Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

The voluntary energy audit campaign, initiated in 2019 on the French sites, enriches the action plans for reducing energy consumption with a view to reducing greenhouse gas emissions. The industrial affairs department coordinates these reduction plans and monitors the trajectory for reducing GHG emissions (scopes 1 and 2 including the impact of the energy consumed) to meet the Group’s commitments. Three principles guide the métiers : sobriety: each métier examines the use of energy, to constantly reduce its needs in terms of absolute value and per unit produced on the sites; s

efficiency: each new piece of equipment is designed to improve energy efficiency compared to the previous generation. This point is all the more important as the life of industrial equipment can sometimes be counted in decades; s decarbonisation: as part of the “Phase out fossil fuels” programme, the sites are planning to phase out fossil fuels by 2030 in favour of renewable or low‑carbon energies. Each new project is an opportunity to integrate a share of self‑consumed renewable energy production. s

Sobriety plan Hermès has historically been committed to a programme for reducing the carbon footprint of its activities, as well as to an energy sobriety action programme for several years. In 2020, the Group set targets for reducing its energy and environmental impacts (detailed above). At the end of July 2022, the French Association of Private Enterprises (Afep) repeated the French President's call, inviting all companies to define a voluntary reduction plan for their energy consumption, which could be implemented from September, in order to see results at the beginning of winter. This follows the particularly tense energy context due to the war in Ukraine and the one‑off difficulties encountered by the nuclear sector. Efforts therefore focused on managing and regulating the thermal comfort of buildings. Since the beginning of October, in order to reduce energy consumption in France by 10%, a common approach has been adopted, adapting it to each of the sites, based in particular on:

a 2°C reduction in heating temperatures in winter; s the reduction of air conditioning in summer (+1°C); s

the optimisation of heating and air conditioning operating times; s the reduction in the intensity of the lighting according to the activity; s the anticipation of certain work to improve energy performance; s the shutdown of certain unnecessary equipment at night and on weekends; s the reduction of store window lighting times. s

The initial results for the autumn months show an acceleration in the reduction of overall energy consumption. A more in‑depth assessment will be carried out at the end of the winter to confirm the best practices to be maintained, those to be corrected or those to be further developed.

Cristallerie de Saint‑Louis / 11% decrease in consumption in 2022 compared to 2021 The processes using the most energy at the production unit are melting the material and working with it while hot. During each investment project, research is carried out to ascertain the best available technology in terms of energy efficiency and production volumes, which is then implemented. In 2022, the Cristallerie commissioned a system for recovering waste heat from the furnace cooling system in order to heat La Grande Place museum and, above all, installed a new gas melting furnace (in September) incorporating oxy‑combustion technology, reducing its consumption of natural gas by more than 30% and, accordingly, its greenhouse gas emissions. This new installation, innovative for this application, has the particularity of operating on oxyfuel (a mixture of oxygen and gas). The start of production of the new gas melting furnace is fully compatible with the Saint‑Louis action plan aimed at aligning itself with the immediate objectives of the national energy sobriety plan targeting the achievement of a 10% reduction in energy consumption over the next two years compared to 2019.

In addition, the House of Saint‑Louis has adopted a proactive approach to reducing its energy consumption, reflected in a series of technical and organisational actions aimed in particular at optimizing the heating of buildings, streamlining the management parameters of IT networks and raising staff awareness of eco‑friendly practices, etc. Among the ongoing projects, Saint‑Louis plans to set up remote reading of energy and water meters by 2024. This will allow optimal agility, both in environmental management but also from an operational point of view to quickly identify any drift in consumption whose origin may come from a malfunction or leak. Site teams would then be able to respond more quickly.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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