Document summary
With increasing production capacity and “brand-stretching”, the image of luxury brands is shifting away from the artisan tradition. Increasing reputation risks are the consequence, be it through the loss of exclusivity or negative publicity about environmental and social deficits in the manufacturing of raw materials. Brand reputation is key to the business of luxury goods companies, and hence corporate awareness of sustainability issues is important for protecting brand values. Among luxury brand companies, however, transparency about sustainability lags far behind apparel manufacturers and retailers, for example. Nevertheless, there are a number of luxury goods companies which are eligible for Sarasin’s sustainability funds. All have a sustainable supply chain management system. But the focus of their activities is still on the reduction of reputation risks rather than on the opportunities created by an attractive, sustainable brand image.