Capri Holdings is aiming to become greener.
To coincide with the 50th anniversary of Earth Day, the Michael Kors, Jimmy Choo and Versace parent has released its first company-wide corporate social responsibility plan. The company announced its goals of becoming carbon neutral in its direct operations and to exclusively use renewable energy in its owned and operated facilities by 2025.
Further, Capri has committed to setting emissions reduction targets across its operation and supply chain by 2021. The company is also is making its packaging more sustainable, sourcing more leather from certified tanneries and teaming up with key suppliers to cut back on water use. Additionally, chairman and CEO John Idol has signed the the United Nations Global Compact, the world’s largest corporate sustainability initiative.
“We are proud of the actions our company is taking to drive positive environmental and social change within our organization and our world,” said Idol. “We recognize that as our company grows, so do our responsibilities, and welcome the opportunity to do more. We believe that sound environmental and social policies are both ethically correct and fiscally responsible. To that end, we are committed to improving the way we work in order to better the world in which we live.”
This isn’t Capri’s first commitment to sustainability. Last year, the company announced its participation in the G7 Fashion Pact, a coalition of global brands and retailers including Chanel, Nordstrom, Nike and Kering, dedicated to several core environmental goals: stopping global warming, restoring biodiversity and protecting the oceans.
In addition to its sustainability goals, Capri announced its plans to increase diversity and inclusion within its ranks, including through its new Global D&I Council. Further, the company will implement supply chain empowerment programs — with a focus on human rights and fair wages — within the next five years.
While it’s working to become more socially responsible, Capri has also faced recent challenges surrounding the coronavirus outbreak. To maintain cash flow, Capri is planning to “significantly” decrease capital expenditures for the 2021 fiscal year and is reducing marketing spend as well as delaying or canceling some new store openings. In addition, the company has drawn the remaining $300 million available under its revolving credit line, with a total of $900 million in cash and cash equivalents as of April 1.
The fashion giant has also taken several steps to reduce payroll expenses. Effective April 11, the umbrella group furloughed its entire North American retail staff of about 7,000 workers. Additionally, for the 2021 fiscal year, Idol is forfeiting his salary, along with Michael Kors’ namesake founder and chief creative officer Michael Kors, Versace chief creative officer Donatella Versace and Jimmy Choo chief creative officer Sandra Choi. Capri’s board of directors will see their cash pay reduced by 50%. Additionally, the company is “exploring” opportunities to reduce salaries for other employees by about 20%, and it anticipates reducing its corporate workforce in the future.