Protecting The Environment

ENERGY MANAGEMENT: FROM ENERGY EFFICIENCY TO THE SELF-GENERATION OF RENEWABLE ENERGY

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For Luxottica, energy management is driven by investments in advanced technologies with low environmental impact. The goal is to increase the effectiveness of the production processes and guarantee a more efficient use of energy and natural resources. Energy efficiency initiatives are in fact managed within the scope of its ISO 50001 certified Energy Management System. The installation of meters to monitor energy consumption in all its facilities in real-time and the use of specific indicators allow Luxottica to identify priority action areas and define new projects and improvement plans. This includes the focus, between 2017 and 2019, on the implementation and management of energy efficiency projects at its manufacturing and distributions sites (Italy and China) and investments in the self-generation of renewable energy.

Since 2013, Luxottica has been investing in manufacturing plants that run on self-produced renewable energy with the objective of reducing its Carbon footprint across the value chain. The gradual installment of solar panel systems in the Lauriano factory and biomass systems in the Cencenighe and Agordo factory has enabled the Company to more than quadruple the quota of self-generated clean energy that the Italian manufacturing and distribution sites consumed between 2015 and 2019. Energy optimization efforts also involve Luxottica’s directly managed stores through continuous improvements in lighting and HVAC (heating, ventilation and air conditioning).

 

MONITORING THE CARBON FOOTPRINT

Over the years Luxottica has made efforts across the value chain with the ambition of limiting and
reducing its impact on the climate. These include investing in the above-mentioned energy efficiency programs and optimizing the logistics flows.

In this respect, it is worth mentioning the project launched in 2017 to measure CO2 emissions deriving from the transport of its products so as to monitor their environmental impact. The analyzed flows cover international and domestic transportation of its eyewear and Oakley’s AFA (Apparel, Footwear and Accessories) products between the four primary distribution centers (Sedico, Atlanta, Dongguan and Jundiaì) and the shipments from its biggest distribution center to wholesale, retail and ecommerce customers in EMEA and select destinations in the rest of the world, for a total of over 3.2 million of shipments mapped in 2019 only. The double-digit decrease in 2019 reported emissions from logistics further confirm the efficacy of the actions taken in terms of shipped volumes, efficiency in routing, optimization of transportation means and use of lower carbon intensive vehicles.

Meanwhile, Luxottica has progressively improved and expanded its reporting capacity on greenhouse gas emissions (GHG) and the related carbon footprint, determined in tons of equivalent emissions of carbon dioxide (tCO2eq), is available inside the EssilorLuxottica Sustainability report available on EssilorLuxottica corporate website (in English and French).

 

CONSUMPTION AND MANAGEMENT OF WATER RESOURCES

Over the years, Luxottica has also invested in the management and optimization of the use of water resources in its manufacturing sites and logistics hubs. These efforts range from daily commitments, such as the replacement of old valves with time-delay ones and the continuous improvement of the consumption measurement system, to structural improvements of traditional resource heavy processes, such as galvanization. The introduction of the new eco-sustainable galvanization technique in Luxottica’s main manufacturing sites of metal frames and components in Dongguan(2014) and Agordo (2016) allowed it to immediately reduce the amount of water and energy consumed as it is an integrated water treatment and recycling system that allows water to be reused in the process.

Thanks to the positive effects of water consumption, between 2018 and 2019 Luxottica installed closed-circuit water systems in the galvanizing plants and in painting processes inside its other sites in Italy dedicated to metal frames and components manufacturing. In such context, the additional reduction in water consumption during 2019 exemplifies the benefits deriving from all these water consumption optimization and improvement actions.

 

WASTE MANAGEMENT

Luxottica’s manufacturing flexibility and improved demand forecasting capabilities are key for the reduction of waste at its plants. Over the years, it has introduced a reverse-planning approach to the creation and launch of each eyewear collection, allowing to better plan its production volumes and therefore avoiding the situation of manufacturing more units than needed.

In more recent years, Luxottica has also invested in the continuous improvement of manufacturing processes in order to further reduce its environmental impact, such as the installment of evaporator systems and, in Agordo, of a wastewater treatment system. Moreover, the Group applies the same methods of punctual collection and weighing even where local legislation does not require to monitor and declare the weight of non-hazardous waste; this decision is part of the implementation of the environmental management system required to receive the ISO 14001 certification for the sites in Dongguan, Foothill Ranch and Atlanta.