HERMÈS - 2019 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY

métiers and all regions included. Given that Hermès manufactures 61% of its objects in its exclusive and internal workshops, this statement is very representative of its overall footprint. Several changes modify the presentation of disclosures related to the 2019 financial year, in order to improve clarity: the business and value-creation model provides a summary visual s presentation (section 2.1) for the first time, with details in the subsequent sections; the materiality matrix (part 2.1.3.1), illustrates the alignment of the s priorities defined by Hermès as part of its CSR strategy and the expectations of its stakeholders; the Ethics and Compliance section is integrated with the societal and s environmental information (section 2.8). This statement of non-financial performance (SNFP) is based on the qualitative and quantitative contributions of the métiers , subsidiaries, and central departments consolidated by the following Group coporate departments: human resources, industrial affairs, construction, legal, finance and sustainable development. From the end of the first half-year, the various contributors came together to rank the subjects they wished to discuss and prepare a schedule extending to the end of the year. Given the time frames, certain annual data is reported at end October (industrial affairs department). Each department uses digital tools to consolidate the information related to their activities. These main contributors rely on their respective networks in order to summarise and highlight the most significant progress and the work carried out on the major strategic sustainable development challenges. This operating mode enables a fairer reflection of operating reality, in an environment in which the activities of the House are very diversified. Finally, the verification work is carried out by an independent third-party (PricewaterhouseCoopers), with audits conducted prior to publication and the issuance of a reasonable assurance report, which is a significantly higher level of certification than the moderate assurance required by law (verification diligence covering around 50% of the workforce, more extensive than that required by French law, at only 20%) (section 2.9). Methodological note

Through their sustainable development approaches, the companies implement practices that reconcile economic and social progress with the preservation of the planet’s natural balances, in a long-term vision. Linked to the 17 United Nations Sustainable Development Goals 1. for 2030, these societal and environmental challenges provide the framework for Hermès’ action in this area. For more than six generations, the values inherent in craftsmanship have flowed through Hermès. These values have shaped its development and, at the same time, its relationship with the wider world. Tangible and woven into daily life, these values inspire all employees, suppliers and partners, through their existence all around as well as though internal networking actions. They form the platform for the actions of the House in matters of sustainable development by appropriating the notions of individual and group responsibility, authenticity in the search for excellence, or acceptance of the long-term approach as a factor influencing performance. The Hermès Group’s craftsmanship model of manufacturing is primarily anchored in the creativity and savoir - faire of the men and women in France and is rooted in the four essential heritages of the House: creation, savoir-faire, exceptional raw materials (often exclusive) and the retail universe. It is based on geographic and cultural proximity between our designers and the craftspeople in our production units. It relies on the manufacturing culture that we enhance and develop, with a desire to ensure the transmission of our exceptional savoir-faire. It is deployed in a spirit of balance and sobriety in the use of raw materials and a commitment to a low environmental footprint. The Hermès Group’s ambition for sustainable development is to contribute to the longevity of its craftsmanship model by enhancing the value of its heritage and to enable virtuous economic and social development, not only for employees and shareholders, but more broadly for its stakeholders, and thus contribute to the future for the next generations. To achieve this objective, the Hermès Group must also control and reduce its impacts, however moderate, on the planet. This goal is also accompanied by a deep humanistic desire to give back to the world some of what the world has given to Hermès. This statement of non-financial performance (SNFP) covers all of the Hermès subsidiaries and Group sites (scope detailed in section 1.7), all

This sets objectives in matters of justice and social inclusion, human rights, international labour standards, respect for the environment and the fight against corruption 1.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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