HERMÈS - 2020 Universal registration document

4

RISKS AND CONTROL RISK FACTORS

INTELLECTUAL PROPERTY AND COMBATING COUNTERFEITING ●

4.1.3.2

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The Group has a particularly comprehensive portfolio of brands, models, patents and domain names, which is regularly expanding. Within each métier legal division, teams are specifically dedicated to these issues and ensure that the Group’s creations are protected effectively. Finally, the Group ensures that its rights are respected and pursues an active anti-counterfeiting policy involving both preventive measures (training) and coercive measures (administrative, civil and criminal proceedings) across the world and particularly on the Internet. These measures are initiated by the anti-counterfeiting department with the support of external advisers and in collaboration with the competent local authorities in the fields of intellectual property and the fight against counterfeiting. They are carried out both in traditional markets and on the Internet (online sales platform, social networks, retail websites, instant messaging, etc.). These actions enable hundreds of thousands of counterfeit products to be seized and destroyed each year, the source of these products to be identified and the Group’s rights to be recognised, and the payment of damages to compensate for the prejudice suffered. risks related to changes in major global issues regarding climate and s biodiversity; risks related to availability and judicious use of natural resources s (water, energy, raw materials, waste management and recycling); risks related to human rights and fundamental freedoms, and in s particular, as regards the ethics aspect of our relations and more broadly the well-being of our employees. More details by type of risk, and the mitigation and prevention mechanisms for these risks are addressed specifically in chapter 2 of this report.

The Group is very committed to the protection and defence of its intellectual property rights. It is very active in the fight against counterfeiting, particularly on the Internet. POTENTIAL IMPACTS ON THE GROUP s Infringements of the Group’s intellectual property rights could have a negative impact on its revenue and damage its brand image.

RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY

4.1.4 The Group’s social, societal and environmental responsibility challenges are described in detail in chapter 2 of this document, and are articulated around the Hermès Group’s six strategic sustainable development pillars: teams; s savoir-faire ; s

raw materials; s environment; s suppliers and partners; s stakeholders. s

A materiality analysis was conducted in 2020 with five internal working groups and a panel of external stakeholders. The detailed results are presented in chapter 2. This study confirms and sets out the analysis conducted more widely at Group level in 2019 on three main themes:

336 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL