How GSK, Holcim and Kering strengthened their water pledges

Water conservation was among the top priorities for pharmaceutical manufacturer GSK, building materials firm Holcim and luxury brand Kering as they consulted their finance and procurement teams, and other stakeholders to define the first corporate nature and biodiversity pledges validated by the Science Based Targets Network.

The organization, known as SBTN, helps companies use science to adopt conservation and restoration strategies for freshwater, land, ocean, biodiversity and other natural ecosystems. SBTN builds on methodologies developed by the Science Based Targets initiative, which was created in 2015 to help companies set emissions reduction targets in line with the Paris Agreement goal of holding global temperature increases to 1.5 degrees Celsius.

GSK, Holcim and Kering — along with 14 other companies including H&M and Nestle — participated in a year-long pilot program to test SBTN’s frameworks. The focus was on strategies related to freshwater and land. That initiative concluded in June, and they’re the only companies to publicly disclose targets so far. 

Other pilot participants that had their targets validated have until Jan. 10 to adopt them publicly. Beyond that, 150 companies that weren’t involved in the pilot are engaged in setting science-based targets for their nature and biodiversity plans.

“With global nature loss accelerating at an unprecedented rate, it’s clear that urgent, decisive action is required from governments alike to reverse and halt this trend,” said Erin Billman, executive director of SBTN. “For companies, this means understanding their material impacts and dependencies on nature, and taking ambitious science-based action to address and mitigate those impacts.”

Approximately one-quarter of sustainability professionals treat protecting nature and biodiversity as a high priority, compared to two-thirds that prioritize reducing greenhouse gas emissions, according to Trellis’ inaugural State of Biodiversity and Nature report.

Freshwater first

The initial targets from GSK and Holcim relate just to their freshwater strategies. Kering has also adopted targets related to land use. A summary of their commitments:

• GSK pledges to be “water neutral” in operations located in water-stressed regions by 2030. The initial project used to validate its approach was at a manufacturing site in Nashik, India. It inspired a quantity target for the region. It will be added to GSK’s nature plan in early 2025.
• Holcim plans to reduce freshwater withdrawals for its direct operations, starting with the Moctezuma basin in Mexico, which is critical for Mexico City’s water supply.
• Kering set a quantity target for its tanneries and factories, starting with the Arno basin in Tuscany where most of them are located. The company also pledged not to convert natural ecosystems and reduce its overall land footprint.

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Cross-functional input

All three companies have added nature experts to their sustainability teams but also relied on insights from operations, procurement, manufacturing and finance while developing the goals.

“The target-setting has been designed to be a well-balanced approach between bottom-up — technical teams who understand the details of the SBTN methodology — and top-down — leadership who can ensure buy-in and accountability,” said Renata Pollini, head of sustainable construction and nature at Holcim.

The Kering process likewise included teams from functions across the company, led by the chief sustainability officer. The sustainable finance team, for example, contributed relevant data from Kering’s environmental profit and loss tool, which evaluates raw materials, manufacturing, assembly, operations and retail processes not just for financial factors but also for metrics including emissions, water use, water pollution, air pollution, waste and land use, said Rachel Kolbe Semhoun, head of sustainable sourcing and nature initiatives at Kering. It also looked to external stakeholders, including public authorities, Semhoun said. 

GSK’s process was overseen by the company’s sustainability governance committee, which is chaired by the president of its global supply chain operations, who is part of the GSK executive leadership team, said Adele Cheli, sustainability partnerships and strategy director at GSK.  

The climate-nature intersection

GSK has had twin goals for nature and emissions reductions since November 2020, including the water neutral pledge that was just validated by SBTN and a “zero impact” commitment that extends to the supply chain for its active ingredients. 

“We are taking action now in order to achieve these targets,” Cheli said. “At the same time, we continue to deepen our understanding of our full value chain nature impacts and dependencies, and align with evolving practice and guidance.”  

Kering’s nature positive strategy is a “direct contributor” to the company’s climate strategy, and the company sees its nature, land and water goals as important levers for reducing absolutely greenhouse gases by 40 percent by 2035. Previously, Kering lacked an official framework for guidance. 

“When it comes to water, it is a key component to nature and the current science is beginning to show water as a great asset to helping decarbonize supply chains,” Semhoun said.

There’s no “formal link” between Holcim’s climate and nature goals, but the company recognizes climate change as a risk to its water supply.

Plans for disclosure

SBTN plans to publish a tracker showing progress on corporate targets in early 2025. 

Holcim will track freshwater withdrawal on a monthly basis. It will disclose that data on an annual basis as part of its annual report.  

GSK and Kering include nature-related commitments every year in their environmental, social and governance performance reports. Both disclose that information based on the recommendations of the Taskforce on Nature-related Financial Disclosures, along with other voluntary reporting standards. 

“The more exciting part is how we will use these targets and measures to help operationalize and monitor our progress as well as help our suppliers gain momentum in their own progress and disclosures,” Kerig’s Semhoun said.