Hermès // 2021 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY THE PLANET: RAW MATERIALS

ECODESIGN AND CIRCULAR ECONOMY 2.4.1 Each métier and each production unit is committed not only to applying the principles of eco-design to use materials wisely, but also to reduce waste and promote recycling to move towards a circular economy.

In addition, the Group has launched a number of actions to strengthen its circular economy approach, with the creation in 2020 of a Circularity Committee to enable the exchange of best practices and technical solutions between the métiers , and develop new upcycling opportunities more quickly through pooling, such as for silk and cashmere. Its work and initial results inspire the House’s creative thinking, thus helping to strengthen product eco-design initiatives. With a view to continuous improvement and eco-design, the métiers now conduct life cycle analyses on their most emblematic products. Some 63% of the métiers did this in 2021 and this figure is expected to increase over the coming years. The Group uses only the highest quality materials, optimises their use through its production methods and develops the reuse, or recycling, of all production offcuts. Purchases are adjusted as closely as possible to needs in order to limit waste. The integrated artisanal approach is an advantage in this respect, ensuring close proximity between buyers and craftspeople. Each métier works to constantly improve the use of these rare and precious materials, consuming only what is necessary. Leather is an animal product, specially tanned and made imputrescible, either in a tannery for lamb, sheep and goatskin or in traditional tanneries for hides from cattle or reptiles. Hides used in leather goods are by-products of livestock farming for food. People sometimes refer to hides as the “5th quarter”, which suggests we can consider tanning to be the oldest recycling industry in the world . Hermès uses only “full-grain” leather, the top part of the hide, without altering it in order to improve its appearance. The leathers used by Hermès are thus rare and of exceptional quality. The hides come from our own tanneries or from long-standing partners. Management of crocodile breeding on the alligator mississippiensis and c rocodylus porosus farms, close and constant relations with suppliers of exotic raw hides, and the control of all processing operations (river, tanning, dyeing and finishing) enable the division to control as accurately as possible its purchases and use of materials in manufacturing processes. Several projects are being rolled out in farms and tanneries to improve quality control and optimise the use of raw materials. For example, digital systems for taking images of hides at the start of the tannery process are already in use or are being rolled out. They allow the identification of defects, facilitate sorting and thus maximise the use of hides while reducing waste. MATERIALS RESPONSIBLE MANAGEMENT 2.4.1.1 2.4.1.1.1 Leather Leather tanning

POLICY

The Group’s policy is to go even further in terms of the eco-design of its products, by using “non-renewable resources as little as possible, preferring the use of renewable resources, and which are used while respecting their renewal rate, as well as being combined with waste recovery processes that promote reuse, repair and recycling.” 1. This preventive and innovative approach makes it possible to minimise the environmental footprint of products over their entire life cycle, without compromising their quality of use. The House’s ambition is to offer sustainable, eco-designed products that respect nature, and which retain their technical characteristics over time. The House’s creative excellence, and the often timeless nature of the collections also allow Hermès objects to remain desirable over the long term, thus extending their period of use . The quality of the raw materials used is the first guarantee of the durability of Hermès objects. For this reason their selection is subject to a rigorous process. By their very nature, Hermès’ fundamentals include eco-design principles in its product designs and have done so since long before the term became popular. “A luxury product is one that can be repaired”, said Robert Dumas: making sustainable objects is the best way to adhere to the principles of sustainable development. Hermès objects are designed to last because their technical design and manufacturing methods favour robustness, in the tradition of saddler craftspeople. The famous “saddle stitch”, still used in leather goods workshops, was born out of the need for seams to resist the pressure from the harness. This design also allows objects to be repaired. From saddles to silk to watches, all owners of Hermès objects can request their repair. With 161,000 repairs carried out in 2021, this commitment is a working reality, worldwide. Furthermore, the materials used come from natural , renewable sources, taken while respecting their potential for regeneration, such as in the case of hides from farmed animals, or for the main textile materials (silk, cashmere and wool). The House’s historical preference for natural fibres avoids the use of non-renewable resources based on petroleum chemistry. The métiers have always focused on minimising production waste. The Group is committed to a trajectory leading to the recycling or reuse of all its unsold products in France by 2022. MEASURES IMPLEMENTED AND RESULTS

ADEME definition. 1.

112 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL