Erste Asset Management

Tiffany as exemplary company in the field of sustainability

Tiffany as exemplary company in the field of sustainability
Tiffany as exemplary company in the field of sustainability
(c) unsplash
Share post:

The takeover by LVMH raised the media profile of Tiffany last week substantially. Not only financial aspects, but also the sustainability strategy make the company attractive. Tiffany has gone through an impressive development in terms of sustainability.

The company has co-financed or implemented numerous projects to facilitate a better and more environmentally friendly production of diamonds and gold since 1995. Among them is the principle of sparing national parks such as Yellowstone, or the establishment of a “Save the Wild” collection in an effort to protect animals in their natural habitat.

New position makes a difference

The introduction of the position of a Chief Sustainability Officer in 2015 has had very positive repercussions for the development of the company. Tiffany compiles annual sustainability reports with the latest data and measures as well as future plans and goals.

The Management of Tiffany attaches great importance to the diversification of employees. Male and female headcount across all levels is similar. The share of women on management level is even at 60%. Origin and age are diversified as well. Tiffany offers its employees the chance to get training within the organisation.

The wages in manufacture are set on the basis of a designated programme. The programme does not only contain wags with a premium on minimum wage in the various countries, but it also allows for the payment of social needs of the employees such as housing support, healthcare, and transport. The company also complies with numerous safety standards.

Greatest achievement

Among Tiffany’s biggest accomplishments over the past years in the field of sustainability is the traceability of diamonds. This milestone was reached in 2018 and confirmed by independent auditors, who also generally check and confirm all other sustainability factors.

Given that Tiffany is a global company, the traceability of diamonds is very complex. Tiffany has thus set very high standards for the sector, as a result of which its competitors may feel the pressure to follow suit. The value chain could in the future be tracked via blockchain and thus become even more transparent. Companies like Vechain focus on this application and already offer various solutions.

Reduce emissions by 15% by 2020

This would make it more transparent and easier for customers and NGOs to figure out how diamonds are produced.

Tiffany basically keeps the ecological footprint as low as possible across all areas. Among its measures is, for example, LED lighting in all new branches. 83% of its global energy demand is covered by renewable energy. This is very high, given the fact that Tiffany also operates in countries like China.

These efforts have caused the emissions per square metre in its branches to fall by 10% from 2013 to 2018. Tiffany has set itself more ambitious goals to facilitate a further reduction in emissions. The plan is to reduce emissions from 2013 to 2020 by 15%. This target will most likely be achieved according to latest data.

Tiffany’s long-term goal is not to produce any net emissions by 2050. Of course, one has to bear in mind that such long-term plans are difficult to assess. At the same time, the goals Tiffany has already achieved indicate that the company takes its goals very seriously and could in fact achieve them at the current rate of development.

Conclusion:

In summary, Tiffany’s efforts in the area of sustainability have clearly paid off. The company is definitely among the market leaders in this field and can reach the milestones it has set itself at the current pace. The high level of engagement by Tiffany should lead other companies in the sector to step up their efforts in the field of sustainability as well.

 

Legal note:
Prognoses are no reliable indicator for future performance.

DOSSIER

RESPOND TO THE ARTICLE

Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *