Ao Yun is a high-altitude wine estate in Deqin County, Yunnan, China, operated by Moët Hennessy, the wine and spirits division of LVMH. Established with its first vintage in 2013, Ao Yun’s vineyards span the Tibetan villages of Adong, Xidang, Sinong, and Shuori at elevations of roughly 2,200–2,600 meters near Meili Snow Mountain.
The brand markets itself through imagery of remoteness, altitude, and mystique, positioning the wine as a rare luxury product. The surrounding region forms part of the UNESCO-listed Three Parallel Rivers protected area, one of the world’s biodiversity hotspots. While no direct evidence links Ao Yun’s operations to displacement, Tibetan areas in this prefecture have been affected by state-led relocation programs.
At the corporate level, LVMH’s luxury model centers on securing and controlling scarce resources, whether rare vineyards, exotic leathers, or gemstones, turning limited supply into high-status products. This approach, while legal, raises ongoing questions about the ecological and cultural impacts of luxury production in fragile regions.
Bernard Arnault, the chairman and CEO of LVMH, has made documented investments in Israeli technology and jewelry companies. In June 2021, via Aglaé Ventures, he participated in a $120 million Series B funding round for Wiz, an Israeli cloud-security startup. Reports also suggest that LVMH Luxury Ventures co-invested in a 2022 funding round for the Israeli jewelry firm Lusix, though the amount remains undisclosed.
LVMH is the world’s largest luxury group, with more than 75 brands spanning fashion, beauty, jewelry, watches, wines, and spirits. The group’s vertically integrated model controls supply from raw material sourcing to retail, allowing it to secure scarce resources such as exotic leathers, rare gemstones, and high-altitude vineyards—a strategy that maximizes prestige but concentrates environmental and social impacts.
Environmental Harm:
LVMH sources raw materials from ecologically sensitive regions, including exotic leathers and rare gemstones. The company has been criticized for slow progress on climate targets relative to peers, and for greenwashing through marketing that obscures the environmental costs of luxury production.
Human Rights Violations:
In 2024, an Italian court probe into Dior and Loro Piana subcontractors uncovered undocumented workers in unsafe conditions, paid well below minimum wage. Past investigations have documented long hours, wage theft, and health and safety violations in LVMH’s ateliers and suppliers. While the group maintains a code of conduct, enforcement remains opaque.
Military & Political Complicity:
In 2021, Bernard Arnault, LVMH’s CEO, has personally invested in Israeli companies via his family’s investment arm, Aglaé Ventures, including participation in a $120 million funding round for cybersecurity firm Wiz in 2021. Reports also link LVMH Luxury Ventures to a 2022 investment in Israeli diamond-growing company Lusix. These financial ties connect the group’s leadership to Israel’s economy during an ongoing military occupation documented for human rights abuses.
Animal Rights Violations:
LVMH sources crocodile, python, and ostrich skins through its own tanneries, a supply chain repeatedly flagged by animal welfare groups for inhumane practices. Leather and exotic skin production is tied to deforestation, habitat loss, and greenhouse gas emissions.
The group’s scale and control over rare resources mean its environmental and human-rights impacts are multiplied across dozens of brands, making LVMH one of the most influential, and scrutinized, players in the luxury industry.
Choose local when you can. When you can’t, look for an alternative brand that aligns with your values and your taste.