Hermès // 2021 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY THE PLANET: ENVIRONMENT

Energy consumption (electricity, gas) was 214,808 MWh/year at Group level, excluding farms. This is distributed as follows, in a context in which the Group manufactures 58% of its objects in Hermès exclusive in-house workshops.

intensity of industrial energy consumption, compared to 2019 -21.4%

Industry

Stores Services Total

GROUP BREAKDOWN

2021 in %

75.5% 17.9% 6.6% 100%

2019

2020

2021

GROUP ENERGY INTENSITY Intensity in MWh/Revenue €M

30

31

24

The Group electricity consumption , excluding farms, represents 53.7% of the total, i.e. 115,402 MWh/year . The energy consumption (electricity, gas) of farms, consolidated separately, is 5,120 MWh/year of energy, including 4,113 MWh/year of electricity.

INDUSTRIAL ENERGY

INDUSTRIAL ENERGY CONSUMPTION

2019 158

2020 148

2021 162

In GWh

BREAKDOWN OF INDUSTRIAL ENERGY CONSUMPTION (GAS, ELECTRICITY) BY MÉTIER IN 2021 (EXCLUDING FARMS)

2019 23.0

2020

2021

INDUSTRIAL ENERGY INTENSITY Intensity in MWh/Revenue €M

Other* 13.6%

23.2 18.1

Crystal manufacturing / 4.1% increase in consumption in 2021 (increase of 2.5% compared to 2019) The processes using the most energy at the production unit are melting the material and working with it while hot. During each investment project, research is carried out to ascertain the best available technology in terms of energy efficiency and production volumes, which is then implemented. The last two furnaces renovated (pot furnace and gas melting furnace) as well as the reorganisation of the hot-part workshop are good examples of this. The study carried out on the renovation of the gas melting furnace, planned for 2022, forecasts a 30% reduction in the gas consumption of this tool, thereby reducing GHG emissions by the same amount. The replacement of two openings in 2022 and the recovery of waste heat are part of this approach to optimise the site’s energy efficiency. In 2021, a study was carried out to replace the boiler room in this building. Tanneries / 4% increase in consumption in 2021 (decrease of 8.9% compared to 2019) The tanneries continued their work to improve energy efficiency, both on existing facilities and during renovations and the construction of new premises. Particular attention is paid to the following points: supervision of equipment by centralised technical management (GTC), replacement of production equipment with alternative equipment that has improved energy performance, thermal insulation, insulation of pipes or replacement of lighting with LED bulbs. All the division’s tanneries underwent an energy audit as part of the programme initiated by the Group in 2019. The tannery located in Italy and the Jullien tannery were audited in 2021.

Crystal 26.0%

Leather 15.0%

Textile 22.2%

Tannery 23.2%

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

Over the last decade, the Hermès Group has maintained its ambition of decoupling consumption from growth with a 1.34-fold increase in industrial energy consumption compared with a 2.6-fold rise in activity volumes. This result testifies to the improved management of consumption. Industrial energy consumption intensity fell 48.2% over the same period. In 2021, overall energy consumption increased (+9.6%) compared to 2020, a year impacted by site closures during the first lockdown in France. In comparison with 2019, consumption only increased very slightly (+2.5%), thanks to the solutions implemented by the industrial sites. In order to monitor and manage energy consumption more closely, sub-metering solutions are being rolled out across all Group sites. To date, for example, 32 production sites and 16 stores are equipped with such systems. The voluntary energy audit campaign initiated in 2019 on the French sites, enriches the action plans for reducing energy consumption with a view to reducing greenhouse gas emissions.

136 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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