February 16, 2016

Image: BreakingTravelNews

According to a report by the Luxury Institute and Positive Luxury, 2015 “propelled the luxury industry forward when it comes to how they think about sustainability”. Key drivers of this change include increased stakeholder pressure, which is helping to accelerate change from the top down. While traditionally financial performance was the key focus for investors, now sustainability strategies and a brand’s performance in relation to social and environmental impact are being considered as important factors.

Beyond investors, another powerful group are consumers, particularly those aged between 18 and 35. The report cites that “88% of UK and US Millennials and Generation Xers believe brands need to do more good, not just ‘less bad’.” On the one side the Millennials use their market presence and spending power to support brands that positively drive change within the industry. On the other side they favour jobs within companies that have a strong environmental and social impact.

Lastly, the report points to how legal obligations will force the luxury industry to change. With the introduction of the Sustainable Development Goals, COP 21 and the Modern Slavery Act, governments have taken action in 2015 and the report concludes that luxury brands will be left with “no option but to improve”.

Tags: cop21, luxury, luxury institute, modern slavery, positive luxury, sdg.