Chalhoub Group is building a robust roadmap to achieve its net zero goal by 2040

Luxury retailer Chalhoub Group, a signatory of the UN Global Compact, is building a robust roadmap to achieve its net zero ambition by 2040. During a conversation with RetailME, Chalhoub Group’s Chief Sustainability Officer Florence Bulte explained how.

“In 2022 we started paving the way to achieve our net zero commitment by 2040. We embarked on our net zero journey by calculating scope 1,2,3 and developed a roadmap to reach our goal. With a robust sustainability strategy that we’ve put in place over the last three-four years, we now have better access to data, internal systems and processes allowing us to set clear objectives, KPIs and monitor progress.”

This is only the beginning of a “long and exciting journey” which Bulte feels will bring the Group even closer to its suppliers and partners to collaboratively mitigate the negative impact of climate change.

For a business that operates with a goal to create a positive impact for its people, partners and the planet having a shared sense of purpose and communicating it with different stakeholders is crucial for Chalhoub Group.

“When a company builds a strong purpose, it takes the employees mindset away from a purely contractual relationship with the employer. In a contractual scenario, team members may minimise their personal efforts, limit their contributions therein depriving companies from intellectual and emotional capital, which allows them to perform better. This may also lead to employees’ personal stagnation,” Bulte observed.

On the other hand, when a company explains how employees can make a difference, gives them opportunities to make a difference it leads to a shared purpose. It encourages people to become creative, dare to do new things, pursue new ideas, move into deeper learning and eventually become changemakers. “In an everchanging environment, building a strong purpose is crucial for a company to remain relevant, close to its stakeholders and continue to adapt and thrive,” she added.

In summation, asked about crucial ESG reforms that can facilitate changemaking in the region, Bulte shared a few:

• To support meaningful changemaking the region must primarily maintain a strong economic discipline, accelerate economic diversification and commit to reforms.
• Besides the economy, there are several key other areas that need to evolve such as the education system supporting the need of a skills revolution, enabling the next generation to contribute to the success of their country.
• Another area of focus is climate change. With the UAE set to host COP28 later this year, it’s imperative for the Gulf States to chart a regional strategy and alliance to achieve the Net Zero goal. Joining forces and having a collective voice will be crucial for high efficiency, reduce regional gap and amplify the positive impact. Public and private sector entities will have to work together to achieve substantive progress.
• Inclusivity and gender equality will also be a key area to work on. A collaborative effort to reduce the gender gap will help mitigate the current loss in the region due to existing legal and social barriers particularly related to access to jobs and career opportunities for women.

“Overall, I feel 2023 will bring a lot of opportunities for leaders to grasp and introduce long-term sustainability centric changes,” Bulte concluded.