HERMÈS - 2020 Universal registration document

RISKS AND CONTROL RISK FACTORS

RESPECT FOR HUMAN RIGHTS, ETHICS AND FUNDAMENTAL FREEDOMS ●

4.1.4.3

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The Group has a two-fold requirement: zero tolerance for breaches of probity on the one hand, and a determined commitment to a culture of ethics, on the other. The approach is structured around a specific governance, carried at the highest level of the organisation, by tools that formalise our commitments and by a policy of identification, assessment, awareness, prevention and detection of these risks as well as control systems: 1. The Group has written its ethics values and its commitment to respect for human rights and fundamental freedoms into the following documents: an ethics charter that defines Hermès’ relationships with its • employees and suppliers, a code of business conduct that dedicates a section to human • rights and fundamental freedoms, an anti-corruption code of conduct that sets out the rules to be • followed in terms of integrity and probity, commitment handbooks, signed by suppliers and commercial • partners, that explicitly address these subjects. These charters and codes, which are regularly updated, are in line with fundamental principles such as the Universal Declaration of Human Rights, ILO rules, the OECD guidelines and the United Nations Global Compact as regards sustainable development; 2. In accordance with law 2017-399 of 27 March 2017 on the duty of care of parent companies and contractors, the Hermès Group has drawn up a duty of care plan. It aims to identify the risks and prevent serious violations of human rights and fundamental freedoms, the health and safety of people and the environment, resulting from its activities, as well as from the activities of its subcontractors or suppliers. Systems for identifying, mitigating and preventing these risks have been put in place for employees, suppliers and subcontractors; 3. Regular risk analyses and procedures assessing the situation of suppliers and subcontractors, as well as audits, make it possible to verify in situ the reality of the commitments made by our suppliers in terms of social commitments, human rights and fundamental freedoms. health and safety and compliance with environmental regulations and standards; 4. An internal and external whistleblowing system makes it possible to report any breaches or situations contrary to ethics, social and environmental principles. The content of these action plans is detailed in chapter 2 of this report.

The risks of serious infringement of human rights, fundamental freedoms, our ethics values and the health and safety of people mainly concern our external activities. Over 60% of the workforce is in France and is therefore subject to strict regulations. The multiplicity of our métiers and supply chains, combined with our desire to use the exceptional raw materials in which they are produced, leads us to work in partnership with suppliers from sometimes distant countries and requires constant vigilance regarding the respect of these rights throughout our value chain. POTENTIAL IMPACTS ON THE GROUP s A violation of human rights and fundamental freedoms would be contrary to the Group’s ethics values and would have a strong impact on its reputation and image.

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2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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