Hermès // 2021 Universal Registration Document

2

CORPORATE SOCIAL RESPONSIBILITY THE PLANET: ENVIRONMENT

CONTROL CONSUMPTION OF NATURAL

In 2021, Hermès obtained an A- score on the CDP Water Security questionnaire (A/A- Leadership: implementation of current best practices). As mentioned in § 2.5.4.1, a water risk assessment was conducted alongside WWF in 2019 using the Water Risk Filter and Aqueduct tools, the latter being developed by the WRI (World Resources Institute). The findings are gradually being incorporated into the sites’ action plans.

2.5.2.1

RESOURCES: WATER, ENERGY

2.5.2.1.1 Water

Objectives: continue the decoupling of industrial water consumption from s business growth; reduce water consumption by 5% per year in intensity (m 3 per s million euros of revenue, constant scope) over the period from 2018 to 2023; implement a multi-stakeholder approach and co-construct with s external stakeholders (regional departments, municipalities or professional associations approaches to optimise management of water and discharges). Industrial water Water for industrial use is mainly (87.5%) used for industrial consumption in the two métiers , tanneries and textile units: 627,491 m 3 /year at global level.

-28%

Intensity of industrial

water consumption, compared to 2019

INDUSTRIAL WATER

2019

2020

2021

INDUSTRIAL WATER CONSUMPTION

in megalitres

668 580 627

BREAKDOWN OF INDUSTRIAL WATER CONSUMPTION BY MÉTIER IN 2021 (EXCLUDING FARMS)

Leather 5.3% Metal 2.1% Other* 5.1%

INTENSITY

2019

2020

2021

WATER CONSUMPTION - GROUP

Intensity m 3 /Revenue €M

97

91

70

Water consumption control is based on monthly monitoring of consumption, preventive maintenance programmes for facilities, regular verification and calibration of meters, installation of new individual meters, and programmes to raise employee awareness. Significant discrepancies unrelated to production differences are analysed and verified in order to locate and repair any possible leaks. The métiers work on a daily basis to minimise water consumption, find innovative solutions to increase the proportion of recycling (rainwater recovery, wastewater treatment, innovative efficient water and energy systems, implementation of valves that adjust the water flow, etc.). Tanneries / 2.7% increase in consumption in 2021 (decrease of 13.5% compared to 2019) Hermès operates six tanneries, including five in France (Annonay, Le Puy-en-Velay, Vivoin, Montereau and Jullien Tannnery in Chabris) and one in Italy. The RTL site in the United States has not been tanning since the end of 2020 and is now dedicated exclusively to the inspection of raw alligator mississippiensis hides from American farms.

Tannery 56.2%

Textile 31.3%

* Crystal, Logistics, Perfume, Watch division, Beyrand, Bootmaker, Porcelain, Silversmith

Over the past 10 years, the Hermès Group has maintained its aim of decoupling, with industrial water consumption changing by a factor of 1.7 while activity grew 2.6-fold. Over 10 years, water consumption intensity has fallen by 35.4%. In 2021, overall water consumption for industrial use increased (+8.1% compared to 2020, a year impacted by site closures during the first lockdown in France. In comparison with 2019, consumption continued its decline (-6.1%), despite including in the results the consumption of the J3L group over a full year. This is the result of continued reduction efforts on all the Group’s industrial sites.

134 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL