The Chalhoub Group, leader in luxury goods in the Middle East, joins forces with Schneider Electric for a sustainable approach. Announced at COP28, this partnership redefines the carbon roadmap for suppliers, emphasizing Chalhoub’s commitment to carbon neutrality by 2040.
The Chalhoub Group, a key player in the Middle East luxury goods sector, has established a strategic sustainability partnership with Schneider Electric, a world leader in the digital transformation of energy management and automation.
The main objective of this collaboration is to reshape the carbon roadmap of the group’s suppliers across the region. The announcement was officially unveiled at the heart of the 28th session of the Conference of the Parties (COP28) at Dubai’s Expo City.
“The Middle East is one of the world’s largest luxury markets and has demonstrated growth and resilience despite supply chain disruption and global business. Our partnership with Schneider Electric demonstrates our commitment to a more sustainable future for this sector. We recognize the challenges of reducing Scope 1, 2 and especially 3 emissions, and this partnership will enable us to accelerate our sustainability journey and meet our net-zero emissions commitments,” said Florence Bulté, Head of Sustainability at the Chalhoub Group.
This agreement symbolizes the second crucial step in the Chalhoub Group’s commitment to achieving carbon neutrality by 2040.
“Integrating climate action into core business strategies is no longer an option, it’s a necessity. We are proud to play an integral role in the Chalhoub Group’s sustainability approach and are convinced that we can set new benchmarks in decarbonization and sustainability, not only for the company, but for the industry as a whole,” said Farrukh Shad, APAC/MEA region manager for Schneider Electric’s sustainability business.
Reducing greenhouse gases
The Chalhoub Group has set itself the target of reducing absolute greenhouse gas (GHG) emissions by 50.4% by 2032 from Scope 1 (directly related to product manufacturing) and Scope 2 (indirectly related to energy consumption) compared with the 2021 baseline year. At the same time, the company is committed to a 30% reduction, within the same timeframe, in absolute GHG emissions of type 3. These emissions cover activities such as the purchase of goods and services, transport and distribution (upstream and downstream), waste management, business travel, employee travel and the end-of-life treatment of products sold.
Collaboration with Schneider Electric will focus primarily on specific suppliers in the “Purchased goods and services” category, representing the preponderant share of emissions in the Group’s scope 3. In 2023, an in-depth diagnostic mapping of the Chalhoub Group’s suppliers was carried out to identify those generating high emissions and not yet having established scientifically-based carbon reduction targets. Following this categorization of suppliers, the next major step was marked by the signing of a service agreement, thus launching a supplier engagement program.
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