HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

ENVIRONMENT

2.5

Since 2002, EHS audit cycles at our various units have been conduc- ted by a specialist external consultancy, spread over three years. The fourth cycles ended in 2017 and 19 audits were conducted. These audits check the regulatory compliance and assess the safety culture of each site. Audits are also conducted at the time of construction or acquisitions, enabling full coverage of Hermès’ industrial assets over the three-year period. The information system deployed on the sites for the Group’s envi- ronmental reporting can also be used to coordinate the follow-ups to these audits and monitor changes in environment, health and safety regulations. Several times a year, the Sustainable Development Committee reviews the results presented by the industrial department. These reviews may relate to water consumption and the carbon footprint of different units, supply chains, external EHS audits conducted in the House’s various units, as well as social and environmental audits of the partners. Possible support or assistance measures necessary for achieving the house’s objectives are approved at meetings of this committee. Construction Since 2008, our environmental construction policy, overseen by the construction development department, has been based on the following principles: s the systematic adoption of an environmental stance during building work; s helping to protect the environment by ensuring that building projects are properly suited to their setting and the local architecture, while simultaneously preserving the ecosystem; s the use of renewable energy sources whenever that is possible; s a focus on building quality: design, functionality and sustainability, in a constant effort to ensure users’ well-being; s striving for flexible, adaptable construction projects that integrate future developments and running costs from the outset; s anticipating, whenever possible, regulatory and technical develop- ments and incorporating them into our projects; s changes in regulations, in close collaboration with stakeholders (architects, engineers and suppliers). Since 2016, in order to improve coordination and control of environmen- tal activities involving internal staff and external service providers, the Group’s construction development department has drawn up sustai- nable construction guidance based on three main ambitions: s employing energy-saving methods;

The respect for nature, the source of its exceptional materials and the living environment of its sites is one of Hermès’s strongest and most abi- ding values. Pragmatic but ambitious long-termsolutions to preserve the environment are systematically sought, trying to go further than required by regulations wherever possible. Our priority is to control our impacts across our entire value chain, from the agricultural production to distribution, from purchasing to internal operations. This commitment is a mindset that requires the involvement of all, from everyday eco-actions to a robust environmental, health and safety (EHS) culture on all sites.

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BACKGROUND

2.5.1

The scope of this environmental report includes production and logistics entities controlled by the House, as well as offices and stores.

Policy and organisation

2.5.1.1

Industrial Working with all sectors and those involved in our production sites, the House's Industrial Affairs Department pursues an environmental pro- gramme formally approved by the Executive Committee, whose goals are unchanged since 2002: s to comply with Environmental and workplace Health and Safety (EHS) regulations and to prepare for changes in these regulationswhenever possible. As explained in chapter 2.3.4, the industrial department has a network of Environmental, Health and Safety (EHS) operatives at its manufacturing sites; s to respect natural resources, particularly water, and master energy consumption; s to enhance production processes by choosing the cleanest pos- sible technologies and the most environmentally friendly materials available; s tominimisewaste production and to reuse and recyclewhenever pos- sible; to limit the “carbon” impact of activities. Everyone’s efforts are needed at every site if we are to achieve these goals. Since 2003, there has been an Environmental, Health and Safety network (called the “EHS network”) that brings together the EHS managers from the Company’s different entities and comprises around 20 members. It meets several times a year to set targets, share results andbest practices. Training networkmembers onEHS issues represents almost half of meeting time. In 2017, the focus was placed on Health and Safety culture. Training of this nature has subsequently been delivered more widely within the various units.

reduce the ecological footprint;

s

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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