Hermès // 2021 Universal Registration Document

4

RISK FACTORS AND MANAGEMENT RISK FACTORS

INTELLECTUAL PROPERTY AND THE FIGHT AGAINST COUNTERFEITING ●

4.1.3.2

DESCRIPTION OF THE RISK s

POTENTIAL IMPACTS ON THE GROUP s

The Group is very committed to the protection and defence of its intellectual property rights. It is very active in the fight against counterfeiting, particularly on the Internet.

Infringements of the Group’s intellectual property rights could have a negative impact on its revenue and damage its brand image.

IMPACT PROBABILITY

RISK MANAGEMENT s The Group has a particularly comprehensive portfolio of brands, models, patents and domain names, which is regularly expanding. Within each métier legal division, teams are specifically dedicated to these issues and ensure that the Group’s creations are protected effectively. Finally, the Group ensures that its rights are respected and pursues an active anti-counterfeiting policy involving both preventive measures (training) and coercive measures (administrative, civil and criminal proceedings) across the world and particularly on the Internet. The anti-counterfeiting department undertakes these actions with the support of external consultants and in collaboration with the competent local authorities. They are carried out both in traditional markets and on the Internet (Metaverse, online sales platforms, social networks, retail websites, instant messaging, etc.). These actions make it possible to seize and destroy several hundred thousand potentially dangerous counterfeit products each year (in compliance with CSR rules), to trace the source of the production chain for these products and ensure the Group’s rights are recognised. Where applicable, the payment of damages compensates for the prejudice suffered and is reinvested in the fight against counterfeiting.

RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY

4.1.4

The Group’s social, societal and environmental responsibility challenges are described in detail in chapter 2 "Corporate social responsibility", and are articulated around the Hermès Group’s six strategic sustainable development pillars: teams; s savoir-faire ; s

raw materials; s environment; s suppliers and partners; s stakeholders. s

In 2021, Hermès updated the analysis of its priority CSR issues in order to guide its actions and facilitate understanding of its strategy. This materiality analysis was conducted by interviewing a panel made up of internal stakeholders who are experts in the subject, internal stakeholders outside France, and external stakeholders identified for their knowledge of the sector, the House and its functioning. Details of the method followed and the materiality matrix thus constructed are presented in chapter 2. This study confirms and sets out the analysis conducted more widely at Group level in 2019 on three main themes: risks related to changes in major global issues regarding climate and biodiversity; s risks related to availability and judicious use of natural resources (water, energy, raw materials, waste management and recycling); s risks related to human rights and fundamental freedoms, and in particular, as regards the ethics aspect of our relations and more broadly the s well-being of our employees. More details by type of risk, and the mitigation and prevention mechanisms for these risks are addressed specifically in chapter 2. CSR topics are also part of the impact assessment criteria for each of the risk factors.

O Strategy & operations

Industry O

CSR O

O Regulatory compliance

O Finance

340 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL