Lovisa Holdings Limited has released its first sustainability report, detailing its first year of greenhouse gas (GHG) emissions data and the results of its climate scenario analysis. The report outlines the company’s approach to measuring and disclosing Scope 1 and Scope 2 emissions, which totalled 6,753 t CO2-e in FY26, with 224 t CO2-e attributed to refrigeration fugitive emissions and 6,529 t CO2-e to purchased electricity across leased sites.
Material actions and disclosures
The Group has established a baseline year for climate metrics, focusing on emissions baselines, data coverage, and governance processes to support future target setting. The report also includes an assessment of climate resilience using two NGFS scenarios: a low warming scenario and a high warming scenario. The analysis indicates that Lovisa’s strategic resilience is strongest under a low warming scenario and weakest under a high warming scenario, with no material variance in financial impacts across all scenarios.
Climate-related risks and opportunities are integrated into the Group’s enterprise risk management framework, which systematically identifies, assesses, prioritises, and monitors risks. The report highlights the Group’s reliance on a concentrated supplier base, primarily in Asia, and the potential climate-related exposures across its value chain, including changes in manufacturing energy costs, logistics disruptions, and policy impacts.
The Group’s governance architecture includes oversight by the Board and the Audit, Business Risk and Compliance Committee (ARCC), with management responsible for day-to-day assessment and management of climate-related risks and opportunities. The report also notes that no climate-related targets or formal climate transition plans have been set, and no material changes to the Group’s strategy, business model, or asset base have been identified based on the climate-related risks and opportunities assessed.
The report concludes that while the Group does not expect material changes to its financial position over the short, medium, or long term, it will continue to monitor the financial significance of identified climate-related risks and opportunities and disclose quantitative financial effects in future reporting periods if materiality thresholds are met.
These disclosures are subject to an independent auditor’s review report, which confirms compliance with the Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures.