Chalhoub Group, partner and creator of luxury experiences in the Middle East, has initiated a sustainability services agreement with Schneider Electric, a leader in digital transformation of energy management and automation to transform its suppliers’ carbon footprint roadmap across the region. The announcement was made amid the 28th session of the Conference of the Parties (COP28) to the UN Framework Convention on Climate Change (UNFCCC).
The agreement represents the second phase in Chalhoub Group’s journey to attaining Net Zero by 2040.
“The Middle East is among one of the biggest luxury markets globally and has demonstrated growth and resilience despite supply chain disruptions and worldwide affairs. Our partnership with Schneider Electric is testament to our commitment to a more sustainable future for this sector. We recognize the challenges posed by reducing Scope 1, 2 and especially Scope 3 emissions, and this partnership is poised to accelerate our sustainability journey and meet our net-zero commitments,” said Florence Bulté, Chief Sustainability Officer, Chalhoub Group.
“Incorporating climate action into core business strategies is no longer an option; it’s a necessity. We are proud to play an integral role in Chalhoub Group’s sustainability journey and are confident that we can set new benchmarks in decarbonization and sustainability, not just for the company, but for the entire industry,” said Farrukh Shad, Head of APAC/MEA, Schneider Electric’s Sustainability Business.
Chalhoub Group aims to reduce absolute Scope 1 and 2 GHG emissions by 50.4% by 2032 from a 2021 base year. The company also commits to reduce absolute Scope 3 GHG emissions from purchased goods and services, upstream transport and distribution, upstream leased assets and investments by 30% within the same timeframe. These include emissions associated with activities such as purchasing goods and services, transportation and distribution (both upstream and downstream), waste generated, business travel, employee commuting, and the end-of-life treatment of sold products.
The collaboration with Schneider Electric will primarily target selected suppliers in the ‘Purchased Goods and Services’ category, who account for most of the Group’s Scope 3 emissions. In 2023, a diagnostic mapping of Chalhoub Group’s suppliers was conducted to identify those with high emissions that had yet to establish science-based carbon reduction targets. After categorising the supplier base, a service agreement was signed to mark the next major milestone, the launch of a supplier engagement programme.