Strategic Management and Sustainability #73
How To Combine Performance and Eco-Responsibility ? The Example of Salomon
Good morning,
In today's newsletter we're going to talk about the Salomon brand and how it decided to take an eco-responsible turn by accelerating its digital transformation.
Salomon is currently the world's leading manufacturer of winter sports and trail running equipment, with sales of 900 million euros worldwide. Founded in 1947 in Annecy, this French company has decided to embark on a radical transformation in 2019 to meet its greenhouse gas reduction targets. The medium-term objective is to reduce its gas emissions by 30% by 2030, and the long-term goal is to achieve carbon neutrality by 2050.
We hope you enjoy it !
Newsletter by : USEA - Calysté Holt and Lisa Perianin - Group 70
Today's newsletter is 1078 words, a 6 minute read.
Keys Points
Salomon is integrating digital transformation and corporate social responsibility (CSR) strategy. By 2030, the company aims to reduce its greenhouse gas emissions by 30% and achieve carbon neutrality by 2050. Digital simulation is essential for modernising industrial processes and encouraging employee creativity.
Salomon has chosen to use the Abaqus solution in partnership with KEONYS to improve the design and technical nature of its footwear products, validate digital models and reduce the number of physical prototypes. By 2030, all Salomon footwear will be designed in an environmentally friendly way.
Salomon's R&D uses digital twins to improve product design and looks for more environmentally-friendly eco-design alternatives. Digital analysis with Abaqus enables product performance to be predicted, optimised and validated rapidly, thus reducing the number of physical prototypes. This digital transformation aims to improve the employee experience, develop their skills and unleash their creativity.
Critical Commentary
Digital transformation : A social and environmental win ?
Salomon has declared its intention to make significant progress in the field of sustainable development. Aware of the direct impact of climate change on alpine skiing, Nordic skiing and snowboarding, the brand is committed to promoting more sustainable operations through the following actions:
Launching a range of progressive and highly sustainable winter sports products.
Establishing a list of sustainability "fundamentals" that all winter sports products must meet by 2025, aligned with Salomon's global sustainability strategy.
Collaboration with partners in the resorts, distribution channels and engagement with the winter sports community to steer discussions towards ambitious collective sustainability goals.
A pledge to reduce its global carbon emissions by 30% and a commitment to manufacture 100% of its products using circular economy principles.
Salomon has already implemented a number of sustainable measures across its business, including reducing packaging, improving product durability and repairability, eliminating chemicals and materials of concern, integrating more sustainable materials, as well as launching more efficient and sustainable Nordic skiing.
However, in terms of environmental practices, Salomon has been awarded an "It's a Start" rating by Planet Rating. This rating assesses brands on their green policies and practices throughout their supply chain. Salomon has taken initial steps towards sustainability by using low impact materials, such as recycled materials, and incorporating an average proportion of bluesign certified fabrics, ensuring environmentally friendly production.
However, Salomon has not demonstrated a concrete commitment to biodiversity protection in its supply chain. The preservation of biodiversity is crucial to maintaining balanced ecosystems, and it is imperative that brands take active steps to safeguard it. Furthermore, although Salomon has set science-based targets for reducing greenhouse gas emissions, both in its direct operations and in its supply chain, there is no clear evidence that it is making effective progress towards achieving these targets.
The objective of reducing greenhouse gas emissions by 30% to achieve carbon neutrality by 2050 seems a necessary one. While combining innovation and technology, by 2030, 100% of Salomon's footwear will be eco-designed.
Guillaume Meyzenq, Vice President of Salomon Footwear, assures us that Salomon wishes to implement a digital transformation at the service of people: "this digital transformation is fundamentally centred on people, to improve the experience of our employees, to help them improve their skills, to unleash their creativity with new tools and to increase their employability for the future".
However, despite Social Accountability International - SA8000 certification of parts of its supply chain, including the final production phase, there is no evidence of support for diversity and inclusion within it.
It is imperative for brands to guarantee financial security to their suppliers, as this can directly impact working conditions and employee wages. However, there is no evidence to suggest that Salomon provides this financial security. Similarly, there is no verification that Salomon guarantees decent wages for workers in its supply chain.
During the COVID-19 pandemic, Salomon did not communicate sufficient policies or safeguards to protect workers in its supply chain from the virus. This highlights the importance for brands to prioritise the wellbeing and safety of their employees, especially in difficult times.
Conclusion
To wrap things up, Salomon's strategic integration of digital transformation and corporate social responsibility (CSR) reflects an overall commitment to sustainability and innovation. The company's ambitious targets, such as reducing greenhouse gas emissions by 30% by 2030 and achieving carbon neutrality by 2050, demonstrate a commitment to environmental responsibility. The use of digital tools such as the Abaqus solution in partnership with KEONYS illustrates Salomon's efforts to improve product design, reduce physical prototypes and ensure environmentally friendly footwear by 2030.
However, Planet Rating's "It's a Start" rating of Salomon's environmental practices indicates that further progress is needed on sustainability. While the brand has taken steps such as using recycled materials, it has yet to demonstrate a concrete commitment to protecting biodiversity in its supply chain. Establishing 'core principles' for sustainable development and working with partners are positive steps, but progress towards scientific targets for reducing greenhouse gas emissions needs to be more clearly demonstrated.
Guillaume Meyzenq's focus on people-centric digital transformation adds a human touch to Salomon's strategy. The focus on improving the employee experience, fostering skills development and promoting creativity aligns with a holistic approach to business transformation.
Furthermore, the lack of visible action in Salomon's case highlights the imperative for brands to ensure the financial security of suppliers and guarantee decent wages. The COVID-19 pandemic revealed a lack of communication regarding worker protection policies, underlining the crucial need for brands to prioritise employee wellbeing, particularly in difficult times.
In pursuing a triple bottom line sustainability strategy that encompasses economic, social and ecological dimensions, Salomon faces opportunities to improve environmental practices and social responsibility. In its digital transformation journey, the brand has the potential to drive positive change, not only in its products, but also in the wellbeing and inclusivity of its workforce and supply chain partners.
Recommendations
Salomon Sustainability Series Ep 9: New arrivals at Winter Sports
References
“Salomon associe transformation numérique et stratégie RSE”, l’Usine Nouvelle, 2022,
Salomon Sustainability Rating, Planet Rating, 2023,
Our Responsible Commitments, Sustainability Report 2022,