Chanel

OVERALL
Owned	FRA
Rating

Luxury goods

Parisian fashion house founded in 1913 by the late couturier Coco Chanel. Owned and run by brothers Alain and Gerard Wertheimer for over 30 years.


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Chanel SA

Supply chain practices in China

This company received a score of 7.5/100 (retrieved 10-Oct-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains.
Source: IPE (2020)

Forced labour in China

In early 2017, China's Communist Party began a new incarceration campaign, rounding up, detaining and forcibly indoctrinating over 1 million Uyghurs and other Muslim minority ethnic groups in the far-western region. A coalition of more than 180 human rights groups is calling on apparel brands and retailers to stop using forced labour in the Uyghur Region and end their complicity in the Chinese government's human rights abuses. This company is amongst those being targeted by coalition members for not doing enough to identify and disengage from business relationships with Uyghur Region-linked forced labour.
Source: End Uyghur Forced Labour (2021)

Unsustainable palm oil use

This company scores Ethical Consumer's worst rating for their use of palm oil, signifying they are using no or minimal certified palm products, and with no or minimal positive commitments.
Source: Ethical Consumer (2022)

Workers rights in Korea

In 2018 workers at Chanel Korea went on strike to protest their companies' policy of long working hours for low wages. The workers criticized their companiy for forcing them to work nearly 12 hours a day without regular days off, difficulties in pregnancy, and female workers also complained about their skimpy uniforms.
Source: Korea Times (2018)

15/100 in Fashion Transparency Index

The 2022 Fashion Transparency Index reviewed 250 of the world's largest fashion brands and retailers and ranked them according to how much they disclose about their human rights and environmental policies, practices and impacts. Brands owned by this company scored 15%, signifying it is doing a bit more than the others when it comes to having policies and commitments in place and auditing and reporting activities, but could be doing more. The average score was 24% and the highest score was 78%.
Source: Fashion Revolution (2022)

Use of microplastics

This company uses plastic microbeads in some of its personal care products. These particles are not retained by wastewater treatment so end up in the ocean where they contribute to ocean plastic pollution, and are hazardous to sea life. While the effects of microplastics on human health are not completely understood, there are concerns about plastic additives, such as phthalates, which are known endocrine disruptors which are shown to have harmful effects on life.
Source: Beat the Microbead (2021)

Workers rights in China

A 2014 report by China Labour Watch found poor working conditions in a Chinese factory that mainly manufactures cosmetic brushes for multinational beauty companies, including this one. Labor abuses include excessive overtime and poor worker safety measures. Also, the factory has not purchased social insurance for workers as required by law. Hundreds of workers went on strike in Jan 2014 after a female team leader was slapped by a male manager. [Listed under Information due to age of report]
Source: China Labor Watch (2014)

Nanoparticles in cosmetics

This company uses nanoscale materials in some of its personal care products.
Source: Project on Emerging Nanotechnologies (2011)

Owners take $3.4bn dividend

In 2016 the reclusive billionaire brothers who own Chanel paid themselves a $3.4bn dividend, four times the company's net profit and double the dividend they received in 2015.
Source: The Guardian (2017)

Price fixing in France

In Jan 2012 a Paris appeals court upheld a 40 million euro fine imposed in 2006 by the French competition watchdog, which said the companies involved had reached illicit agreements on price fixing, enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. Thirteen leading perfume and luxury goods companies were fined.
Source: news article (2012)

Climate action commitments

As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; commit to 100% renewable power.
Source: We Mean Business (2021)

Fur free

This company has announced that they don't sell animal fur or are phasing in a fur-free policy.
Source: Humane Society (2019)

Responsible Jewellery Council member

This company's Louis Vuitton Malletier and Tag Heuer subsidiaries are certified members of the Responsible Jewellery Council (RJC). Certification under the RJC system demonstrates that the Member's business practices conform to RJC's Code of Practices for business ethics, human rights, social and environmental performance.
Source: Responsible Jewellery Council (2019)

Responsible Mica Initiative member

This company is a member of the Responsible Mica Initiative, a Do-Tank which aims to eradicate child labour and unacceptable working conditions in the Indian mica supply chain by joining forces across industries.
Source: Responsible Mica Initiative (2020)

Fashion Industry Charter for Climate Action signatory

This company is a signatory to the Fashion Industry Charter for Climate Action, a United Nations initiative which contains the vision to achieve net-zero emissions by 2050.
Source: UNFCCC (2020)

Microbeads scorecard

In 2016 Greenpeace East Asia ranked the world's 30 biggest personal care companies on their commitment to eliminating microbeads from their personal care products. The scorecard was based on four main criteria: commitment & transparency, definition, deadline and global application. This company was ranked as 'getting there'. Microbeads are not retained by wastewater treatment and end up in the ocean where they are a threat to the marine environment.
Source: Greenpeace (2016)

Modern Slavery statement

California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: company website (2021)

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