As a recessionary cycle deepens and environmental, social, and governance (ESG) commitments waver under shareholder pressure and political backlash, a growing number of companies in the luxury sector are tempted to scale back their sustainability agendas.
But some are resisting the tide, choosing instead to embed sustainability into their core business model – not as a compliance exercise or communications strategy, but as a driver of long-term relevance and resilience.
“We are firmly entering the era of sustainability as a key contributor for value creation,” said Aurelia Figueroa, Chief Sustainability Officer at Breitling, during a recent IMD Luxury 2050 Forum C-Suite Talk.
Figueroa’s comments serve as a timely reminder: performative sustainability is no longer enough. What’s needed is a shift from optics to outcomes, where environmental and social responsibility become sources of innovation and value creation.
Performative sustainability, in my opinion… is not really understanding that sustainability is fundamentally also an opportunity.Aurelia Figueroa, Chief Sustainability Officer at Breitling,
These headwinds are already visible in market data, reinforcing the need for transformation. Bain & Company and Altagamma report that in 2024, the global luxury market reached €1.48tn but personal luxury goods declined 2%, marking the first contraction in over a decade. The industry also lost approximately 50 million customers between 2022 and 2024, with the decline most acute among Gen Z consumers, who are both more selective and more value-conscious than previous cohorts. Bain & Company expects to see a further 2–5% drop in 2025.
While many brands have made public commitments and launched high-visibility campaigns, too few have followed through with deep, systemic integration. Sustainability remains siloed in many organizations, detached from product development, marketing, or commercial strategy. This fragmentation is often driven by short-term financial pressures, internal resistance, or the misconception that sustainability comes at the cost of creativity.
It’s precisely this mindset that Figueroa challenged during the discussion: “Performative sustainability, in my opinion… is not really understanding that sustainability is fundamentally also an opportunity.”
Breitling’s approach stands out as a blueprint for moving beyond the performative. Rather than treating sustainability as an external demand, the brand wants to continue weaving it into the fabric of its strategy, leveraging heritage, rethinking design, transforming operations, and helping to shape a new direction for the industry.
“Those who succeed will do so not by discarding their history, but by adapting it to new realities.”
A common assumption in the industry is that legacy brands, by virtue of their history, are slower to adapt. Legacy brands can face unique challenges in updating governance structures, operations, and culture to support sustainability goals.
However, rather than treating legacy as an anchor, some forward-looking brands are using it as a platform for leadership. Credibility built over decades can serve as a powerful launchpad for new initiatives, provided there is alignment between heritage and ambition.
At Breitling, heritage is not a constraint but a catalyst, giving credibility to new choices in design, sourcing, and storytelling. “Sustainability is a lever for value creation,” shared Figueroa. “And this is why it’s an incredibly promising moment to be working in corporate sustainability.”
Luxury’s future will not be defined by scale alone, but by how well brands align with evolving consumer expectations, particularly around authenticity, social impact, and sustainability. Those who succeed will do so not by discarding their history, but by adapting it to new realities.
Some companies are taking the lead by rethinking how products are conceived. In one example discussed during the interview, Figueroa explained how sustainability at Breitling is integrated from the earliest stages of design, rather than bolted on after development. The use of responsibly mined artisanal and small-scale (ASM) gold, along with lab-grown diamonds, is a cornerstone of this approach, not only because of their lower environmental impact, but also due to the transparency and traceability they provide. This stands in contrast to much of the traditional diamond market, particularly the small melee diamonds used in watchmaking, where origin and provenance often remain unclear.
Breitling demonstrates that when diamonds can be sourced with verified traceability from responsible producers who are actively reducing their environmental footprint and supporting local communities, the hidden costs of conventional diamond mining, including its effects on climate, water, biodiversity, and social well-being, are simply not worth it. By weaving sustainability into its product storytelling, the company creates layered value for both its brand and its offerings.
“We’re not making the product sustainable in the end. We’re designing it that way from the beginning,” said Figueroa. She pointed to the company’s 2025 Sustainability Mission Report as evidence of this commitment: “You’ll find the full scope of our efforts across our three key pillars of community, nature, and governance, and how we view sustainability as a lever for value creation.”
By embedding sustainability at the material level, Breitling demonstrates how ethical production can coexist with aesthetic and functional excellence, without compromising on brand integrity or consumer expectations.
The discussion also explored how supply chain management is evolving. Rather than rely solely on certifications or third-party audits, Breitling is shifting from what Figueroa described as “commodity-based supply chains” to “community-based supply chains.”
“It’s about linking the social and environmental elements,” she noted. “You can’t have one without the other.” As an example, Figueroa cited the Better Gold Fund, through which Breitling supports social, educational, and environmental programs with small-scale gold miners in Peru and elsewhere, carried out by the Swiss Better Gold Association on behalf of its members. Audemars Piguet, Cartier, Chopard, and LVMH are also members.
This approach places emphasis on long-term partnerships with local suppliers, integrating social impact into sourcing decisions. By doing so, companies build more resilient and responsive supply chains, essential in a world shaped by climate volatility, conflict, and geopolitical tension.
Luxury has traditionally operated on two forms of value: functional and emotional. But as Figueroa emphasized, it’s time to add a third: societal value.
“We speak about functional value and emotional value in luxury,” she said, “but we also have the chance to create societal value, and we believe consumers care about that.”
This view is increasingly supported by research, even if one should not take for granted what consumers say in the light of how they act, often exposing deep contradictions. The earlier-mentioned Bain & Company and Altagamma study found Net Promoter Scores among Gen Z were 25–30 points lower than millennials, often due to a perceived misalignment between brand behavior and personal values. In a complementary Fast Company report 66% of Gen Z shoppers said their purchases must reflect their values, with 96% saying they shop with intention.
Brands that engage transparently in sustainability, from sourcing decisions to impact measurement, are better positioned to build trust and deepen loyalty in this shifting landscape. Rather than keeping the topic quiet, Breitling makes its efforts transparent, highlighting the impacts the brand creates and how it works to reduce them.
To fully embrace the challenge ahead and enter the era of purpose-driven sustainability, Breitling will have to go deeper and realign its entire business model.
The end of performative sustainability is not a matter of policy; it’s a matter of mindset. Luxury brands must now demonstrate that sustainability is more than a narrative; it’s a strategic imperative. Leadership in this new era demands more than statements; it requires execution. The companies that emerge stronger from this transition will be those that align sustainability with their commercial, creative, and cultural DNA. In doing so, they won’t just meet consumer expectations. They’ll help define the future of the industry and protect its social license to operate.
Breitling offers a compelling case in point. By embedding sustainability into product design, supply chains, and brand storytelling, it is showing how purpose can help guide not just ESG priorities, but business strategy itself.
Yet, to fully embrace the challenge ahead and enter the era of purpose-driven sustainability, Breitling will have to go deeper and realign its entire business model. The brand also reminds us that sustainability only creates value when paired with products that people truly desire. You can multiply ESG targets and initiatives, but if you overproduce or make products no one wants to buy, you are creating waste and destroying value for society – and the planet. Many luxury fashion brands are plagued by overproduction – and therefore waste – because they either produce way too much compared to demand, or they make unglamorous products that are poorly cut and unwearable for the mainstream customer segments who could afford them.
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