In the emerging literature on the role of traceability technologies in corporate sustainability, the context of luxury products remains underexplored. This study draws on value theory to examine the role of traceability and its potential to shape the sustainable evolution of the French leather luxury industry across its supply chain (SC). Adopting a qualitative approach combining analysis of luxury brands’ CSR reports with longitudinal interviews, the study examines the complexity of the leather SC and traceability practices across a diverse range of luxury stakeholders. The results indicate that traceability is not inherently linked to sustainability, yet it can address emerging sustainability challenges and support the transformation of a complex luxury industry. Moreover, the scope, benefits and knowledge spillovers identified require extensive collaboration across all levels of the supply chain, which can be difficult to achieve in practice. The findings also underscore the importance of aligning traceability with technological, strategic, and relational dimensions to create value and foster the development of sustainable SCs.