Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

adjust the water flow, etc.). As an illustration of this approach, in the textile sector, the reduction of water consumption is one of the criteria of the incentive scheme agreement.

The métiers work on a daily basis to minimise water consumption, find innovative solutions to increase the proportion of recycling (rainwater recovery, rainwater treatment, wastewater treatment, innovative efficient water and energy systems, implementation of valves that

ANALYSIS OF CHANGES IN INDUSTRIAL WATER CONSUMPTION BY MÉTIER

Change 2019/2021

Change 2020/2021

Change 2021/2022

2

Activities with high water consumption by processes: >90% of total consumption

Tanneries (five in France and one in Italy)

-13.5%

+2.7%

+3.7%

Textile

-1%

+19.3%

+10.5%

Leather goods

-14.8%

+26.3%

-8.7%

(1)

First year of observation

J3L

Tanneries / 3.7% increase in consumption in 2022 compared to 2021, 1% decrease in intensity by product over the same period Hermès operates six tanneries, including five in France (Annonay, Le Puy‑en‑Velay, Vivoin, Montereau and the Mégisserie Jullien in Chabris) and one in Italy. Water consumption and effluent treatment are major issues for the tanneries. Historically located close to rivers, they use water for the tanning, dyeing and hide finishing processes. A total of 63% of the water for the division’s six tanneries comes from waterways or boreholes. The rest comes from municipal sources. The division’s water consumption only increased by 3.7%, while activity grew strongly. The ratios in terms of water consumption intensity per leather produced in the calfskin tanneries improved: -11% compared to 2021. The energy consumption ratios of the exotic hide tanneries remained consistent with the levels observed over the last three years. In accordance with the division’s commitments, the tanneries have launched ambitious programmes to reduce water consumption, on the one hand, by working on optimising the quantities of water needed for the treatment of each hide treatment and, on the other hand, by developing recycling and reuse of wastewater for certain operations. Textile / 10.5% increase in consumption in 2022 compared to 2021, 14% decrease in intensity by product over the same period Water is an essential element in the printing and finishing stages of fabrics, in particular for the transfer of colours to textiles. 94% of water needs are covered by borehole water, significantly limiting the use of drinking water for industrial processes. With the strong growth in activity, water consumption in the Textile division increased by 10.5% in absolute value compared to 2021, however its intensity decreased: efforts to moderate consumption have made it possible to limit this increase, reducing water consumption per unit of textile produced by 14%. For several years, the Textile division has been implementing an ambitious policy in terms of water consumption management: for example, the SIEGL site, which represents 37% of the division’s consumption, raises its employees’ awareness by communicating the monitoring of water consumption to them daily. At AEI and Ateliers AS

(nearly 60% of the total), water consumption is taken into account in the incentive scheme agreement, reflecting the importance of the topic for employees. The division’s efforts are also focused on recycling wastewater to limit water abstraction. In 2022, the three sites of the division that consume the most water made investments for the gradual implementation of: studies and modification of networks, specific treatment equipment, etc. These high‑performance WWTP projects include water recycling in the production process, with a rate of up to 70% (which would potentially represent 80,000 m of borehole water saved). Leather / 11% decrease in consumption in 2022 compared to 2021 and a 17% decrease in intensity over the same period Leather goods workshops have a low “water” environmental impact since no volume of water is used for the process. The consumption of leather goods workshops can therefore be assimilated to that of a tertiary activity with most of the water use being for washrooms. However, the water impact is taken into account in the design of new production units with the implementation, from the start of operation, of key best practices. In addition, the latest leather goods workshops benefit from a rainwater recovery and treatment system to supply washrooms. This recovered water represents 4% of the total consumed in 2022. Water consumption in the Leather Goods workshops in 2022, in absolute value, was reduced by 3,492 m , corresponding to a decrease of 11% in the total abstracted and an improvement of 17% in the ratio (in relation to activity). Several cost‑saving actions were implemented at the leather goods workshops. Two filtration units were installed in the outdoor landscaped basin of the Maroquinerie du Val de Reuil, reducing consumption by 502 m while guaranteeing its good ecological condition. At the Maroquinerie de Pantin, air conditioning based on a “lost water” operating principle has been eliminated and a “connected station” now manages watering according to rainfall. The water savings thus generated amount to 715 m . A saving of 628 m was achieved at the Maroquinerie 3 (2) 3 3 3 3

1. 2.

Including water consumption at the leather logistics centre. For comparison purposes, the water consumption of the Leather logistics site located in the Lyon region is not included in the indicators in the paragraph but is included in the Group’s overall consumption.

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