howing a rare transparency in a rather opaque industry on the subject, Breitling has just released its 4th sustainability report.

Aurelia Figueroa explains straightforwardly why it is so essential for the brand: “For us, it is really important because it gives us the space to reflect internally on the matter. It also builds trust with our stakeholders, whose involvement and contributions are absolutely essential for our shared objectives. Honestly, each year, it is a bit of a soul-searching process that not only assesses our outcomes, but fundamentally refines the strategy for moving forward. We have written each report fully in-house and in the process we truthfully assess the progress that has been made. We then share our full-scope assessment transparently with the world, making all aspects of our journey available for public review.

She adds: On a personal basis, I have been reflecting a lot about sustainability transformation and the emotions contained within that scope. Transparency is such a vital tool for transformation because it allows us to overcome the potentially blocking emotion of shame that is understandably attached to the damage that has been done to environmental and social systems. It is sometimes tough to acknowledge that, but it needs to be done as shame is a very harmful emotion for any transformation. Opening the books completely allows us to create momentum to go forward in our process. It helps obtain crucial feedback, maintain accountability, build trust and orient the focus for the future. For me, it is the very foundation of the process.”

Photovoltaic panel installation, co-financed by Breitling’s carbon fund at their diamond grower in Gujarat. Investing on the ground in the value is one of the best ways to reduce emissions and contribute positively for communities.

Transparency is on track

Breitling has set very ambitious goals, like reducing scope 1&2 emissions arising within its direct operations by 80% by 2032, or scope 3 emissions along its value chain by 46% by the same date, aligning with the 2015 Paris Agreement objectives.

As far as transparency is concerned, they are fully on track. The chief sustainability officer confirms: “We are proud to have applied the TCFD (Taskforce for Climate-Related Financial Disclosures), CSRD (Corporate Sustainability Reporting Directive) and ESRS (European Sustainability Reporting Standards) in advance of regulatory requirements in certain EU markets. We began last year our latest double materiality assessment according to the principles of these legislations. We engaged even more stakeholders in the process - over 200 - through the very clear framework provided by the CSRD. In fact, it has been a great help because it is very rigorous and provides very detailed metrics. It really offers a 360° vision and structure that would be demanding to develop in-house. It gave us a tremendous lift. Meanwhile, we have seen repeatedly the prescience of our efforts to establish traceable supply chains, an aspect which has been absolutely essential to, among other things, fulfill reporting requirements – and customer demands. For example, we have managed to put in place a fully stable supply chain for our lab-grown diamonds. We still have mined diamonds that we brought up before the transition was decided, but they are being phased out in the natural product cycle as we go.”

: Diamond cutting and polishing in Gujarat, India, where 90% of world’s diamonds go through.

Breitling has committed to using only lab grown diamonds for all its collections by 2026. At this point, 43% lab grown diamonds are used. Likewise, the company has decided to switch its gold supply to Artisanal and Small Mines (ASM) certified by the Swiss Better Gold Association (SBGA) by 2026. For the moment, 34% of the gold they use comes from ASM.

Breitling has also upped their game on traceability with their Origins label that provides enhanced traceability guaranteed by NFTs for all products containing gold and diamonds. Rollout will be completed for all products containing gold and/or diamonds by March 2026. As of today, 33% of their subjected products bear the label. Aurelia Figueroa explains the extent of the task: “It has been a huge challenge, as we had to turn our supply chain upside down and rebuild it in 2 years! It has been a global effort within the company, with all our stakeholders and most importantly, partners in the supply chain.”

But turning to ASM gold does not reduce their carbon footprint. With gold being one of the largest contributors for the company, why choose this ASM path? The CSO clarifies the intent: “For us it is about traceability and shifting our perspective from solely the footprint (that is, the negative impact) to the handprint, or the positive impact that can be made. ASM gold accounts for approximately 15-20% of global gold supply by many reports, and its production results in meaningful social and environmental impacts. For us, it is clear that to achieve the objectives established by our stakeholders already in 2020 concerning environmental and social impact, along with traceability, that this is the sourcing manner to follow. Through our direct engagement with suppliers, we are able to contribute to key objectives related to socio-economic development and environmental protection and restoration.”

She adds: “We have, for example, been able to support education in a remote community in Colombia in collaboration with the Swiss Better Gold Association, among other objectives related to environmental and social impact. We detail outcomes related to this in our 2024 Sustainability Mission Report. Together with my colleagues I have the opportunity to regularly visit mining communities in South America and with each visit, it underlines the importance of our engagement and the value we can create together in this vital industry.”

: Aurelia Figueroa has joined Breitling in 2020 and is now Chief Sustainability Officer. She leads the ESG transformation of the company.

In the meantime, Breitling continues to invest in the transition of the mines they source from to renewable energies and improved energy efficiency in order to reach their 2032 emission reduction targets. They are able to co-finance these projects through their carbon fund, where they establish a voluntary price on carbon (CHF 40/ton), following the minimum pricing guidance of the Carbon Pricing Leadership Coalition.

Another important achievement is that Breitling has validated their Corporate Net Zero Standards targets by Science Based Targets initiative (SBTi). A crucial stepping stone in the process.

So is gender equality

Breitling has achieved worldwide equal pay certification and is working closely with their supply chain on the topic. Aurelia Figueroa notes the potential sensitivities that need to be considered: “It can be a very sensitive subject because it is multi-dimensional and there are a range of cultural aspects that need to be taken into account. For example, last time I was in Peru, about a year ago, I was reminded that there is in some locations a cultural belief that when a female enters the area surrounding the gold vein in an underground mine, it « kills the gold ». This has to be taken into consideration, as we do not want to be imposing western, or even colonial-like conceptions. We need to move carefully in all the spaces in which we are present and approach our work from a systems perspective. In India, where we source our lab-grown diamonds, we have been able to engage social impact leaders, several of whom work in areas positively impacting women’s socio-economic development.”

“To date, over 40 inspiring leaders have participated in the program we have developed in concert with Amani Institute. Just some examples of the organizations that have benefitted through their engagement includes the Self-Employed Women’s Association, with one participant closely detailing their experience in our 2024 Sustainability Mission Report. Another is the Mahila Housing Trust, which among many other projects, trains women to become energy auditors, increasing their standing in the community while delivering a meaningful benefit to their society of reducing energy demand, and with it costs and environmental impact. Breitling funds this through a voluntary contribution of CHF 30,- per carat of lab grown purchased.”

Areas of needed improvements?

As disclosed in their latest report, carbon emissions have increased by 34% (vs 2022) at 29’008 tCO2eq (tons of carbon or equivalent). As usual, the CSO responds candidly: “There are always plenty of areas where we can improve. Our carbon emissions have increased mostly because of an update in our data collection, so we recognize further impacts that are being made. There has also been an increase in some volume purchasing, like platinum. We still need to develop that part of our supply chain. But our roadmap to tackle this issue is very clear and we had anticipated this “bump” on the road .”

What about collaborations?

As seen with all the various organizations and COPs that address the ESG agenda, collaborations are a key factor that is promoted and they are emphasized as decisive for the success of global industries. Breitling does not seem to communicate actively on such collaborations. Is there a particular reason for this?

Aurelia Figueroa explains: “We actually do participate, but it is not public yet. Of course, collaborations are essential. We have joined forces with other watch brands with whom we share the same values and sense of urgency. We are also looking into unexpected allies from other industries, which would be key collaborators to realize meaningful progress.” At this point, we will not find out more, but the near future could reveal the nature of these collaborations.

Sustainability as an opportunity

Where a lot of companies see sustainability as a constraint, Breitling seems to envision it as a diametrically opposed opportunity. They have conducted a thorough Materiality Impacts, Risks & Opportunities chart (details page 44-47 of their report). Their report summarizes the advantages the brand gets from their thorough ESG approach on the long term in an extensive chart (page 18-19 of the report, see chart below).

In a nutshell, it boils down to (non-exhaustive list):

• 1st mover advantage amidst growing sustainability consciousness in luxury demand
• Sustainability linked loans’ rates that decrease as sustainability goals are achieved
• Supply chain reconfiguration anticipates legal and societal compliance shifts, positioning it as competitiveness rather than compliance
• Employee wellbeing attracts talents, as shows their Best employer 2024 award by Handelszeitung
• Transparency yields brand loyalty which drives sales
• Digital product passports provides the customer with key information, including for Origins label products, enhanced traceability; where relevant, it also facilitates resale and boosts certified pre owned programs

Materiality Impacts, Risks & opportunity chart showing where ESG materialities can create value for Breitling.

Aurelia Figueroa develops the Breitling sustainability philosophy: “We absolutely believe in a value creation approach to sustainability. And we do this through collaboration with our colleagues across our sphere of influence. True value creation based on regenerative principles is a fundamental mindset shift, the implications of which for our society, our environment and our economy are profound. It applies on so many different levels. First of all, we see it as responding to a need from our customers – and not only Gen Z or Alpha. As we have long stated, it is a key pillar of the neo-luxury paradigm. Embracing it enables us to welcome this new paradigm, rather than having it imposed upon us. It is much better to be in a positive mode of value creation than a negative mode of constraints.”

Breitling pushes the cursor even further with regards to tax policy. In a world where big companies and groups mostly create intricate financial architectures to avoid paying taxes or lowering them to a minimum, it appears Breitling has chosen another path: commit to paying their taxes where they are due, transparently. As the dedicated CSO puts it: “You have to start with the basics. I am very proud that the efforts of my colleagues at Breitling in this regard are public.”

Breitling shows with this 4th report that a new vision of luxury and sustainability is possible. That an authentic ESG policy has the power to create brand value for the future, for the benefit of employees, of stakeholders, of communities and of the planet.

CLICK HERE TO SEE THE REPORT