HERMÈS - 2019 Universal Registration Document

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OVERVIEW OF THE GROUP RISK FACTORS

INTELLECTUAL PROPERTY AND COMBATING COUNTERFEITING ●

1.11.3.2

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The Group has a particularly comprehensive portfolio of brands, models, patents and domain names, which is regularly expanding. Within each métier legal division, teams are specifically dedicated to these issues and ensure that all of the Group’s creations are protected effectively. Finally, the Group ensures that its rights are respected and pursues an active anti-counterfeiting policy involving both preventive measures (training and lobbying) and coercive measures (administrative, civil and criminal proceedings) across the world and particularly on the Internet. These measures are initiated by the anti-counterfeiting department with the support of external advisers and in collaboration with the competent local authorities in the fields of intellectual property and the fight against counterfeiting. They are carried out both in traditional markets and on the Internet (online sales platform, social networks, retail websites, etc.). These actions enable hundreds of thousands of counterfeit products to be seized and destroyed each year, the source of these products to be identified and the Group’s rights to be recognised, and the payment of damages to compensate for the prejudice suffered. A materiality analysis was conducted in 2019 with four internal working groups and a panel of external stakeholders. The detailed results are presented in chapter 2. This study confirms and sets out the analysis conducted more widely at Group level in 2017 on three main themes: risks related to changes in major global issues regarding climate and s biodiversity; risks related to availability and judicious use of natural resources s (water, energy, raw materials, waste management and recycling); risks related to human rights and fundamental freedoms, and in s particular, as regards the ethical aspect of our relations and more broadly the well-being of our employees. More details by type of risk, and the mitigation and prevention mechanisms for these risks are addressed specifically in chapter 2 of this report.

The Group places great importance on the protection and defence of its intellectual property rights. It is very active in the area of combating counterfeiting. All of the Group’s métiers are affected by the scourge and, most particularly, the Leather Goods sector. POTENTIAL IMPACTS ON THE GROUP s Unauthorised use of registered brands and other intellectual property rights, parallel trading, sale of counterfeit products, could tarnish the Group’s image.

RISKS RELATED TO SOCIAL, SOCIETAL

1.11.4

AND ENVIRONMENTAL RESPONSIBILITY The Group’s social, societal and environmental responsibility challenges are described in detail in chapter 2 of this document, and are articulated around the Hermès Group’s six strategic sustainable development pillars: teams ; s savoir-faire ; s

raw materials; s environment; s suppliers and partners; s stakeholders. s

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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