(6 November 2024, Paris / Shanghai) Luxury conglomerate LVMH and Swire Properties, a global sustainability leader in the real estate sector, have formed a strategic partnership to improve their ESG performance across LVMH stores, offices and F&B locations in the Chinese Mainland and Hong Kong. The collaboration marks a significant step forward in the sustainability vision and commitment shared by both companies, setting an industry benchmark for landlord-tenant collaboration and driving sustainable business practices as laid out through LVMH’s LIFE 360 environmental roadmap and Swire Properties’ Sustainable Development (SD) 2030 Strategy.
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The new partnership was formalised today by Andrew Wu, President of LVMH Greater China, and Dr. Han Zhi, Director, Retail at Swire Properties, at the China International Import Expo (CIIE) in Shanghai, representing the most comprehensive tenant-landlord partnership with respect to driving sustainability. It aims to engage LVMH brands for their new stores and offices, including the future upgrading of existing stores and fitting out new stores, across six cities in the Chinese Mainland (Beijing, Shanghai, Guangzhou, Chengdu, Xi’an and Sanya) as well as Hong Kong; and for existing office premises at Taikoo Place, Hong Kong. The total gross floor area for all existing stores and offices is around 50,000 sqm. The partnership will continue until the end of 2027 and is expected to be renewed thereafter.
Swire Properties will engage LVMH brands in three proprietary sustainability programmes that cover the entire tenancy cycle – from fit-out to operations – with the aim of achieving reductions in energy, water and waste. The programmes include the Green Performance Pledge for offices, Green Retail Partnership for retail stores and the Green Kitchen Initiative for F&B outlets in its malls. LVMH will be the launch partner for the new Green Retail Partnership initiative that focuses on sustainable improvements in retail environments. This partnership introduces a framework called the Eco-design Checklist that will set out specific sustainability standards for new LVMH retail premises.
“Our store and office designs reflect LVMH’s values of creativity and excellence. Part of our ‘Joining Forces’ ambition, this significant partnership with Swire Properties in the Chinese Mainland and Hong Kong allows us to strengthen our environmental strategy and implement the concrete actions we have established globally to achieve our low-carbon goals,” said Antoine Arnault, LVMH Image and Environment Director.
“Swire Properties is excited to join forces with LVMH, our long-term tenant partner, to amplify our sustainability impact and share expertise that can enable the setting of even more ambitious sustainability goals in our Chinese Mainland and Hong Kong portfolio. We have been widely recognised for our global leadership in sustainability within the real estate industry and we believe that making a real impact on climate change requires collaboration. Through innovative sustainability partnerships such as this new collaboration with LVMH, we can achieve common sustainability goals and accelerate our overall ESG performance,“ said Dr. Han Zhi, Director, Retail at Swire Properties.
A key element of the partnership is the implementation of the Eco-design Checklist. Jointly developed by both companies, this details 15 impactful measures for achieving sustainable store designs and fit-outs. This checklist sets out specific technical standards and criteria to guide LVMH stores in terms of sustainable fit-out and operations including areas such as lighting, interior layouts, the use of environmentally friendly materials and energy and water management etc. Swire Properties will offer support and guidance to LVMH throughout the implementation process.
The two companies will collaborate to enhance data sharing in relation to energy and water use and waste management across LVMH stores and office premises. Measures will include the installation of smart metering equipment to monitor energy and water consumption and establishing mechanisms to measure waste generation. Swire Properties and LVMH are already collaborating across the office portfolio at Taikoo Place through the Green Performance Pledge programme.
Leveraging the strengths of both companies, LVMH and Swire Properties will also explore opportunities to exchange knowledge and advance progress in other emerging sustainability topics, including climate resilience, nature and biodiversity, people and wellbeing and supply chain management. A joint taskforce will be nominated for the purpose of ongoing liaison, dialogue and reviews to support the implementation and continued impact of this sustainability alliance.
Ambitious goals that address global challenges
LVMH has targeted to halve its global energy emissions by 2026 (compared to a 2019 baseline), in alignment with national and international targets. By 2023, the Group had already achieved a 28% reduction. Swire Properties is the first property developer in Hong Kong and the Chinese Mainland to receive approval for a 1.5°C Science Based Target (SBT). Its SBT includes a Scope 3 emissions target aimed at reducing carbon intensity from tenants’ operations by 28% per square metre by 2030 – a goal that the company already surpassed with a remarkable 40% reduction by 2023.
For several years, LVMH has been working to strengthen its positive environmental impact through international collaborations and partnerships with major landlords, notably in the Middle East, Florida and Chinese Mainland, to transform its retail and cultural spaces into models of sustainability. Swire Properties is recognised as a global leader in sustainability within the real estate industry. In 2023, the company ranked second globally in the Dow Jones Sustainability Index – Real Estate Management and Development Industry and was the top company for the seventh consecutive year in the Hang Seng Corporate Sustainability Index in 2024. It is committed to setting ambitious sustainability goals and standards for its operations, pioneering initiatives to help combat global climate change. The company is committed to exploring innovative sustainability partnerships with tenants, sharing knowledge and best practices and working in unison to achieve common sustainability goals.
Visit Swire Properties’ website at www.swireproperties.com.
