HERMÈS - 2019 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY BUSINESS MODEL

Identification, assessment and ranking of challenges This 2019 analysis involved four internal work groups reflecting the different functions of the House (production, support, retail, métiers ) and the contribution of qualified external observers (elected officials, non-governmental organisations, specialised firms, companies, professional networks). These five groups ranked the challenges according to a dual scale of importance (for the Hermès model and more broadly for the world), as summarised in the four quadrants below (numbers refer to sections in the report): Stakeholders +++ + Hermès + +++ O Ethics – Compliance (2.8) O Well-being and development of employees (2.2.1) O Assume regional responsibility in France (2.7.1) O Manage raw materials sparingly (2.4.2) O Limit greenhouse gas emissions (2.5.2) O Respect and protect biodiversity (2.5.4) O Manage waste (2.5.3) O Preserve and develop savoir-faire (2.3.2) O Recruit talent (2.3.1) O Limiting consumption of natural resources (water, energies) (2.5.1) O Protect high-quality supplies (2.4.1) O A socially responsible company (2.7.2) O Maintain diversity (2.2.2) O Set up long-term partnerships and use of socially supported organisations (2.6.1) O Supporting suppliers (2.6.2)

CSR STRATEGY

Use of results the upper right quadrant of the matrix shows the subjects considered s most important both by stakeholders, and for the development of Hermès. These include subjects related to ethics, human resources (employee development), society (regional responsibility) and the environment (management of raw materials); the major global challenges, considered foremost by the s stakeholders, are in the upper left quadrant: climate change, biodiversity, waste. These themes are moreover the major focuses of the Fashion Pact that Hermès joined in 2019; the subjects assessed (in a relative manner) as most important for s the Hermès model (lower right quadrant) are linked to its uniqueness and its original model, including human aspects (talents and savoir-faire), environmental frugality (purchasing and consumption), and society (giving back to the world as a responsible citizen). These challenges are linked to the five categories of specific risks identified in the Hermès Group risk mapping presented in section 1.11 "Risk factors". Understanding that the notion of risk itself contains an opportunity factor, Hermès uses the term “challenges” to qualify its CSR approach in this statement of non-financial performance. These challenges are summarised as part of its CSR strategy, and described in more detail in the next sections of the document.

2.1.3.2

Since 2015, Hermès has adopted a CSR strategy entitled “All artisans of our sustainable development” , the framework of our CSR strategy applicable to all employees. This is based on appropriation and implementation of the topic at a collective level, a key factor in its sustainability. The Sustainable Development Committee (see below) and the sustainable development department assist and supervise the subsidiaries and métiers of the Hermès Group to ensure its proper application. Three major focuses, further divided into six themes characterise this strategy: people. At the heart of its humanistic values since 1837, human s fulfilment is a priority for Hermès: long-term jobs with a sense of purpose, inclusiveness, diversity and solidarity; health, safety and well-being at work; balance in labour relations, these are all factors deployed by the Hermès Group on a daily basis within the Company. The preservation and transmission of employees’ exceptional savoir-faire is a strategic challenge to secure the durability of our craftsmanship model. The development of production methods that are respectful of craftspeople and of the environment is one of the major focuses of our work. These two challenges contribute to the Group’s sustainability; planet . The durability of the Hermès Group’s activities is based on s the availability of high quality, mostly renewable materials, that are at the heart of the distinctive identity of the House, the primary condition for the high quality of its products. Hermès is constantly seeking ambitious but pragmatic solutions, with a long-term vision, to better preserve the environment. Demanding requirements and audits of the supply channels, with continuous support for their improvement; careful use of materials to prevent waste; waste management, etc., the Hermès Group is committed to improving control of its impacts

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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