HERMÈS - 2019 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY BUSINESS MODEL

Executive Management and Executive Committee: the Hermès Group management plays an active role in the implementation and rollout of the approach. Axel Dumas, Executive Chairman, is involved in many initiatives, the most visible of which in 2019 was the Fashion Pact. He also worked alongside Jacques Attali for the Positive Economy Institute, and with Entreprises pour l’Environnement (EpE). In 2019, the Supervisory Board (see chapter 3) approved the implementation of a variable compensation component for the Executive Chairman of Hermès based on three CSR criteria (environmental, social and societal). Two members of the Executive Committee sit on the Sustainable Development Committee, and are able to share key challenges within both committees. Sustainable Development Committee: this committee validates the strategy, conducts governance and oversees CSR activities. Composed of 11 members including two members of the Executive Committee, it met five times in 2019. It includes managers from the human resources department, the industrial affairs department, distribution, two métiers (Leather and Textiles), and the Fondation d’entreprise Hermès. It reports to the CAG-CSR Committee of the Supervisory Board twice per year, and its meeting minutes are provided to the Executive Committee. Group’s sustainable development department: reporting to a member of the Executive Committee, it proposes and implements the strategy, and oversees the approach taken by all operating departments and the Hermès Group subsidiaries, both in France and internationally. It monitors accomplishments, coordinates the operation of various committees (the Sustainable Development Committee and a Group Operations Committee), assists local committees and manages cross-functional projects. Group Operations Committee: composed of 34 representatives from the different corporate functions. It analyses and validates projects’ technical and functional aspects and facilitates information sharing between its members. It met eight times in 2019. Local Sustainable Development Committees: maintained by the main métiers and subsidiaries, they initiate and track the actions launched, and share them during regional meetings. For example, the Sustainable Development Committee of the Leather Goods division met four times in 2019. The managers of these Sustainable Development Committees in the Greater China, South Asia and Japan regions met for the 6th time, spending three days in South Korea. The environmental initiatives are driven more specifically by an “HSE network” in France, run by the industrial affairs department. These bodies may be supplemented by management and ad hoc committees when new sustainable development projects are implemented by subsidiaries and entities. Cross-functional committees, led by Hermès’ head office departments, manage issues that are of common interest and often of a medium-term nature. They focus in particular on issues relating to recycling, materials innovation, sustainable construction and logistics.

over the entire value chain, from upstream agriculture to the processes of manufacturing and distribution, until the end of life of the products. The Hermès Group pays special attention to controlling its consumption and industrial waste (water, energy, etc.), as well as to the reduction of its carbon footprint and the environmental footprint of its sites; communities. Hermès is a partner to its suppliers and the regions or s communities in which they are established, strengthening its actions and enhancing its sustainability in response to the quality, ethics, employee relations, economic and environmental challenges. Although suppliers represent just a small part of its activity, they are essential to its sustainable development. More broadly, Hermès operates as a socially responsible company in the regions in which it operates, taking into account the interests of the local populations, in various forms, from investment to skills sponsorship. The Hermès Group CSR strategy tangibly contributes to most of the 17 United Nations sustainable development goals to the year 2030. Its actions incorporate the sustainable principles of the Advanced programme of the UN Global Compact, to which the Hermès Group adheres. Details on this are provided at the end of the sections for each challenge.

2

People

Planet

Communities

Suppliers and Partners

Savoir-faire

Materials

Stakeholders and local integration

Teams

Environment

Governance

GOVERNANCE OF THE CSR APPROACH

2.1.3.3

The actions of the House with respect to sustainable development are steered by a Group sustainable development department and have been supervised by the Sustainable Development Committee since 2007. They involve various functions of the Company.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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