HERMÈS - 2020 Universal registration document

CORPORATE SOCIAL RESPONSIBILITY COMMUNITIES: SUPPLIERS & PARTNERS

In keeping with the supplier information questionnaire, these audits cover the following seven issues:

BREAKDOWN OF SUPPLIER AUDIT FINDINGS BY FAMILY

Financial condition 2%

Ethics 3%

Business continuity plan 7%

Environment & Sustainability

Confidentiality 3%

2

Business ethics & anti-corruption

Health & Safety

Human Rights & Fundamental Freedoms 7%

Scope of work

Human rights, fundamental freedoms & social

Confidentiality

Environment & Sustainable Development 19%

Health & Safety 59%

Business Continuity

Hermès puts the safety of people at the heart of its concerns, and the level of audit requirements on the subject of health and safety is therefore particularly high. As a result, 57% of findings were related to this theme, i.e. 347 findings, of which 31% were deemed critical or major. The three “critical” findings related to fire safety compliance issues, which were resolved immediately after the audit.

Finance

Of these seven topics, the three priorities, which meet our obligations under the duty of vigilance law, are: social, human rights and fundamental freedoms : child labour, forced s labour, discrimination, gender equality, undeclared work, employment contracts, wages, working hours, overtime, etc. ; health and safety of people : fire prevention, workspace risk analysis, s chemical risk, individual protection equipment, training, medical checks, etc. ; environment : regulatory compliance, emissions/discharge s management, wastewater management, waste management, chemical storage, sustainable development policy. The health situation related to Covid-19 had a strong impact on the supplier audit programme for 2020. Nevertheless, 55% of planned audits could be maintained, the vast majority in France and Italy. Nevertheless, it was possible to carry out a total of 71 audits, including 50 audits of tier 1 suppliers and 21 of tier 2 suppliers. These audits led to the identification of 609 findings, of which 0.5% were considered critical , 25% major and 43% significant. The remaining 31.5% concern simple points of improvement, proposals for best practices to encourage suppliers to constantly improve in a process of continuous improvement.

BREAKDOWN OF SUPPLIER AUDIT NON-COMPLIANCE

293

205

172

3

Critical

High

Medium

Low

The most frequent major observations in terms of personal health and safety relate to: fire risk: non-compliance of electrical installations, difficult to access s emergency exits and equipment, ATEX (Explosive Atmospheres) study not carried out; chemical risk: unrealistic inventory, substitutes for CMR products s (carcinogenic, mutagenic and reprotoxic) not sought, no measurements of exposure to substances with OELs (occupational exposure limits);

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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