The fashion industry, long celebrated for its artistry and allure, is increasingly confronting a stark reality: its deep-seated dependence on a resource as vital as water, and the escalating risks posed by its scarcity and erratic availability. In a pioneering move, luxury conglomerate Kering has officially inaugurated its first Water Resilience Lab, strategically located within Italy’s historic Arno River Basin. This initiative represents a significant commitment to addressing the profound impact of climate change and unsustainable water management on the fashion supply chain, aiming to establish a replicable model for water resilience across the globe.
The impetus for Kering’s ambitious undertaking stems from a series of devastating events, most notably the catastrophic flood that inundated Florence in 1966. This deluge, one of the worst in the city’s history, not only claimed dozens of lives and displaced thousands but also inflicted immeasurable damage on priceless art and literature. More recently, in 2023, Storm Ciaran unleashed a torrent of destruction, leading Prime Minister Giorgia Meloni to declare a state of emergency in the hardest-hit regions. The economic fallout was staggering, with estimated damages reaching €1.89 billion.
Among the businesses severely impacted was the Prato-based fashion supplier, Beste Group, whose headquarters are situated precariously on the banks of the Bisenzio River. The company had just invested approximately €7 million in a new state-of-the-art machine the month prior, only to see it obliterated by the rising waters. The financial blow was compounded by an insurance payout covering only 60% of the machine’s cost, necessitating a multi-million-euro replacement expense. Furthermore, the waist-deep floodwaters brought production to a complete halt for three weeks, underscoring the fragility of even well-prepared operations when faced with extreme weather events.
It was precisely this kind of vulnerability, vividly reported in Vogue Business, that galvanized Rachel Kolbe Semhoun, Kering’s Head of Sustainable Sourcing and Nature Initiatives. "They had done everything right inside the factory, but they were still flooded," Semhoun remarked, highlighting the systemic nature of the problem. "It was a great example of how nobody can make resilience happen by themselves. The only thing that would have helped was collectively investing in better nature infrastructure upriver." This realization became the cornerstone of Kering’s industry-first water strategy, launched 18 months ago with the audacious goal of achieving "net water-positive" status by 2050 and demonstrating "measured net-positive water impacts" in 10 priority water basins by 2035. Without a pre-existing blueprint, Kering embarked on uncharted territory.
A Strategic Response to a Growing Crisis
The fashion industry’s intricate web of production relies heavily on water at virtually every stage. From the cultivation of natural fibers like cotton, wool, and flax, to the complex processes of washing, dyeing, and tanning, water is an indispensable element. Marie-Claire Daveu, Kering’s Chief Sustainability and Institutional Affairs Officer, articulated this dependency: "Most of fashion’s strategic raw materials rely on water." She further emphasized that ensuring the industry’s resilience and continuity necessitates a concerted effort to support the regeneration and replenishment of the vital water basins where its suppliers operate. "Ultimately, this becomes a significant driver of long-term value creation for businesses, strengthening supply chain resilience, reducing water-related risks, and supporting the health of ecosystems and communities our industry relies on."
The choice of the Arno Basin as the site for Kering’s inaugural Water Resilience Lab was deliberate and strategic. The region is renowned for its "irreplaceable know-how" and hosts a multitude of Kering’s key suppliers, crucial for everything from ready-to-wear garments and leather goods to accessories and fine jewelry. "The Arno Basin offers a perfect opportunity to create and test this new model," explained Daveu, "because it has the governance and the stakeholders that can carry through the lab’s ambitious approach."
A Collaborative Framework for Water Resilience
Kering’s ambitious approach is fundamentally built on collaboration, bringing together an unprecedented coalition of public institutions, businesses, academia, the scientific community, and financial actors. In the Arno Basin, this includes Kering’s Regenerative Fund for Nature co-founder, Conservation International, the environmental consultancy Etifor, the University of Florence, and various levels of local government. The Northern Apennines River Basin Authority, along with local land reclamation authorities ANBI Toscana and ANCI Toscana, are also integral to the initiative. "It’s been very important for the lab to build on the efforts, understanding, and achievements by public authorities in the region," noted Daveu. "The lab is amplifying what has previously been done, while filling gaps and creating new models."
The Water Resilience Lab’s roadmap is structured around three core pillars:
- Robust Governance Structures: Establishing inclusive governance frameworks that ensure all stakeholder groups have a voice and can actively participate in decision-making processes related to water management.
- Sustainable Financial Models: Developing financial mechanisms that incentivize positive change and investment in water resilience, moving beyond reliance on philanthropic donations to create viable economic pathways.
- Portfolio of Nature-Based and Industrial Projects: Curating and implementing a diverse range of projects, encompassing both natural solutions like wetland restoration and engineered approaches, each with a demonstrable business case for enhanced water resilience.
Quantifying Risk and Identifying Intervention Points
The Arno Basin faces significant future climate and nature risks. Projections indicate that Tuscany could experience upwards of 50 days of extreme heat stress annually by 2030, leaving local communities increasingly vulnerable to water scarcity and other water-related challenges. However, Kering’s analysis suggests that retaining approximately 48 million cubic meters of water within the Arno Basin could drastically mitigate the impact of future flooding events. This retention is estimated to prevent around €157 in flood damage for every cubic meter of water held back, underscoring the significant economic benefits of proactive water management.
The lab has meticulously identified six key intervention points within the local area where investments are projected to yield the greatest impact: Villa Petriolo, Ombrone/Bisenzio, Altopascio/Lake Sibolla, Pisa/Era Basin, Usciana/Pescia River, and Arezzo/Chiana Valley. Daveu highlighted the critical role of "multi-sectorial and private-public consensus" in achieving breakthroughs at these locations.
The scientific underpinnings of the roadmap are robust, drawing upon leading methodologies such as Volumetric Water Benefit Accounting (VWBA), which enables companies to quantify their water stewardship impacts in standardized and comparable units. Furthermore, the initiative aligns with the Science-Based Targets for Nature (SBTN), a framework Kering was an early adopter of. These established approaches are augmented by a basin-specific methodology developed by the University of Florence, providing a crucial scientific foundation for quantifying risks and measuring outcomes.
The Path Forward: From Philanthropy to Investment
While the launch of the Water Resilience Lab marks a significant stride, Daveu acknowledged that refinement is necessary to transform it into a universally applicable and reliable model for other brands. A key challenge identified is the insufficient recognition of the pivotal role nature-based solutions play in mitigating risks and fostering long-term resilience. "This limitation is part of the work the lab will address; innovating the governance and the financial model to go beyond philanthropy to make nature-based resilience a viable investment," she stated.
The long-term success of such initiatives hinges on demonstrating a clear return on investment. Historically, investments in water resilience have been predominantly funded by philanthropic foundations, and projects have often been developed in isolation, limiting their overall impact. "Philanthropy will never be enough to support the needed investments for real resilience," Daveu asserted. "Efforts need to be coordinated to address water risks in a holistic way […] and become truly resilient. Amplifying impacts and investments is necessary to have a viable financing model for nature to bring investors to the table."
Kering’s initiative is not merely an environmental endeavor; it is a strategic imperative for the future of the fashion industry. By fostering a collaborative ecosystem, developing innovative financial models, and championing nature-based solutions, the Water Resilience Lab in the Arno Basin aims to create a blueprint that can be replicated across Kering’s nine other priority water basins spanning France, Spain, Turkey, Mongolia, India, Peru, Argentina, South Africa, and Australia. This forward-thinking approach acknowledges that the health of natural ecosystems is inextricably linked to the enduring prosperity of global businesses, particularly those as deeply interwoven with the natural world as the fashion industry. The success of this lab will be a critical indicator of fashion’s capacity to adapt and thrive in an era defined by environmental change.
