Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

CONTROLLING THE CONSUMPTION OF NATURAL RESOURCES: WATER, ENERGY Water

2.5.3.1

in water consumption intensity in 10 years -60%

2.5.3.1.1

Objectives:

continue the decoupling of industrial water consumption from business growth; s reduce water consumption by 5% per year in intensity (m /€M of revenue, like‑for‑like scope) over the period from 2018 to 2030, with increased attention to sites located in areas of water stress; s 3 implement a multi‑stakeholder approach and co‑construct with external stakeholders (regional departments, municipalities or professional associations) strategies to optimise water management and the quality of discharges. s

In 2022, the level of water stress was again assessed for all of the Hermès Group’s 68 industrial sites and farms using the Aqueduct tool developed by the WRI (World Resources Institute). The previous study carried out with WWF France dated from 2019. 14 sites operate in basins with high water stress and one site in a basin with very high water stress. The water consumption of these 15 industrial sites and farms (22% of the total number) represents a very small proportion of the Group’s water abstraction (6.1% – 325 ML). Substantial savings of 31 ML were already achieved at these sites between 2021 and 2022, with a reduction of almost 9%. Results and action plans at these sites are regularly monitored by the Group’s industrial affairs department.

Industrial water Water for industrial use is mostly (86.8%) used for industrial consumption in the two métiers , tanneries and textile units: 670,981 m /year at global level. 3

BREAKDOWN OF INDUSTRIAL WATER CONSUMPTION BY MÉTIER IN 2022 (EXCLU DING FARMS)

INDUSTRIAL WATER

INDUSTRIAL WATER CONSUMPTION

2018 2019 2020 2021 2022 720 668 580 627 671

In megalitres

INTENSITY

WATER CONSUMPTION – GROUP

Objective -5%/year

2018 2019 2020 2021 2022

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Intensity m / Revenue €M

✔

121 97 91 70

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As part of the operational implementation of the strategy to reduce water consumption, the Group has decided to implement an internal water price mechanism to reinforce decisions favourable to reducing the volumes abstracted. It is made available to the métiers in notional form for capital expenditure calculations. This price was set at €1.5 per m in 2021. It may change depending on economic conditions. Water resource management is based on monthly monitoring of consumption, preventive maintenance programmes for facilities, frequent checks and calibration of meters, installation of new smart individual meters, and programmes to raise employee awareness. Significant discrepancies unrelated to production differences are analysed and verified in order to locate and repair any possible leaks. 3

* Logistics, Metal, Porcelain, Beyrand, Watch division, Bootmaker, Silversmith Over the past 10 years, the Group has maintained its aim of decoupling, with industrial water consumption increasing by a factor of 1.3 while activity grew 3.1‑fold. Over 10 years, water consumption (excluding farms) intensity has fallen by 60%. In 2022, the overall consumption of water for industrial use increased (+6.9%) compared to 2021, returning to 2019 levels but with activity multiplied by 1.7 and the integration of new sites in the reporting scope. This is the result of continued reduction efforts on all the Group’s industrial sites.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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