HERMÈS - 2018 Registration document

2

Corporate social responsibility

planet: environment

Tanneries The raw material used in the tanneries is whole hides, referred to as “raw” hides, which are organic putrescible products. Tanning involves processing the hide into finished leather, which is a durable product. The reduction of tannery waste naturally starts with the continuous impro- vement of the quality of the raw hides. Tanning generates unavoidable waste, associated with trimming the edges of the skins (“trimming”) or preparing the internal surface of the hide (“fleshing”). Processing skins in successive baths also generateswaste (in the formof sludge). The tan- neries are constantly seeking new reuse channels for this waste and are active participants in the think tanks that we bring together at Hermès to discuss leather waste, and in the work done by the Centre Technique du Cuir (CTC), the French expertise center on leather. The production of non-hazardous waste in the division was stable in 2018 (+1.7%). However, the amount of hazardous waste produced decreased significantly (-27%). This decrease is due to cleaning effluent treatment sludge accumulated in old, unused reed beds at the Vivoin tannery. This cleaning was carried out in 2017 and generated conside- rable amounts of sludge. Generally speaking, the production of hazardous and non-hazardous waste within exotic leather tanneries, on the one hand, and calf leather tanneries, on the other hand, is relatively constant from one year to the next. 100% of the waste produced was evacuated to approved channels and the at-source sorting of paper/cardboard, metal, plastic and glass waste streams was set up at the French and Italian sites. Similar sorting solutions are currently being sought out by the RTL tannery in the United States. On-site waste storage is optimised to prevent any pollution (sheltered storage areas, retention basins, etc.) and regular awareness-raising ini- tiatives focusing on sorting and the layout of work areas are carried out among employees. Silk The division maintains a close relationship with its non-hazardous waste management service provider, PAPREC. Throughmonthly meetings invol- ving the division’s sites and the main stakeholders of our service provi- der’s local branch, waste recovery and recycling solutions are always prioritised and the most relevant and responsible solutions for each of our waste streams are approved. Waste management requires a great deal of flexibility and adaptation on the part of the various stakeholders. Developments in global waste markets, for example China’s changes in this area, or local restrictions (saturation of landfills in Rhône-Alpes), necessitate careful manage- ment of these topics. The service provider visits our production sites to raise employee awar- eness of sorting and stress the essential gestures and present the various channels of our waste treatment process. These awareness-rai- sing operations were rolled out in 2018 at Établissements HTH, AEI and Ateliers AS. Despite a situation that is tense at the ends of the hazardous waste treatment channels, the dye waste (accounting for 50% of our waste (all streams included) is still 100% used for the manufacture of alternative fuel.

Leather Goods The Leather Goods and Saddlery division, with 19 production sites in France, has made a strong commitment in this area. It has, for instance, been using a recycling programme for all leather offcuts for several years. As explained above, all leather offcuts from the production units are resold to special processors to be reused. Waste generated in the Leather Goods division amounted to 832 tonnes in 2018, an increase of 12% compared with 2017. This rise reflects waste generated during improvement works and the number of events on the Paris sites (sites that are shared but managed by the métier). Despite this increase in activity, hazardous industrial waste decreased by five tonnes between 2017 and 2018. This was due to better sorting quality and to increased work upstream with our service providers, who helped us identify themost appropriate channels in amore relevant way. Each type of waste is directed to an appropriate treatment or sorting chain. Perfumes CNPcontinues tosort and recover waste. The volumeof wastedecreased in 2018 (6%) despite a 4% increase in the volume of bottles packaged. The share of recycling/recovery remains stable with 66% recycling and 30% energy recovery. Among this waste, packaged alcoholic products, cosmetics, point-of-sale advertising and packaging items destined for destruction are reused by a specialist external partner. A new unsold soap recycling operation was conducted during the year with external partners to unpackage, crush and recreate bars of soap that were donated to charitable associations (7 tonnes). A similar opera- tion for 12 tonnes of soap took place in 2017. Crystal For the Cristallerie, waste reduction is a major economic and ecological issue, which is closely tracked. In 2018, cullet recycling was maintained at 65% (compared to 2017) despite the difficulties encountered in the operation of the new continuous recuperative furnace. This recycling rate will remain a focus of attention and improvement over the coming months. The significant increase in the amount of OIW, compared to the previous year, was due to the scrapping of certain wooden elements and pallets stored in the dispatch warehouse. The OIWmanagement system in place since 2015 has made it possible to recycle this waste. The amount of HIW (Hazardous Industrial Waste) and SIW (Special Industrial Waste) also increased compared to the previous year following the recovery of refractory bricks and the renovation of the neutralisation workshop (demolition of a building and outsourced treatment of effluents during the renovation work). Construction In partnership with suppliers, architect-designer consultants and local architects, the specification and local sourcing of building materials is systematically sought and recommended whenever possible.

104

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL