HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

STAKEHOLDERS AND LOCAL INTEGRATION

of which is to cover a very large scale and extend over periods ranging from 10 to 20 years, include: s restoration and preservation of natural ecosystems such as man- groves . Nearly 8,000 hectares have been replanted in Casamance (“Océanium” project); 4,500 hectares in the delta of the Ganges (“News” project); and 5,000 hectares in Indonesia (“Yagasu” pro- ject). These projects secure populations (protection against cyclones or the invasion of salt water) and provide food resources for ecosys- tem regeneration; s agroforestry and soil remediation through sustainable agricultural practices. With the support of the Naandi Foundation, tribal Adivasi communities in the Araku valley have planted six million trees (fruit, firewood, construction, etc.), including three million coffee trees on agroforestry models. In Guatemala, 4,000 hectares of trees and food plants are to be planted in the Cerro San Gil mountain area (“Fundaeco” project), allowing farming families to increase their food security and incomes while protecting biodiversity. In Kenya (VI “Agroforestry” project), on the slopes of Mount Elgon, near Lake Victoria, the livelihoods of 30,000 small farms will improve through the intensification of agriculture respectful of natural resources (Sustainable Agricultural Landscape Management – SALM) and the development of dairy production. The project also contributes to the protection of water resources and generates positive social impacts for female employment; s access to rural energy to reduce deforestation. In Kenya, the “Hifadhi” project equipped 60,000 households with improved cook stoves that significantly reduce wood consumption, thereby redu- cing pressure on forests, firewood collecting time for families, and exposure to the toxic fumes generated by old stoves. In Burkina Faso, with the support of the Tiipaalga NGO, 30,000 improved stoves have been installed by inhabitants in their villages, in an effort to secure their use over time in a Sahelian zone. With financial support of the AFD, an agroforestry component has been added to this project. In Peru, the ITYF project (taken from the name of the Instituto Trabaja y Familia NGO) has installed 30,000 improved cook stoves and hygiene kits to families in extreme poverty in the Peruvian Andes. At the same time, the project brings training and awareness on health (reduction of toxic fumes, importance of boiling water, basic hygiene gestures, etc.), and will naturally have a significant impact against deforestation. In 2017, the above nine projects impacted the lives of more than onemil- lion people, and helped replant more than 130 million trees, an area equivalent to five times the size of Paris. They also equipped 120,000 families with improved cook stoves, which reduces deforestation and preserves women’s health, for a total of 10million tons of CO 2 equivalent captured or avoided (projects last between 10 to 20 years). Thus, they help to offset Hermès’ carbon emissions on a voluntary basis.

In Japan, employees (more than 200, including children) were made awareaboutprotectingthecoralreefsatOkinawa.Somewereabletopar- ticipate in coral observation and cleaning operations. Other employees were able to help and support a biomass energy deployment project for the city of Kesennuma. In Korea, for the first time, a team of volunteers helped clean up the Ho-Myung Mountain by climbing during the day. “Carrés Solidaires” operations continue. In 2017, six new silk scarves were produced and sold in support of local organisations. Subsidiaries in the United States, Canada, Hong Kong, Great Britain and China par- ticipated. These silk scarves, which were especially printed, were sold in support of local associations and contributed to the development of their projects. The House’s subsidiaries and sites supplement the initiatives taken by the Fondation d’Entreprise Hermès by organising charitable operations. Skills sponsorship Hermès wants to develop employee commitment to social and solidarity economy, particularly by promoting local integration. In 2017, a “skills sponsorship” Group methodology was developed and shared within French subsidiaries to promote experiments. Through this initiative, a non-profit partner benefits from a skills spon- sorship operation based on different human resources topics. Hermès wants to develop its opening and citizen’s role through other upcoming operations. LIVELIHOODS Since 2012, Hermès has been a partner of the Livelihoods Fund (LH), which aims to improve the living conditions of disadvantaged communi- ties in a sustainable manner by developing large-scale projects with real impact against climate change (www.livelihoods.eu). Livelihoods aims to be a start-up investor (with an entrepreneurial approach and investment risk) in three types of projects (ecosystems, agroforestry and energy) in Africa, Asia and Latin America. The fund has 10 partners: Danone, Crédit Agricole, CDC, Schneider Electric, La Poste, Hermès International, Voyageurs du Monde, SAP, Firmenich and Michelin. The initial term of the fund is 24 years, and the projects run for between 10 and 20 years. On 31 December 2017, the investors together pledged to invest a total of approximately €38 million in the Livelihoods fund. The projects generate profits for local communities and ecosystems, as well as for the partners in the fund, which earn carbon creditswith a signi- ficant environmental and social impact in proportion to their investment over the project development period. These projects, one of the features 2.7.2.3 2.7.3

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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