HERMÈS - 2019 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

The performance levels required by the Hermès construction framework mostly stricter and take into account the geographical, regulatory and economic environment of the construction project. Some themes are specific to it, namely the consideration of non-conventional consumptions (processes, kitchen equipment, outdoor lighting, etc.), user comfort through specific internal and external adjustments and the consideration of the environmental impact from the transport of people and construction materials. In 2019, the Hermès Sustainable Construction Framework included ambitions in line with Hermès Group’s commitments to respect Biodiversity (Act4Nature) and to reduce emissions generated by construction. This framework applies to all new construction or renovation projects relating to office, production and distribution sites in France and abroad. It involves Group's project managers and external partners selected by the construction department. Industrial activities Since 2012, in order to monitor environmental data from its industrial sites, Hermès has used reporting software accessible as a web resource to collect data about consumption at each site. The software also provides access to documentation explaining how the performance indicators are organised and defined. A consistency check is carried out automatically when the figures are entered, and again when the global consolidation is performed by the industrial affairs department. Since 2018, all industrial environmental indicators are reported for a period running from November through October. For methodological reasons, some of the activity data used in the Scope 3 carbon emissions calculation cover a calendar year. For the sake of precision, the consumption (water, energy) of farms in the Precious Leathers division in Australia and the United States is presented specifically in this document. The energy consumption of some stores for which information is not available (e.g. those located in shopping malls) is not included in this document. Moreover, consumption figures for certain leased sites, for which no data are available, are not taken into account either as they are not significant. Analysis and monitoring of environmental performance Oversight of environmental actions occurs in different ways. The industrial affairs department and its HSE Officers exert a first level of control within the context of a “water, energy, carbon, waste” plan that is updated each year. In the context of this effort, the audit and risk management department conducts audits on the critical topics included in the group’s risk map (section 1.10 in the "Risk factors" section). Lastly, external controls are performed on the Hermès Group’s suppliers to ensure coverage of all entities. The industrial affairs department consolidates the results of these audits as part of an ongoing process of improvement.

external stakeholders dialogue. Since production is mainly in France, s a large part of these discussions is carried out in the legal framework of the DREALs (Regional Directorates for the Environment, Development and Housing), but there are also frequent discussions with the municipalities where our sites are located. In addition, the natural material supply policy (for exotic leathers, for example) includes a discussion with the relevant professional and regulatory associations (such as the WWF, Crocodile Specialists Group, CSG or IUCN); more recently, Hermès has signed the Fashion Pact, commiting for s clear environmental goals, such as: 100% renewable energy by 2030 in direct operations and 30% reduction in carbon emissions by 2030; lastly, the House is committed to recycling by securing sustainable s recycling processes and sector specific developments, to use these new materials . 2) Construction assets : since 2008, the Hermès Group’s environmental construction policy has been coordinated by the construction development department, based on the following principles: the systematic adoption of an environmental stance during building s work; helping to protect the environment by integrating buildings with their s surroundings and the local architecture, while simultaneously respecting the ecosystem; the use of renewable energy sources whenever possible s (Maroquinerie de l’Allan, Manufacture de Haute Maroquinerie, Maroquinerie de Belley, Les Abrets, Nontron); employing energy-saving methods; s focusing on building quality: design, functionality and sustainability, in s a constant effort to ensure the well-being of users, employees and clients; striving for flexible, adaptable construction projects that integrate s future developments and running costs from the outset; anticipating, as far as possible, and monitoring changes in regulations s and techniques to take them into account in projects, in close collaboration with stakeholders, architects, engineers and suppliers. Since 2016, in order to improve the coordination and control of environmental actions involving internal staff and external service providers, the Hermès Group’s construction development department has drawn up a sustainable construction framework based on three main ambitions:

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reduce the ecological footprint; s promote the well-being of users; s conserve vital resources. s

This sustainable construction framework is designed to adapt to the specific characteristics and functions of the Hermès Group constructions. More stringent than the main frameworks existing on the market (LEED, BREEAM, HQE), it covers about 30% more criteria.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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