Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

Fifteen industrial sites have integrated their own effluent treatment plants, including filter gardens. They treat 455,179 m per year (77% of water discharges), using the most appropriate technologies for the substances discharged in accordance with the limits imposed by the environmental authorities, almost exclusively in France. The rest of the wastewater is composed almost entirely of water from washrooms. Breakdown of the highest level of treatment of the stations: 3 primary treatment ( primary physico‑chemical treatment – flocculation, settling, formation of primary sludge ) 9 stations; s secondary treatment ( biological treatment – bacteria ) 1 station; s tertiary treatment ( with, for example, microfiltration, ultrafiltration, nanofiltration, reverse osmosis, filtration on granular media, infiltration‑percolation, targeted treatment – nitrogen, chlorine disinfection, ozone, UV, dephosphatation, activated carbon ) 5 stations; s At these sites, chemical oxygen demand (COD) is one of the water quality parameters measured. In 2022, 395 tonnes of COD were released. New indicators and objectives will be put in place within two years for this quality part of discharged effluents. As stipulated in § 2.5.1.4, three sites were the subject of a formal notice relating to the quality of the water, each time treated as soon as possible. Tanneries The quality of effluent discharges is central to sites’ environmental concerns. Each tannery is equipped with an effluent treatment station and verifies that its industrial emissions comply with the applicable standards. Regulatory inspection reports are submitted to the local authorities on a regular basis. As a reminder, the tanneries are solely located in France (five sites) and Italy (one site), and their stringent regulations are subject to frequent controls. In accordance with these regulations, the Group monitors the biological and chemical oxygen demands of its discharged water and ensures that they do not exceed the thresholds set by its prefectural orders. One example is the Vivoin site, whose production water treatment system makes it possible to achieve COD levels well below the very low discharge limit. This performance is achieved thanks to an ultrafiltration unit and two activated carbon filters. To date, 100% of our water is treated internally and 93% of this water enters the municipal network for a further treatment in the municipal stations. The division’s tanneries continually work on improving the performance of effluent treatment. Numerous studies and optimisation projects for tannery waste management facilities are carried out annually. This work represented an investment of €1 million in 2022, a similar level to prior years.

The evapo‑concentration unit at the Montereau site is fully operational. The recycling of part of the waste treated in production processes in addition to rainwater is being finalised and will be launched in 2023. Work to modernise the Tanneries du Puy wastewater treatment plant began in 2022 and will continue until the end of 2023. Detailed studies for the reuse of treated water leaving the Tanneries du Puy and Annonay treatment plants made it possible to identify the actions to be carried out and to request the necessary authorisations from the local authorities. These projects will be completed in 2023. Similar studies are being carried out in the division’s other tanneries, in particular the exotic tanneries, in accordance with the strategy of reducing water abstraction by the Group and the Tanneries division. Farms In Australia, 38% of water discharged from animal farming is reused through irrigation projects after filtering. The water from one of these farms is reused to irrigate sandalwood in collaboration with the Hermès Perfume and Beauty division. On the land of the new Australian farm, 60 hectares of khaya and mixed wood were planted in 2022, in addition to the 20 hectares already planted. On this farm, 100% of the water discharged is reused for these irrigation projects, including the planting project. Irrigation systems are also set up on other farms to produce fodder for local farmers or to irrigate sugar cane plantations on neighbouring agriculture farms in an industrial ecology scheme. These projects are a priority area of work as part of the water strategy rolled out by the Farms division. For all tanneries and farms, the compliance of water discharges is checked at a frequency adapted to the monitored parameters: half‑yearly, quarterly, daily or continuous measurements. Most of these parameters are measured at a higher frequency than that required by the authorities. The control samples are analysed on site or in approved external laboratories. The results of internal analyses are compared once or twice a year with those obtained by an independent and certified laboratory. In the event of a deviation from regulatory requirements, precautionary measures are immediately taken and actions are implemented to return within the defined parameters. All information is quickly transmitted to the authorities as well as to the managers of the wastewater treatment plants in urban areas, most of the time using dedicated IT platforms. Air emissions at the division's tanneries result primarily from the operation of the boilers, the dry degreasing activity and the finishing booths. Verifications of such equipment, as identified in the prefectural orders or site permits, are performed in accordance with the applicable regulations. Finally, in accordance with regulations, the French sites prepared a solvent management plan.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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