HERMÈS - 2020 Universal registration document

4

RISKS AND CONTROL RISK FACTORS

SAFETY ●

4.1.2.4

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The safety of property means all measures and means for combating threats and malicious acts. The main threats identified are: physical damage to property, people and infrastructure, and damage to savoir-faire and intangible property. POTENTIAL IMPACTS ON THE GROUP s Such breaches could cause damage to property and people working throughout the Group’s sites (production, distribution or logistics). Moreover, they could expose craftpeople and sales associates to risks, causing moral and psychological damage to all Group employees. In addition to direct financial losses, they could harm the Group’s image.

The following actions have been taken: safety governance is set out in a safety policy covering the entire • production and distribution network; in the case of a serious event, a crisis management process is • implemented. This provides for the setting up of a crisis unit with dedicated resources made available. Crisis management exercises are regularly conducted. Hermès is organised so as to take account of these risks on a daily basis: a central monitoring station, operating round the clock, is connected to the 60 production and distribution sites in France. The Group took the decision to employ 60 agents in its internal security division, to which external service providers are added. A computerised security and crisis management tool is being implemented. In particular, it makes it possible to standardise operational procedures between the various teams of the Group safety department, while promoting real-time and consolidated information sharing. It also has specific crisis management functionalities. This system is also backed by partnerships set up through agreements signed with the police force and the Ministry for Europe and Foreign Affairs. Safety incidents are reported in a specific database and are regularly reported to the Group Safety Committee and the Audit and Risk Committee. They are analysed in detail, contributing to the continuous improvement of the system. In line with the health situation, safety measures were reinforced during lockdown and closed sites were subject to particular vigilance.

334 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL