Hermès // 2021 Universal Registration Document

4

RISK FACTORS AND MANAGEMENT RISK FACTORS

SAFETY ●

4.1.2.4

DESCRIPTION OF THE RISK s

POTENTIAL IMPACTS ON THE GROUP s

The safety of property means all measures and means for combating threats and malicious acts. The main threats identified are: physical damage to property, people and infrastructure, and damage to savoir-faire and intangible property.

Such breaches could cause damage to property and people working at the Group’s sites (production, distribution, logistics or offices) or at events on external sites. Moreover, they could expose craftspeople and sales staff to risks, causing moral and psychological damage to all Group employees. In addition to direct financial losses, they could harm the Group’s image.

IMPACT PROBABILITY

RISK MANAGEMENT s The following actions have been taken: safety governance is set out in a safety policy covering all the Group’s activities and sites; • since 2020, the procedures specific to transportation safety have been rolled out and adapted to the health situation; • in the case of a serious event, a crisis management process is implemented. This provides for the setting up of a crisis unit with dedicated • resources made available. Crisis management exercises are regularly conducted. Hermès is organised to take account of these risks on a daily basis: a central monitoring station, operating round the clock, is connected to the 70 production and distribution sites in France and Switzerland. The Group took the decision to employ 60 agents in its internal safety division, to which external service providers are added. Experts within the Group safety department regularly travel to the various sites and during events in France and abroad to ensure compliance with Group safety procedures. A questionnaire on industrial safety is also completed during site visits or audits. Furthermore, the Group safety department has an advisory role to the métiers and subsidiaries. A computerised safety and crisis management tool was rolled out in March 2021 on sites in the Paris region. In particular, it makes it possible to standardise operational procedures between the various teams of the Group safety department, while promoting real-time and consolidated information sharing. It also has specific crisis management functionalities. It will gradually be rolled out to other Group sites over the coming years, depending on the level of risk identified at each site. This system is also backed by partnerships set up through agreements signed with the police force and the Ministry for Europe and Foreign Affairs. Safety incidents are reported in a specific database and are regularly reported to the Group Safety Committee and the Audit and Risk Committee. They are analysed in detail, contributing to the continuous improvement of the system. In line with the health situation, safety measures were reinforced during lockdown and closed sites were subject to particular vigilance.

O Strategy & operations

Industry O

CSR O

O Regulatory compliance

O Finance

338 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL