HERMÈS - 2019 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

PLANET: ENVIRONMENT

2.5

Introduction The respect for nature, the source of its exceptional materials and the living environment of its sites, is one of Hermès’s strong and abiding values. In 2002, the Group launched an environmental programme aiming at limiting the impact of its activity across all areas. Pragmatic but ambitious solutions to preserve the environment in the long-term are systematically sought, trying to go further than what is required by regulations wherever possible. The priority is to control our impacts across the entire value chain, from upstream agricultural production to distribution, and from purchases to internal operations. This commitment is a mindset that requires the involvement of everyone, from investment decisions to everyday eco-actions, together with a robust Environmental, Health and Safety (HSE) culture on all sites. It is structured around policies, procedures and tools. Since 2012 in particular, the Group has set up digital management systems to measure the environmental footprint of its sites. In 2013, the approach was extended to include a greenhouse gas emissions calculation; since 2015, the environmental impacts of the Hermès Group’s construction have also been measured using an automated process. These efforts drive improvements in our operational practices. Accordingly, since the Hermès Group launched its environmental programme in 2002, and despite the six-fold increase in its industrial output: water consumption by industrial sites increased by only 18%, s reflecting the efficiency of the programme and the water-saving actions, in particular within the tanneries and the Textile division, where water is a precious resource; energy consumption by industrial sites increased by 1.9, testifying to s the improved control of consumption, since tanneries and La Cristallerie use half of the energy consumed by the industrial sites. Environmental topics are supervised by a member of the Executive Committee in charge of the Manufacturing division & Equity Investments, who is supported by his Deputy Managing Director, in charge of the House’s industrial affairs department, and by the construction development department. An annual analysis is conducted by the main métiers of the House when the strategic plans are being prepared to identify issues in terms of environmental protection. These various challenges go hand-in-hand with practical objectives shared with the Executive Committee. From a regulatory perspective, the Hermès Group’s policy is to establish action plans that are adapted to the various métiers, in order to understand and comply with regulations (primarily adapted to a very rigorous European environment) but also to monitor progresses made.. Each métier is responsible for monitoring and implementing the applicable regulations. The industrial affairs and construction departments are responsible for alerts, oversight and control in this area.

Description of risks and challenges The House’s industrial affairs and construction departments have implemented programmes to address the House’s environmental challenges. 1) The industrial affairs department , together with the métiers and all players in the production entities, is pursuing an environmental policy formally approved by the Executive Committee, whose goals remain unchanged since 2002: to comply with workplace Environmental, Health and Safety (HSE) s regulations and to prepare for changes in these regulations whenever possible. The industrial department coordinates a network of HSE operatives at the manufacturing sites; to respect natural resources, particularly water, and control energy s consumption; to enhance production processes by choosing the cleanest, most s energy-efficient technologies and the most environmentally-friendly materials available; to minimise waste production and to recover waste whenever s possible; to limit the “carbon” impact of the activities, prepare the energy s transition and adapt to climate change. The industrial department, with the support of the sales and construction departments, manages the House’s energy programmes (construction, transport). In addition, the House’s environmental policy includes the following elements: a commitment to the principle of respecting and protecting nature. s The Hermès Group’s commitment to the “Act4Nature” initiative in 2018 has added a focus on biodiversity to this commitment. The partnership with WWF France supports this commitment; the implementation of a métier -based environmental management s system, coordinated by the industrial affairs department and operating on a network basis (see network of HSE operatives above); a desire to use natural resources sparingly, particularly with regard to s energy, water, and, more broadly, all natural materials needed to manufacture products; reduction of the Houses's environmental footprint, especially, s especially in terms of discharges, emissions and waste management, which includes seeking to optimise the resources used. Since 2012, the Hermès Group’s policy has incorporated the concept of voluntary carbon offset (see “Livelihoods” 2.5.2 below); internal monitoring of the results of these policies, through s operational dashboards and reporting, that is controlled by the industrial affairs department and serves as a basis for external audits;

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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