HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

In 2010, after repeated tests, a maritime transport system was set up for Alligator mississippiensis from the southern United States and Crocodylus niloticus from Africa. In 2013, the system was extended to Crocodylus porosus from Australia. In 2017, more than half of crocodi- lian skins received in tanneries from the United States and Africa were shipped by sea. Textiles The Bilan Carbone ® (Carbon Assessment) for the entire division is reviewed every year. This effort contributed to the divisions Environmental action plans. The activities producing the most emis- sions are purchasing (fabrics, chemical products and packaging), energy, inter-site freight, upstream freight and commuting. We are working on a daily basis to reduce our impact on these major areas. For example the role of the transport and customs unit, which was set up within the division during the course of 2017, is to optimise travel and streamline our transportation operations. The team is currently working on the reorganisation of our inter-site shuttle service to improve our per- formance, reduce short-notice transportation and combine deliveries based on location. The purchasing department also endeavours to order the right amount of materials and chemicals to optimise our stock levels and limit the risk of obsolescence. Perfumes The areas representing the vast majority of CO 2 emissions are still pac- kaging and downstream freight (especially airfreight). The total amount of CO 2 emissions increased between 2016 and 2017, due entirely to the increase in volumes of perfumes produced and packaged in 2017, as well as the corresponding increase in purchases of materials and packaging. Watches Performed at La Montre Hermès each year since 2013, the Bilan Carbone ® (Carbon Assessment) now includes Érard and Natéber, which have been combined on the Noirmont site, in order to provide an overall view of the emissions and to steer the reduction projects throughout the Watches division. Crystal The Bilan Carbone ® (Carbon Assessment) for the production unit was updated in 2017. The latter changed slightly, mainly because of the change in the production unit’s energy mix. The share of energy used in melting the rawmaterial was once again predominant. Due to the change in the continuous recuperative furnace technology, electricity consump- tion (not included in the calculation) had decreased, whereas the consumption of natural gas (included in the calculation) had increased. The data used to perform the Bilan Carbone ® (Carbon Assessment) has beenmademore structured and reliable, notably though the use of more detailed data on freight and transfers. This analytical approach nurtures the production unit’s projects and is factored into its Water – Energy – Carbon plan.

Construction In 2017, a precise Bilan Carbone ® (Carbon assessment) was carried out on a Hermès store in Asia, making it possible, on the one hand to assess the environmental impact of a store and, on the other hand, to establish a benchmark of a standard layout so as to direct our ambitions of redu- cing CO 2 emissions on future projects through a Hermès sustainable construction benchmark. Special attention is given to the choice of building materials, a reduction in their weight, an effort to source supplies locally and their low carbon emission mode of transport to improve the Bilan Carbone ® (Carbone assessments) of new buildings and new stores. The Group is therefore attentive to the consequences of climate change on its business, it being understood that these products and services have a low impact per se. LAND USE The Group’s industrial activities do not contribute to the degradation of productive land, given the small surface area occupied by its sites and the negligible rate of change in land use for cattle and sheep farms in Europe where the sources of supply of raw hides are located. An impact study incorporating issues relating to animal and plant life and the pre- servation of natural environments is carried out prior to establishing any new industrial site. During the summer of 2017, the exteriors of the AEI textile site were entirely renovated. Vehicle traffic flows were then examined in order to eliminate any soil contamination. NOISE AND OLFACTORY EMISSIONS A large amount of equipment is replaced each year to improve systems used for the treatment of wastedischarged intowater and into theatmos- phere in order to meet all applicable regulations. Similarly, noise mea- surements are regularly made around the sites to check that they comply with the standards applicable to them. Tanneries In connection with the current production activities, as well as any iso- lated operations (such as maintenance or civil engineering operations), the sites seek to avoid and/or reduce noise and olfactory pollution as much as possible. The Tannerie d’Annonay conducted a complete study on capturing and treating odours, and an initial investment was carried out in 2017 for this purpose, which will be completed in 2018. Regular measurements of emissions are carried out by the tanneries and, in the event of an incident, a search for the cause is immediately carried out, triggering corrective actions that are undertaken in tandem with state, city and DREAL authorities, as well as with local residents. 2.5.8 2.5.9

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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