HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

RAW MATERIALS

BEYRAND In tonnes OIW waste 1 HIW waste 3

2012

2013

2014

2015

2016

2017

44 11

38 14

47

48 11

34 15

35 16

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Each year, the Hermès display stand at TaxFree in Cannes is rebuilt with 90% of the materials used the year before. Furthermore, in France since 2016, the Group has also defined and implemented a methodology for recycling furniture that has reached the end of its life by sending it to the service industry, working together with green organisations approvedby theMinistry of Ecology andSustainable Development. In 2017, 42 tons of furnishings were collected and recycled.

The site has recycling bins for the different waste streams: paste pro- ducts, used solvents, soiled packaging, paper, porcelain scrap, wood, etc. All ink cartridges are recovered and reused. Screens are also reused as much as possible before being destroyed. Precious metal waste in the form of printed pastes and sheets is recycled for recovery and reuse. Nearly 43% of the overall waste volume is recycled. Regular reminders of good practices are made in the workshops so as to continue the positive dynamic of recycling. Various awareness cam- paigns are also carried out during the year when storage/sorting is happening. The increase of HIW is was due essentially to 4 factors: s 33% increase in the volume manufactured since 2015; s 1.5 tonnes of residual waste accounted for in 2016; s 0.6 tonne from continued purging of obsolete inventories of 2016; s there was also more soiled waste on account of HSE and quality rea- sons (the mills have been secured with metal parts that need clea- ning after grinding). Construction The construction department is one of the users of R&D actions on our materials to set up virtuous recycling circles. Since 2014, some of the leather offcuts from the leather goods workshops have been recycled and used systematically to protect cash desk tops in all our stores. Since 2015, the concept of a pop-up store with reused furniture has been applied throughout the Europe, Americas and Asia regions. In 2017, the Bobigny site’s company restaurant was fitted with acoustic panels made of micro-perforated recycled leather. Since 2016, selective sorting and recycling of materials for stores or stands being dismantled after their useful life had ended was organised progressively to send the output to local recycling facilities. For example, the display stand of La Montre Hermès at the clockmaking fair in Switzerland, covering an area of approximately 1,000 m², now no longer used as our participation at this exhibition has ended, has been partly recycled (carpet, parquet, linoleum) with a local recycling operator. In 2017, in Copenhagen (Denmark), the temporary pavilion of 700 m² built for the inauguration of the new Hermès store was entirely designed and built with recycled materials, so it could be torn down and 75% recy- cled for other local educational events.

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CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs)

2.4.4

“Materials” constitute one of the main challenges of sustainability strategies, and measures taken by the Group are consistent with the following SDGs (the numbers refer to the UN’s official typology): No. 8: Decent work and economic growth s 8.4 “ Improve global resource efficiency and endeavour to decouple economic growth from environmental degradation ”. The focus on the use of materials relates in particular to leather, and efforts at optimising cutting processes (requirements for materials reduced to ISO production standards), but also via active manage- ment of the by-products generated. No. 12: Responsible consumption and production: s 12.2 “ Sustainable management and efficient use of natural resources ”. Optimisingtheuseofexceptionalmaterialsisoneofthedailyconcerns of the Group’s métiers. In an environment of rare resources, ethics, security of provisioning and a healthy economic vision contribute to a parsimonious management style. A dedicated innovation unit is constantly exploring new avenues to maximise the use of materials; Waste generation is reduced in particular by concrete actions to eco- nomise as part of the production and prevention processes, such as promoting eco-actions. The group carefully monitors all waste and oversees, for example, the implementation of selective waste sorting and recycling systems at all of its facilities. s 12.5 “ Reduce waste generation ”.

1. OIW: Ordinary Industrial Waste. 2. SIW: Special Industrial Waste. 3. HIW: Hazardous Industrial Waste.

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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