HERMÈS - 2020 Universal registration document

3

CORPORATE GOVERNANCE FUNCTIONING OF THE SUPERVISORY BOARD

Purpose

Main duties and work carried out in 2020

keep itself informed at each meeting of all transactions carried out by the Executive Chairmen pursuant to the s AMF’s position-recommendation set out in DOC-2016-08 “Guide to ongoing information and managing inside information”; examine and/or approve the reports and work of the CAG-CSR Committee described § 3.5.2.4 and be informed of s governance news (AMF reports, Afep-Medef reports, HCGE report and application guide, IFA studies, etc.); approve the revised rules of procedure of the Supervisory Board, the CAG-CSR Committee and the Audit and Risk s Committee; review the annual report of the Chairman of the Supervisory Board on his duties with regard to shareholder s dialogue; take note of the gender equality objectives set by the Executive Management, as well as its implementation s methods and the results obtained; approve or refuse the acceptance by an Executive Chairman of any new office in a listed company [n/a in 2020] ; s ensure that the Executive Corporate Officers implemented a policy of non-discrimination and diversity, notably with s regard to the balanced representation of men and women on governing bodies; decide on the diversity policy applied to the Supervisory Board (representation of women and men, nationalities, s ages, qualifications and professional experience, etc.); conduct a periodic self-assessment of its operation; s set the amount of preparation time allocated to the members of the Supervisory Board representing employees to s carry out their duties (minimum 15 hours per Board meeting); determine the content of the training programme to be followed by the members of the Supervisory Board s representing employees. be informed through the CAG-CSR Committee of the main issues facing the Company in the area of corporate s social responsibility; assess the level of achievement of the CSR criterion attached to the compensation of the Executive Chairmen, s through the CAG-CSR Committee. establish the compensation policy applicable to members of the Supervisory Board; s issue an advisory opinion on the compensation policy for Executive Chairmen established by the Active Partner; s set the allocation and payment of compensation of members of the Board and committees; s be informed of the adoption of free share allocation plans by the Executive Management [n/a in 2020] ; s be informed of the payment of additional profit-sharing decided by the Executive Management. s ensure the implementation of a system for the prevention and detection of corruption and influence-peddling and s be regularly informed of the Group’s situation; be informed of the personal data protection system put in place within the Group and its compliance with the s GDPR regulation (European regulation of 27 April 2016 No. 2016/679). authorise and declassify, where applicable, related-party agreements and carry out an annual review of those s whose effect persisted over time (see the Supervisory Board’s report to the General Meeting in chapter 8 "Combined General Meeting of 4 May 2021", § 8.3); established a procedure for the regular evaluation of current agreements concluded under arm’s length conditions s and take note of the annual report of the Current Agreements Committee; take note of the summary of the services provided by Hermès International to Émile Hermès SARL during the past s financial year and the forecasts for the coming financial year; discuss the Company’s policy with regard to gender equality and equal pay; s authorise the Executive Management to grant sureties, endorsements and guarantees to commitments by the s companies controlled without limit of amount and time and was informed annually by the Executive Management of the guarantees granted; conduct an annual review of all sureties, endorsements and guarantees granted that are still in force; s take note of the opinion of the Social and Economic Committee on the strategic orientations of the Company, on s which the Executive Management was required to formulate a reasoned response; approve the updated Hermès Group Stock Market Ethics Code; s remind the relevant persons of the responsibility inherent in holding inside information and take note of the s blackout periods applicable to permanent insiders; be informed of the content and impact of legislative and regulatory developments affecting the Supervisory Board; s approve the amendment of certain Articles of Association of Émile Hermès SARL, Active Partner [n/a in 2020] . s attend several detailed presentations in the year on a specific or general topic relating to the Group’s activity; s devote one of its meetings to a site visit to improve its knowledge of one of the Group’s subsidiaries or to gain a s concrete understanding of an area of the Group’s activity.

Governance

CSR

Compensation

Ethics and compliance – Personal data protection

Recommendations, authorisations and other items

Major annual topics – Site visits (see § 3.4.2.6 and 3.4.2.7)

280 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL