HERMÈS - 2019 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

POLICY

Several times a year, the Purchasing Committee reviews the results presented by the industrial affairs department. It monitors the number of audits conducted per year as well as the quality of the results. The industrial affairs department (IAD), under the control of the audit and risk management department (A&RMD), crafts action plans with the relevant métiers and monitors their progress. In 2019, no fines or formal notices were handed out to any of the Hermès Group’s industrial sites. Environmental liabilities The amount of the provisions for environmental liabilities is made up of provisions for the cost of asbestos removal work on the roofs of the buildings at the Tanneries du Puy. This amount is €3.8 million. Financial guarantees In accordance with Article R. 516-1 of the French Environmental Code, the tanneries located in France fall within the scope of the framework for providing financial guarantees. These guarantees aim to ensure the site’s supervision, the continued safety of the installation, any interventions in the event of an accident and/or pollution before or after closing, and the site’s restoration after discontinuing the activity. Moreover, they also allow public bodies and local authorities to guard against any insolvency and/or default by an operator and, accordingly, to prevent the creation of orphan sites. The files relating to the tanneries have been submitted to the respective DREAL/DRIEEs responsible for the sites. The Tannerie d’Annonay is currently the only site which has received its additional prefectural order to implement these financial guarantees. The other files are still being reviewed and should be approved in the course of 2020.

2.5.1.1

The House’s policy is based on the following pillars: improve the measurement of consumption and put in place reduction s solutions; improve production processes by encouraging the use of the most s resources efficient technologies; innovate by using environmentally-friendly solutions (in energy, for s example). The House has a policy of using renewable energies. In particular, it works with the construction development department for the installation of photovoltaic panels, the supply of green electricity for sites in France, and the use of wood-fired boilers on some sites. Everyone’s efforts are needed at every site if we are to achieve these goals.

industrial water consumption - 7% industrial energies consumption - 2%

CHALLENGE: LIMITING CONSUMPTION OF NATURAL RESOURCES (WATER, ENERGIES)

2.5.1

The use of natural resources and their long-term availability are fundamental challenges for human development and the sustainability of the House’s activities. The control of water and energy consumption, inseparable from ecological and economic responsibility with respect to the major global challenges facing us today, is therefore a goal shared by all the House’s divisions. Thanks to its artisanal model, Maison Hermès is distinguished by a low energy and water footprint in absolute terms. Its footprint is even lower in relative terms (the Hermès Group has one of the lowest carbon intensities of the CAC 40 companies in France). The métiers are working to limit their respective consumptions. Their efforts are described in more detail below.

MEASURES IMPLEMENTED AND RESULTS

2.5.1.2

Water Water for industrial use is mainly used for industrial consumption in the tanneries and textile units (668,469 m 3 /year at global level). Over the last 10 years, the Hermès Group has maintained its aim of decoupling, with industrial water consumption changing by a factor of 1.9 while activity grew 3.6-fold. In 2019, global water consumption for industrial use fell significantly (down 7%) compared to 2018, despite a rise in activity at constant rates of 12.4%. This was thanks to the efforts of the tanneries and textile teams in particular, which reduced their water use in industrial processes.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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