Gucci Launches Sustainability Drive as European Fashion Regulation Looms
Makers of luxury goods, whose products are generally less damaging to the environment than fast fashion, are having to work to make their operations greener
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Italian luxury brand Gucci is set to launch a hub in Tuscany promoting more durable and less wasteful fashion, as it joins efforts by the sector to meet comingEuropean regulations requiring companies to limit their impact on the environment.
The so-called circular hub will be a research-and-development centre to study ways to improve circularity, including through better durability and recyclability of products, as well as minimising waste and pollution from production to end of life. It will boost transformation in the Italian fashion industry’s production models, said Gucci in a joint release with French parent Kering.
Kering said the hub should promote the use of fewer natural resources and reduce greenhouse-gas emissions. While it didn’t detail how much it expects the hub to benefit the environment, the company did say it would cut the emissions from managing waste generated by Gucci’s leather-goods production by up to 60%.
Kering expects the hub to act as a forerunner for new models that it anticipates will be made obligatory by European regulations in the coming years. Last year, the European Union set out a plan to reduce the environmental damage of the apparel industry, which contributes as much as 8% of total greenhouse-gas emissions, according to United Nations estimates.
All makers of clothes and accessories would be subject to the new measures, even if the higher quality of luxury products and the brands’ typically more local and integrated supply chains tend to make them less environmentally damaging than the products manufactured by fast-fashion companies.
Clothing should be “long-lived and recyclable, and to a great extent made of recycled fibres,” the EU said in its proposed plan. It said labelling should make it easier for consumers to gauge the impact of what they buy.
Legislation in the EU will be formulated to enforce the new measures over the coming years, but some countries are moving ahead on their own. France has introduced a law obliging clothing producers and retailers in France to make clear to consumers the environmental impact of their products, including the amount of recycled material, the use of renewable energy in their production and their recyclability. The regulation applies to larger companies that had annual revenue above €50 million, equivalent to roughly $53 million, as of the beginning of this year and will be applied to smaller players from next year.
Companies are also working to comply with potential supply-chain regulations that could require larger firms operating in the EU to identify, prevent and remedy risks to human rights and the environment in their supply chains, such as minimum age requirements, worker safety, pollution and biodiversity loss.
Some fashion and consumer-goods companies have turned to new technology to help gather data on their supply chains and track material, though transparency remains tough to achieve in many cases. But luxury-goods companies such as Kering have an advantage over brands that sell to more general consumers, analysts at financial services company Jefferies said in a research note this week.
“Luxury brands generally have strong and transparent supply chains and an opportunity to better communicate sourcing quality,” they said.
On the other hand, high-end brands also come under more scrutiny, said Luca Solca, a luxury-goods analyst at brokerage Bernstein.
“Luxury brands have the burden to stand for our better selves, as they embody people’s aspirations and ideals,” Mr. Solca said. “In this respect it is on them to stand up to scrutiny when it comes to respecting the environment and society.”
Waste is a particularly tricky proposition for luxury brands, which have traditionally incinerated unsold stock to avoid discounting their products or diluting their brand image. The EU’s plan envisages requiring retailers to disclose how they deal with unsold textiles and even contemplates a possible ban on destroying unsold or returned clothes.
That would pose a problem for brands that don’t recycle or resell much of their leftover stock. In 2018, U.K. luxury fashion house Burberry said it would stop burning unsold inventory amid pressure from environmental groups, but some peers continue the practice.
“Product destruction can cause consumer backlash if reported in the press, [while] off-price sales are detrimental to brand equity,” Jefferies said. “Thus recycling is the preferable option, yet is an additional cost.”
However, some companies are starting to see the durable nature of luxury products as a life-cycle management opportunity. Kering-owned fashion house Bottega Veneta recently introduced a lifetime warranty on its handbags and the wider industry is increasingly open to allowing resale via secondhand luxury platforms.
Gucci’s circularity hub in Tuscany will involve all Kering facilities in the region, including Gucci’s production sites, raw materials suppliers and finished product producers. The hub’s activities will later be extended to Kering’s other brands, before opening to the wider fashion sector.
“The fashion industry needs to accelerate and launch serious actions to catalyse deep change, rethinking the way we produce and use resources as well,” Kering Chief Sustainability Officer Marie-Claire Daveu said.
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Sydney Children’s Hospitals Foundation CEO Kristina Keneally says Australia’s culture of large-scale philanthropy is becoming more sophisticated as Gold Dinner raises $75.5 million for children’s health, research and innovation.
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Australia’s wealthiest donors are becoming more strategic, more ambitious and increasingly focused on creating measurable impact, according to Sydney Children’s Hospitals Foundation chief executive Kristina Keneally.
Speaking after the 2026 Gold Dinner, held last week in Sydney, Keneally said Australia was experiencing a significant shift in how major philanthropy is viewed, with large-scale giving increasingly part of conversations about leadership, legacy and social impact.
The annual Gold Dinner, now in its 29th year, brought together some of the country’s most influential business leaders, philanthropists and cultural figures, raising $75.5 million and counting in support of the Sydney Children’s Hospitals Network.
While the event has become one of Australia’s most prestigious fundraising gatherings, Keneally said its significance extends far beyond a single evening.
“Gold Dinner, the flagship event of Sydney Children’s Hospitals Foundation, represents far more than a single evening. It is a powerful demonstration of what a committed community can achieve together over 12 months,” she said.
“The strength of that community, and the trust built over nearly three decades, means people return not just for the event, but for the impact they know it delivers.”
A NEW ERA OF PHILANTHROPY
Large-scale philanthropy has long been a feature of American society, where charitable foundations and major donors often play a prominent role in funding medical research, education and social programs.
Keneally believes Australia is moving in a similar direction.
“Australia is building a stronger culture of large-scale philanthropy, but it is still evolving compared to the United States, where giving at scale is more deeply embedded and widely recognised,” she said.
She said the country’s philanthropic landscape was becoming more sophisticated as successful business leaders increasingly sought opportunities to create meaningful change through their giving.
“In Australia, while generosity has always been strong, large-scale giving has historically been less visible, but that is changing rapidly as more leaders embrace philanthropy as a powerful way to drive meaningful outcomes.”
According to Keneally, events such as the Gold Dinner are helping reshape public perceptions of philanthropy by demonstrating the tangible outcomes that major donations can achieve.
“Gold Dinner is helping to reshape how philanthropy is perceived in Australia, making it more visible, more aspirational and more connected to real-world outcomes,” she said.
WHERE THE MONEY GOES
The funds raised through Gold Dinner support clinical care, research and innovation across the Sydney Children’s Hospitals Network.
Over the past 12 months, more than $75.5 million has been raised to help fund advanced medical equipment, innovative care models and world-leading medical research. Areas of focus include precision medicine and early diagnosis, where emerging technologies are already changing how childhood illnesses are detected and treated.
Keneally said the impact is felt directly by children and families facing some of the most difficult moments of their lives.
“For children and families, this translates into very real and immediate impact. It means faster diagnoses, earlier access to life-saving treatments, and care that is more personalised and effective,” she said.
“It also ensures hospitals are equipped not just to respond to illness, but to reimagine what care can look like, giving children the best possible chance not only to survive, but to live full, healthy lives.”
BUSINESS LEADERS BACKING CHANGE
One of the defining characteristics of Gold Dinner is the calibre of its supporters.
The event has evolved into a meeting point for influential leaders from business, culture and philanthropy, many of whom see charitable giving as an extension of their professional and personal legacy.
“It speaks to a community that is not only generous, but increasingly ambitious in how it gives, combining influence, expertise and purpose to achieve outcomes at scale,” Keneally said.
Among the major supporters of this year’s event were Presenting Partner, John-Paul Nassif Foundation; Major Partners, ABC Bullion, Shaw and Partners Financial Services and One Circular Quay by Lendlease; and Premier Partner, Range Rover, whose ongoing support reflects a shared philosophy of legacy and long-term impact.
The evening also featured performances, premium hospitality experiences and fundraising initiatives designed to encourage further support for children’s health services and research.
LOOKING BEYOND NEW HOSPITALS
With major new children’s hospital developments at Randwick and Westmead progressing, Keneally said the focus is increasingly turning towards what comes next.
“The long-term vision is to ensure every child has access to world-leading healthcare, care that continues to evolve through innovation, research and global collaboration,” she said.
The foundation’s future priorities include accelerating medical discovery, expanding access to cutting-edge treatments and helping position New South Wales as a global leader in children’s health.
Keneally said the Gold Dinner remains central to achieving those ambitions because it does more than raise money.
“Gold Dinner is critical to making that vision possible. It not only provides significant funding, but also unites a powerful network of supporters who are driving the future of philanthropy in Australia,” she said.
As Australia’s culture of philanthropy continues to mature, Keneally believes that the network will play an increasingly important role in shaping the future of healthcare for generations to come.
“The result is a community that is helping to shape the future of paediatric care, not just for today’s patients, but for generations to come.”
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