HERMÈS - 2018 Registration document

Corporate social responsibility

planet: environment

CHALLENGE: MANAGING OUR GREENHOUSE GAS EMISSIONS

2.5.3

Programme for renewable energies Hermès aims to use energy from renewable sources whenever possible. In France, through supply contracts with its supplier, the electricity that Hermès uses is certified as coming 100% from renewable sources. This means that 80% of the Group’s electricity consumption is of renewable origin (in a context where 70% of production is carried out internally). In addition, the Group is developing “pilot” initiatives that it aims to expand alongside new investment projects, available technologies and the regulations in force: s s in Pantin ( Cité desMétiers , 27,000m 2 site), heating is provided using geothermal energy, in ITH, solar panels are in place; s s in three production sites (Belley, les Abrets and Nontron production units), wood-fired boilers provide heating for the building; s s in 2018, the new Maroquinerie de l’Allan in the municipality of Allenjoie (Montbelliard) produced 11% of its electricity needs using photovoltaic panels installed on the roofs of the building; s s in the USA, the Dayton logistics centre in New Jersey has been equip- ped with photovoltaic panels on the roof since 2017, allowing produc- tion of the electrical energy required by the site. This Centre received LEED Gold Certification in 2018. In Italy, HCI’s premises are equipped with solar panels (which will be gradually extended in the next few years) for the production of electricity to cover consumption on the site.

Control our greenhouse gas emissions through direct reduction actions across the entire value chain and through a voluntary offset of our emissions. Policy As mentioned above, Hermès is gradually taking practical measures to reduce its energy consumption and carbon footprint from scopes 1 and 2. Group policy is to assess the impact of our activities across all scopes (1, 2 and 3), to launch emission reduction actions in priority on various categories where the Group can take action, and to implement initiatives to offset our Scope 1 and 2 emissions. The Group’s approach is aligned with the COP 21 Paris Agreement. The GHGpolicy is overseen by the Sustainable Development Committee, on which two members of the Executive Committee sit, as well as the Executive Vice President in charge of Industrial Affairs and the Executive Vice Presidents directly in charge of theGroup’smajor emitters ( métiers , logistics and real estate). The Group’s carbon strategy was approved by the Executive Committee. Measures implemented and results Since 2013, the Group has been equipped with the tools needed to carry out an annual update of the overall assessment of greenhouse gas emissions from its production and distribution sites. This work is carried out with the help of an independent external specialist, using the Bilan Carbone®method. In compliance with the requirements of the applicable regulations (Article 75 of law 2010-788 of 12 July 2010), in December 2015 Hermès published its Bilan Carbone®, as per the method and scope indicated by the legislation (direct emissions gene- rated by fixed and mobile sources, and indirect emissions associated with the consumption of electricity, heat or steam). 2.5.3.1 2.5.3.2

2

Raw materials

Downstream logistics

Sources controlled by the legal entity

Electricity, heat, etc.

Upstream freight

Work-related travel

Other purchases

Other

Direct sources (Scope 1)

Other indirect sources* (Scope 3)

Energy-related indirect sources (Scope 2)

Other indirect sources* (Scope 3)

Upstream

Downstream

* Sources of emissions unaffected by regulatory requirements Source: Ministry of the Environment

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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