HERMÈS - 2019 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

Tanneries In order to reduce odours at the Tanneries du Puy site, a new sludge treatment plant was opened in 2019. In addition, various measures have been taken to optimise processes at the site’s treatment plant. Further measures and investments are planned for 2020 and future years. In both cases, the search for the causes and the compensatory measures planned were communicated to the French State, the municipal government and the DREAL, and to local residents as well. Lastly, when required by the regulations, the tanneries may carry out noise measurements at property boundaries. The most recent measurements did not indicate that any applicable thresholds had been breached. Textile division At SIEGL, the air conditioner for the Inkjet workshop was insulated to reduce noise emissions for local residents. Similarly, at the ATBC site, obsolete compressors were replaced and sound filters were added to the compressors already in place to minimise the noise footprint. Cristallerie An environmental monitoring programme around the production unit was set up jointly with local authorities and put in place in 2018 and continued in 2019. The results obtained during these measurement campaigns reflect those observed at the various water and atmospheric emission points and underscored the compliance of the production unit’s activity with respect to its direct environment. Changing land use The Hermès Group’s industrial activities do not contribute to the change of land use, given the small surface area occupied by its sites and the negligible rate of change in land use for cattle and sheep farms in Europe, from where its supply of raw hides is sourced. An impact study incorporating issues relating to animal and plant life and the preservation of natural environments is carried out prior to establishing any new industrial site. Water management (see 2.5.2 "Adaptation to climate change") In 2019, the Hermès Group initiated a process to better familiarise itself with its water footprint across all its sites and those of its suppliers, amounting to 75 sites. As part of this study, potential impacts on biodiversity will be taken into account and analysed. Commitment in the extended sphere of influence of Hermès Together with the partners supplying it with natural materials, the Hermès Group is continuing constructive efforts incorporating biodiversity protection. The Group is collaborating with international NGOs in this area, as appropriate, in order to better assess the various biodiversity components that concern it and to assess the impact on its supply chain (section 2.4.1). This contribution covers two aspects in particular:

Alligators in Louisiana: Hermès sources its alligator skins directly and indirectly from farmers in Louisiana. The alligator industry, considerably reorganised in line with the Washington Convention, has contributed to protecting the species and its unprecedented development in the areas in question and, as a result, to protecting and maintaining the marshlands where these animals live and reproduce. According to the US Fish & Wildlife Service, this corresponds to 1.2 million hectares of marshlands that are thus better maintained. The goal is to continue to support farmers in their development, thereby ensuring the long-term sustainability of the effects mentioned above. Silkworms in Brazil: For more than 20 years, Hermès has helped to develop a supply chain for high-quality silk thread in Brazil. Located in the state of Paraná and drawing on Japanese expertise, the cultivation of mulberry trees has made it possible to sustainably establish this division. This industry helps to preserve low-chemical hardwood biotopes (silkworms eat only non-polluted mulberry leaves) and generates income As a responsible company, Hermès voluntarily undertakes biodiversity-related efforts reaching beyond its business activities. The Fondation d’entreprise Hermès contributes to various biodiversity-related projects and is continuing its efforts in this area. It supports a wide-scale project in Africa, for example, in partnership with the WWF France: Traffic/AfricaTwix. This project aims to improve the fight against the poaching, trafficking and illegal trade of protected species in Africa, through the establishment of IT tools fostering dialogue between the different authorities of the countries in question. The Fondation d'entreprise Hermès will continue to support this project. In 2019, the Fodnation d'entreprise Hermès increased its commitment in this area, supporting the Natural History Museum’s “Vigie Nature” programme, which aims to allow schoolchildren to take part in monitoring our biodiversity, as well as supporting the NGO “L’Atelier Paysan”, which with its agro-ecological approach lays the foundations for agricultural development that is more respectful of biodiversity. Livelihoods: since 2012, Hermès has been a shareholder of the Livelihoods Fund, which aims to improve the living conditions of disadvantaged communities in a sustainable manner by developing large-scale projects with real impact against climate change, as presented in sections 2.5.2.2 and 2.7.2.2. Investments are made in three types of projects (ecosystems, agroforestry and energy) in Africa, Asia and Latin America. The fund has 10 partners working on these projects over a 20-year period. Overall, the Livelihoods fund with its compartment LCF1 will contribute to the replanting of 130 million trees, including 18,000 hectares of mangroves (Casamance, Ganges Delta and Sumatra) and 34,000 hectares of agroforestry (Andhra Pradesh, Guatemala and Kenya) with major effects on local biodiversity. Hermès is continuing its commitment to the Livelihoods fund by contributing to current projects, but also with the creation of a new, even more ambitious fund, LCF2, launched in December 2017, which will also have a considerable effect on biodiversity (probably twice that of the first fund). for small local farms and, accordingly, thousands of families. The aim is to continue to provide this support to the industry. Voluntary commitments reaching beyond the economic sphere of influence of Hermès

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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