Pelle Magna first leading company of luxury leather goods made from responsible sources and traced to its origins. Responsible manufacturing practices, quality assurance ISO, Corporate Social Responsability, environmental and waste management are key requirements of our philosophy

1. Concept and Vision
~ Encouraging Sustainable Consumption ~

2. Summary
! Facts and opportunity
! P.M. values and mission
! Unsustainable consumption?
! Dissatisfaction and origins of consumerism
! Shifting values and emerging best practices
! New luxury consumer
! Sustainable Luxury
! EU Eco-label
! Encouraging sustainability in wildlife trade
! “Life Cycle Thinking”
! Stakeholders = Partners
! 10 Point Plan for sustainable brands
! Roadmap
! “Sustainable Leather Development Group” partnership
! References
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3. Facts
! The way that people buy and consume products and services has profound implications
for the future generations
! We are consuming as if we had 3 planets but failing improve our wellbeing
! Poverty of the majority of world population and excessive consumption by the minority
are the 2 major causes of environmental degradation
! Values are shifting at deep level, majority of consumers prefer social & environmental
responsible brands
! There is a new growing consumer trend: the Sustainable Consumer
! In South East Asia, does exist sustainable sources (farms) of exotic skins (reptiles and
fish)
Opportunity
! Four out of five EU consumers would like to buy more environmentally friendly products,
provided they are properly certified.
! Luxury brands have more visibility and can generate awareness to the society
! The world Luxury & Leather industries need to align towards sustainability
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4. Pelle Magna values and mission
! Values:
~ strong supporters of sustainable development and the UNEP:
Life Cycle Initiative
~ committed to play a role in helping drive the leather supply chain
transformation through partnerships and best practices in developing
countries
! Mission:
~ creators of fashionable and durable eco friendly luxury leather products
~ committed to deliver sustainable and affordable luxury goods to consumers
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5. Unsustainable consumption
! “sustainable development” :
~ preservation of natural resources and protection of species
~ generation of greater human wellbeing without compromising the needs
of future generations
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6. Dissatisfaction and origins of consumerism
“the appetite of our present materialism
depends upon stirring up our wants but
not satisfying them”
! Current trends:
~ shift from GDP to wellbeing
~ companies make ‘business
case’ for sustainability
~ as individuals we strive to
improve quality of life, both
through our careers and
the products or services on
which we spend our money
or our time
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7. Shifting values and emerging best practices
! Aligning brand values with relevant
consumer values:
~ increase brand relevance to consumer
~ differentiates from competitors
~ providing focus for communications
campaigns
~ reduce the risk of reputational damage
! Consumer values are shifting at a deep
level and preferring socially and
environmentally responsible brands
! Mainstream brands are using sustainability
to create value for consumers, shareholders
and staff
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8. New luxury consumer
! Luxury companies influence consumer behaviour by:
~ product design that can reduce the direct impacts of production and
improve performance efficiency
~ example-setting that influences consumer behaviour by such means as
advertising, the sponsorship of role models and the provision of user instructions
! The “clever money” is on companies which sign up their consumers to support
them on their journey to sustainability
! 70 % of French consumers agree totally with the statement:
“ each one of us, is totally responsible for his actions regarding sustainable
development”
! 57 % of UK consumers have recommended a company on the basis of its
responsible reputation
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9. Sustainable Luxury
! Professionals in the luxury industry have an extraordinary opportunity to lead the
way
! With booming sales and high margins, and an emphasis on consumer emotions,
they have the resources and mandate to develop a more authentic and sustainable
luxury
! Commercial advantages:
~ operational efficiency gains
~ enhanced employee relations, easier recruitment, motivated and loyal staff, better
customer service
~ enhanced learning and innovation with higher productivity
~ more welcoming and accommodating local communities
~ enhanced brand reputation and trust
~ connections with associations and networks that generate new market intelligence
and enable access to new markets
~ more secure and sustained supply of raw materials, by more motivated suppliers
~ improved relations with the financial sector (responsible investors and lenders)
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10. EU Eco-label
! effective instrument for sustainable marketing by best practice
companies striving towards a sustainable economy
! effective Eco-label marketing can drive a company’s success
! general sales message: is that your product fulfills a set of
compelling criteria related to impact on environment, health and
quality of use
! key arguments for your Flower labelled products:
~ lower environmental impact
~ better for health
~ strict criteria
~ verified by independent consultants
~ official certificate EU Commission
! provides a competitive advantage over competitors
! Eco marketing strategy depend specific distribution system and type of
consumers group to address
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11. Encouraging sustainability in wildlife trade
! 25 EU member states represent world largest market for wildlife products
accounting for 1/3 of legal global imports
! EU imports of wildlife products had an estimated declared value 80 billion Euro
(2005)
! Illegal trade throughout the world of hundreds of millions animals & plants,
threatens the species survival and environments, as well affecting their living
communities
! International wildlife trade is regulated by the Convention on International Trade
in Endangered Species of wild fauna and flora (CITES)
! Partners for sustainable wildlife trade:
~ European Union Enforcement Group
~ World Wildlife Fund – WWF International
~ CITES - Convention Inter. Trade Endangered Species
~ TRAFFIC - wildlife trade monitoring network
~ Greenpeace - global environmental organization
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12. “Life Cycle Thinking”
! LCM aims to minimize environmental
and socio economic burdens associated
with product throughout its entire life
cycle and value chain
! LCM is a management system collecting,
structuring and disseminating product
related information incorporating
environmental, economic and social
aspects of the product
! LCM can be adapted and gradually
introduced in any organization. It needs
commitment from top management and
employees participation
! Is a dynamic and voluntary process
which is best implemented by a step by
step process and its in line with systems
such as ISO 9001, ISO 14001
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13. Stakeholders = Partners
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14. 10 Point Plan for sustainable brands
! Understand your brand
! Understand your consumers
! Get your house in order
! Corporate and Social Responsibility
! Innovate
! Motivate
! Collaborate
! Communicate
! Sign up your consumers to the sustainability journey
! Measure, monitor and report continuously
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15. Roadmap
Objective: development and production of luxury leather articles from sustainable
resources
! “SLDG” Partners requirements:
• be wildlife farms, tanneries, designers, leather-goods manufacturers, EU Organizations,
Wildlife and Fisheries Bureaus, WWF.
• supporter of the Sustainable Development
• provider of resources (financial, technical or material)
! Project requirements:
• become partner of the “Sustainable Leather Development Group” (SLDG)
• raw material project definition (skin type to develop or upgrade)
• clear technical development specifications
• complete assessment of partners facilities and resources
• “Life Cycle Management” implementation plan (UNEP)
• leather supply chain fully in line with EU standards (Eco label award)
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16. “Sustainable Leather Development Group” partnership
! Businesses should make greater investments in design management, as well
champion sustainable lifestyles to their consumers
! This must begin with a process of internal change, fostering sustainable
business practices in all parts of the organization and its supply chain
! Subsequently, even greater environmental, social and economic gains will
come as a result of better products and external communications
! With a combination of more sustainable products and effective communications,
luxury brands can do well by doing good
! We have now an opportunity to decide start working towards this ambitious
project in partnership between all different stakeholders to produce sustainable
leather products from renewable resources.
! Pelle Magna will assist you, as consulting partner implementing these practices
and helping you become a key supplier for this luxury brand.
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17. References
! “Let them eat cake” report, WWF-UK, A. Kleanthous & J. Peck
! “Deeper Luxury” report, WWF-UK, A. Kleanthous & Jem Bendel
! Life Cycle Initiative guides, UNEP
! EU Eco label, European Commission’s Eco-label Scheme
! ISO 26000 Certification
Web links
• www.panda.org
• www.traffic.org
• www.cites.org
• www.greenpeace.org
Luis Ampuero - Leather Expert - www.linkedin.com/in/luisampuero
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