HERMÈS - 2018 Registration document

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Corporate social responsibility

People: teams

A budget of €800k has been invested in various projects aimed at impro- ving the performance of production units in terms of health, ergonomics, safety, working and environmental conditions, such as the renovation of the neutralisation workshop for effluents from chemical polishing workshops, the renovation of the chemical etching workshop, the secu- ring of acid disposal areas, the set-up of ergonomic work stations for order preparation, the optimised storage of finished products, the set-up in the hot-part workshop of a system to capture fumes at source, opti- misedair renewal, and theacquisitionof amoreefficient burner opening. The production unit’s chemical risk assessment, conducted in 2012, was updated again in 2018. This update, taking into account the results of previous campaigns, has clarified the level of exposure to certain homogeneous exposure groups (HEG). These were sampled during the measurement campaign that was carried out in June and November 2018. Actions aimed at reducing the exposure thresholds observed during these analyses were implemented. Among the most important of these are: suction at the source on burner openings in the “hot-part” workshop, optimisation of process settings, several aware- ness-raising operations on the use of collective protection in the “hot- part” workshop, improvement of collective protection in the composition workshop. Comparative measurements taken after these developments confirm the usefulness of these improvements. Moreover, in order to anticipate future regulatory changes with respect to employees’ exposure to chemical risks, the industry, represented by the Fédération des Cristalleries Verreries à laMain et Mixtes (Federation of hand-made and mixed glassworks), conducted a study in partnership with a specialised firm to identify optimisation possibilities to be imple- mented at each site concerned. Results The accident situation at the site, which had improved in 2017, deterio- rated in2018, mainly with respect to the frequency rate. The severity rate remains low, despite a slight increase compared with 2017. The number of reported incidents or risk situations also increased, reflecting the emergence of an approach where the safety aspect within workshops is taken into account. The diagnostic conducted with the assistance of a specialised firm made it possible to highlight the production unit’s strengths and areas for improvement in terms of safety. A project aimed at involving all those involved in managing safety within their workshop will launch in 2019. Perfumes At Hermès Parfums, an HSE-General Services team comprising 11 people is responsible for the site’s regulatory watch and compliance, and conducts preventive actions to maintain and improve working condi- tions, in particular with respect to safety (ATEX, fire safety, safety of works and maintenance teams) and workstation ergonomics.

CNP also recently committed to an approach involving the establishment of an Integrated Management System (IMS) based on the various ISO Quality, Safety and Environment standards. The aim is to implement a robust and reliable risk assessment and control system across all parts of the organisation. It will be useful in developing the foundations of sustainable development and the HSE culture. The IMS is driven by CNP’s industrial department and brings together all employees around a shared corporate strategy aimedatmeeting its customers’ needs, impro- ving its environmental performance, and protecting its employees and external service providers. In addition to the training sessions provided every year on handling fire extinguishers workplace first aid, certifications (electrical, operating equipment) and evacuation exercises, CNP employees have been made aware of noise-related risks. Some of the employees have also followed training on ATEX risk, in col- laboration with an internal ATEX advisor having also following certified training in this area. Following the transfer of some of the logistic activities (storage of fini- shed products and order preparation) to a specialised external partner, Hermès Parfums decided to internalise some of the production pro- cesses for perfume-related products (bath products). The works for this new workshop began at the end of 2017, with the aim of creating premises to manufacture and package cosmetic products. These works continued until September 2018. The production equipment was ins- talled and is currently being qualified. The cosmetic production activity is due to start in early 2019. It is worth noting that the transferred logistics activity employed 14 people at the Vaudreuil site. Those people have all been transferred to other positions in the company (quality, customer service, physical flows, etc.). Furthermore, CNP continued its actions aimed at improving existing facilities with respect to ATEX risk (ventilation of the manufacturing pre- mises), improving the sprinkler installations, and changing the Fire Alarm System. A specific ventilation system (laminar flow) has been set up near the manufacturing premises to secure the intake of raw materials and thus protect the operator during handling. Thebuilding’s first floor offices were rearranged to draw the team closer together. A section of the floor in the packaging workshop was also changed. Results The number of workplace accidents with stoppage increased in 2018. This was mainly due to same-level falls. Each accident was investigated using a root cause methodology. However, the frequency and severity rates are still lower than those for the chemical industry. A newcampaignwas recently conducted tomonitor employees’ exposure to chemical agents. Distribution Convinced that the Retail activity’s development relies on the fulfilment of all employees, the Hermès Of Paris subsidiary in the United States and the Europe region approached their respective teams in parallel to carry out a commitment survey. They were questioned about their involvement at the workplace, their sources of difficulty and those of satisfaction. This resulted in an action plan and the close monitoring of the actions decided on.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL