The global fashion industry is under growing pressure to change. For years, it has been admired for creativity and craftsmanship, but behind the artistry lies an environmental cost that’s becoming impossible to ignore. The sector is responsible for an estimated 2 to 8 percent of global greenhouse-gas emissions, more than international aviation and shipping combined and continues to generate vast amounts of waste through resource-heavy supply chains.

Fast fashion has often been in the spotlight, yet luxury houses have also played their part through energy-intensive production and, at times, the destruction of unsold goods to protect exclusivity. Now, with stricter rules emerging in Europe and consumers demanding accountability, the industry is being forced to change what responsibility looks like. The EU’s upcoming Ecodesign and Waste Framework laws will make it mandatory for brands to disclose unsold-goods data and ban the destruction of excess stock, marking a shift toward greater transparency.

In this changing environment, Chanel which is one of the world’s most recognisable luxury names is taking a clear stance. Known for its timeless design and unmatched craftsmanship, the maison is now applying the same attention to detail to its sustainability strategy. The company’s leadership recognises that the future of luxury depends on confronting climate change directly.

Kate Wylie, Chanel’s Global Chief Sustainability Officer, says, “Everybody is an agent for change.” That idea now shapes how Chanel operates, innovates, and plans for the future.

Science-Based Goals for a Low-Carbon Future

Chanel’s structured climate journey began with the 2020 launch of Mission 1.5°, its plan to align with the Paris Agreement’s 1.5 °C pathway. In 2024, the house raised its ambition: the Science Based Targets initiative (SBTi) formally validated Chanel’s commitment to reach net-zero greenhouse-gas emissions by 2040, making it one of the first luxury fashion houses to secure SBTi approval.

The target is firm, a 90 percent absolute emissions reduction across Scopes 1, 2 and 3 by 2040, measured from a 2021 baseline. Interim milestones are clear: by 2030 Chanel aims to halve its operational emissions (Scopes 1 and 2) and cut value-chain emissions by 42 percent.

Roughly 95–98 percent of Chanel’s total carbon footprint lies in Scope 3, spanning raw-material production, supplier operations, logistics, product use, and end-of-life stages. In comparison, its own boutiques and offices contribute just about two percent. That insight has defined Chanel’s strategy: collaboration across the supply chain is as vital as decarbonising its own sites.

To address the final few percent of unavoidable emissions, Chanel plans to invest in verified carbon-removal projects. However, the company emphasises that offsets are a last resort and the focus remains on real, measurable reductions first.

Progress and Performance

Chanel has already made tangible progress. Total greenhouse-gas emissions have dropped to around 1.12 million tonnes CO₂-equivalent, roughly 10 percent lower than 2021 despite business growth.

Scopes 1 and 2 emissions fell 22 percent, driven by energy efficiency and rapid adoption of renewables.
Scope 3 emissions declined about 10 percent from 2021, including a 9 percent year-on-year reduction in 2024.

Material sourcing remains a primary focus. Emissions linked to key raw materials like cashmere, leather, and gold fell by roughly 20 percent in 2024 as Chanel worked directly with herders, tanneries, and miners to adopt cleaner methods. Each material now has a dedicated sustainability program: sustainable grazing for cashmere, low-impact tanning for leather, and responsible mining and recycling for gold.

Transportation is another area of visible improvement. Chanel is cutting freight emissions by reducing reliance on air cargo in favour of sea and rail shipping, particularly within its Fragrance & Beauty division. In 2024, this shift helped achieve a 9 percent cut in logistics emissions.

💡By replacing air freight with sea routes for many fragrance shipments, Chanel reduced logistics-related emissions by nearly 9 percent in 2024, showing how operational tweaks can yield large climate gains.

Not all indicators move in one direction. Business-travel emissions dropped 15 percent, while employee-commuting emissions rose due to improved data collection and a broader return to offices. Chanel acknowledges these fluctuations as part of building a more accurate picture of its footprint. An internal carbon price is also being used in investment decisions, steering budgets toward low-carbon choices.

Clean Energy at Scale

One of Chanel’s achievements is its near-complete transition to renewable electricity. As a member of the RE100 initiative, the company committed to 100 percent renewable electricity by 2025 and is already 99 percent renewable across operations as of end-2024.

This shift has nearly eliminated its Scope 2 emissions. Chanel sources power through a mix of on-site solar or geothermal systems at 33 locations, power-purchase agreements, and certified renewable-energy credits where needed.

Equally important, the maison is working with suppliers to help them adopt clean energy often through technical guidance or co-investment since supplier facilities still account for most of the remaining Scope 3 footprint.

A company representative summarised the philosophy: “Joining RE100 is not only our commitment to the environment, but also an investment in the future economy.” The renewable transition is now integral to Chanel’s business resilience, reducing exposure to fossil-fuel volatility while strengthening its wider ecosystem.

Building Circularity into Design

For Chanel, sustainability also means rethinking the linear “take-make-dispose” model that has long defined fashion. Circularity means keeping materials in use for as long as possible and has become a strategic pillar for Chanel.

In 2025, Chanel launched Nevold, a standalone venture whose name compresses “never old.” Rather than focusing on resale, Nevold functions as a B2B platform for circular materials, drawing on start-ups, suppliers, and academic labs to transform textile offcuts, unused fabrics, and old products into new high-quality materials. The model echoes Chanel’s historic approach of acquiring artisan ateliers to preserve craft; now it is acquiring and investing to preserve resources.

Bruno Pavlovsky, Chanel’s President of Fashion, shared, “If we want to continue to exist and to do what we are doing, we have to anticipate and see how we can rethink this idea of materials and raw materials.”

💡: At a series of beauty workshops in China, Chanel reused stage and set materials across 15 events, cutting event-related emissions by roughly 89 percent compared with building new décor each time, proof that circular design can blend seamlessly with luxury experiences.

Within its retail network, Chanel is integrating reusable and recyclable materials into store interiors and displays. Window sets are increasingly refurbished or donated instead of discarded. The same mindset extends to products through Chanel & moi, a global after-sales programme offering repairs, refurbishment, and maintenance for handbags, garments, shoes, and jewellery. Encouraging clients to restore rather than replace embodies the brand’s belief that true luxury endures.

Responsible Sourcing and Regenerative Partnerships

Chanel’s supply-chain work begins at the source. The company partners directly with farmers, herders, and producers to encourage regenerative agriculture for cotton, wool, leather, and cashmere; methods that rebuild soil health, improve biodiversity, and cut emissions.

In cashmere, for instance, Chanel supports herding communities in Mongolia adopting rotational-grazing systems that allow grasslands to recover from overuse. In leather, the maison collaborates with ranches experimenting with pasture restoration and improved animal-welfare standards. These projects not only help meet the brand’s climate targets but secure the long-term quality of natural materials on which luxury depends.

In beauty, Chanel runs Open-Sky Labs which research partnerships with farmers and scientists cultivating iconic fragrance ingredients such as jasmine and iris using regenerative practices. Many are based in Grasse, the cradle of Chanel perfumery, where the brand is investing in organic methods to protect local biodiversity.

The house also continues to invest in next-generation materials. It was an early backer of Sulapac, the Finnish start-up developing biodegradable alternatives to plastics, and of Evolved By Nature, which produces bio-based finishes for textiles and leather. These collaborations target two persistent industry issues such as plastic waste and chemical pollution while exploring innovative aesthetics that meet Chanel’s quality standards.

Governance and Culture

Sustainability at Chanel is not confined to one department. It is embedded in the company’s governance, incentives, and culture. The Board of Directors and Executive Committee now receive regular updates on ESG performance, and management bonuses are partially linked to progress on environmental targets aligning accountability from top to bottom.

In 2024, Chanel strengthened its reporting structures in preparation for the EU Corporate Sustainability Reporting Directive (CSRD). It enhanced data systems, expanded third-party assurance (with Ernst & Young verifying emissions and renewable-energy data), and improved transparency. Chanel’s philosophy is that true luxury can withstand scrutiny; reliable disclosure is a sign of integrity.

Inside the organisation, education is central. The Chanel Sustainability Academy offers learning programmes for employees at all levels, covering climate, circular economy, and innovation. The company also partners with the University of Cambridge Institute for Sustainability Leadership (CISL) to deliver bespoke executive courses. Since 2021, nearly 500 Chanel leaders and operational managers have completed the programme, returning as internal ambassadors for change.

This people-centric approach is shaping a culture where sustainability is part of daily decision-making from designers exploring lower-impact tweeds to logistics teams optimising transport routes. The goal is to weave environmental responsibility as tightly into Chanel’s DNA as its craftsmanship.

New Definition of Luxury

Chanel’s sustainability strategy demonstrates that ambition and realism can coexist. The company is transparent about progress and remaining challenges, presenting data that investors and regulators can scrutinise while pursuing long-term transformation.

Chanel’s approach anchored in science-based targets, near-zero-carbon operations, circular design, regenerative sourcing, and employee engagement reflects a model that many now view as best practice across industries.Yet Chanel’s tone remains pragmatic, not self-congratulatory. The leadership openly acknowledges that reaching net-zero by 2040 will demand innovation, investment, and collaboration on an unprecedented scale.

Luxury has always been about permanence, quality, and vision. Chanel is extending that philosophy to sustainability: creating value that lasts, not just products that sell. If it succeeds, it could change what “luxury” means in the 21st century where craftsmanship and climate responsibility are inseparable.

Sustaining the Momentum

Chanel’s plans are still taking shape. The company has set a 2040 net-zero goal and is moving closer to full renewable power. It is changing how it sources materials, how products travel, and how waste is handled. None of it is perfect or finished, but it is moving in the right direction.

The shift is quiet rather than dramatic. It comes through small and steady choices such as how fabrics are made, how events are designed, and how suppliers are brought along. The same care that defines its craft is starting to guide how it manages its impact.

If the brand keeps going this way, it could show that luxury does not have to mean excess. It can still stand for quality, longevity, and respect for the people who make it and the world that sustains it.

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