Hermès // 2021 Universal Registration Document

CORPORATE SOCIAL RESPONSIBILITY BUSINESS MODEL

EXCEPTIONAL OBJECTS DESIGNED TO LAST

Creative freedom The designers sketch, innovate and revisit the House’s models with the greatest freedom. Around an annual theme, “the Odyssey” in 2021, the artistic department proposes and renews the collections and objects.

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Development Close cooperation between our creative minds

and developers ensures that original ideas become a reality. This step is crucial in defining the manufacturing processes that reconcile optimisation, quality, innovation and aesthetics for a virtuous life cycle.

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Exceptional materials The use of materials is optimised from creation to production, with careful use of only the essential resources encouraged in order to avoid unnecessary waste and surplus materials and to take the end of life of objects into account. Hermès manufactures high-quality products, mainly from renewable natural resources, the most emblematic of which are leather, silk and cashmere.

Purchasing freedom Present worldwide, Hermès is strongly committed to the principle of giving purchasing freedom to its retail subsidiaries and stores. Store managers choose the products to propose to their customers. The offer is varied and relevant, the ecological footprint controlled and waste reduced.

Handcrafted production Craftspeople take the greatest care in manufacturing the products ordered by the stores. Emphasis is placed on in-house training, which guarantees the transmission of exceptional savoir-faire within the production units. The use of subcontracting is limited and is based on long-term partnerships. 4

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Logistics Mainly manufactured in France, the products are sent to one of the Group’s two logistics platforms, where they are checked, packaged and stored before being distributed to the store network. The choice of a centralised logistics model makes it possible to optimise flows, find and implement transportation solutions in order to control the carbon impact and reduce the environmental footprint.

Long-lasting objects Hermès objects are designed to withstand the rigors of time. They develop a patina, are looked after, repaired or renovated thanks to the savoir-faire of our craftspeople, and are passed on from one generation to the next. At the same time, the métiers are working on ways to reuse and improve the circularity of materials and finished objects with the aim of recycling, innovating and finding new uses.

Responsible communication and transparency

CSR communication is a major focus, with the aim of making the strategy and actions in this area more transparent. It takes the form of actions to improve external understanding: dialogue with customers and the public, the press and influence, investors and financial analysts. In a pro-active approach, responses are provided to external assessors.

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End-of-life Although the craftsmanship model is, by design, a factor that helps streamline and optimise the use of materials, work is being carried out to anticipate the end-of-life of objects. The métiers and subsidiaries innovate and work on concrete projects which aim to extend the life of products and master material waste, in particular through donations and circular channels (reuse, recycling, etc.). In France, from 1 January 2022, Hermès is subject to the AGEC law (on Preventing Waste and the Circular Economy) which aims to prohibit the destruction of unsold products in the textile, household linens, shoes and furniture métiers .

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Exclusive distribution While its products are made in France, they are distributed worldwide. In addition to this physical network, e-commerce has been added since 2002. Hermès favours a qualitative development of its network combining the enhancement of its stores and special attention is paid to their social and ecological footprint.

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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