【Paris, Franc】Do LVMH, Hermès & Inditex Have Sustainable Supply Chains?

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Editor’s Note

This analysis compares the sustainability strategies of three fashion giants—LVMH, Hermès, and Inditex—as detailed in their latest reports. As scrutiny of the industry’s environmental and supply chain impacts grows, we examine how these companies are responding to the pressing demand for greater accountability and sustainable practices.

How important is sustainability to LVMH, Hermes and Inditex?

A look at what the latest reports from fashion giants LVMH, Hermès and Inditex say about their sustainability strategies.

The fashion industry, particularly its fast fashion segment, is frequently criticised for its environmental impact and the sustainability of its supply chains.

Scrutiny is intensifying on how major apparel businesses are addressing these issues throughout their production and distribution networks.

An examination of three of the largest companies, LVMH, Hermes and Inditex, offers insight into the progress being made in transforming fashion supply chains.

Louis Vuitton

LVMH
HQ: Paris, France
Employees: 215,000
Market Cap: US$262bn
Countries: 81

According to its 2024 Social and Environmental Responsibility Report, LVMH is making progress toward its LIFE 360 targets for 2026 and 2030. The report points to a growing emphasis on circular economy innovation and supply chain traceability.

LVMH has also made substantial progress in reducing greenhouse gas (GHG) emissions, increasing renewable energy use and restoring biodiversity. These efforts could indicate a change in how the luxury giant manages its extensive network of suppliers and materials.

LVMH’s focus on supply chain traceability

A key area of focus for LVMH is achieving full transparency in its sourcing. LVMH reports it has reached nearly 100% traceability for diamonds, wool and leather.

Looking ahead, LVMH aims for full supply chain traceability and certification for all strategic materials between 2026 and 2030.

“Our ethical principles and our commitment to upholding our social, environmental and cultural responsibilities are rooted in a simple, strongly held belief that it is by working together with our employees and all our other stakeholders – public and private institutions, suppliers and partners, NGOs and indeed other companies in our sector – that we will be able to transform challenges into opportunities to drive progress across society as a whole.”

Bernard Arnault, Chairman and Chief Executive Officer

Transforming the Hermès supply chain

Hermès
HQ: Paris, France
Employees: 25,697
Market Cap: US$248bn
Countries: 45

French luxury house Hermès outlines in its 2024 Annual Report its commitment to ensuring all products are “responsibly manufactured, using sustainable materials, with a frugal use of materials, an approach based on craftsmanship and by applying the principles of the circular economy in its production approach as much as possible”.

Hermès is actively working to lower the carbon footprint of its activities by transforming its supply chain practices and favouring less emitting methods in its direct operations.

Progress includes exceeding its science-based targets for direct GHG emissions reductions and increasing supplier engagement to map the supply chain for ethics sustainability and transparency.

Hermès’ forward-looking plans involve deepening supply chain transparency traceability and responsible sourcing.

“Hermès places responsibility and sustainability in all its actions and creations. Each métier applies the principles of eco-design to optimise the use of materials so as to reduce waste, promote reuse and recycling, and be part of a circular economy approach.”

Axel Dumas, Chief Executive Officer, Hermès

Other supply chain-related targets include eliminating virgin fossil-based plastic in all packaging by 2026 and ensuring no deforestation or conversion of natural ecosystems within its supply chain by 2025.

Inditex’s plan for supply chain transformation

Inditex
HQ: Arteixo, Spain
Employees: 161,000
Market Cap: US$153bn
Countries: 96

Inditex, which owns brands including Zara and Pull&Bear, places its supply chain at the centre of its sustainability strategy. Inditex’s 2024 Sustainability Report details its Supply Chain Transformation Plan, which was launched in 2023.

This plan is crucial to its efforts to decarbonise its value chain.

“As a result of this and other initiatives, we made further progress towards a low-carbon economy.”

Oscar Garcia Maceiras, Chief Executive Officer, Inditex

Inditex aims to use 100% lower-impact textile fibres by 2030. It is also focused on decarbonising its logistics, reporting that 90% of its ocean freight is transported using alternative fuels.

According to the report, Inditex has made progress in using lower-impact and recycled fibres, with 73% of textile fibres categorised as lower impact in 2024.

Future efforts will centre on scaling up next-generation recycling technologies and innovation partnerships, while continuing to decarbonise its entire supply chain through mandatory renewable energy, waste and water reduction plans for all its suppliers.

“We are leveraging that plan to support and advise our suppliers and manufacturers so that they can meet more ambitious requirements around water management, chemical substances, waste and emissions.”

Oscar Garcia Maceiras, Chief Executive Officer, Inditex

It requires all key factories to have decarbonisation plans with annual emissions cuts and strict management of waste water and chemicals.

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⏰ Published on: October 06, 2025