How Brands Approach Their Journey Towards More Sustainable Business Models: An Exploratory Analysis in the Luxury Industry
(A2025-125713)

AUTHORS

Bettina Herz, TU Braunschweig; Christof Backhaus, TU Braunschweig; Hannes Gurzki, ESMT Berlin

ABSTRACT

Sustainability presents a significant challenge for luxury brands, which must reconcile their aspirational image with the growing demands of stakeholders and society. While many players, including LVMH and Kering, are making efforts to incorporate sustainability into their business models and strategies, their high visibility makes them vulnerable to scrutiny and reputational risks. Moreover, consumers often view sustainability and luxury as rather conflicting concepts, further complicating the sector’s journey toward sustainability. Drawing on an exploratory analysis of sustainability reports and public communications from ten luxury fashion brands, this paper investigates how luxury brands have approached sustainability over time. Based on 321 sustainability initiatives identified across the ten brands, the study develops a framework categorizing luxury brands’ sustainability initiatives. The framework is then applied to highlight the distinct pathways these brands follow to integrate sustainability.