HERMÈS - 2018 Registration document

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Corporate social responsibility

planet: environment

In Europe (excluding France) almost 90% of stores are covered. In Asia, over 95% of stores in Greater China (mainland China, Hong Kong and Macao) and100%of stores in Thailand, Malaysia and Australia are cove- red. In Japan, the four main stores are also included. For the Americas, 95% of stores are covered, including 90% of stores in the United States. Optimisation of consumption Improving energy efficiency in our stores means optimising the main areas of energy consumption, which are lighting and air conditioning. Lighting – 80% of stores are fitted with LED lighting Since 2013, an “all-LED” lighting solution for all window displays, shel- ving and ceiling lights has been extended to all new store projects. In 2014, the store projects department introduced a range of LED bulbs specially developed for Hermès and suitable for all existing installations and equipment. In 2018, in addition to the new stores, LED “relamping” operations conti- nued across the global network of existing stores. These three actions brought the total proportion of Group stores equip- pedwith LED lighting systems to80%at the end of 2018, with an average reduction in energy consumption of about 20%. In addition, window and store lighting schedules are controlled across the entire Hermès distribution network in order to reduce energy Lower electricity consumption, coupled with the fact that LED lighting generates far less heat than traditional lighting, has enabled us to consi- der downsizing in-store air conditioning units. This programme continued for all new store and renovation projects throughout 2018. Thermal insulation Special attention is paid to insulating store façades and industrial buil- dings by improved external insulation. Other initiatives (installation of individual electricity consumptionmeters and motion detector systems in fitting rooms, washrooms and back offices) were taken on all new store projects in 2018. These automated energy consumption consolidation systems offer constant visibility allowing rigorous management of energy use. Increasingly efficient new technical solutions are constantly being evaluated for gradual incorpo- ration into existing stores. consumption. Air conditioning

In 2018, thermal diagnostic tests were conducted on structures on two former production sites. These diagnostic tests make it possible to define a multi-annual programme aimed at renovating buildings and technical equipment to improve the sites’ energy efficiency. Consumption of stores Stores consumed 31,305 MWh of electricity in 2018, an increase of approximately 0.20% on 2017. These figures are correlated to a large extent by a balance between sales surface areas, mainly in Asia and the United States, from store closures and openings. The downward trend in the ratio of energy consumption to sales surfaces (KWh/m 2 ), especially in France, the United States and China, is attri- butable chiefly to the increase in LED lighting, together with improved management of energy consumption, which continued in 2018. Officesandancillary premises consumed15,846MWh in2018, 14,053 MWh of which at the Paris and Pantin sites.

BREAKDOWN OF ELECTRICITY CONSUMPTION OF STORES BY GEOGRAPHICAL AREA IN 2018

2017 November 2017 - October 2018

31,234

31,305

7,991

8,624

6,284

8,702

8,318

4,308

3,959

6,306

4,376

3,670

France (HSDF)

Europe (excluding France)

Americas

Japan Asia-Pacific

Total (MWh)

(excluding Japan)

ELECTRICITY CONSUMPTION OF STORES BY GEOGRAPHICAL AREA (IN MWH)

12.7% (11.7%) France (HSDF)

27.6% (27.8%) Asia-Pacific (excluding Japan)

Europe (excluding France)

20.1% (20.2%)

14% (13.8%) Japan

Americas 25.6% (26.6%)

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL