Indicators and results

Management of metrics related to water use

Indicators and objectives related to water withdrawal and consumption

(a)  Value and change at constant scope.

(b)  This reduction is mainly due to reduced irrigation requirements at Californian vineyards and improved reporting.

(c)   Volumes of recycled or reused water are not included.

(d)  Increase linked to insufficient rainfall at vineyards in Argentina but less than in previous years thanks to practices implemented.

(e)  Integration of 97 new sites belonging to the Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Other activities business groups.

(f)   Reduction mainly due to reduced irrigation requirements at vineyards in Argentina.

(g)  Increase mainly related to the ramp-up of a reverse osmosis and water recycling system at a Loro Piana production site.

Water withdrawal for process requirements broken down as follows by business group:

(a)  Figures for 2025 include estimates of 30% (2,428,573 m³) for certain stores and administrative sites.

(b)  Value and change at constant scope.

(c)   Reduction arising from changes in business activity.

(d)  Increase arising from increased activity at one Bvlgari site and improved reporting at some Tiffany sites.

(e)  Includes stores closed in 2025 accounting for 6% of total stores included in the 2024 scope.

(f)   Includes 19 new sites added in 2025, mainly consisting of the Nuti Ivo, Everest, Papete, Lloyd, Riba Guixa, Verdeveleno and Papete tanneries.

5.     Biodiversity and ecosystems (LIFE 360 – Biodiversity)

5.1         Addressing issues related to biodiversity

5.1.1       Consideration of biodiversity and ecosystems in strategy and business model

Protecting natural ecosystems is of vital importance to LVMH, whose business is heavily dependent on natural raw materials (such as flowers, grapes, cotton, leather and gems). LVMH has implemented a biodiversity strategy drawn up in accordance with the Kunming-Montreal Global Biodiversity Framework and the EU Biodiversity Strategy for 2030. LVMH has also followed the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). LVMH is an active member of the TNFD forum, which developed a specific risk management framework to be used by its members to better map positive and negative actions relating to nature to help guide their strategic planning and asset allocation decisions. LVMH has published its disclosures in respect of fiscal year 2024, for the first time, in alignment with TNFD recommendations. LVMH also draws on the Science-Based Targets for Nature process, which provides standards to set science-based targets that are measurable, actionable and time-bound.

The Group’s biodiversity strategy is aligned with material impacts presented in the next paragraph and is based on three core principles:

●   Measuring and assessing the impact and dependencies on nature: Measuring impacts can serve as a powerful lever for identifying priorities, objectives and actions; measuring impacts on biodiversity remains a complex issue. LVMH updates its indicators used to track progress annually and uses specific, recognized pressure and sensitivity indicators such as the EF 3.0.2 and IMPACT 2002+ databases (surface area used and/or converted) and tools provided by Trase and Global Forest Watch (surface area deforested), IBAT (exposure of businesses related to protected areas, rich in biodiversity and endangered species of fauna and flora) and ENCORE (identification of businesses’ dependencies on nature). The input data used for the most recent footprint covers the year 2024 for both raw materials (including quantities of raw materials, origin and potential certification) and LVMH operations. This step to identify and assess nature-related risks and impacts is based on the TNFD’s LEAP approach (Locate, Evaluate, Assess and Prepare), as well as Steps 1 (Screening and Value Chain Assessment) and 2 (Prioritization) of the SBTN framework. The results of this first step have fed into the Group’s double materiality assessment and validation of the material impacts and risks set out in §5.1.2, “Interaction between biodiversity impacts and the Group’s strategy and business model”.

●   Avoiding and reducing impacts on biodiversity: After measurement, impact avoidance and reduction constitute the second step of the Group’s biodiversity strategy. This strategy is based on two main objectives: obtaining environmental certification and reducing the intensity of deforestation and conversion of natural ecosystems for the Group’s operations and supply chains. The program to obtain environmental certification for operations and raw materials (FSC for wood and wood derivatives or RSPO for palm oil derivatives) helps reduce the environmental impact on ecosystems, particularly in terms of pollution, water consumption, effluent discharges and waste production. The following certification programs have been rolled out:

-   Operations:

-   production and hospitality sites: LVMH uses certified environmental management systems, such as ISO 14001 certification, for the Group’s production and logistics sites and EarthCheck certification for hospitality sites;

-   vineyards: All Group vineyards are undergoing environmental certification according to the standards detailed in §5.1.2, “Interaction between biodiversity impacts and the Group’s strategy and business model”.

-   Supply chains:

-   supplier industrial sites: LVMH has rolled out certification programs for the production sites of certain suppliers, such as tanners and fabric makers, which have to have LWG or ZDHC certification;

-   production and/or extraction of raw materials: LVMH has rolled out a raw materials certification program, presented in §5.2.1, “Policy related to impact on ecosystems and soil”.

Concerning reducing the intensity of deforestation and conversion of natural ecosystems for the Group’s operations and supply chains, LVMH has set itself the objective of zero deforestation and conversion of natural ecosystems within operations and supply chains by 2026. In particular, LVMH and its Maisons have banned certain regions for the supply of leather (South America), wood and wood derivatives.

●   Regenerating and preserving ecosystems: The Group is committed to restoring, protecting or regenerating the equivalent of five million hectares of flora and fauna habitat by 2030, either within its supply chains by rolling out regenerative agriculture programs for strategic agricultural commodities like grapes, cotton, wool and leather, or by contributing to collective efforts to regenerate and preserve ecosystems and protect particularly endangered plants and animals.

In addition to these three strategic priorities, LVMH has begun setting nature-related targets based on the international Science-Based Targets for Nature for specific natural environments, in connection with some of the Group’s material impacts and risks: the LVMH vineyards in a French winegrowing region and production of cashmere in Mongolia. The Group is currently analyzing the possibility of extending this approach to other ecosystems.

In addition, the dependency on nature of LVMH’s activities was assessed using the ENCORE tool, which identifies potential high dependencies on nature for each Group activity:

●   dependency on nature-related cultural services for hospitality activities;

●   dependency on soil quality to ensure the production of the plant and animal fibers needed by the Fashion and Leather Goods Maisons (supply chain), and the production of grapes needed by the Wines and Spirits Maisons;

●   dependency on pollination services for certain ingredients used by Perfumes and Cosmetics Maisons;

●   dependency on the capacity of ecosystems to purify surface and ground water to ensure the production of the plant and animal fibers needed by the Fashion and Leather Goods Maisons (supply chain), the production of grapes needed by the Wines and Spirits Maisons and the hospitality activities.

The Group’s activities exposed to high water stress and the adaptation measures taken are set out in §4.2.1 and §4.2.2.

Lastly, LVMH Recherche has introduced comprehensive processes to actively monitor changes in the international and national legislation arising from the Nagoya Protocol on Access and Benefit Sharing in relation to genetic resources. Its focus has been on the production and utilization of certain perfume ingredients and cosmetics. LVMH assesses their applicability to its operations and rolls out action plans to achieve full compliance. This framework calls for systematic assessments when new raw materials are utilized, encompassing both raw materials developed internally and those offered by suppliers, as well as patent applications and commercial claims. LVMH takes any remedial action required to avoid non-compliance incidents. It may, for example, request information from national authorities or ask suppliers to evaluate whether they can obtain permits for or halt the sourcing of non-compliant raw materials.

Local and indigenous communities are also consulted through the processes described in the “Social” section, §3, “Affected communities”. The consultations address land use and certain practices such as the use of plant protection products.

5.1.2       Interaction between biodiversity impacts and the Group’s strategy and business model

The processes used to identify and assess impacts and risks outlined in the previous paragraph have highlighted the activities shown in the following table as being the most crucial for biodiversity purposes.

Material impacts on biodiversity

In addition, LVMH assessed its operations’ exposure to protected natural sites, to biodiversity areas of strategic importance and to fauna and flora on the IUCN Red List of Threatened Species. All in all, 170 protected areas, 49 biodiversity areas of strategic importance and 4,169 species of fauna and flora, including 657 classified as CR (critically endangered), 1,620 as EN (endangered) and 1,996 as VU (vulnerable) on the IUCN Red List, lie within a radius of 1 km of Group sites. The LVMH sites located less than 1km from a protected area span 2,927 hectares. The five sites with the greatest exposure to sensitive ecosystems (number of protected sites, biodiversity areas of strategic importance, and number of endangered fauna and flora species within a 1 km radius) are shown in the table below.

Table showing the exposure of LVMH’s own operations to sensitive ecosystems

5.2         Management of the impact on ecosystems, soils, and plant and animal species

5.2.1       Policy related to impact on ecosystems and soil

As part of its LIFE 360 environmental strategy, LVMH implements a biodiversity policy and action plans directly linked to material impacts such as the contribution to soil degradation, the degradation of sensitive ecosystems, the direct and indirect impacts of food & beverage activities on the state of ecosystems, as well as deforestation and the fragmentation, degradation and loss of terrestrial habitats.

Contribution to soil degradation

1)   Certification of strategic raw materials

The LVMH Group has put in place a strategy for responsible sourcing, covered by LIFE 360 objectives. These targets commit the Maisons to ensuring that, by 2026, 100% of the strategic raw materials they purchase and produce are certified as complying with the environmental standards held by the Group and presented in the 2025 results table, covering both the materials themselves and production sites. These standards guarantee that ecosystems, including soil, are properly protected by limiting the use of plant protection products. The list of strategic raw materials comprises the following:

●   grapes, rye and barley;

●   sheep and cow leathers, raw lamb and calf skins, exotic leathers and furs;

●   cotton;

●   wool;

●   down and feathers;

●   viscose;

●   silk;

●   wood, paper and cardboard;

●   gems and precious metals;

●   palm oil and its derivatives;

●   soya and its derivatives for cosmetic use;

●   alcohol;

●   iconic ingredients used by Maisons in the Perfumes and Cosmetics business group.

The other raw materials used by the Group (which represent about 33% of total raw materials) are monitored individually and sourced using responsible procurement practices, without any certification being targeted.

The certification standards recommended by the LVMH Group must cover all the points stated below:

●   separation of material flows across the supply chain;

●   deployment of robust, neutral quality assurance and verification systems, through wholesale introduction of audits across the supply chain focused on social and environmental issues, such as reducing the use of plant protection products, which have a direct impact on biodiversity conservation.

Where a certification provides insufficient assurance, the Group backs up its approach with specialized audits or seeks additional certification. Lastly, LVMH proactively supports certification programs not only by purchasing certified materials but also by sitting on expert committees, in partnership with other stakeholders.

Governance of the responsible sourcing policy relies on the implementation of sourcing committees with experts from the related Maisons overseeing the following raw materials: leather, exotic leather, fur, wool and cashmere, textiles (cotton, silk, viscose and other textiles), metals, wood and wood derivatives, cosmetic ingredients, diamonds, gold and colored gemstones (ruby, sapphire and emerald). These committees meet twice a year, review the list of standards adopted by LVMH, provide oversight and pursue objectives with the active collaboration of the Maisons. They are also a body enabling the various LVMH Group departments to relay key messages to operational teams in the Maisons, such as the update to the Supplier & Business Partner Code of Conduct.

Supply chain traceability

A purpose-built action plan is drafted for supply chain traceability and mapping – a strategic dimension of the responsible sourcing policy with its own LIFE 360 objective. By making it easier to trace supply chains back to the field or the mine, this action plan enables more effective targeting of land conservation initiatives. The Group’s commitment to transparent raw material supply chains is organized into several implementation stages, such as identifying the country of origin for strategic raw materials and implementing sector-specific supplier mapping tools reflecting the degree of maturity of the relevant segments.

2)   Introduction of regenerative agriculture

To achieve its goal of restoring, protecting or regenerating the equivalent of five million hectares of flora and fauna habitat by 2030, the Group is rolling out regenerative agriculture programs for strategic agricultural commodities. Regenerative agriculture aims to revitalize soil health, restore ecosystem functions (biodiversity/water cycle) and ensure socioeconomic stability for those involved (farmers and communities), while yielding high-quality raw materials. LVMH’s commitment is reflected in specific actions (no-till farming, soil cover, crop rotation, use of organic fertilizers, etc.) and the rollout of regenerative agriculture programs in the supply chains for strategic raw materials. These include grapes for Wines and Spirits, cotton, wool and leather for Fashion and Leather Goods, and palm, beet and iconic ingredients for Perfumes and Cosmetics.

Since 2022, LVMH has been a member of One Planet Business for Biodiversity (OP2B), a business coalition focused on scaling up regenerative agriculture and protecting high-value ecosystems. LVMH has developed practical guides on how to put regenerative agriculture into practice and surrounded itself with a network of experts such as Biosphères, Earthworm, Circular Bioeconomy Alliance, Pour une Agriculture du Vivant and Hectar. The overall approach and individual projects are signed off by a Science Committee, made up of independent outside experts, which meets annually. Practice and performance indicators have been put in place for each raw material. Soil health is monitored to track progress made, including through analyses and satellite images. Lastly, suppliers are beginning to roll out certifications such as RegenAgri, Regenified and ROC.

Deforestation and fragmentation, degradation, loss of terrestrial habitat

The Group has set itself the objective of zero deforestation and conversion of natural ecosystems within operations and supply chains by 2026. Among the raw materials considered at risk in terms of deforestation, LVMH makes use of wood and wood derivatives (paper, cardboard and viscose), palm oil derivatives, cocoa, coffee and leather. These materials were identified using environmental footprint measurements of LVMH’s value chain. LVMH quantified the potential deforestation intensity of its supply chains for these three materials in relation to their countries of origin and production methods: the result was 200 hectares per year (including animal feed). This intensity is calculated on the basis of raw materials data for 2024 (quantity, origin and certification). This analysis helps the Group prioritize remedial actions and measure the progress it makes.

In addition, LVMH is continuing to roll out the following policy:

●   LVMH is working to achieve full traceability in its supply chains. Doing so makes it possible to accurately assess the intensity of potential deforestation for each plot of land;

●   LVMH has implemented a number of partnerships;

●   in spring 2021, the Group entered into a partnership with Canopy, an NGO whose program aims to avoid deforestation in the wood, cardboard and viscose sectors;

●   like many of the Group’s Maisons, LVMH is a member of FSC France, whose strategy is aimed at certifying sustainably managed forests, transforming markets and acting as a catalyst for change;

●   LVMH and its Maisons ask their partner tanneries not to accept any hides sourced from the Amazon basin;

●   LVMH is pursuing agroforestry programs in high-risk regions. As an example, the Group pursued its agroforestry projects in the Indonesian palm oil sector with other industrial partners. Over 400,000 hectares of forest are protected.

Damage to sensitive ecosystems

To minimize the impact of its operations most exposed to protected biodiversity zones, such as its hospitality activities, to biodiversity areas of strategic importance and to endangered species of fauna and flora (see table in §5.1.2), the Group has put the following policy in place:

●   use of environmental management systems at hospitality, production and logistics sites in line with recognized international standards, such as ISO 14001 certification for the Group’s production and logistics sites and EarthCheck certification for hospitality sites. The standards include criteria reflecting local biodiversity and the site’s impact on ecosystems into consideration. LVMH also systematically seeks to obtain certification to recognized standards, such as HQE, BREEAM and LEED, for new buildings and renovation projects. These standards incorporate criteria such as landscape integration and conservation of local ecosystems;

●   program to conserve ecosystems within and close to LVMH’s operations, such as planting shrubs within vineyards.

Direct and indirect impacts of food & beverage activities on the state of ecosystems

In 2023, the Group launched a coordinated approach with its hotel Maisons covering operations including food and beverage activities. Specific task forces were created in 2025 covering issues including biodiversity, climate and sustainable gastronomy. Initiatives include action plans on the rollout of EarthCheck certification, responsible procurement of coffee and cocoa and the launch of partnerships such as Parley for the Oceans with Belmond and Cheval Blanc to help preserve local ecosystems.

Furthermore, the Maisons have implemented procedures to ensure that all of their products comply with CITES, a convention on international trade in endangered species. Through a system of import-export permits, this convention was set up to prevent overexploitation of certain species of endangered fauna and flora.

Ecosystem conservation programs

The Group is committed to restoring, protecting or regenerating the equivalent of five million hectares of flora and fauna habitat by 2030, either within its supply chains by rolling out the regenerative agriculture programs set out in §5.2.1, “Policy related to impact on ecosystems and soil” and in connection with its material matters, or by contributing to collective efforts to regenerate and preserve ecosystems and protect particularly endangered plants and animals outside the Group’s value chains.

5.2.2       Related actions and resources

In 2025, LVMH rolled out action plans encompassing the Group’s LIFE 360 strategic priorities and the framework of measures to mitigate biodiversity impacts:

●   measuring and assessing the impact and dependencies on nature: update of the biodiversity footprint and assessment of biodiversity risks;

●   avoiding and mitigating biodiversity impacts: production and purchases of certified raw materials, training of purchasing teams in how to combat deforestation, supply chain tracking;

●   regenerating and conserving ecosystems: production and purchases of raw materials sourced from regenerative agriculture, plans to restore ecosystems located close to the operations of the Group’s Maisons.

These action plans relate to the Group’s material impacts and risks, and will help it to achieve the objectives presented in the “Overview” section, §4.2. LVMH does not use any biodiversity offsets, but is monitoring the ongoing work by the International Advisory Panel on Biodiversity Credits (IAPB) in this field and works with UNESCO to test and roll out the Nature Certificates program as part of a second partnership with UNESCO entitled “For the Beauty of the Living”. An initial day of discussions with international institutions on the topic of certificates was held in September 2025 and LVMH joined the European Union’s expert group on nature credits.

Raw materials traceability and supply chain mapping play an essential role in the deployment of all biodiversity action plans and help to better manage our value chains. In the face of the constant changes to the legislation on human rights, environmental protection and the due diligence obligations of contracting companies, the Group launched a project during 2020 to enhance the traceability of strategic raw materials in these supply chains. The Map & Trace project that took shape in 2022 is pursuing an approach tailored to each of the following business groups: Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry. In 2025, the measures taken by LVMH included the following:

●   for Fashion and Leather Goods materials, the Group selected a centralized traceability tool, the TextileGenesis platform, after a pilot phase in coordination with all Maisons, that enables their supply chains to be mapped out in a more automated, systematic way, while ensuring a unified approach. The tool will gradually be rolled out in 2026 with the involvement of the Maisons and their suppliers and business partners;

●   for Perfumes and Cosmetics materials, the Traceability Alliance for Sustainable Cosmetics (TRASCE) consortium aims to improve the traceability of key components used in cosmetic formulas and packaging. The French federation of beauty firms, FEBEA (Fédération des Entreprises de la Beauté), is also supporting the project. The founding members have committed to work together to map their supply chains using a shared digital platform, Transparency-One. Ultimately, the consortium aims to come up with a shared approach to analyzing associated corporate social responsibility risks so as to draw up shared improvement plans. At end-September 2025, 66% of Tier 1 suppliers of the Perfumes and Cosmetics business group had logged on to the tool and reported over 1,700 components;

●   for Watches and Jewelry materials, a similar approach is in the process of being rolled out, with support from the Map & Trace coordinators, and the participation of the Bvlgari, Chaumet and Tiffany Maisons.

As part of its objective of regenerating, protecting or restoring 5 million hectares, LVMH is implementing action plans in its three business groups affected: Fashion and Leather Goods, Perfumes and Cosmetics, and Wines and Spirits. Between 2020 and 2025, projects covered 4.3 million hectares, including the following:

●   72,000 hectares of regenerative agriculture within LVMH supply chains;

●   4.2 million hectares of non-supply-chain projects, including 3.5 million hectares via projects active in 2025 and 0.7 million hectares via closed projects.

Furthermore, in the context of projects backed by the Tiffany Foundation, conservation and restoration projects have covered 1,195 million hectares of marine ecosystem since 2020.

It has established partnerships with industry players and suppliers to speed up the agricultural transition:

●   Perfumes and Cosmetics: Since 2024, Parfums Christian Dior, Givenchy and Kenzo have undertaken a joint program aimed at reducing the environmental impact of the beet crops in France that are used to produce alcohol for perfume-making. The three Maisons are supporting the transition to regenerative farming of over 400 hectares of crops in France’s Grand Est region, to produce the equivalent of 60% of their requirements in alcohol in 2025. The initiative has taken the form of a partnership with Cristal Union, a farming cooperative consisting of over 11,000 beet industry professionals, ranging from those involved in upstream production to downstream participants marketing beet as sugar, alcohol or bioethanol. This project draws on the Regeneration Index, a tool developed and verified by Pour une Agriculture du Vivant, a nonprofit organization that can assess the agroecological score of farms and support farmers with their improvement drive. As part of this testing, the three Maisons are working with Genesis, a company selected by the LVMH Maison des Startups that won a prize at VivaTech for its soil health and quality measurement system. Genesis will handle the regular collection of accurate, geolocalized soil data to assess the impact of farming practices on soil health and the contribution that soil quality makes to the ecosystem’s performance.

-   Parfums Christian Dior is running a regenerative agriculture project in Grasse focused on growing jasmine. In 2025, the project covered 15 hectares and the Maison supported 12 farmers. A detailed assessment of local biodiversity, including in particular insects, serves to monitor the positive impacts of the transition. In 2025, the study helped identify a new species of insect.

-   Maison Francis Kurkdjian is running an agroforestry project in the Khemisset region of Morocco in connection with the production of Biolandes Morocco essential oils. Initiatives aimed at protecting plant species from the impacts of climate change include planting shrublands. The latter provide shade and increase soil water holding capacity. Nearly 5,000 trees were replanted in 2025.

-   Parfums Christian Dior and Christian Dior Couture have joined forces on a multi-stakeholder project aimed at working with French farmers to restore biodiversity. This partnership covers crops such as flax and sugar beet, used as raw materials by both Maisons. Partner farmers have adopted biodiversity-friendly regenerative farming practices. This pilot project is aimed at developing a biodiversity certification methodology to complement the low-carbon label, tailored to the agricultural sector and supported by the Organization for Biodiversity Certificates (OBC) and the International Advisory Panel on Biodiversity Credits (IAPB).

●   Fashion and Leather Goods: Projects have been set up in Turkey, Greece and Spain to promote responsible cotton sourcing. The Genesis solution is already being used to monitor soil health across more than 1,000 hectares of cotton fields. In the leather supply chain, Louis Vuitton has worked with outside experts to develop a matrix based on 6 pillars and more than 30 criteria to help cattle farmers transition to regenerative agriculture. It covers food, water and biodiversity, soils and pasture, effluents and waste, animal welfare and quality of life for farmers. Each farm is rated out of 100 and, if applicable, given support to help it make the transition. In 2025, over 180 cattle farmers were audited in 11 countries. In 2025, LVMH continued to roll out regenerative farming programs with its wool suppliers in Australia, with 100,000 euros each year put toward helping local farmers adapt their production practices (reducing fertilizers, optimizing water use, etc.). A new project launched with Woolmark in 2025 aims to quantify carbon and biodiversity gains from a regenerative agriculture project covering sheep farms in Australia. Loro Piana launched Resilient Threads, a five-year program aimed at supporting cashmere cooperatives, farming communities and the Mongolian Steppe. The initiative is intended to support and improve farmers’ incomes in five districts of Mongolia’s Sükhbaatar Province. It aims to make the supply chain more resilient while protecting biodiversity in Mongolia’s Eastern Steppes. Run in partnership with the UN Convention to Combat Desertification (UNCCD), the Sustainable Fibre Alliance (SFA) and the Odyssey Conservation Trust (OCT), the program takes a holistic One Health approach whereby human, animal and environmental health and well-being are seen as interconnected. Lastly, the Group is involved in developing or updating certification standards such as the Materials Matter Standard created by Textile Exchange.

●   Wines and Spirits: All Moët Hennessy vineyards have launched regenerative agriculture programs to expand the practice of cover cropping, for example. Having partnered with the non-profit organization Pour une Agriculture du Vivant, some wines Maisons are testing its regeneration indicator, designed to measure soil regeneration and biodiversity and guide the development of actions. In 2025, Château Galoupet secured Regenerative Organic Certified (ROC) certification.

-   Domaine Chandon Australia continued work on the project to restore a wetland ecosystem rich in plant and animal biodiversity located alongside the Maison’s vineyards. Under the Greening Australia initiative in partnership with the City of Melbourne, the Maison is restoring the ponds and habitats of endangered species. The project slowed down in 2025 as a result of the discovery of over 200 artefacts of the Wurundjeri people, the first inhabitants and guardians of this region. Nevertheless, approximately 100,000 plants are being grown in a nursery and will be planted over an area of around 10 hectares in 2026.

-   Domaine Chandon Brazil is running the Pampa Biome Biodiversity Observatory project, which aims to restore 87 hectares of ecosystem close to the Maison’s vineyard. As part of this project, 300 Butia palms – a local endangered species – have been replanted across 7 hectares. The Maison has also carried out an inventory of fauna and flora to initially map and measure progress from the adoption of regenerative agriculture at its vineyards.

As responsible corporate citizens, LVMH and its Maisons are committed to funding projects that help preserve or restore ecosystems that fall outside their supply chains. In this context, in 2025 UNESCO and the LVMH Group renewed their privileged partnership focused on biodiversity conservation and sustainable development. The new agreement, titled “For the Beauty of Living”, is based around three key priorities:

●   supporting sustainable business models: backing local initiatives designed to take into account the needs of communities and specific local characteristics, notably in the context of initiatives already pursued in the Amazon and Africa;

●   measuring environmental and social impacts: promoting sustainable, life-friendly practices by assessing their combined benefits (carbon, biodiversity, water, soil, expertise) and participating in international work on the development of nature certificates, aimed in particular at providing local communities with additional income;

●   strengthening skills and knowledge: promoting sustainable practices through agroforestry and regenerative agriculture, particularly in business lines linked to the living world, through education, research and skills sponsorship, with a focus on leveraging local know-how. The partnership will notably be supported by UNESCO University Chairs and cooperation with the Learning Planet Institute.

This new chapter is the continuation of an initial phase of cooperation based around LVMH’s 2019–2025 partnership with UNESCO’s Man and the Biosphere program. That partnership focused on eight biosphere reserves in the Amazon region – in Bolivia, Brazil, Ecuador and Peru – covering nearly 30 million hectares and home to 1.3 million people, including many indigenous communities. In close cooperation with these communities, over 80 initiatives directly helped more than a thousand families and young people, restoring ecosystems and creating sustainable sources of income. Among the key achievements were the following:

●   the introduction of participatory governance in eight biosphere reserves in Bolivia (Pilón-Lajas, Beni), Ecuador (Yasuní, Sumaco, Podocarpus-El Condor), Brazil (Central Amazon) and Peru (Manu, Oxapampa-Ashaninka-Yanesha), including involving local communities and youth networks in regional Management Committees;

●   provision of training and equipment to help combat forest fires; Over 200 people have been trained and equipped, primarily in Peru, Brazil, Ecuador and Bolivia;

●   development of income-generating activities not related to deforestation such as meliponiculture in Peru with the support of 26 producers; creative support, with the involvement of Central Saint Martins, for the community of Tsimané women in Bolivia, who make jewelry from local renewable resources; and cocoa production using agroforestry practices in Ecuador and Peru.

Together with nonprofit Climate Chance, LVMH is a participant in the Corridors of Biodiversity project, notably in Guinea. Developing and connecting conservation areas helps make ecosystems more resilient. Moët Hennessy upheld its partnership with Reforest’Action to launch reforestation programs in Kenya, China, the United States and South Africa as well as on its own vineyards. Louis Vuitton contributed to protecting natural resources by entering into a five-year (2023-2028) partnership with nonprofit People For Wildlife as well as local communities to maintain and regenerate biodiversity in a 400,000-hectare natural area of Australia.

5.2.3       Associated objectives

The Group has set the following voluntary objectives regarding biodiversity conservation:

Details on objectives related to raw materials certification by business group

Wines and Spirits

The Wines and Spirits business group is actively committed to sustainable, organic and/or regenerative winegrowing, which are helping to considerably reduce its environmental impact, in particular by limiting the use of plant protection products and, consequently, soil degradation and impact on ecosystems.

Stepping up the rollout of sustainable, organic and/or regenerative winegrowing at the Maisons’ vineyards and among independent grape suppliers has thus been adopted as a LIFE 360 objective. Various certification systems have been established across winegrowing regions: Viticulture Durable en Champagne for champagne houses, environmental certification for cognac (Haute Valeur Environnementale), organic farming for certain vineyards, Napa Green in California, etc. The objectives of LIFE 360 are as follows:

●   for vineyards owned by the Group: 100% of grapes to be from sustainable, organic or regenerative winegrowing by 2026;

●   for partner/supplier vineyards (champagne, cognac, wines): 50% of grapes to be from sustainable, organic or regenerative winegrowing by 2026.

Fashion and Leather Goods

The Fashion and Leather Goods business group has set nine major objectives for 2026:

●   100% by volume of supplies of cow, sheep and exotic leathers to be purchased from Tier 1 LWG-certified tanneries, with 50% to be purchased from Tier 2 and above LWG- or ISO 14001-certified tanneries. LWG certification is a standard created by the Leather Working Group to improve the environmental performance of tanneries (energy, water, waste, traceability) and reduce their impact on ecosystems;

●   supplies of exotic leather to be purchased from abattoirs and/or farms certified in accordance with standards covering animal and human welfare and care for the environment, such as the LVMH Standard for Responsible Crocodilian Production, the International Crocodilian Farmers Association (ICFA), the South African Ostrich Business Chamber (SAOBC) and the Responsible Reptile Sourcing Standard (RRSS) issued by the International Multi-Stakeholder Association for Reptile Conservation (IMARC). The Group is also seeking SRCP certification for all crocodile farms supplying the Group’s tannery;

●   100% of supplies of pelts to be purchased from certified fur farms, notably by rolling out certifications recognized under the Furmark program which ensures that animal welfare standards are met;

●   100% of supplies of cotton to be purchased from sustainable sources. Organic, regenerative and recycled cottons are preferred. These options help reduce land use and soil degradation;

●   100% of supplies of wool to be purchased from sustainable sources. Sustainable wool is either recycled or sourced from farms certified as complying with animal welfare and environmental protection standards such as the Responsible Wool Standard (RWS), the Responsible Mohair Standard (RMS), the Code of Practice of the Sustainable Fibre Alliance (SFA), the Global Recycled Standard (GRS) and the Recycled Claim Standard (RCS 100). These options help reduce land use and soil degradation;

●   100% of supplies of viscose to be sustainable, whether recycled or purchased from suppliers with a Canopy “green shirt” rating. These options help address deforestation in particular;

●   100% of supplies of silk to be sustainably sourced, purchased from Global Organic Textile Standard (GOTS) or Global Recycled Standard (GRS) certified supply chains;

●   100% of supplies of feathers and down to be either recycled or purchased from suppliers certified in accordance with the Responsible Down Standard (RDS), Downpass, Traceable Down Standard (TDS) or South African Ostrich Business Chamber (SAOBC);

●   Animal-Based Raw Materials Sourcing Charter to be incorporated into supplier relationships.

In addition to these objectives taking into account animal welfare, this material matter for the Group is described in §1.8, “Governance”.

Perfumes and Cosmetics

The Perfumes and Cosmetics business group has set itself three key LIFE 360 objectives in relation to its supply chain to be achieved by 2026:

●   100% of supplies of palm oil to be purchased from sustainable sources, including RSPO-certified palm oil and palm oil from regenerative agriculture. This certification supports efforts to address deforestation;

●   100% of supplies of alcohol to be purchased from sustainable sources, including organic beet and regenerative agriculture as well as alternative and innovative solutions;

●   100% of iconic ingredients used by the Maisons to be certified by the UEBT, Fair for Life, Fair Wild, FSC or Rainforest Alliance. These certifications, which include environmental criteria, help reduce environmental impacts on ecosystems.

The business group also takes part in specific initiatives related to the sourcing of mica (RMI). The Group’s Research & Development Department and Maisons have been carrying out ethnobotanical studies for a number of years. They seek to identify plant species with a particular interest as components of cosmetic products while contributing to the preservation of these species and to local economic development. This partnership can take a variety of forms such as financial support, technical or scientific assistance, or skills sponsorship, sharing the expertise of LVMH’s staff with its partners.

Watches and Jewelry

The Watches and Jewelry business group has set itself three key LIFE 360 objectives in relation to its supply chain to be achieved by 2026:

●   100% of supplies of gold to be purchased from sustainable sources, including Responsible Jewellery Council (RJC) certification for suppliers (RJC Code of Practices at minimum) and refiners (RJC Chain of Custody) for all gold used by the Maisons. The Group is currently reviewing other standards for future adoption, particularly those covering mining activities, such as the World Gold Council’s Responsible Mining principles, the Initiative for Responsible Mining Assurance (IRMA), Fairmined, Fairtrade and the Swiss Better Gold (SBG) initiative. Chaumet, Fred and Hublot rejoined the Swiss Better Gold initiative in late 2024;

●   100% of supplies of diamonds to be purchased from RJC CoP-certified suppliers;

●   100% of supplies of colored gemstones (emeralds, sapphires and rubies) to be purchased from RJC CoP-certified suppliers. The Group and its Maisons are also involved in the Coloured Gemstones Working Group (CGWG) with other sector stakeholders. The CGWG aims to roll out environmental and social best practice across the colored gemstone sector by making all tools developed by the initiative available to the industry on an open-source basis and allowing industry players to assess the maturity of their practices.

In addition, all of the Watches and Jewelry Maisons have received certification under the Responsible Jewellery Council’s Code of Practices standard, known as RJC CoP, except for L’Epée 1839, a Maison new to the Watches and Jewelry business group. As part of the LIFE 360 objectives, they expanded their responsible sourcing base by means of this certification. Bvlgari is particularly committed, and in 2025 it continued to roll out RJC CoC certification to all its jewelry and refining partners.

5.2.4       Related metrics

Management of metrics related to biodiversity

Biodiversity indicators: Results in 2025

(a)  Sites eligible for ISO 14001 certification are production and logistics sites larger than 1,000 m². The calculation is weighted by site surface area.

(b)  Data includes hospitality sites operated by Belmond and LVMH Hotel Management.

(c)   This change was mainly driven by newly launched projects in Australia and the latest phase of the UNESCO-LVMH program in the Amazon.

Certification of strategic supply chains: Results in 2025

The raw materials presented in the table below account for 70% of the total quantity of raw materials purchased by the Group.

(a)  Improvement related to the roll-out of measures to assist grape suppliers at Hennessy within the Group's champagne houses.

(b)  Leathers sold by LVMH Métiers d’Art to maisons outside the Group do not count towards this objective.

(c)   This change was mainly driven by the introduction of specific governance arrangements making it a priority to increase the responsible procurement of wool and cashmere in 2025.

(d)  Tier 1 supplier certification (manufacturing workshop or refiner).

(e)  Refiner certification (Tier 1 or below).

Traceability: Results in 2025

(a)  Data declared by suppliers.

(b)  Change mainly driven by the growing distinction between the country of farming and/or recycling of cotton and the countries where the fiber is processed.

6.     Resource use and circular economy (LIFE 360 – Circular Design)

LVMH’s Maisons work to limit the impact of their products and services on the natural environment by considering each one’s entire life cycle. The Group’s strategy was developed in line with the recommendations and requirements of the European Union’s Circular Economy Action Plan and Waste Framework Directive.

Based on the double materiality assessment, the following impacts and opportunities are considered material:

●   impact connected with the consumption of raw materials across all value chains, including packaging (all business groups);

●   impact connected with waste production, packaging and point-of-sale advertising throughout the product life cycle, including the production, sale and use stages (all business groups);

●   impact connected with pressures on rare materials used to create exclusive products (Fashion and Leather Goods and Watches and Jewelry);

●   impact connected with the potential destruction of unsold/obsolete products (Fashion and Leather Goods and Perfumes and Cosmetics);

●   impact connected with optimizing use of resources by ensuring product longevity (quality, long life cycle, repairability, refill capability, etc.) for products from the Fashion and Leather Goods and Watches and Jewelry business groups;

●   opportunity to develop new sustainably designed ranges of products/services and use of more sustainable materials (all business groups);

●   opportunity to develop new business models based on reuse, refill, recovery and resale of products (all business groups).

The responsible sourcing policy is presented above in §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)”.

6.1         Management of resource inflows

6.1.1       Policy related to sustainable design

As part of its LIFE 360 strategy, LVMH follows a sustainable design policy to anticipate and limit the environmental impacts linked both to the consumption of raw materials on all incoming chains and to the production of products, waste, packaging and point-of-sale advertising, as well as to reduce tension regarding the rare materials used to create exclusive products.

This is underpinned by the four convictions of the LVMH circular design policy:

●   inventiveness: Selecting innovative new materials such as those that are recycled, bio-sourced, certified and/or sourced from regenerative agriculture;

●   energy conservation: Selecting the most exacting transformation and manufacturing processes at Maisons’ and suppliers’ sites to reduce environmental impacts;

●   eternity: Guaranteeing long product life and ensuring high quality thanks to expertise in areas like repairs and the art of patina, new technologies such as product recharges, refills and refurbishment, and the promotion of new services;

●   rebirth: Helping give materials and products a new lease of life through reuse, repurposing, recycling and upcycling.

The Group and its Maisons have worked together to draw up specific sustainable design criteria for each business sector. These criteria cover at least the following topics:

●   use of raw materials that are certified, recycled or sourced from regenerative agriculture;

●   traceability: knowing the supplier and the country of origin for each primary raw material;

●   product life span and end-of-life treatment.

Each business group has tailored these sustainable design criteria to its own specific environmental priorities; tools are currently being rolled out to monitor performance against these criteria and assess the environmental footprint of each product and its packaging.

LVMH also aims to have stopped using fossil-based virgin plastic in customer packaging by 2026. To achieve this objective, the Maisons are working on an action plan that aims to:

●   use recycled plastics;

●   use bio-sourced plastics;

●   replace plastics with other materials.

With regard to the recycled plastics market, this objective requires continual adjustments to the action plan (collaboration and partnership with suppliers, training teams, etc.). LVMH has also set the following objectives for 2030: 70% of packaging materials used by the Maisons (in customer packaging) is to be recycled, and all customer packaging is to be either recyclable or reusable. This action plan applies to all Maisons, but it is particularly strategic for the Perfumes and Cosmetics Maisons, which are the primary users of plastic in customer packaging.

Regarding the innovation program dedicated to the new vision of luxury and the risk of pressure on rare materials used to create exclusive products in the Fashion and Leather Goods and Watches and Jewelry business groups, LVMH is rolling out:

●   a Research and Development policy led by LVMH Gaïa, driver of the Group’s scientific research and innovation, and dedicated to environmental issues and technological innovation in the luxury industry. Moët Hennessy’s Robert-Jean de Vogüé research center and the LVMH Perfumes and Cosmetics Hélios research center also participate in these efforts. Projects are already underway to develop synthetic proteins and gemstones;

●   sustainable design approaches that include indicators on the origin and certification of the materials used.

6.1.2       Actions and resources used

LVMH and the Group’s Maisons employ the following tools, representing annual expenditure of around 500,000 euros, to manage sustainable design initiatives and objectives, and to reduce the use of resource inflows:

●   Perfumes and Cosmetics: The Maisons have implemented the EFI (Eco-Formulation Index) and the EPI (Environmental Performance Index for packaging). In 2025, the EFI was updated to bring it into line with the EcoBeautyScore methodology. The score is now representative of a formula’s environmental impact in terms of both production and end-of-life treatment. The in-house tool used by formulators takes into account aspects previously included directly in the EFI score, namely: use of natural materials – an assessment based on an internationally recognized method (ISO 16128); traceability – knowledge of the value chain of ingredients; Clean Beauty – taking into account consumer expectations and anticipating potential regulatory restrictions; and smart formulation – a calculation methodology for minimizing the number of ingredients used in a formula. The EPI score takes into account a number of criteria including packaging weight and volume ratio, recycled and bio-sourced raw material content, carbon impact of packaging materials and refill capability. In 2025, the Maisons defined minimum performance thresholds aligned with the LIFE 360 objective related to sustainable design.

●   Fashion and Leather Goods: Maisons in this business group are required to follow sustainable design criteria structured around three pillars: raw materials, traceability and end of life. The first pillar requires that a minimum of 50% of raw materials used must be certified, recycled or sourced from regenerative agriculture. The second pillar, traceability, aims to ensure that all suppliers in the value chain are identified. Tier 1 and 2 suppliers must be known for a product’s main ingredient and the country of origin must be known for plant- and animal-based materials. Lastly, the third pillar, end of life, is about verifying and monitoring services offered by Maisons to customers designed to lengthen their products’ life spans. The Maisons complete a questionnaire providing information about the maintenance and repair policies that apply to their various categories of products around the world as well as the engagement policies in place in these areas. A dedicated tool for monitoring these indicators and criteria has been developed in conjunction with an expert partner. It also ensures compliance with the requirements of France’s new anti-waste law for a circular economy, known as the AGEC law, and specifically its Article 13 relating to the sharing of environmental and traceability information at the time of purchase, as well as calculating the environmental impact of a product for environmental labeling in France (Climate and Resilience law) and in Europe (Product Environmental Footprint).

●   Wines and Spirits: After being defined, sustainable design criteria are tested by the Maisons. The Wines and Spirits business group updated its method for calculating its EPI in 2023 and is testing a tool to assess the environmental footprint of packaging. Digitalization of the EPI score is also under consideration with a view to improving data reliability and traceability.

●   Watches and Jewelry: Sustainable design criteria were identified in 2025 and will be subject to critical external review in 2026 before being rolled out to the Watches and Jewelry Maisons. These criteria cover both products (which carry a 70% weighting) and packaging (30% weighting). For products, the criteria relate to the certification and traceability of raw materials as well as material yields, to encourage the judicious use of all resources, whether precious or not. Aspects related to maintenance and repairability are also taken into account here. As regards packaging, key performance indicators (KPIs) are in place covering a number of aspects: packaging volume ratio, use of recycled materials, carbon impact of materials used, diversity of materials used with the aim of improving recyclability, and transportation, including the air-sea ratio.

These tools are used to measure and reduce the impact of products and services right from the design stage, and to promote and manage the development of new sustainably designed product and service ranges. For example, in 2025 Guerlain launched its new Orchidée Impériale refill consisting of over 90% FSC-certified cellulose. The carbon footprint of the product, which weighs in at just one-tenth of the previous version, is reduced by 30% as soon as the refill is used. Similarly, Parfums Christian Dior launched its new L’Or de Vie refill weighing 68% less, including 29% less plastic and 74% less metal. For its Paula’s Ibiza 2025 collection, Loewe used Orange Fiber & TENCEL™, primarily made from industrial lemon and orange peel waste. This innovative fiber helps reduce the use of virgin natural resources. In 2025 Sephora launched its Solid Products range of waterless products, consisting of over 95% biodegradable ingredients and between 30% and 100% recycled packaging content, depending on the product. Chaumet overhauled its iconic packaging. The new version contains over 80% recycled materials, with 90% less plastic and a one-third reduction in its carbon footprint.

6.1.3       Associated objectives

LVMH has set the following voluntary objectives as part of its sustainable design policy:

6.1.4       Indicators and results

Management of metrics related to sustainable design and resource inflows

Inflows of biological and technical resources used by LVMH in 2025, of which recycled and certified resources

(a)  The values do not include the raw materials used for Wines and Spirits (grapes, etc.) and Perfumes and Cosmetics (beet, flowers, etc.) products, which cannot be of recycled origin, i.e. 78% of the total value of organic materials and 58% of the total value of organic and technical materials.

(b)  Change mainly arising from changes in business activity.

Main materials used to make packaging (resource inflows)

The weight of customer packaging changed as follows between 2024 and 2025:

(a)  Value and change at constant scope.

(b)  Change related to business activity and sustainable design initiatives.

(c)   Change mainly arising from changes in business activity.

The total weight of customer packaging, by type of material, broke down as follows in 2025:

(a)  Other packaging materials notably include ceramic and leather.

(b)  Reduction relative to 2024 due to changes in business activity: 27% for paper/cardboard and 11% for glass.

Tracking objectives related to sustainable design

(a)  Integration of Kendo, Maison Francis Kurkdjian, Perfumes Loewe, Sephora North America, Sephora North Asia and DFS.

(b)  Change arising from implementation of Maisons’ action plans aimed at making greater use of recycled and/or bio-sourced plastics.

Wines and Spirits business group – EPI scores

(a)  Not included in 2025: Glenmorangie and Ace of Spades.

6.2         Management of resource outflows

6.2.1       Policy related to extending product longevity

The LVMH Group implements a circular design policy through its LIFE 360 environmental strategy. This helps limit the impact of the products and services of the Group’s Maisons on the natural environment by taking each one’s entire life cycle into account. The policy applies to all of the Group’s Maisons in the Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other activities business groups.

Optimizing resources via product and material longevity is a goal shared by LVMH and its Maisons through two convictions of the “Circular Design” strategic priority (among the four cited in §6.1.1, above) of the LIFE 360 strategy:

●   Eternity: Guaranteeing long product life and ensuring high quality thanks to expertise in areas like repairs and restoration, new technologies such as product recharges and makeovers, and the promotion of new services (repairs, restoration, recharges, reuse).

●   rebirth: Helping give materials and products a new lease of life through reuse, repurposing, recycling and upcycling. This principle aligns with the LVMH Circularity approach, announced during the LIFE 360 Summit held at the UNESCO headquarters in December 2023. It supports the development of special expertise to find new uses for unused products (manufacturing defects, unsold) and their components in order to bring them back into the different value chains. This enables it to link the reuse, recovery and recycling of materials and products with sustainable design.

These convictions underpin the development of new business models:

●   In 2023, Rimowa launched Re-Crafted, a unique service for taking back customers’ suitcases, restoring them to their former glory and selling them. The program expanded internationally in 2025 (to Japan, Germany, the United States and South Korea).

●   Nona Source, the platform developed by the Group to facilitate the resale of unused textiles and leather by its Maisons, confirmed its status as a circularity accelerator in the fashion industry and as an effective means to support young designers by reselling high-quality materials at very competitive prices since 2021; In 2025, 314,085 linear meters of fabric and 9,058 square meters of leather were reused.

●   By reusing, recovering and recycling the Group’s unsold products, production offcuts and strategic materials, LVMH Circularity has recreated high-quality resources used in a closed loop in several of the Maisons. Following the example set by Louis Vuitton and Christian Dior Couture in natural textile fibers, in 2025 Parfums Christian Dior used closed-loop recycled glass in partnership with CEDRE and Pochet.

Unsold products are all products that have not been sold during the Maisons’ sales cycles. They are managed in accordance with the Group’s circular design policy, with the aim of identifying and implementing donation, reuse or recycling solutions for each of the business groups concerned in the countries where the Group operates.

In accordance with the Group’s sustainable design policy, the Maisons are working to determine the repairability and recyclability of their products and packaging. Each business group is working to define indicators that will enable it to assess all of its products and packaging right from the design phase. The LVMH Group is working on a consolidated methodology in order to develop a joint strategy with its Maisons to improve reparability and recyclability:

●   In terms of reparability, the Fashion and Leather Goods, Watches and Jewelry and Selective Retailing Maisons are working to introduce reparability criteria for their products and packaging. Louis Vuitton has defined reparability criteria for all of its leather goods in its sustainable design policy. 100% of its leather goods are assessed as reparable. Right from the design phase, the evaluation criteria make it possible to define three distinct levels of repair complexity for these products: A (easy), B (intermediate) and C (difficult).

●   In terms of recyclability, the Wines and Spirits and Perfumes and Cosmetics Maisons use recyclable glass packaging for their products. The cardboard cases and bags are also recyclable in all business groups. Recycling ready-to-wear products from the Group’s Maisons is somewhat complex due to the variety of materials, components, treatments and finishes used to create the products. These criteria also apply to the Watches and Jewelry products.

The Fashion and Leather Goods and Watches and Jewelry Maisons are equipped with advanced repair services, able to restore old products or to adapt their form to ensure their transmissibility.

6.2.2       Actions and resources used

The LVMH Group and its Maisons are working to implement a range of action plans for extending product longevity. These actions revolve around providing new circular services for sustainability, reuse, recovery and recycling, and involve 100% of the Maisons. Actions related to sourcing sustainably designed materials to enhance the quality and longevity of the Group’s products are described in §6.1, “Management of resource inflows”, above.

1)   Extended product longevity solutions

First, product longevity is bolstered by services for product repair and care, refills and the collection of end-of-life products offered by the Fashion and Leather Goods, Watches and Jewelry, Perfumes and Cosmetics and Selective Retailing Maisons.

The Group and its Maisons provide the following services:

a)          Product repair, care and restoration workshops: In stores, at dedicated workshops and regional centers, or at Maison- or Group-level centers.

Fashion and Leather Goods, Watches and Jewelry, Selective Retailing:

The Fashion and Leather Goods and Watches and Jewelry Maisons have their own repair and care centers to bolster the product longevity promise to customers. In 2025 Louis Vuitton had 12 repair workshops around the world, repairing over 500,000 products a year. Berluti expanded its range of product repair and restoration services to meet evolving customer needs and promote product longevity. Specifically, it introduced a fast-track service for footwear and a range of services for ready-to-wear items as well as upskilling its workshop staff worldwide.

In Selective Retailing, Le Bon Marché launched its alterations workshop in 2023, which immediately received Refashion certification. The workshop makes it easier for customers to mend their textile products and benefit from a rebate program established by the French government in November 2023 to reduce the costs of repairs. In 2025, the workshop made more than 700 repairs, all eligible for the official rebate.

To support the Maisons in continuously improving and assessing of their practices, the Group also set up a Repair and Care working group in 2023. Its goal is to support ten Fashion and Leather Goods Maisons, seven Watches and Jewelry Maisons, and one Selective Retailing Maison, and bring them together twice a year as they roll out their repair and care workshops and set standards for the services they provide.

b)          Services to collect end-of-life products:

Fashion and Leather Goods:

Increasing product longevity also takes place through takeback services where customers can dispose of obsolete or damaged products. Rimowa offers its customers a lifetime guarantee on its products as well as a product takeback program, Re-Crafted, available internationally (Japan, Germany, United States and South Korea).

Perfumes and Cosmetics, Selective Retailing:

For products such as perfumes and cosmetics, the Maisons in the Perfumes and Cosmetics and Selective Retailing business groups offer customers takeback programs.

Since 2009, Sephora has run a program in Europe and the United States that has led to more than six million perfume bottles being collected. In 2025, over 100,000 items of packaging were collected through the program in the United States.

2)   Reuse, recovery and recycling solutions

In terms of reuse, recovery and recycling solutions, the Group and its Maisons have developed new expertise in reuse, recovery and recycling, giving a second life to unsold or defective products and product components from the various business groups. The development of LVMH Circularity exemplifies this desire (see above, §6.2.1).

In the Fashion and Leather Goods businesses, the closed-loop approach focuses on developing new materials and yarns from recycled natural fibers, sourced from unused items. Loro Piana has developed the Loro Capsule, an exclusive collection of products made from surplus cashmere from the Group’s Maisons. Most of these products consist of 30% closed-loop recycled materials.

In 2025, Louis Vuitton won a LIFE 360 Award for its Re-Source project. This initiative aims to reuse, recover or recycle dormant and unused materials from all the Maison’s activities, give them a second life. It is the fruit of collaboration between 24 integrated departments and uses a dedicated platform developed by in-house Group startup Nona Source to facilitate the supply and reuse of materials.

The closed loop also applies to the Perfumes and Cosmetics and Selective Retailing businesses. Since 2024, two Maisons and the LVMH Group have made innovations in developing automated machines for dismantling defective and unsold products. This innovation helps organize product and component reuse, recovery and recycling processes and facilitate the reintroduction of these materials into production processes so as to reduce the Group’s environmental impact. This is the case for glass, which can be more easily redirected to materials recovery facilities and recycled to produce new products.

6.2.3       Associated objectives

The LIFE 360 circular design policy includes a number of management objectives for handling unsold items, one of which is to ensure that 100% of unsold items are donated, reused or recycled by 2030 in the countries in which the Group operates. Tracking indicators associated with this objective are under consideration in light of European regulations and will be covered by specific reporting.

Recyclability and repairability criteria are included in the sustainable design objective described in §6.1, “Management of resource inflows”. The Group assess repairability and recyclability policies for each business group. This work will be finalized in line with the schedule for the Ecodesign for Sustainable Products Regulation (ESPR).

6.2.4       Indicators and results

The objective for implementing new circular services was achieved in 2023. The Group is now focusing on tracking the circular services it has implemented.

Management of metrics related to extending product longevity

Monitoring of the development of circular services related to product longevity

In line with the achieved objective of implementing new circular services, LVMH and the Group’s Maisons are working to develop and track these services as part of a continuous improvement process. The business groups under consideration are the Fashion and Leather Goods, Watches and Jewelry, Selective Retailing, Perfumes and Cosmetics and Wines and Spirits Maisons.

Three circular services related to product longevity include the following:

●   managing reparability and the number of products repaired;

●   product refill services;

●   takeback services to collect end-of-life products.

The results for circular services, which ensure product longevity across the Group, are as follows:

Targets related to the development and financial impact of circular services are currently under consideration. Revenue from repairs and refill services is estimated at over 500 million euros in 2025.

6.3         Waste management

6.3.1       Policy related to waste management

The Group’s waste management policy constitutes an integral part of the “Circular Design” pillar of the LIFE 360 environmental strategy.

LVMH’s waste management policy supports:

●   waste reduction at source;

●   optimized collection services;

●   ISO 14001 certification and audits of operational waste management at production sites and logistics centers;

●   the implementation of sophisticated sorting systems to maximize the recovery of its materials and products;

●   improving the reuse, recovery and recycling methods used (advanced recycling practices and reuse in new resources);

●   waste management training with the LIFE Academy.

LVMH and its Maisons have introduced a Waste Management Program with objectives for reducing, reusing, recovering and recycling operational waste by 2030. These objectives draw on the LVMH Circularity ecosystem, described in §6.2.1, “Policy related to extending product longevity”, to develop and improve the Group’s waste management sorting systems and reuse, recovery and recycling methods. In addition, it accelerates the transition to advanced recycling and repurposing practices and allows the Group’s Maisons to collaborate with specialized partners in order to transform waste into new resources.

The Group’s waste management policy covers waste from production, logistics and administrative sites and stores. Unsold items are not included within waste. A specific section dedicated to their second life can be found in §6.2, “Management of resource outflows”.

6.3.2       Actions and resources used

The LVMH Group and its Maisons are working to implement a range of action plans to reduce, reuse, recover and recycle their waste.

LVMH Circularity serves as a catalyst for the various types of expertise used to reuse, recover and recycle waste from the Group’s production processes (non-hazardous and hazardous). It also facilitates its reintegration into production lines to minimize its environmental impact. An ecosystem of waste management solutions was created and made available to all of the Maisons in the Fashion and Leather Goods, Perfumes and Cosmetics, Wines and Spirits, Watches and Jewelry, Selective Retailing, and “Other activities” business groups.

In France, the CEDRE sorting and dismantling platform is one of the services used by the Maisons. It handles all the materials and products generated by the manufacturing, packaging, distribution and sale of Group products:

●   manufacturing materials such as textiles and leather from the sites of the Fashion and Leather Goods Maisons;

●   manufacturing materials such as glass, alcohol and plastic from the sites of the Perfumes and Cosmetics Maisons;

●   obsolete packaging, point-of-sale advertising materials, and packaging returned to stores by customers for Fashion and Leather Goods, Selective Retailing, Perfumes and Cosmetics and Watches and Jewelry Maisons.

Maisons from the Perfumes and Cosmetics and Selective Retailing business groups use this platform to reuse, recover and recycle their waste to reduce their environmental impact. The existing sorting and dismantling expertise enables the Maisons’ waste to be directed to the most appropriate reuse, recovery and recycling facilities. The various materials (glass, cardboard, wood, metal, plastic, alcohol and cellophane) are sorted and sent to a network of specialized recyclers. This process enabled a Selective Retailing Maison to launch a closed-loop recycling program for its visual merchandising elements in stores. This program was first tested in 2022 in 37 stores, before being rolled out to all stores in France in 2023. This circular solution is directly in line with the policy of recycling 100% of waste collected from point-of-sale advertising materials (i.e. recycling product display modules and store advertising modules).

The Fashion and Leather Goods Maisons also use the CEDRE platform for reuse, recovery and recycling of their textiles, leather, and components sourced from production. The CEDRE platform is the epicenter of the partnerships established by LVMH and redirects the Maisons to the various closed- or open-loop recycling facilities. For textiles, by partnering with L’Agence du Don en Nature and taking on and training people from companies specifically employing people with disabilities in the couture sector, the Maisons have been able to gradually add donation, repurposing and recycling services, in line with developments in technology, as well as new partners to handle larger volumes of material and to be able to use the upcycled and recycled materials to create new products.

The Fashion and Leather Goods and Perfumes and Cosmetics sectors have a variety of products and materials, enabling the Watches and Jewelry and Selective Retailing Maisons, as well as “Other activities”, to benefit from the same reuse, recovery and recycling ecosystem.

LVMH has set up a new logistics platform in Italy: Circular’ITALIE, in partnership with Lindbergh, an MRO company (maintenance, repair and operations). It is dedicated to the reuse, recovery and recycling of the Maisons’ waste, as part of the Group’s commitment to the circular economy in Italy. The policy also applies to all business groups operating in Italy such as Maisons from Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other activities.

6.3.3       Associated objectives

6.3.4       Indicators and results

Management of metrics related to waste management

With respect to its waste management policy, LVMH Group and its Maisons collect data on all waste produced at the sites they operate.

Non-hazardous waste includes biological waste, empty packaging, product components, sludge and liquids, and mixed solid waste. The main materials are wood, metals, paper, cardboard, plastic and glass. Hazardous waste includes soiled empty packaging, electrical and electronic waste, batteries, sludge and various liquids used in production.

Quantity of operational waste produced in 2025

(a)  2025 figures include all data – actual and simulated – from production, logistics and administrative sites as well as stores.

(b)  2024 Figures include actual and simulated data from production, logistics and administrative sites and stores.

(c)   Changes in the amount of waste generated by sites: the reduction in waste in the Wines and Spirits business group is due to a decline in business activity at Glenmorangie. The change in the Fashion and Leather Goods business group is due to an increase in the number of LVMH Métiers d’Art sites included in reporting. For the Perfumes and Cosmetics business group, the change is a result of improved reporting. Changes in the amount of waste generated by stores are a result of improved reporting for Sephora stores.

In line with ESRS, non-eliminated waste is waste that is being prepared for reuse or recycling.

Reuse, recovery and recycling of non-hazardous operational waste in 2025

In accordance with EU regulations, hazardous waste refers to waste with hazardous properties as defined in the Waste Framework Directive 2008/98/EC. Each Maison complies with these requirements when processing, reusing, recovering and recycling its hazardous operational waste.

Reuse, recovery and recycling of hazardous operational waste in 2025

The Maisons are working to reduce, reuse, recover and recycle operational waste at all of their sites and stores. In 2025, 76% of non-hazardous waste was reused, recovered or recycled. Work is in progress to calculate performance related to the reduction in waste at production and logistics sites.

To illustrate the action plan to develop the LVMH Circularity ecosystem, LVMH and its Maisons collect and publish data on the CEDRE sorting and dismantling platform, which is located in France. In 2025, around 3,646 metric tons of materials and products were reused, recovered or recycled (3,799 metric tons in 2024) by the CEDRE platform.

Quantity of waste and materials reused, recovered or recycled via the CEDRE platform in France in 2025

In 2025, the Group continued to roll out certified environmental management systems across its production sites and logistics centers. These certifications contribute to the control of waste management at audited sites and their reuse, recovery and recycling methods.

The certification performance of production and hospitality sites, logistics centers and tanneries has been measured in terms of their deployment of ISO 14001 certification, EarthCheck for hospitality sites and Leather Working Group (LWG) for tanneries. Under this approach, third-party certification is secured for practices adopted under the waste management policies of the Group’s production sites, logistics centers and hotels.

Percentage of sites with a certified environmental management system

(a)  Eligible sites are production sites, logistics centers, hotels and tanneries measuring more than 1,000 square meters. In 2025, the calculation was weighted by site surface area.

(b)  Leather Working Group certifications were added in 2025 for the Group’s tanneries.

7.     Environmental taxonomy

In accordance with green Taxonomy regulations ⁽⁴⁾ which determine whether an economic activity qualifies as environmentally sustainable (“the Regulation”), LVMH has:

(i)       identified those of its activities that qualify under the six environmental objectives (the “Environmental Objectives” /“Objectives”);

(ii)      analyzed the contribution made by eligible activities to the Environmental Objectives, while ensuring that this contribution does not cause significant harm to any of the other Objectives (“DNSH”) and that the activity complies with the minimum safeguards outlined below, thus permitting the validation of the activity’s “alignment”.

Activities considered as eligible in relation to the Environmental Objectives established by the Regulation are in particular those having the greatest impact on climate change, thus offering the greatest potential for reducing greenhouse gas emissions. Given the activities targeted at present in relation to these objectives, only LVMH’s operating investments in the real estate sector have been analyzed for the purposes of this reporting as of December 31, 2025. In accordance with the Regulation, they correspond to the total of:

●   acquisitions of property, plant and equipment and intangible assets;

●   capitalized fixed lease payments; and

●   property, plant and equipment and intangible assets as well as capitalized fixed lease payments relating to changes in the scope of consolidation (excluding goodwill).

The Regulation calls for the disclosure of two key performance indicators (KPIs) determined in relation to financial items and defined as follows:

●   KPI 1: CapEx relating to eligible activities (“Eligible CapEx” or “Real estate CapEx”);

●   KPI 2: Eligible CapEx meeting the criteria for substantial contribution to an Environmental Objective without causing significant harm to any other Objectives and while complying with the minimum safeguards (“Aligned CapEx”).

The Group presents these indicators in accordance with the new regulatory formats introduced by the Delegated Act of July 4, 2025, published in the Official Journal of the European Union on January 8, 2026.

Climate change mitigation is the main environmental objective on which the Group has focused when analyzing the eligibility and alignment of its operational objectives. For activities covered by more than one objective, the Group has also carried out its analysis from the perspective of the “Climate change adaptation” and “Transition to a circular economy” objectives (see §7.1.2 below).

Eligible CapEx and aligned CapEx are presented below, as amounts and percentages of total CapEx and, for aligned CapEx, as a percentage of eligible CapEx.

LVMH’s environmental actions are only reflected to a limited extent in the Group’s business activities and the indicators to be disclosed at this stage under the Regulation, which are presented below (further information on LVMH’s actions to promote biodiversity and the circularity of its products is presented in §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)” and §6, “Resource use and circular economy (LIFE 360 – Circular Design)”, respectively).

7.1         KPIs relating to operating investments (CapEx)

In completing the exercise required by the Regulation, LVMH adopted a cautious approach so as to abide by both the spirit and the stipulations of the text as closely as possible.

Real estate CapEx amounts were determined and alignment analyzed at the level of each individual item of eligible capital expenditure. The alignment analysis consisted of systematically reviewing compliance with the substantial contribution criteria and the DNSH criteria. No conclusions reached for a given item of capital expenditure were extrapolated to any other item of real estate CapEx.

7.1.1       Overview of the analysis with the respect to the climate change mitigation objective

In accordance with the criteria set out in the Regulation, the contribution to climate change mitigation of activities corresponding to real estate CapEx was evaluated on the basis of the energy efficiency of buildings involved in purchases, leases and renovation projects during the fiscal year:

●   for buildings whose building permits were issued prior to December 31, 2020, only the premises purchased, leased or built whose energy efficiency is at least equivalent to that of 15% of the most energy-efficient buildings in the countries where they are located and those with proof of a top energy efficiency assessment score for premises in France are included in KPI 2;

●   for buildings where the building permit was issued on or after January 1, 2021, only buildings with “Net Zero Buildings – 10%” certification are included in KPI 2;

●   for renovations, the criterion is considered to be met for all projects which fulfill the definition of a renovation according to local regulations, or if a 30% improvement in energy consumption is demonstrated.

The thresholds applicable in France were used to evaluate the energy efficiency of buildings located in countries that lack data relating to the energy efficiency of their buildings as a whole.

The figures presented below in the “Real estate CapEx deemed energy-efficient” columns correspond to aligned capex, i.e. meeting all of the criteria. In the absence of documentary evidence demonstrating that the technical criteria (“substantial contribution” or “DNSH”) have been met, the item of real estate CapEx is considered non-aligned.

KPI 1 and KPI 2 relating to real estate CapEx break down as follows for fiscal year 2025:

(a)  Since a breakdown of acquisitions of property, plant and equipment in respect of Taxonomy-eligible activities is not available within the Group’s financial reporting, this information has only been collected for those Maisons contributing significantly to purchases during the period; these Maisons accounted for 92% of the Group’s “Total CapEx” in 2025, in line with the coverage rate in 2024 and 2023. Maisons not included in the Taxonomy are reviewed centrally to ensure that all material building purchases are considered eligible. No extrapolations were performed for the other Maisons, whose acquired fixed assets were considered “ineligible” for the requirements of this reporting.

(b)  The analysis of “Real estate CapEx” taken into account for KPI 2 confirmed that, in addition to compliance with an energy consumption threshold, the corresponding activities:

-  meet the DNSH criteria applicable to each eligible activity;

-  comply with the minimum safeguards stipulated in the Regulation in the areas of human rights (including labor and consumer rights), bribery and corruption, fair competition and taxation. The measures implemented within the Group to assess the associated risks, to prevent and detect any situation likely to constitute a breach of the commitments made, or to remedy any proven breach, are described in the “Social” section, §2, “Value chain workers”, and the “Governance – Business conduct” section of this Sustainability Report; the tax policy is in line with the guiding principles described in its Code of Conduct.

(c)   The analysis of the energy efficiency of leased premises for the fiscal year was only carried out for the Maisons contributing significantly to capitalized fixed lease payments, corresponding to 89% of the Group’s capitalized fixed lease payments in 2025 (compared with 91% in 2024). The capitalized fixed lease payments of the remaining Maisons were deemed as eligible and not aligned for the purposes of this reporting.

(d)  When a building is acquired, the land is considered ineligible. Its acquisition cost is included in “Total CapEx”.

(e)  See Notes 3, 6 and 7 to the consolidated financial statements.

Most of LVMH’s purchases or leases involve its network of stores, which are generally situated in buildings in historic city centers. However, the building standards in force when they were constructed made little or no mention of energy efficiency and they have for the most part not recently undergone thermal renovation work, which results in a low rate of compliance with the energy efficiency levels stipulated by the Regulation.

Nevertheless, whenever buildings with inadequate energy efficiency are purchased or leased, LVMH aims to include energy efficiency improvement as part of the renovation projects for these buildings to the extent possible. This applies in particular to production sites, recent out-of-town offices and, in a few rare cases, completely renovated city-center complexes. These efforts should be reflected in the improvement in KPI 2 relating to building renovation and construction. In 2025, construction and renovation projects complying with the thresholds for energy efficiency set out in the Regulation together accounted for 6.7% of “Total CapEx” and 13.5% of “Eligible CapEx” (compared with 3.8% and 9.7%, respectively, in 2024).

7.1.2       Details on the analysis carried out for the other environmental objectives

Objective related to climate change adaptation

To carry out the multi-objective analysis required by the Regulation, LVMH considered the following as being eligible: acquisitions, new buildings, major renovations of buildings owned by the Group, and energy efficiency equipment. Other investments were considered “ineligible” for the requirements of this reporting.

For each item of “Real estate CapEx”, analysis of alignment for the purposes of the climate change adaptation objective begins with an analysis of physical climate-related risks and the means implemented to reduce its vulnerability, followed by an energy efficiency analysis. Analysis of other DNSH criteria is similar to that set out above for the climate change mitigation objective.

Objective related to the circular economy

Operational investments in renovation considered eligible for the climate change mitigation objective were also considered eligible for analysis in respect of the “Transition to a circular economy” objective.

The alignment analysis of a Renovation under this Objective, carried out since 2024, aims to ensure that each technical criterion imposed by the Regulation is met. Checks on compliance with other DNSH criteria include an analysis of exposure to climate-related risks similar to that detailed above for the Climate Objectives, on limited water flow and the absence of hazardous substances.

7.2         Indicators relating to turnover and maintenance, R&D and rental expenses (OpEx)

Since LVMH’s main activities are not at this stage covered in the Regulation, the turnover indicators are presented as nil for LVMH in respect of fiscal years 2025 and 2024.

Maintenance of real estate assets, R&D and rental expenses (in respect of short-term leases), with a value of about 1,427 million euros in respect of fiscal year 2025, represent a non-material proportion of the Group’s total operating expenditure (around 2%). That being the case, LVMH has applied the materiality exemption to OpEx.

The tables required by the Regulation are set out in the Appendices below.