Kering Launches First Water Resilience Lab in Arno Basin

Pioneering Sustainable Water Management in the Fashion Sector

The Genesis of Kering's Water Strategy: Learning from Natural Disasters

The devastating floods along the Arno River, including a historic event in 1966 and more recent deluges like Storm Ciarán in 2023, have highlighted the urgent need for enhanced water resilience. These events caused immense damage, affecting human lives, displacing communities, and incurring significant financial losses for businesses, including fashion suppliers. Notably, the Prato-based Beste Group experienced substantial destruction to its facilities and equipment. This prompted Rachel Kolbe Semhoun, Kering's head of sustainable sourcing, to spearhead the development of an industry-first water strategy, recognizing that individual company efforts are insufficient without collective investment in natural infrastructure.

Establishing Ambitious Goals for Water Positivity

Eighteen months prior to the lab's launch, Kering set a bold objective: to achieve "net water-positive" status by 2050, with targeted "net-positive water impacts" in ten key water basins by 2035. This ambition was unprecedented in the fashion industry, requiring the conglomerate to forge its own path without a pre-existing model. The selection of the Arno Basin for its inaugural Water Resilience Lab underscores its strategic importance, given the region's specialized expertise and its role as a hub for Kering's essential suppliers across various luxury goods categories.

The Strategic Importance of Water Resilience for the Fashion Industry

Marie-Claire Daveu, Kering's chief sustainability and institutional affairs officer, stresses that water is a fundamental resource for most of fashion's primary raw materials. From cultivating natural fibers such as wool and cotton to crucial manufacturing processes like washing, dyeing, and tanning, water is indispensable. Ensuring the long-term viability and operational stability of the fashion industry necessitates proactive engagement in the regeneration and replenishment of critical water basins. This commitment not only fortifies supply chain resilience and mitigates water-related risks but also contributes to the well-being of ecosystems and the communities that support the industry.

A Collaborative Approach to Water Management in the Arno Basin

The Arno Basin Water Resilience Lab adopts a multifaceted strategy that convenes diverse stakeholders, including governmental bodies, private enterprises, academic institutions, scientific experts, and financial entities. Collaborators include Conservation International, environmental consultant Etifor, the University of Florence, various levels of local government, and regional water authorities. This collaborative ecosystem is designed to build upon existing public sector achievements, while also bridging gaps and fostering innovative models for water resilience. The lab's efforts aim to amplify current initiatives, ensuring a cohesive and impactful approach.

Kering has officially launched its first water resilience lab, in Italy’s Arno Basin.

Pillars of the Water Resilience Roadmap

The lab's roadmap is structured around three core principles: establishing robust governance structures that facilitate stakeholder engagement; developing a financial model that transcends traditional philanthropy to incentivize sustainable change; and curating a portfolio of nature-based and industrial projects with compelling business cases for implementation by various stakeholders. A central tenet of this strategy is addressing future climate and nature-related risks. Projections indicate a significant increase in heat stress days in Tuscany by 2030. By retaining an estimated 48 million cubic meters of water in the Arno Basin, the lab anticipates a substantial reduction in flood damage, demonstrating a clear economic benefit for every cubic meter of water managed.

Implementing and Scaling Water Resilience Interventions

Six critical intervention areas have been identified within the Arno Basin, including Villa Petriolo, Ombrone/Bisenzio, and Arezzo/Chiana Valley, among others. In these locations, a "multi-sectorial and private-public consensus" has been instrumental in driving progress. The roadmap leverages leading methodologies such as volumetric water benefit accounting (VWBA) and the Science-based Targets for Nature (SBTN), complemented by a basin-specific methodology developed by the University of Florence to quantify risks and outcomes. While this provides a strong foundation, Kering acknowledges the need for further refinement to create a universally replicable model. A key challenge is the insufficient recognition of nature-based solutions in mitigating risks and fostering long-term resilience. The lab is committed to innovating governance and financial models to ensure that nature-based resilience is viewed as a viable investment, moving beyond philanthropic funding to attract broader investor participation and coordinate efforts for a holistic approach to water security.