Hermès // 2021 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY THE PLANET: ENVIRONMENT

THE PLANET: ENVIRONMENT

2.5

The Group’s sustainable development involves knowing, controlling and reducing its environmental impacts, as part of a responsible approach to its operations. More broadly, Hermès contributes, through its commitments and actions, to the fight against climate change and the preservation of biodiversity for a responsible and sustainable development.

2

Introduction Respect for nature, the source of its exceptional raw materials and the living environment surrounding its sites, is one of the Group’s strong and unwavering values. In 2002, the Group drafted an environmental policy, revised in 2020, aimed at limiting the impact of its activity across all areas. Pragmatic but ambitious solutions to preserve the environment in the long-term are systematically sought, trying to go further than regulatory requirements wherever possible. The priority is to control the impacts across the entire value chain, from upstream agricultural production to distribution, and from purchases to internal operations.

Water and energy consumption in 2020 were obviously impacted by the context of the pandemic, which means that the comparison of data between 2020 and 2021 is not necessarily indicative of the progress made. Rather, it is a question of considering an overall progress trajectory over a longer period of time. This mindset in favour of the environment requires the involvement of everyone, from investment decisions to everyday eco-actions, together with a robust environmental, health and safety (EHS) culture on all sites. It is structured around policies, procedures, tools and major commitments:

The main commitments of the Planet pillar: Environment

2023

2025

2030

2050

Zero net CO 2 emissions, reduction in gross emissions vs. 2018 and offset of 100% of residual emissions

Carbon targets Trajectory 1.5 °C/SBTi, -50.4% on scopes 1 & 2 and -58.1% in intensity on scope 3 100% r enewable energy in our own operations (unless technically impossible) Monitor the Group’s biodiversity footprint on its main value chains and implement action plans

Reduce water consumption by 5% per year in intensity (between 2018 and 2023)

100% of employees trained on biodiversity 100% renewable electricity in our own operations

•

•

•

•

•

•

•

In 2021, the Group made progress on the main environmental issues, with the aim of making a long-term difference through steady improvements with a significant impact. Among these, the selected elements below are particularly illustrative of 2021 for this section: Update of 2030 carbon reduction targets and validation of trajectories by the SBTi. A- ranking by CDP Climat; s Confirmation of decrease in carbon emissions in absolute value (all scopes): -15.3% since 2018; s Setting a notional internal carbon price at €40; s New investment in Livelihoods (Carbon Offset) and offset in 2021 for 100% of scopes 1 & 2 and 63% of transportation; s Final report on “GBS” biodiversity footprint analysis, internal biodiversity e-learning; s

ZDHC (Chemicals) initiative for the Tanneries division; s “Responsible and Sustainable Real Estate” standard. s

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

129