HERMÈS - 2020 Universal registration document

CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

Description of risks and challenges The House’s industrial affairs and the Group real estate departments have implemented programmes to address the House’s environmental challenges. 1) The industrial affairs department , together with the métiers and all s players in the production entities, is pursuing an environmental policy formally approved by the Executive Committee to: comply with workplace Environmental Health and Safety (HSE) • regulations and to prepare for changes in these regulations whenever possible. The industrial affairs department coordinates a network of HSE Officers at the manufacturing sites; respect natural resources, particularly water, and control energy • consumption; enhance production processes by choosing the cleanest, most • energy efficient technologies and the most environmentally-friendly materials available; minimize waste production and recycle it as much as possible; • limit the “carbon” impact of the activities, prepare the energy • transition and adapt to climate change. The industrial affairs department, with the support of the sales and group real estate department, manage the House’s energy programmes (construction, transport). In addition, the House’s environmental policy includes the following elements: a commitment to respect and protect nature and biodiversity, in • particular through participation in the Act4Nature initiative from 2018, then Act4Nature International in 2020 , and through work with WWF France; the implementation of a métier -based environmental management • system, coordinated by the industrial affairs department and operating on a network basis (see network of HSE Officers above); a desire to use natural resources sparingly, particularly with regard • to energy, water, and, more broadly, all natural materials needed to manufacture products; reduction of the House’s environmental footprint, especially in • terms of discharges, emissions and waste management, which includes seeking to optimise the resources used. Since 2012, the Hermès Group’s policy has incorporated the concept of voluntary carbon offset (see § 2.5.2); internal monitoring of the results of these policies, through • operational dashboards and reporting, that is controlled by the industrial affairs department and serves as a basis for external audits; a practice of sharing and discussing with external stakeholders, • within the legal framework of the DREALs (Regional Directorate for the Environment, Planning and Housing) in France, including with the municipalities where the sites are located, as well as with

professional and regulatory associations for the supply of natural materials (for example, in exotic leathers): WWF, Crocodile Specialists Group, CSG or IUCN; membership of the Fashion Pact; • finally, the House is committed to securing sustainable recycling • processes and developing channels for the reuse of these materials. 2) Real estate : since 2008, the Group’s environmental real estate s policy has been coordinated by the Group real estate department, based on the following principles: the systematic adoption of an environmental stance during • building work; helping to protect the environment by integrating buildings with • their surroundings and the local architecture, while simultaneously respecting the ecosystem; use of renewable energies whenever possible; • employing energy-saving methods; • focusing on building quality: design, functionality and • sustainability, in a constant effort to ensure the well-being of users, employees and customers; striving for flexible, adaptable construction projects that integrate • future developments and running costs from the outset; anticipating, as much as possible, and monitoring changes in • regulations and techniques to take them into account in projects, in close collaboration with stakeholders, architects, engineers and suppliers. Sustainable construction framework Since 2016, in order to improve the coordination and control of environmental actions involving internal staff and external service providers, the Group’s real estate department has drawn up a sustainable construction framework based on three main ambitions: This sustainable construction framework is designed to adapt to the specific characteristics and functions of Hermès Group constructions. More stringent than the main frameworks existing on the market (LEED, BREEAM, High quality environmental), it covers about 30% more criteria . These frameworks are not operational performance management tools, as they often include indicators that are not adapted to the specificities of the House. The internal framework is a tool for progress, where each measurement criterion corresponds to an action. Most of the performance levels required by the Hermès framework are most stringent and take into account the geographical, regulatory and economic environment of the real estate project. reduce the ecological footprint; s promote the well-being of users; s conserve vital resources. s

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2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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