HERMÈS - 2019 Universal Registration Document

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CORPORATE GOVERNANCE SUPERVISORY BOARD'S' REPORT ON CORPORATE GOVERNANCE

MAJOR ANNUAL TOPICS – SITE VISITS

In early 2019, the General Counsel Compliance presented to the Supervisory Board, the ethics and compliance programmes/compliance action plan: professional alert procedure and Ethics Committee; s strengthening of the corruption prevention plan in compliance with s law No. 2016-1691 of 9 December 2016, known as the “Sapin II” law, on transparency, the fight against corruption and the modernisation of economic life; corruption risk mapping; s 2019 action plan: anti-corruption code of conduct, alert system, s training, tools for evaluation of third parties, audits; roll-out of the vigilance plan in accordance with law No. 2017-399 of s 27 March 2017 concerning the duty of care of parent companies and contractors; anti money-laundering, international sanctions and embargoes; s presentation of the new code of business conduct. s A presentation to the Supervisory Board on the personal data protection system, in accordance with the GDPR (EU regulation 2016/679 of 27 April 2016), implemented in the Group, was made in 2019. The systems implemented in the Group are described on pages 178 and seq . A presentation of CSR challenges has been made to the Board regularly since 2015. Since 11 September 2018, the Supervisory Board’s rules of procedure have included new duties relating to CSR issues (Article 1.2.4.2.), following the revision of the Afep-Medef Code in June 2018. On 16 November 2018, the Supervisory Board decided to rename the “Compensation, Appointments and Governance Committee” as the “CAG-CSR Committee”. The CAG-CSR Committee was assigned new duties relating to social and environmental responsibility: assist the Supervisory Board in monitoring matters relating to CSR in s order that the Hermès Group better anticipate associated opportunities, issues and risks; assist the Supervisory Board in monitoring social policy of the Hermès s Group and the policy of non-discrimination and diversity. In addition, since the incorporation of a CSR criterion into the Executive Chairmen’s variable compensation in 2019, the CAG-CSR Committee has been tasked with annually evaluating the achievement of the three indicators comprising it (see page 265). CORPORATE SOCIAL RESPONSIBILITY – CSR 3.4.8.5

3.4.8.6

Every year, at least one detailed presentation on a specific or general topic regarding the Group’s activities is provided by the relevant management team. Since 2011 the Board has devoted one of its meetings to a site visit to improve its understanding of one of the Group’s subsidiaries. In 2019 the Board: attended a presentation of the Group’s digital strategy; s attended a presentation of the objectives and actions of internal s communication; attended a presentation of Hermès Parfums’ new product s development strategy; inspected the logistics site, where it was given a presentation of the s activity, the results of the Hermès Commercial division and a tour of the warehouses. Whether or not to use an external advisor As in 2016, the CAG-CSR Committee considered it undesirable to call on an outside firm to conduct a formal evaluation of the Supervisory Board for the following reasons: confidentiality concerns raised by giving information on the s Supervisory Board to a third party; the relative absence of weak signals raised by previous evaluations; s progress in terms of governance over the last six years; s the small amount of added value expected from an external firm, s particularly given the specific nature of the société en commandite par actions (partnership limited by shares), which offers few comparables. Process and review of the evaluation questionnaire In 2011, the Supervisory Board decided to carry out a formal questionnaire-based self-evaluation only once every three years, while maintaining a discussion on the functioning of the Board every year. In 2019, the Supervisory Board conducted a formal evaluation of the Supervisory Board and committees as follows: evaluation conducted confidentially by the Secretary of the Board in s conjunction with the Chairwoman of the CAG-CSR Committee; secure online questionnaire accessible on computer or mobile phone; s automatic summary of results and more comprehensible restitution; repetition of questions from the 2016 questionnaire, some of which s have been reworded or had redundancies deleted. Addition of questions to take account of the new tasks in the Board and committees, as set out in the rules of procedure; EVALUATION OF THE SUPERVISORY 3.4.9 BOARD AND COMMITTEES METHODOLOGY 3.4.9.1

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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