Disruption is becoming increasingly omnipresent as companies face a time of unprecedented change. Environmental risks, technological advancements, rising social inequalities—these are massive issues that companies in all industries are facing currently, and they have specific implications for the luxury sector. Climate change and biodiversity loss are affecting the supply of precious raw materials, as well as the resilience of the sector’s infrastructure; new technologies and automation are redefining the manufacturing process, retail experience, and nature of work; and rising economic inequality is changing how luxury brands position the value they offer, particularly in emerging markets. In this volatile environment where luxury brands are fighting to grow and stay desirable, smart business leaders understand that strong environmental and social practices offer a clear path through the disruption toward a brighter future.This paper examines how luxury companies can respond to the challenges posed by climate change, technology, and inequality and consequently build more resilient businesses—businesses that showcase how social and environmental sustainability can fuel future growth, drive innovation, and strengthen brand equity.The paper defines three distinct opportunities for luxury companies:1. Build resilience by engaging in the circular economy. 2. Build a strong, relevant brand by contributing a positive impact on society.3. Build trust by strongly articulating value to all stakeholders. These recommendations are intended to complement rather than replace existing strategies related to global frameworks such as the Paris Agreement, Sustainable Development Goals (SDGs), the United Nations Guiding Principles on Business and Human Rights, and the United Nations Women’s Empowerment Principles. The recommendations do not cover all luxury brands should do when it comes to sustainability; rather, the authors believe that by capturing these key opportunities, luxury companies will be able to better preserve the unique characteristics of the sector, while contributing to a just and sustainable future.

https://www.bsr.org/reports/BSR_Disrupting_Luxury_Responsible_Luxury_Initiative.pdf