A sustainability services agreement has been initiated by the Chalhoub Group, a partner and creator of luxury experiences in the Middle East, with Schneider Electric, a leader in energy management and automation technology, to transform the carbon footprint roadmap of its suppliers across the region through Schneider Electric's sustainability services. As part of the 28th conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), which is taking place at Expo City Dubai, this announcement was made.
In order for Chalhoub Group to achieve Net Zero by 2040, this agreement represents the second phase of its journey.
As a result of this agreement, Chalhoub Group has moved into the next phase of its journey to achieve Net Zero by 2040.
Despite disruptions in the supply chain and worldwide affairs, the Middle East is one of the world's largest luxury markets, displaying a high level of growth and resilience.. It is through our partnership with Schneider Electric that we are able to demonstrate our commitment to creating a more sustainable future for this industry. Chalhoub Group is aware of the challenges posed by reducing Scope 1, 2 and especially Scope 3 emissions, and this partnership is poised to accelerate our sustainability journey and ensure we meet our net-zero commitments in the future," said Florence Bulté, Chief Sustainability Officer, Chalhoub Group.
Chalhoub Group is aware of the challenges posed by reducing Scope 1, 2 and especially Scope 3 emissions, and this partnership is poised to accelerate our sustainability journey and ensure we meet our net-zero commitments in the future," said Florence Bulté, Chief Sustainability Officer, Chalhoub Group.
It is no longer an option for companies to incorporate climate change into their core business strategies; it is a necessity for organizations to do so. Having played a crucial role in Chalhoub Group's sustainability journey, we are confident that we will set new benchmarks for decarbonization and sustainability, not only for the company, but also for the entire industry," Farrukh Shad, Head of Schneider Electric's Sustainability Business for APAC/MEA, said.
The Chalhoub Group aims to reduce absolute Scope 1 and Scope 2 GHG emissions by fifty percent by the year 2020.In 2032, the economy is projected to grow by 4% from a base year of 2021. Furthermore, the company committed to reducing absolute Scope 3 GHG emissions from purchased goods and services, upstream transport and distribution, upstream leased assets, and upstream investments by 30% within the same period of time.. A number of emissions are associated with activities such as purchasing goods and services, transportation and distribution (both upstream and downstream), waste generated, business travel, employee commuting, and the treatment of products that have reached the end of their useful lives.
A number of emissions are associated with activities such as purchasing goods and services, transportation and distribution (both upstream and downstream), waste generated, business travel, employee commuting, and the treatment of products that have reached the end of their useful lives.
Schneider Electric's collaboration with the Group will primarily be directed at selected suppliers in the 'Purchased Goods and Services' category that account for the majority of the Group's Scope 3 emissions. During 2023, the Chalhoub Group conducted a diagnostic mapping of its suppliers in order to identify those with high emissions that had not yet established science-based carbon reduction targets in order to reduce those emissions.. In the subsequent months following the categorisation of the supplier base, a service agreement was signed in order to prepare for the next major milestone, the launch of a supplier engagement programme.
In the subsequent months following the categorisation of the supplier base, a service agreement was signed in order to prepare for the next major milestone, the launch of a supplier engagement programme.
The decarbonization consultancy services provided by Schneider Electric include training sessions on a monthly basis for selected suppliers, data collection and gathering via extensive surveys, a tool for tracking Scope 3 emissions, as well as guidelines for suppliers to complement their journeys towards decarbonization. 
By 2030, the Middle Eastern luxury goods market is expected to double in size, growing to $32-$37 billion, driven mainly by the UAE and Saudi Arabia. According to a study conducted by Boston Consulting Group, the Middle Eastern luxury goods market, estimated at $15.85 billion in 2023, will double in size. In fact, McKinsey reports that the sector emits more than $2 billion worth of greenhouse gases every year. Approximately 4% of the world's total output is a result of this sector.
It is well known that countries in the Gulf region have set ambitious targets for developing more sustainable economies. Schneider Electric has launched a new range of decarbonization and sustainability consulting services for Gulf companies in 2021. In addition to this, we offer services such as identifying energy efficiency savings, carbon offset programs, offsite renewable energy sourcing, electric mobility advice, and supply chain optimization.
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