Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE THE PLANET: ENVIRONMENT

GOVERNANCE

2.5.2 RESPONSIBLE REAL ESTATE With a wealth of real estate assets of around 500 sites, Hermès ensures that its buildings and construction projects meet the highest environmental standards. This real estate portfolio covers a wide range of buildings: production sites, logistics centres, exclusive stores, offices. Since 2016, this wealth has motivated the development, updating and creation of its own real estate standard, the Harmonie standard, allowing a more accurate measurement of the environmental issues of all of the House's construction, development and renovation projects, aligned with its values of high standards and uniqueness. This standard, which is significantly more demanding than the market standards, was certified in November 2022 by the third‑party verification body, Bureau Véritas. The Maroquinerie de Montereau completed work to bring water management in the event of a fire into compliance in November 2022, following a formal notice received from the Dreal in January of the same year. In addition, the Maroquinerie de Pierre‑Bénite received a formal notice from the Dreal in May 2022 to initiate similar compliance work; a technical solution has been developed and shared with the administration. The amount of provisions for environmental liabilities comprises provisions for the cost of asbestos removal work on the roofs of an industrial building at a tannery and remediation work on a manufacturing site for a total of €4.4 million. In accordance with Article R. 516‑1 of the French Environmental Code, the Annonay and Le Puy tanneries, the only tanneries within the scope of the system, have provided financial guarantees.

Responsible Real Estate Committee In 2022, a Responsible Real Estate Committee was created, composed of members of the Group’s industrial, commercial, financial, human resources, sustainable development and real estate departments. This committee aims to ensure that the real estate portfolio is in line with the best environmental, social and societal performance. To achieve this, the committee initiates actions that fall within its four missions: take decisions on and augment the Responsible Real Estate roadmap; s examine the choices made in the projects and formulate recommendations to project managers; s monitor environmental, social and societal performance; s communicate on relevant indicators. s HARMONIE: THE STRATEGIC EXPRESSION OF THE REAL ESTATE OF TOMORROW AT HERMÈS Labelized in 2022, the Harmonie standard ensures a level of requirement aligned with the highest real estate standards existing today. As indicated in the standard label report submitted by Bureau Veritas: “We are able to issue an opinion validating the alignment of the Harmonie standard with the highest standards of the market and its integration of the points of excellence of the main international sustainable real estate standards. Our opinion also validates the quality of application and operational control of the standard such that it allows a fair assessment of the environmental performance.” The standard incorporates environmental sustainability issues in all their dimensions and across the entire real estate value chain. It is based on five pillars: Carbon footprint, Biodiversity, Air quality, Local sourcing and Environmental health.

Carbon footprint

Air quality

Biodiversity

Local sourcing

Environmental health

Harmonie is implemented via an online platform enabling project managers to monitor their actions, consolidate the environmental performance of all projects and contribute to the Group’s carbon trajectory. In particular, it is possible to compare gross carbon emissions per m² of surface area.

It also sets binding targets for the fight against climate change, by setting a target of halving the carbon footprint per m² built by 2030 (compared to 2018).

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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