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We begin researching luxury sector supply chains, consulting experts with decades of experience in Italian textile manufacturing and labour rights. This helps us frame our engagement and understand the nuances of local supply chain dynamics.

The judicial supervision of Dior’s manufacturing unit is lifted early, with Italian authorities praising the interventions, removing the near-term legal risk.

We participate in an investor group meeting at the Kepler ESG conference, hearing that the CEO oversaw LVMH's response, which initially focused on measures to address audit integrity. It included terminating relationships with offending suppliers, contracting new third-party auditors and increasing the frequency of unannounced audits. We learn that the company had also rolled out an internal platform to share audit resources and results across Maisons.

We speak with LVMH's ESG IR manager, who is candid about the challenges and open to future dialogue. We discuss the company's involvement in a voluntary certification platform, a new cross-industry supplier database in Italy.

Similar supply chain issues surface at Loro Piana, another LVMH brand, prompting further enforcement action by the Italian authorities and underscoring the systemic challenges facing the ‘Made in Italy’ supply chain.

LVMH creates a group-wide director of industrial and craftsmanship, reporting to the group managing director. This represents an evolution in the LVMH group's governance mechanisms to provide oversight of the supply chain.

We receive an update on the supplier protocol and explore scaling challenges during a follow-up engagement. We are encouraged to hear of the practical cooperation between brands sharing audit data.