HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

SUPPLIERS AND PARTNERS

Construction In2017, the purchasing policy with our construction partners is gradually being rolled out to subsidiaries. With each new relationship, suppliers are asked to make a commitment to complying with local regulations and accepting the fair dealing charters and corporate social and environ- mental responsibility policies before they begin working with the Hermès Group. A methodology for analysing and managing risks of suppliers in construction has been defined. Assessment and control The Hermès Group has put in place an internal control and risk mana- gement system to better prevent and control the risks it has to face. As part of this system, the Audit and Risk Management Department conducted purchasing audits in 2017 and these will continue into 2018. These audits enable the correct implementation of the system descri- bed above to be verified. First introduced in 2005, self-assessment of internal control by the subsidiaries contributes to the dissemination of an internal control culture in the Group. This system makes it possible to assess the level of internal control and to understand to what extent operational and functional risks are properly addressed, as described in section 1.8.1 Internal control system in response to risks. Through its policy for the disabled, the Group promotes using services provided by the subsidised sector for socially supported organisations in France (EA 1 , ESAT 2 ) whenever possible. Abroad, there are a number of different initiatives depending on local context. For example, the sub- sidiary in Hong Kong systematically checks the “social enterprise direc- tory”, a guide to social enterprises, for listed service providers whenever it needs to make local purchases. Leather Goods Almost 10 years ago, Hermès Leather Goods-Saddlery embarked on a partnership with EA (Adapted entreprises) and ESAT (organisations that help disabled people back into work). Since 2008, the division has developed close partnership relations with six structures employing people with disabilities, located close to the production units. Within these six partner establishments, the Health, Safety and Working Conditionsunderwentaformalaudit.Apersonalcontactpersonprovided these six workshops with technical and quality support on a day-to-day basis, but also over the long term, as part of development projects, such as the layout of future premises or the acquisition of new equipment. To celebrate the journey undertaken together and the quality of this partnership, a first two-day meeting between Hermès Leather Goods- Saddlery and the EA/ESAT was organised in September 2017 to share experience, expertise and development prospects. 2.6.2 CORPORATE RESPONSIBILITY AND USING SOCIALLY SUPPORTED ORGANISATIONS

The Leather division aims to build a local network of EA or ESAT for each of its regional centres as they are established and promote networking between partner EA and ESAT. Currently, the division is continuing the listing of new partners in the socially supported organisations and pro- tected sector, particularly for the Paris-Val-de-Seine cluster. Some production units also call on EA and ESAT for the maintenance of their green spaces, such as Manufacture de Haute Maroquinerie -MHM or at Manufacture de Belley . Textiles The Silk division has structured its disability approach since 2008 around the "Handi'Cap" plan. The partnerships formed since then with the ESATs for the recycling of photoengraving frames, fabric sampling for Créations Métaphores , the maintenance of green spaces and cleaning of premises continued in 2017. Furthermore, HTH continued to support the Handysoie partner company, in collaboration with an ESAT, which employs disabled staff to make textile products. Tanneries The Tanneries duPuy,MontereauandVivoin, through their partnerships with sheltered work establishments, have included the participation of persons for the maintenance of green spaces. In addition, two people from the same ESAT are engaged on internal production operations at the Montereau site. The Tannerie d’Annonay also works with an ESAT on an occasional basis for commercial brochure packaging and leather sampling assignments. The Compagnie des Cuirs Précieux entered into a new partnership in 2017 for catering and meal tray services at semi- nars and meetings in their head office. Crystal Maintenance of green spaces is entrusted to the Association APAEIIE Ingwiller. As part of DisabilityWeek, visitswereorganised to theCristallerieand the LaRuche ESAT in Sarreguemines at which visitors could discover how the adapted/sheltered sector and the ordinary environment are intertwined. A partnership was concluded with the branch of this ESAT based in Goetzenbrück, in which two employees from the sheltered sector were seconded to the Cristallerie's shipping department. Through internal awareness campaigns and using socially supported organisations, Saint-Louis meets its obligation to employ disabled workers. Parisian sites The Paris and Pantin sites use ESAT for different types of operations. For several years now, the bibs worn in the Leather workshops have been laundered by an ESAT. Some administrative work, and also the manufac- ture and delivery of meal trays for meetings or seminars are handled in collaborations with various ESAT.

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(1) EA: Adapted Entreprises. (2) ESAT: Establishments and Services which provide Assistance Through work, medico-social establishments whose purpose is the social and professional integration of adults with disabilities

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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