An Italian leather-processing company owned by the French luxury group LVMH (Louis Vuitton, Sephora, Christian Dior and others) is reported to have imported animal hides worth around $3.8 million in 2025 from companies in Paraguay linked to deforestation, while at the same time playing a leading role in efforts to exempt leather from the EU’s new anti-deforestation regulation.
According to an investigation by Global Witness, reported exclusively by Politico, companies belonging to Nuti Ivo Group, the Italian tannery acquired by LVMH in 2023, imported around 2,710 tonnes of bovine and buffalo hides from Paraguay in 2025. The investigation links the supply chain to 16 livestock farms supplying major slaughterhouses and associated with the deforestation of more than 100,000 hectares since 2021.
Deforestation in South America is mainly driven by the conversion of forests into pastureland for cattle, from which leather is derived.
Deforestation in South America is primarily driven by the conversion of forest land into cattle pasture. As a result, leather is part of the same production cycle as beef, although the industry argues that it is merely a by-product.
The issue is particularly significant as the EU prepares to implement the Deforestation Regulation (EUDR), which bans the sale of products linked to land deforested after December 2020. Industry representatives, including the head of Nuti Ivo, argue that full traceability requirements are practically difficult to meet and are calling for leather to be excluded from the scope of the law.
LVMH responded that it has not lobbied to weaken the law and remains committed to its zero-deforestation target from 2025. When presented with the findings of the investigation, it said that the imports from South America involved “small quantities” under contracts that predated the acquisition and are currently being phased out.
Source: Politico
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