Chanel has released its first Climate Transition Plan, with detailed targets to cut over 1 million tonnes of emissions by 2040 — here’s what it means for the house, its supply chain, and the fashion industry.
Chanel has released its first comprehensive Climate Transition Plan, a document that goes well beyond pledging good intentions. It sets out exactly how the house intends to eliminate more than 1.1 million tonnes of carbon emissions from its entire operation — from the goat herders in its cashmere supply chain to the solar panels on its manufacturing facilities — by 2040.
“This [transition] plan sets out how we are responding to climate-related risks and opportunities, and how we aim to achieve net-zero greenhouse gas (GHG) emissions by 2040,” Chanel’s Chief Sustainability Officer Kate Wylie said in a LinkedIn post. “From our farms and gardens to our manufacturing sites and boutiques, we are taking practical action based on a deep understanding of both the physical and transition impacts of climate change on our business,” Wylie added. “This includes minimizing the impact of materials and packaging, collaborating on lower-impact distribution and sustainable construction, and making multi-decade investments in renewable energy to power our operations.”
The net-zero goal has been validated by the Science-Based Targets initiative and is aligned with SBTi’s Corporate Net-Zero Standard, making it one of the most credible benchmarks available for corporate climate commitments. Chanel’s plan is notable for its specificity — and for what it refuses to do: the company does not rely on carbon offset credits to meet its targets, focusing instead on real emissions cuts in line with stricter global standards.
Where Chanel’s emissions actually come from
Chanel’s total carbon footprint in 2024 was 1,123,249 tonnes of CO₂e. Two percent of that footprint comes from scope 1 and 2 emissions — the kind generated directly by its own stores, offices, and manufacturing — while 98 percent stems from scope 3, meaning the full sweep of its supply chain. For a house built on leather goods, fine fragrances, and runway collections, that upstream footprint is enormous, and it is the harder problem to solve.
The single largest source of those emissions is the raw materials and goods Chanel purchases to make its products — more than 626,000 tonnes of CO₂e annually, according to its transition plan. Capital goods account for roughly 222,000 additional tonnes, transportation and distribution contribute over 114,000, and business travel adds more than 53,000. In practical terms, every camellia, every length of tweed, and every shipment of fragrance ingredients carries a carbon cost that Chanel is now formally committed to reducing.
Its near-term targets include cutting scope 1 and 2 emissions 50 percent by 2030 and reducing scope 3 emissions 42 percent within that same timeframe, both calculated against a 2021 baseline. The long-term goal commits to a 90 percent reduction across all emissions categories by 2040, with the remaining 10 percent addressed through carbon removals. Chanel has also set specific land-use targets tied to materials like leather and cashmere, aiming for a 30.3 percent reduction by 2030 and 72 percent by 2040.
The progress and the work still ahead
Chanel has not been waiting for its transition plan to go public before acting. It has already decreased its scope 1 and 2 emissions by 22 percent compared to 2021, and by 2024, 99 percent of its electricity came from renewable sources, with a target to reach 100 percent by 2025. Long-term power purchase agreements, including solar projects across Asia and Europe, have supported that shift.
Scope 3 emissions have also declined 10 percent relative to 2021, with raw material emissions dropping 20 percent in 2024 through changes in sourcing and the adoption of lower-impact inputs such as sustainable leather and cashmere.Within its cashmere supply chain, Chanel has been working collaboratively since 2015 with a cooperative of goat herder families on a transformation project to support the adoption of more responsible methods — aimed at understanding their ecosystem and developing more sustainable cashmere for its products.
Innovation at the supplier level is also producing measurable results. The transition plan highlights one project that lowered energy use by 27 percent at a single supplier site. Circular design has become another priority, with investments in repair services and longer-lasting products intended to extend how long each piece remains in use rather than heading to landfill.
Still, Chanel acknowledges real dependencies. “We are dependent on global decarbonization and enabling infrastructure to facilitate our climate transition, for example an increasing share of renewable electricity in national energy grids,” the transition plan noted. “We are reliant on policy and regulation to accelerate the transition and incentivize investment in decarbonization, however we also acknowledge that these may pose challenges to our value chain partners.”
Beyond the maison
Chanel is navigating a problem that runs across the entire fashion industry. According to the Geneva Environment Network, fashion is responsible for between 2 and 8 percent of global carbon emissions, with projections suggesting that share could reach 26 percent by 2050 if the sector maintains its current trajectory. The Business of Fashion and McKinsey’s State of Fashion 2024 report found that by 2030, extreme weather events could jeopardize $65 billion worth of apparel exports and eliminate nearly 1 million jobs in four of the world’s most central apparel-producing economies.
Chanel’s transition plan carries weight beyond its own carbon ledger. Through its net-zero transition plan, Chanel aims for responsible growth and a just transition to net-zero, acknowledging that “we know we will face challenges along the way, but we are committed to this journey with the dedication of our senior leadership and all our people across the House.”
The plan also extends into social investment. Wylie has added women-led climate resilience as a priority area for Fondation Chanel, and to date, Chanel has committed more than $w50 million to partners focused on that work, according to WWD. “Women are at the heart of Chanel, and where women thrive, the world thrives,” she said.
“We have the blueprint, and we have a committed leadership, engaged people and partners to help make it a reality.”
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