Hermès // 2021 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY THE PLANET: ENVIRONMENT

Water consumption and effluent treatment are major challenges for the Hermès Group’s tanneries. Historically located close to rivers, they use this water for the purposes of tanning, dyeing and finishing hides. A total of 63% of the water for the division’s six tanneries comes from watercourses or boreholes. The rest comes from municipal sources. The water consumption ratios of the tanneries remain consistent with the levels observed over the last three years. Textile / +19.3% increase in consumption in 2021 (decrease of 1% compared to 2019) Water is a fundamental and precious element for the fabric printing and finishing stages. 95% of water requirements are covered by borehole water, significantly limiting the use of drinking water for industrial processes. The Textile division is implementing an ambitious water cycle policy: for example, the AEI site (16% of the division’s consumption) has included the ratio of quantity of water used per kilogram of fabric produced in the calculation of the incentive scheme, in order to motivate each employee to achieve the objectives, Efforts are now focused on recycling wastewater. They have resulted in projects for the modernisation of wastewater treatment facilities (STEP) on three sites representing more than 90% of water discharges. These high-performance STEP projects include recycling of water in production processes, with efficiency targets, reaching up to 70% recycling of water in production process by 2023 (i.e. potentially 50,000 m 3 of borehole water saved). Leather / 26.3% increase in consumption in 2021 (increase of 14.8% compared to 2019) Leather goods workshops have a low “water” environmental impact since no volume of water is used for the process. The consumption of our leather goods workshops can therefore be assimilated to that of a tertiary activity with most of the water use being for washrooms. However, the water impact is taken into account in the design of new production units with the implementation, from the start of operation, of best practices. In addition, the latest leather goods workshops benefit from a rainwater recovery and treatment system to supply washrooms. Water consumption, in absolute value, increased by 6,883 m 3 in 2021 compared to that of 2020. There are three reasons for this: consumption of new sites commissioned in 2021, representing half of s the difference; the resumption of activity of company restaurants that had been shut s down in 2020 at the height of the Covid-19 health crisis; a water leak at a leather goods workshop that was not detected s immediately. Meters and an automatic alert system with consumption management have since been put in place at all leather goods workshops.

J3L 2021 is the first full reporting year for J3L. No comparisons are therefore available. The water at the Portugal site comes from rainwater recovery and municipal water. The use of wastewater treatment plants by evapo-concentration at the surface treatment sites allows, thanks to recycling, a major saving on the water used in the processes. Agricultural water Farms/7% increase in consumption in 2021, (6.6% increase compared to 2019) The Farms divisions are respectively composed of one alligator farm (alligator mississippiensis) and a hide inspection centre in the United States, four crocodile farms (c rocodylus porosus ) and two hide processing and hide inspection facilities in Australia. These figures include the new farm, under construction in Australia, which will reach full production capacity in 2024. Water abstraction by farms for the year 2021 amounted to 4,810 ML, slightly higher than in 2020 (+7%) due to the construction of the new Australian farm. Water consumption control relies on the monthly monitoring of the farms’ consumption and the water quality of the tanks and effluents (in accordance with applicable standards). The water used in the sites of the Australian division comes mainly from boreholes (68%), while the use of municipal sources is limited (12%). The remainder (20%) comes from a sugar cane production plant located near one of the farms, thanks to an innovative industrial circularity operation, in which the hot production water is exchanged for the farm’s effluents to irrigate the fields. The American farm exclusively uses well water from hot springs, which also allows it to significantly limit its energy requirements. Objectives: put in place actions compatible with the global warming s trajectory of 1.5 degrees and, in particular, continue the decoupling between industrial energy consumption and business growth; implement a policy of 100% renewable electricity within its own s operations by 2025 and renewable energies by 2030; no longer use gas or any other fossil fuels as an energy source s for all new industrial investments, unless this is proven technically impossible. Dubbed “defossilisation of industrial sites”, this programme reaffirms Hermès’ desire to actively participate in the energy transition necessary to limit global warming; equip all stores with 100%-LED lighting by 2023, unless this is s technically impossible. 2.5.2.1.2 Energy: electricity, gas

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