Hermès // 2021 Universal Registration Document
2
CORPORATE SOCIAL RESPONSIBILITY COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY
by Le Point magazine in the Clothing sector for the most responsible company. 2.7.2.2.1 SASB correspondence analysis The Sustainability Accounting Standards Board (SASB) is an independent, not-for-profit standard-setting body that develops and maintains reporting standards for financially material sustainable development information. The SASB has established standards specific to 77 activity sectors including with the "Apparel, Accessories and Footwear (consumer goods)" sector. In addition to the information presented in this report, Hermès presents a summary of its actions according to the sector reading grid. This publication is also an opportunity to highlight the House’s progress. Hermès’ business model is quite unusual compared to the sector taken into account by the SASB. SASB identifies nine key topics for the sector, five of which concern supply chain (CG-AA-430); very few concern human resources and societal aspects. Hermès operates according to a highly integrated business model (58% of products are produced in-house), with partnership relationships with its suppliers (the average length of relationships with the top 50 direct suppliers is 20 years), and production in France (for example, for 100% of leather goods, which represents half of the Group’s sales) and 78% in total. Although important, the topics highlighted by the SASB relating to the supply chain are not the only ones. Human and societal challenges are also key to the House’s sustainability. In terms of risk, the categories identified by SASB are not always the most significant for Hermès. As explained in § 2.1, the Group has identified and prioritised 10 key topics that structure its reporting and provide material non-financial economic information that is useful, comparable (even if sometimes specific) and evidence-based. In addition, as presented in this document, the Group uses the CDP reporting framework for its carbon, water and forest issues, and complies with the TCFD recommendations.
Sustainalytics, which analyses companies using more than 80 ESG criteria, based on their publications as well as those of their stakeholders and the media, has published a new analysis. Hermès is identified as the second best player in the Textiles and Apparel sector out of 174 companies, and belongs to the top 1% of the global Sustainalytics ranking (148th out of 13,657 companies). With an overall ESG risk rating of 10.2, Hermès’ exposure is “Low”. The MSCI ESG rating index, which assesses more than 8,500 companies worldwide, measures the resilience of companies to risks (ESG). Hermès is now rated A and made significant progress in all three categories. Hermès was included in the CAC 40 ESG index, which includes 40 companies on the basis of their environmental, social and governance performance and is based on the rating of VE ( Vigeo-Eiris ). With an overall score of 61/100, Hermès is now in the “Advanced” category. For the second consecutive year, the House received the Grand Prix de l’Emploi France awarded by Humpact, a non-financial rating agency that specialises in employment. It designates the most employment-friendly company in France in 2021, all categories combined. The Positive Economy Institute gives Hermès a B rating in its survey of the positivity of CAC 40 companies. In particular, Hermès ranks second among CAC 40 companies with the greatest improvement compared to the previous year, as well as second in terms of environmental footprint. The “Advanced” level is the highest level of recognition that can be awarded by the United Nations Global Compact to a Communication on Progress (COP). Hermès publishes its COP on the Global Compact website each year. These assessments are also supported in 2021 by various awards and studies conducted by the press or external organisations (§ 2.1.1), including the Grand Prix de la Transparence (CAC large 60), first prize in the Diversity Leader ranking of the Financial Times, and the 1st ranking
Correspondence grid based on SASB
Paragraphs from chapter 2 of the universal registration document
§ 2.5.3.3
Management of Chemicals in Products (CG-AA-250) Hermès assumes all its responsibilities as a company that places goods on markets, to ensure the regulatory compliance of all products sold, in all countries where it operates. The list of controlled substances monitored by the Group is the list of controlled substances worldwide. The Group has set a target of compliance with the most stringent regulations, which are generally European regulations.. Environmental impacts in the supply chain (CG-AA-430a) Hermès ensures that it controls the environmental footprint of its supply chain as described in the items below. Effluent management (GC-AA-430a.1) The Group verifies through regular audits that its suppliers (tier 1) comply with local regulations regarding the regulatory compliance of their effluents. Environmental assessments (GC-AA-430a.2) The Group’s entities and those of its suppliers are regularly subject to audits carried out by Hermès’ teams and external consultants, in addition to those carried out by the authorities (in particular for sites subject to authorisations).
§ 2.6.1
§ 2.2.1, § 2.5.3, § 2.6
§ 2.4.2, § 2.6
192 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL
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