Hermès // 2021 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY THE PLANET: ENVIRONMENT

METHODOLOGY: TOOLS, ANALYSIS

In France, data for 100% of stores are included in the reporting. The same applies to all French branches of John Lobb, Cristalleries Saint-Louis and Puiforcat. In Europe (excluding France), almost 100% of stores are covered. In Asia, 89% of stores in Greater China (Mainland China, Hong Kong and Macau) and 71% of stores in Thailand, Malaysia and Australia are covered. In Japan, the four main stores are also included. In the Americas, 63% of stores are covered. In 2021, the DREAL approved the fire water retention compliance works at the Cristalleries Saint-Louis (formal notice received in 2020). In 2021, no other industrial site was subject to a formal notice. The Group did not receive any environmental fines. The amount of provisions for environmental liabilities is made up of provisions for the cost of asbestos removal work on the roofs of an industrial building and remediation work on a manufacturing site for a total of €8 million. In accordance with Article R. 516-1 of the French Environmental Code, the Annonay and Le Puy tanneries, the only tanneries within the scope of the system, have provided financial guarantees. 2.5.2 The control of water and energy consumption, inseparable from ecological and economic responsibility with respect to the major global challenges facing us today, is a goal shared by all the House’s divisions. Thanks to its craftsmanship model, Hermès is distinguished by a low energy and water footprint as well as generating only small amounts of waste in absolute terms. Its footprint is even lower in relative terms (the Group has one of the lowest carbon intensities of CAC 40 companies). The métiers are working to limit their respective consumptions through actions described in more detail below and thus contribute to the energy transition. RESOURCE MANAGEMENT COMPLIANCE, ENVIRONMENTAL PROVISIONS 2.5.1.4 AND FINANCIAL GUARANTEES

2.5.1.3

AND MONITORING

Since 2012, in order to monitor environmental data from its industrial sites, Hermès has used reporting software accessible as a web resource to collect data about consumption at each site. The software also provides access to documentation explaining how the performance indicators are organised and defined. A consistency check is carried out automatically when the figures are entered, and again when the global consolidation is performed by the industrial affairs department, as well as for audits carried out by the Statutory Auditors. Since 2018, all industrial environmental indicators are reported for a period running from November through October. For methodological reasons, some of the activity data used in the scope 3 carbon emissions calculation cover a calendar year. Moreover, consumption figures for certain leased sites, for which no data are available, are not taken into account as they are not significant. For internal sites, oversight of environmental actions occurs in different ways. The industrial affairs department and its EHS Officers exert a first level of control within the context of a “water, energy, carbon, waste” plan that is updated each year. In the context of this effort, the audit and risk management department conducts audits on the critical topics included in the Group’s risk map (§ 4.1 in chapter 4 “Risk factors and management”). Lastly, external controls are performed on the Hermès Group’s suppliers to ensure coverage of all entities. The industrial affairs department consolidates the results of these audits as part of an ongoing process of improvement. For external suppliers (§ 2.6.1), the Purchasing Committee reviews the results presented by the industrial affairs department several times a year. It monitors the number of audits conducted per year as well as the quality of the results. The industrial affairs department (IAD), under the control of the audit and risk management department (A&RMD), craft action plans with the relevant métiers and monitors their progress. The scope of environmental reporting of stores has been extended and in 2021 enabled the collection of consumption data for 10 out of the 33 concessionaires and an estimate (consumption in kWh and tCO 2 eq) for assets for which we did not have data, in three categories: branches, concessions, travel retail. The consumption of all our stores is taken into account in this reporting. The methodology adopted consisted in applying to the surface areas of these stores an average consumption per square metre, calculated by country on the basis of the consumption reported and the associated surface areas, and then converting this into CO 2 according to the country’s energy mix. Electricity consumption concerns an actual 73% and an estimated 27% of Hermès branches worldwide as well as the branches of John Lobb, and those of Cristalleries Saint-Louis and Puiforcat.

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