News published on: 07-12-2015

An Environmental Profit & Loss account (EP&L) measures and monetises the costs and benefits generated by a company’s environmental impact, both within its own operations and across all of its supply chains. Developed by Kering, the E P&L is an innovative tool that allows us to make better decisions as it provides a clear understanding and accurate measurement of our impacts; whether it be from the production of raw materials, to our own operations, transport and right up to the boutique floor.

An EP&L is deployed in four successive phases: Mapping all processes and suppliers, from the extraction of raw materials to the manufacturing of products; Gathering as much environmental data as possible; Extrapolating and estimating those impacts not covered in the data gathering phase; Allocating a monetary value to these impacts which accounts for their geographical location

In 2015, Kering open-sourced its E P&L methodology ( in order to encourage other corporations to understand their entire impact on natural capital and work together to address our global issues. Kering is sharing this work to support the development of corporate accounting of natural capital, and the Natural Capital Protocol, a cross-sector industry initiative developing a global methodology for environmental accounting.

Source : @ Kering


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