HERMÈS - 2020 Universal registration document

CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

PLANET: ENVIRONMENT

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The Group’s sustainable development involves controlling and reducing its environmental impacts, as part of a responsible approach to its operations. More broadly, Hermès contributes, through its commitments and actions, to the fight against climate change and the preservation of biodiversity for a responsible and sustainable development. Introduction Respect for nature, the source of its exceptional raw materials and the living environment surrounding its sites, is one of the Group’s strong and unwavering values. In 2002, the Group drafted an environmental policy aimed at limiting the impact of its activity across all areas. Pragmatic but ambitious solutions to preserve the environment in the long-term are systematically sought, trying to go further than regulatory requirements wherever possible. The priority is to control the impacts across the entire value chain, from upstream agricultural production to distribution, and from purchases to internal operations. This commitment is a mindset that requires the involvement of everyone, from investment decisions to everyday eco-actions, together with a robust environmental, health and safety (HSE) culture on all sites. It is structured around policies, procedures, tools and major commitments: reduce greenhouse gas emissions by 50% by 2030 (reference year: 2018, in absolute value for scopes 1 and 2, in relative value for scope 3) s (see § 2.5.2.2 of chapter 2 “ Corporate social responsibility ”); offset more than 100% of its carbon emissions in scopes 1 and 2 , with ecological and social projects s (see § 2.5.2.3 of chapter 2 “Corporate social responsibility” ); use 100% renewable energy in its own operations by 2025 and reduce the carbon footprint per m 2 of surface area built or renovated by 2030; s reduce the intensity of its industrial water use by 5% per year (see § 2.5.1.2 of chapter 2 “Corporate social responsibility” ); s conduct an inventory of its impacts on biodiversity (work in progress according to the GBS method 1. with WWF and CDC Biodiversité), and initiate s action plans on major scientifically identified topics (see § 2.2.5.3 of chapter 2 “ Corporate social responsibility ”); defossilisation of industrial sites : no longer use gas or any other fossil fuels as an energy source for all new industrial investments, unless this is s proven technically impossible. Since 2012, the Group has set up digital management systems to measure the environmental footprint of its sites. In 2013, the approach was extended to include a greenhouse gas emissions calculation; since 2015, the environmental impacts of the Hermès Group’s real estate have also been measured using an automated process. These efforts drive improvements in operational practices. Subsequently, since the Hermès Group launched its environmental programme in 2002, and despite the five-fold increase in its industrial output in 2020: water consumption by industrial sites increased by only 2.1% between 2002 and 2020, reflecting the efficiency of the programme and the s water-saving actions, in particular within the tanneries and the Textile division, where water is a precious resource; energy consumption by industrial sites multiplied by only 1.74 between 2002 and 2020, testifying to the improved control of consumption, with s tanneries and crystal manufacturing using half of all the energy consumed by the industrial sites. Water and energy consumption in 2020 were obviously impacted by the pandemic that marked this year. Activities at all industrial sites, with the exception of the Vaudreuil perfume site, which was used for the production of hydroalcoholic gel, were suspended from 16 March. They gradually resumed from mid-April at a pace adapted to each métier in order to guarantee healthy and safe working conditions. Environmental topics are supervised by a member of the Executive Committee in charge of the Manufacturing division & Equity Investments, who is supported by a Deputy Managing Director, in charge of the House’s industrial affairs department, and by the Group real estate department. An annual analysis is conducted by the main métiers of the House when the strategic plans are being prepared to identify issues in terms of environmental protection. These various challenges go hand-in-hand with practical objectives shared with the Executive Committee. From a regulatory perspective, the Hermès Group’s policy is to establish action plans that are adapted to the various métiers , in order to understand and comply with regulations (primarily adapted to a very rigorous European legal contest) but also to monitor progress made. Each métier is responsible for monitoring and implementing the applicable regulations. The industrial affairs and Group real estate department are responsible for alerts, oversight and control in this area.

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Global Biodiversity Score. 1.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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