HERMÈS - 2019 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY ETHICS - COMPLIANCE

areas where its manufacturing and commercial sites are located. Hermès invests in each of the company’s manufacturing or commercial sites, using local resources as much as possible, so as to contribute to local economic life and play a role of corporate citizen in the local economy, in a spirit of responsibility towards the community.

Relations between Hermès and its suppliers s These relations entail adherence to the Company’s enduring standards of excellence based on suppliers’ ability to follow the House’s fundamental principles. This chapter outlines the main principles of our relationships: trust and consideration, selectivity on quality criteria but also in terms of social and environmental issues, long-term and balanced relationships, fair treatment and impartiality, absolute respect of ethics and integrity criteria, transparency in the relationship; Relations between Hermès and its customers s Hermès seeks to astonish its customers and take them into another world with exceptional creations, products, services and stores. This chapter stresses the need to give everyone the warmest possible welcome, with respect for diversity and culture, to be discreet and to respect the confidentiality of information about our customers, as well as ethics with our business partners; Relations between Hermès and its shareholders s These relations are based on transparent disclosure and rigorous management. Hermès wishes to share with its shareholders, without distinction and in the respect of shareholder equality, its long-term strategy and its values as well as the results of the business. Hermès strives to harmoniously develop its business and results, protect the Company’s assets, ensure governance in line with market best practices, and transparently report on its activities; Uncompromising principles of Hermès objects s This is identifiable by the style, the savoir-faire and the quality of its objects: a highly demanding approach to materials, savoir-faire and attention to detail... applied both internally and externally. The authenticity of materials (including their origin), as well as their crafting, guarantee the enduring nature of Hermès objects; Relations between Hermès and society s Hermès is an attentive and concerned member of society, committed to its ecological, social, economic and cultural environment. This chapter notably sets out the Group's values on the following issues: the House takes care to respect the environment and fit into it as • seamlessly as possible. It complies with regulatory requirements and aims to anticipate their development whenever possible. It seeks to enhance its production processes by choosing the cleanest possible technologies and the most environmentally friendly products, respecting natural resources and minimising the use of energy resources. It keeps waste to a minimum, recycling it whenever possible. Hermès designs its manufacturing sites so as to blend into the landscape, to prevent accidental pollution and to limit noise and other nuisances; regarding its stakeholders, Hermès aims to ensure dialogue and • consultation with all stakeholders in order to contribute to the economic and social development of the regions and employment

CODE OF BUSINESS CONDUCT

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To help make sure that everyone is on the same page, we have formalised this “code of business conduct”. Its role is to raise awareness of certain risks and to instil Group employees with behavioural reflexes in response to frequently raised issues. The sheets below, each of which must be responsible for the proper application of the code, are instruments of progress and dialogue. We are counting on your personal involvement in following these guidelines. Mr Axel Dumas – Executive Chairman A 32-page code of business conduct, available in 13 languages and updated in 2018, is distributed to all employees worldwide along with a verbal explanation. It sets out the House’s guiding principles on a number of operational topics. The Code is signed by the Executive Management, and is given to all employees as soon as they join the House. The code of business conduct is available on the website https://finance.hermes.com/. It was updated in 2018 and redistributed with an explanation of its contents to all Group employees. The purpose of the code of business conduct is to raise employees’ awareness about certain risks and to instil behavioural and alert reflexes. It consists of factsheets, dealing with key issues. The code sets out whistleblowing mechanisms as part of a Group system called “H–Alert!”. Employees confronted with situations that raise ethical issues, or who believe, in good faith and in a disinterested way, that a serious and obvious violation of a code, charter, procedure, law or regulation, of which they are personally aware, has been committed, are encouraged to report the irregularities or breaches, as soon as possible, using the following reporting channels: via the line management/managerial route or via Human Resources s or the Ethics Committee; or via a technical system specially designed for this purpose and which s protects the person reporting, operated by an external provider chosen by the Hermès Group, and whose link is available on the Group’s intranet site ("Our House/Our Ethics"). These reports are treated confidentially and in line with the applicable legal framework, protecting the whistleblower.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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