HERMÈS - 2020 Universal registration document

CORPORATE SOCIAL RESPONSIBILITY PLANET: RAW MATERIALS

risk, but the solvents contained in these glues have potentially harmful effects on health when they are released into the atmosphere. The Group is continuing work in three directions to reduce these emissions: streamlining the daily use of these adhesives through procedures and the development of an adhesive application machine, the replacement of current adhesives with adhesive films, and the replacement of current adhesives with ones containing less solvents. Based on initial work, glue consumption decreased by 10% between 2019 and 2020. In addition to these major areas coordinated by the division, each site also suggests initiatives for the responsible use of its materials and reduction of its consumables. In this way, the AEI site has reduced the weight of plastic used for packaging items by 27%, and has acquired a new packaging machine that halves the amount of plastic required. It has also discontinued the use of opaque plastics, which caused waste during changeovers. The ATBC establishment has also undertaken an approach to reduce plastic packaging by developing new inter-site transport bags. The estimated saving for 2021 is around one tonne of plastic. At the Gandit establishments, the recycling of printing frames is continuing and represents approximately 13% of the total number of frames, after rigorous selection in order to maintain a high level of printing quality. The fixing-washing workshops of Ateliers AS and Siegl are equipped with automatic dosing systems for the washing machines. In addition to reducing the teams’ exposure, this system helps to optimise the consumption of soap and related products. Holding Textile Hermès logistics only uses cardboard from recycling circuits for its packaging. These boxes are then reused or recycled by the service provider Paprec. In 2020, the commitment within the Fashion Pact resulted in work with the main cotton suppliers in order to be able to switch all cotton supplies to organic cotton or GOTS for packaging. These improvements will take place gradually from 2021 on emblematic and widely used elements, namely the herringbone covers and wrapping ribbons, which will significantly reduce the corresponding water consumption. Hermès Femme The Women’s division’s sustainable development team has devoted most of its resources to rolling out projects in favour of a circular economy, both internally and in partnership with external players. The team co-leads an inter-business Circularity Committee bringing together all Hermès experts around shared projects. Several recycling pilot projects as an alternative to destruction made it possible to recycle 15 tonnes of textile materials in 2020 as well as to recreate 39,000 products . Tools promoting reuse and internal up cycling have been jointly developed: decision trees to guide the métiers in their second-life circuits, up cycling bridges between métiers, and direct contact with external reuse and recycling partners. Finally, as part of an operational project aimed at maximising donations of finished products to several charities, more than 500 articles of uniforms and shoes were donated.

Textile Once the raw materials have been provided (essentially silk, cashmere and cotton), the Textile division takes over all processing tasks: weaving, printing, finishing, fabrication. This unique integrated process makes it possible for us to control the use of materials down to the last thread. All manufacturing units in the division are involved in very active waste and scrap minimisation programmes, as part of the quality initiative that drives the whole sector. This objective of maximising the use of materials is at the heart of the division’s production model. For example, silk pieces are selected according to their quality to adapt the materials to the printing techniques. Some silk accessories are made from very wide pieces, which reduces the amount of cutting waste and limits energy and water requirements throughout the process. In the same way, the lengthening of printing tables at Ateliers AS enabled substantial savings in dye and textiles, thereby reducing offcuts. Finally, a working group of representatives from each Holding Textile Hermès division unit was launched in 2019 to optimise cashmere use. 2020 was devoted to analyses and technical tests to validate ways of reducing waste, such as reducing losses by sending short lengths of cashmere that cannot be used in production to a dedicated workshop, or reducing the width of pieces to improve the ratio of printed surface to the area of the material. The objective is to implement on an industrial scale, from 2021, the main solutions identified. Thanks to precise monitoring of products initially discarded and a strong development dynamic with the métiers , new products have been created in a spirit of “up cycling”. Thus, in the Fall-Winter 2018 collection, 76% of the products initially rejected were given a second life and more than 10,000 silk and cashmere items were reused in the Up-Silking collection. Lastly, the manufacture of 10,000 textile masks to protect employees has also made it possible to reuse 6,000 meters, or more than one tonne of cotton. The division is also working with a number of different service providers to find ways to re-use and recycle textile waste and production offcuts. A cross-functional working group has begun to work with partners in France and abroad to research methodologies for recycling silk and cashmere. Several tonnes of materials were used in tests to recreate acoustic panels or clothing. These multiple initiatives are designed to lead to industrial processes aimed at up cycling most of the textile production scraps. Since June 2018, a multidisciplinary team from the Ateliers AS and Siegl production sites and process departments have been seeking ways to reduce adhesive consumption at the printing sites. Glue is essential to the process since it holds the textile in place during printing. Holding Textile Hermès complies with the regulatory framework for managing this

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2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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