HERMÈS - 2020 Universal registration document

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CORPORATE SOCIAL RESPONSIBILITY PLANET: ENVIRONMENT

for audits carried out by the Statutory Auditors. Since 2018, all industrial environmental indicators are reported for a period running from November through October. For methodological reasons, some of the activity data used in the Scope 3 carbon emissions calculation cover a calendar year. For the sake of precision, the consumption (water, energy) of farms in the Precious Leathers division in Australia and the United States is presented specifically in this document, as it is different in nature. Moreover, consumption figures for certain leased sites, for which no data are available, are not taken into account either as they are not significant. Oversight of environmental actions occurs in different ways. The industrial affairs department and its HSE Officers exert a first level of control within the context of a “water, energy, carbon, waste” plan that is updated each year. In the context of this effort, the audit and risk management department conducts audits on the critical topics included in the Group’s risk map (§ 4.1 in chapter 4 “Risk factors”). Lastly, external controls are performed on the Hermès Group’s suppliers to ensure coverage of all entities. The industrial affairs department consolidates the results of these audits as part of an ongoing process of improvement. For external suppliers (see § 2.6.1 in chapter 2 “Corporate social responsibility”), the Purchasing Committee reviews the results presented by the industrial affairs department several times a year. It monitors the number of audits conducted per year as well as the quality of the results. The industrial affairs department (IAD), under the control of the audit and risk management department (A&RMD), craft action plans with the relevant métiers and monitors their progress. In 2020, the cristallerie Saint-Louis received a formal notice from the Moselle Prefecture concerning the final phase of the fire water retention compliance work, which is already planned and will be carried out in the first half of 2021. No other industrial site has been subject to a formal notice. The Group did not receive any environmental fines. Chemical products Information concerning management of chemical products is provided in § 2.7.2.2.1. Environmental liabilities The amount of provisions for environmental liabilities is made up of provisions for the cost of asbestos removal work on the roofs of an industrial building and remediation work on a manufacturing site for a total of €8 million. Financial guarantees In accordance with Article R. 516-1 of the French Environmental Code, the Annonay and Le Puy tanneries, the only tanneries within the scope of the system, have provided financial guarantees. The industrial affairs department consolidates the results of these audits as part of an ongoing process of improvement.

Some themes are specific to the Hermès sustainable construction framework, namely the consideration of non-conventional consumption (processes, kitchen equipment, outdoor lighting, etc.), user comfort through specific interior and exterior adjustments and the consideration of the environmental impact from the transport of people and construction materials. In 2020, the Hermès sustainable construction framework included ambitions in line with the Hermès Group’s commitments to respect biodiversity (Act4Nature International) and to reduce CO 2 emissions generated by construction. This framework applies to all new construction or renovation projects relating to office, production and distribution sites in France and abroad. It involves the Group’s project managers and external partners (architects, technical design offices, builders and suppliers) selected by the Group real estate department. In 2020, the Hermès sustainable construction framework was revised for implementation starting in 2021. Without changing the number of criteria applied, this new version includes: an approach based on five objectives that measure the s environmental performance of a structure: carbon emissions, air quality, biodiversity, local sourcing and environmental quality; stringent mandatory criteria which are calibrated for some on a target s performance trajectory. This new version for 2021 is part of a larger initiative: responsible real estate. Responsible real estate aims to: manage and steer the performance of the five framework objectives s gradually over the entire real estate value chain: from a site becoming available for use, to the construction, renovation or refurbishment work; strengthen governance to effectively manage the performance of real s estate activities around: sustainable construction, • compliance of purchasing and practices, • innovation, • measuring progress. • In 2020, the new Guyenne Leather Goods workshop site in St-Vincent-de-Paul (Bordeaux) was awarded the Gold level of the Hermès sustainable construction framework, with an energy performance classified as excellent. Methodology: tools, analysis and monitoring Since 2012, in order to monitor environmental data from its industrial sites, Hermès has used reporting software accessible as a web resource to collect data about consumption at each site. The software also provides access to documentation explaining how the performance indicators are organised and defined. A consistency check is carried out automatically when the figures are entered, and again when the global consolidation is performed by the industrial affairs department, as well as

128 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL