Hermès // 2021 Universal Registration Document



Sections in the universal registration document

Metrics and targets The SBTi validated Hermès’ carbon emission reduction targets, confirming the consistency of its policy with the Paris Agreements' 1.5°C trajectory. § 2.5 Indicators used by the Group to assess climate-related risks and opportunities, in accordance with its s strategy and risk management process Communicate scopes 1, 2 and, if appropriate, 3 greenhouse gas (GHG) emissions, as well as related risks s § Objectives used by the Group to manage climate-related risks and opportunities and performance against s these objectives § and § § 2.5.1 and § 2.5.4 Application of the European Taxonomy to the Hermès Group’s activities The European Taxonomy for sustainable activities, or “Taxonomy”, establishes a list of economic activities considered environmentally sustainable, on the basis of ambitious and transparent technical criteria. The introduction of this standard designed to distinguish economic activities contributing to the European objective of carbon neutrality – the Green Deal – underlines the scale of the economic and industrial transformations to be achieved as well as the ambition of the European authorities in terms of sustainable and transparent finance. On the strength of its environmental, social and societal commitments, Hermès supports the European Commission in its work to analyse activities and define technical review criteria intended to guide the investments of public and private players towards projects contributing to the transition to a sustainable and low-carbon economy. The first environmental objectives of the Taxonomy relating to the mitigation of and adaptation to climate change have prioritised the activity sectors that have a major contribution to greenhouse gas emissions at the European Union level. The Hermès Group’s activities, built on a craftsmanship, value-creating and sustainable business model, have not been considered by the Taxonomy as making a substantial contribution to these objectives. On the other hand, the Group is ramping up its climate commitments, among others described in § 2.5. The Group is also closely monitoring the publication of delegated acts for the other four environmental objectives, which should better reflect the contribution of its activities to a more sustainable world. Qualification levels retained by Hermès In accordance with European regulation 2020/852 of 18 June 2020 on the establishment of a framework to promote sustainable investments within the European Union (EU) 1. , the Hermès Group is required to publish, for financial year 2021, the portion of its revenue, eligible investments and operating expenses resulting from products and/or services associated with economic activities considered sustainable within the meaning of the classification and criteria defined in the Taxonomy for the first two climate objectives of mitigation and adaptation.

This first assessment of the eligibility of the Hermès Group’s activities for climate change mitigation of and adaption was conducted on the basis of the Delegated Regulation of 4 June 2021 and its annexes 2. supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council using the technical review criteria to determine the conditions under which an economic activity can be considered as contributing substantially to climate change mitigation or adaptation. The financial information detailed in the section below corresponds to the definitions specified in Article 8 of the regulations and has been subject to joint analysis and control by the consolidation department, the CSR department, investment department, real estate development department and the métier teams. To arrive at this assessment, a detailed analysis of the Group’s activities was carried out in parallel to a review of the existing processes and reporting systems, allowing the financial aggregates required by the Taxonomy to be excluded. The methodological elements on which the Group conducted its analysis – assumptions, estimates and limitations – are described in this report. At the end of this assessment, no eligible revenue was identified for this first year for the climate change mitigation and adaptation objectives, as the activities defined for these objectives do not cover the Group’s activities. Due to the lack of eligible revenue, capital expenditure and operating expenses related to activities contributing to revenue could not be classified as eligible. Nevertheless, since Hermès is taking actions to mitigate its carbon emissions and making investments to decarbonise its activities, particularly in the construction and renovation of owned and leased buildings, the Group has deepened its analysis by focusing on CapEx related to this type of investment. This in-depth analysis is presented below. Lastly, the analysis of OpEx led to the amount analysed being considered not material with regard to the Group’s materiality thresholds, the amount of OpEx within the meaning of the Taxonomy representing less than 5% of total Group OpEx. This observation, combined with the fact that the Group’s activities are not eligible to date, leads the Group to use the exemption provided for not calculating the Taxonomy OpEx KPI in more detail.

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32020R0852&from=EN 1. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=PI_COM:C(2021)2800 2.


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