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ABOUT POSITIVE LUXURY METHODOLOGY INTRODUCTION FOREWORD PART I : WHAT WE LEARNED in 2015 PART II : INNOVATION PART III : 2016 but also care for their employees, suppliers and work hard to protect our planet. The Butterfly Mark helps people to instantly recognize which brands they can trust, giving them the purchasing power to choose from those companies that embody luxury whilst not harming our world. ABOUT POSITIVE LUXURYPositive Luxurys 2016 Predictions for the Luxury Industry: Sustainability - Developing anti-slavery and human trafficking policies; and/or including these in corporate social responsibility (CSR) policies; - Developing processes to investigate business and supply chain (contractors, sub-contractors, suppliers, contracts, etc.) to deter mine the level of risk or exposure to risk; - Identifying and prioritising high-risk areas in the supply chain and planning and setting out what steps are being taken to address the risks; - Appointing senior individual(s) within companies with responsibility for investigation, compliance and the production of the statement; - Identifying training needs within companies to ensure that all responsible staff involved in supply chain management and pro- curement are aware of the new obligations; - Putting effective grievance and whistle-blowing mechanisms in place to cover any concerns about slavery or human trafficking within any business or supply chain. 14 POSITIVE LUXURY 02 SUSTAINABLE DEVELOPMENT GOALS In September 2015, the United Nations released The Sustainable Development Goals (known officially as Transforming our World: The 2030 Agenda for Sustainable Development). The goals are an intergovernmental set of 17 goals with 169 targets that cover a broad range of sustainable development issues. The goals are contained in paragraph 51 of the United Nations Resolution A/RES/70/1 of 25 September 2015 (7). The Resolution is a broader intergovernmental agreement that builds on the principles agreed upon under Resolution A/RES/66/288, (also known as The Future We Want). The newly created Sustainable Development Goals (SDGs), which will run from 2016 to 2030, build on the previous Millennium Development Goals (MDGs), which came to an end in 2015. The MDGs 15-year run showed a reduction in poverty and better disease control, producing a measurable global effort previously unseen. The SDGs are designed, in part, to pick up where the MDGs left off. Beyond poverty reduction and education, the 17 SDGs also cover climate change, energy access, biodiversity and oceans. What does this mean for your business? Although the SDGs dont immediately affect businesses like the Modern Slavery Act, they will guide policy and funding for the next 15 years in a similar way to the previous MDGs. If your company can tackle these goals in the long term, there are large advantages to be leveraged. Companies should use the SDGs as a source of inspiration. Companies have their own sustainability goals, but the SDGs may reveal things they havent thought about, providing a much needed framework to expand their efforts for the future. 15 POSITIVE LUXURY GOALS are GOOD Andrew Winston, adviser, writer, and speaker on sustainable business, gave us some recent examples of aggressive and visionary goals set by corporate leaders. 1 Dow put forth 2025 targets “to help redefine the role of business in society,” which aim to deliver breakthrough innovations and help build the circular economy. 2 More than 50 large companies have joined RE100, a group committing to use 100% renewable power. 3 Unilever said it will go even further and generate more en- ergy than it needs by 2030 (and exit coal by 2020). 4 Google will buy two gigawatts of renewable power (thats a lot). 5 114 big companies signed on to follow science-based tar gets for reducing emissions. 6 The White House has gathered 154 companies (and grow- ing) to make hundreds of specific commitments to reduce carbon and buy renewable power. 16 POSITIVE LUXURY 03 COP21 In one of the biggest events in history, on 12 December 2015, 186 countries came together in Paris to form an action plan to reduce their greenhouse gases and keep the global rise in temperature below 2C. Although progress was made, the commitments made by the countries will not keep the world from warming 2 degrees. In fact, despite the unprecedented mobilization shown, global warming is still predicted to be between 2.7C and 3C. The Paris agreement has therefore asked all countries to review these contributions every five years from 2020. Those countries will not be able to lower their targets and are encouraged, on the contrary, to raise them as technology and public policy allows. The agreement will be open for signing by the countries on 22 April 2016 in New York. The agreement can only enter into force once it has been ratified by 55 countries, representing at least 55% of emissions. 17 POSITIVE LUXURY What does this mean for your business? With the power of collective action to cut carbon emissions, the deal will have a direct effect on all businesses, especially luxury companies that focus on sustainability. The COP 21 agreement ensures that, when passed, regulations will be shifting on a global scale. The worlds governments will be setting new policies over the coming years to cut carbon emissions. Changes can already be seen in the USA with the Clean Power Plan, which forces every state to develop a strategy to reduce their carbon emissions at the same rate promised by the USA as a whole. The changes that will be brought about by the Paris agreement represent a huge opportunity. Weve already seen a rise in companies looking to invest in sustainable companies, and with the new commitments made, companies who can align themselves with the changes will find a rapidly growing market and funding as investment strategies shift to mirror regulations. “This agreement marks a transformative moment on the journey towards a low- carbon economy, providing the certainty and confidence businesses need to continue to pursue positive climate action.” Hannah Jones Chief Sustainability Officer Nike
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