HERMÈS - 2020 Universal registration document

4

RISKS AND CONTROL RISK FACTORS

RISKS RELATED TO STRATEGY AND OPERATIONS

4.1.1

IMAGE AND REPUTATION ●

4.1.1.1

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

Hermès, through all its production and distribution entities, has built a robust internal control system for all key processes to protect its tangible and intangible assets, including its image and reputation. The Group has rolled out an ethics charter, a code of business conduct and an anti-corruption code of conduct to all employees. These three documents are sent to all new employees as soon as they join the House and are also made available to them on our HermèSphère Intranet in the “Our Ethics” section and on the external website https://finance.hermes.com./en/ethics-human-rights-and- diversity/. Additional training on anti-corruption laws was also organised for operational staff in 2020. In order to act in accordance with the House’s ethics principles and values, the Group also ensures the proper conduct of the various third parties with which it has a business relationship (suppliers, partners). Systems have been set up for managing risks in ethics, CSR, etc. and are detailed in chapter 2. Through the structure of its family shareholding, the House remains independent in the way it implements its strategy and conducts its operational activities, which are always carried out in line with its values. The Group has also put in place a permanent monitoring system on the web under the responsibility of the Group communication department. Hermès also has a crisis management manual which serves to prevent, manage and limit the impacts of undesirable events on the Company.

The reputation of the Hermès Group is underpinned by the quality of its products and services offered to customers, the savoir-faire of its craftpeople and its unique communication. In a globalised world and given the development of social media and their growing influence, negative or inaccurate media coverage or personal behaviour that is contrary to the House’s values of ethics and integrity could affect the Group’s image and reputation. POTENTIAL IMPACTS ON THE GROUP s An unfavorable media campaign could negatively affect the image of the Group.

Hermès’ actions and achievements in the fields of ethics and compliance are described in chapter 2 of this report. Note:

326 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL