Podcast Summary: Der Große Neustart – "Moët Hennessy: Transforming Luxury"
Episode Overview In this insightful episode of Der Große Neustart, host Sibylla Bach engages in a profound conversation with Philippe Schauss, CEO of Moët Hennessy, a leading figure in sustainable luxury. Released on November 27, 2024, the episode delves into how Moët Hennessy is redefining the luxury industry by integrating environmental responsibility and sustainability into its core business practices, aligning with the World Economic Forum’s Great Reset initiative.
1. Introduction to Philippe Schauss and Moët Hennessy
Sibylla Bach introduces Philippe Schauss, highlighting his pivotal role in steering Moët Hennessy, part of the world’s largest luxury group, LVMH, towards sustainable luxury. Under his leadership, the company has launched significant initiatives like the World Living Soils Forum and committed to ambitious carbon reduction targets through the Science Based Targets initiative.
2. Personal Commitment to Sustainability
Philippe Schauss emphasizes that sustainability is not just an environmental concern but a foundational business principle. He states:
“Sustainability is about creating a future where business thrives while we positively impact the planet and society.” (01:43)
He discusses how sustainability has been integral to Moët Hennessy’s legacy, drawing from centuries-old practices that ensure the longevity and resilience of their maisons.
3. The State of Soil in 2024
Schauss underscores the critical importance of soil health, noting that:
“Soil retains water, filters water, supports the development of flora and fauna, and captures carbon.” (09:21)
He highlights alarming statistics from the FAO, revealing that nearly 40% of the world’s soils are degraded due to erosion, pollution, and intensive agriculture. Schauss connects soil degradation to climate change and food security, stressing the urgent need for regenerative agriculture.
4. Moët Hennessy’s Sustainable Practices
Schauss outlines Moët Hennessy’s comprehensive sustainability program, Living Soils Living Together, which encompasses four main pillars:
- Regenerating and Protecting Soils: Implementing practices like cover cropping and agroforestry.
- Mitigating Climate Impacts: Reducing carbon footprints through renewable energy and efficient resource usage.
- Engaging Society: Promoting responsible drinking and supporting community initiatives.
- Empowering Employees: Fostering a culture of sustainability within the organization.
“Sustainability is not a trend, it’s a guiding principle we have borrowed from the past and evolved.” (07:30)
5. World Living Soils Forum: A Collaborative Initiative
Schauss discusses the inception and impact of the World Living Soils Forum, a platform designed to unite experts and innovators to address soil health and sustainability challenges. He shares:
“We are a catalyst, bringing people together to exchange ideas and solutions.” (14:37)
The forum has grown significantly, attracting participants globally and fostering collaborations that drive systemic environmental transformations.
6. Addressing Climate Change Across Regions
The conversation shifts to the global nature of climate change, with Schauss highlighting regional challenges and responses. He notes:
“Climate change is a global phenomenon. In China, for example, there is a huge awareness and significant efforts towards sustainability.” (21:38)
He discusses adaptive strategies in viticulture to cope with rising temperatures, such as altering agricultural practices and exploring new grape varieties to sustain wine production in changing climates.
7. Sustainability in the Luxury Industry
Schauss defends the luxury industry’s role in sustainability, arguing that:
“Luxury products are designed to last longer, reducing wastage and environmental impact.” (29:48)
He explains how high-quality craftsmanship ensures longevity, and a thriving secondhand market further minimizes resource consumption. Schauss asserts that sustainability and luxury are not mutually exclusive but inherently linked through the creation of enduring, high-value products.
8. Community Engagement and Transparency
Highlighting Moët Hennessy’s commitment to communities, Schauss shares initiatives aimed at supporting viticulture suppliers and local communities. For instance, during the harvest season, the company provides quality accommodations and recently extended support to Ukrainian refugees by repurposing their facilities.
“We provide our suppliers with financial incentives to adopt sustainable practices, ensuring they can sustain their livelihoods and contribute to our environmental goals.” (37:06)
9. Implementing Sustainability Standards
Schauss discusses the challenges of integrating sustainability standards within a large organization. He emphasizes the importance of:
- Scientific Rigor: Ensuring actions are based on scientific evidence.
- Prioritizing Impact: Allocating resources to initiatives that offer the most significant environmental benefits.
- Measurable KPIs: Developing key performance indicators to track progress accurately.
“We need to move towards having one currency for all environmental impacts to better measure and manage our sustainability efforts.” (19:43)
10. Dealing with Complexity in Sustainability
Philippe Schauss acknowledges the inherent complexity in managing sustainability within a global luxury brand. He addresses:
“Leaders struggle with complexity daily, whether from internal processes or external regulations. Transparency and a clear vision are crucial in navigating these challenges.” (49:04)
He advocates for fostering an organizational culture that embraces sustainability as a unified goal, enhancing motivation and collaboration across teams.
11. Legacy and Future of the Luxury Industry
In concluding the conversation, Schauss reflects on the long-term legacy Moët Hennessy aims to leave within the LVMH group and the broader luxury sector. He envisions:
“Our legacy is to create products that bridge past and future, bringing joy while using natural resources responsibly. We aim to ensure our brands endure for centuries, contributing positively to the planet and society.” (56:05)
He underscores the importance of sustainability in maintaining the timelessness and enduring value inherent in luxury brands.
Conclusion
This episode of Der Große Neustart offers a deep dive into how Moët Hennessy is transforming the luxury industry through sustainable practices. Philippe Schauss provides a comprehensive look at the company’s strategies to protect soil health, mitigate climate impacts, engage communities, and empower employees. His insights reveal the intricate balance between maintaining luxury standards and advancing environmental responsibility, offering valuable lessons for leaders and organizations committed to sustainable transformation.
Notable Quotes:
- “Sustainability is about creating a future where business thrives while we positively impact the planet and society.” – Philippe Schauss (01:43)
- “We are a catalyst, bringing people together to exchange ideas and solutions.” – Philippe Schauss (14:37)
- “Luxury products are designed to last longer, reducing wastage and environmental impact.” – Philippe Schauss (29:48)
- “We need to move towards having one currency for all environmental impacts to better measure and manage our sustainability efforts.” – Philippe Schauss (19:43)
- “Our legacy is to create products that bridge past and future, bringing joy while using natural resources responsibly.” – Philippe Schauss (56:05)
For more transformative conversations and pioneering ideas, visit www.sibyllabarden.com and the official World Economic Forum website.