Hermès // 2021 Universal Registration Document



Methodological note

Through its sustainable development approaches, Hermès implements practices that reconcile economic and social progress with preservation of the planet’s natural equilibrium, in a long-term vision. These societal and environmental challenges, linked to the 17 sustainable development goals defined by the United Nations for 2030, provide the framework for the House’s action in this area. Hermès, a family business, has been able to adapt to changes while favouring a long-term approach. The Group, on the strength of its craftsmanship savoir-faire , its exclusive distribution network and its creative heritage, will continue its sustainable growth. The Group’s craftsmanship manufacturing model is based mainly on the creativity and savoir-faire of men and women working in France. It draws on the House’s four essential heritages: creation, savoir-faire , exceptional raw materials and the retail universe. It is based on the geographical and cultural proximity between designers and craftspeople. Supported by a network of regional manufacturing sites, Hermès enhances the regions with a desire to ensure the transmission of this exceptional savoir-faire . Finally, it operates with moderation and sobriety in the use of raw materials and with a desire for a low environmental footprint. The promotion of these four heritages has contributed to the sustainability of the Hermès craftsmanship model since 1837. The Hermès Group’s ambition in terms of sustainable development is to ensure virtuous economic and social development, not only for employees and shareholders, but more broadly for its stakeholders, by thinking about the future of the next generations. This objective will also be achieved by reducing its impacts, however moderate, on the planet. This goal is accompanied by a deep humanistic desire to give back to the world some of what the world gives to Hermès. The scope of this Non-Financial Performance Statement (NFPS) covers all of the Hermès Group subsidiaries and sites, including all métiers and all regions, the scope of which is detailed in chapter 1 “Presentation of the Group and its results”, § 1.4.

This NFPS is based on the qualitative and quantitative contributions of the métiers , subsidiaries and central departments, and the following Group corporate departments: human resources, industrial affairs, real estate, legal, finance and sustainable development. From the end of the first half-year, the various contributors came together to rank the subjects they wished to prioritise and prepare a schedule extending to the end of the year. Given the time frames, certain annual data is reported at end of October, in particular for the industrial affairs department. Each department uses tools to consolidate the information related to their activities. These main contributors rely on their respective networks in order to summaries and highlight the most significant progress and the work carried out on the major strategic sustainable development challenges. This operating mode enables a fairer reflection of operating reality, in an environment in which the activities of the House are very diversified. Finally, verification work is carried out by an independent third party ( PricewaterhouseCoopers ), which is also one of the Company’s Statutory Auditors, with audits carried out before publication. The issuance of a reasonable assurance report, which is a higher level of certification than the limited assurance provided for by law in France, covers nearly 50% of the workforce, and therefore more than the required 20% (§ 2.9 and § 2.10). As stated in chapter 3 “Corporate governance”, §, the assignment was approved as a “service other than certification of the financial statements” by the Audit and Risk Committee, and is compliant with the French rules on independence.


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