Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

This national framework set by France is fully aligned with the content of international discussions that take place, notably during COPs. The methods for setting up new carbon markets (recorded in Article 6 of the Paris Agreement) are questioned there to ensure that carbon offset projects have a positive impact on local communities. This is the position defended by the Livelihoods Venture fund to which Hermès is committed. Its purpose, from its inception, was to be supported by organisations, such as the Group, able to accept and manage the complexity of systemic approaches to try to make both communities and nature thrive. Governance Livelihoods projects are monitored throughout the year by the Group’s Sustainable Development Director, who attends meetings of the Livelihoods Fund’s Board of Directors. A member of the Hermès Executive Committee is a director of the funds managed by Livelihoods, a witness to the Group’s involvement at the highest level in these subjects. This monitoring makes it possible to validate the choices made in terms of investments and projects, and also to monitor the progress of projects that may be impacted, for example, by climate phenomena or other hazards. A presentation of Livelihoods progress is made to the Hermès Executive Committee at least once a year, in the same spirit of monitoring and sharing. The companies supporting Livelihoods provide more than just financing, they also bring a vision, stability and commitment to generate a positive impact that it is essential to share at the highest level of the Group. Offset strategy The Group’s ambition to achieve a “net zero” target by 2050 is based on two complementary approaches: rule no. 5: Communicate responsibly. Hermès does not claim in any way to be carbon neutral, acknowledging that the Group’s activities have a carbon impact, even though it is one of the most moderate in the CAC 40. However, its actions are committed to the long‑term, with the aim of achieving a “net zero” trajectory by 2050, compatible with the 1.5°C scenarios of the Paris Agreement. s focus on reducing emissions in its own value chain , which requires organisational and technological changes internally and with suppliers; s use voluntary offsetting, which is based in particular on so‑called “Nature‑based” solutions thanks to natural capture mechanisms (for example, planting) with the implementation of large‑scale projects that take time to set up over the long term. s (1) on the one hand, so that the priority remains the allocation of human and financial resources to reducing emissions; s on the other hand, to build offset projects with local communities, in compliance with our quality and ethics requirements, which takes time. s This carbon offset strategy is therefore gradual for two main reasons:

2.5.6.3.2 Hermès’ strategy is to follow a trajectory that will enable it to i) neutralise a growing part of its residual carbon emissions by 2030, calculated on the basis of emission reduction projections (as taken into account in the SBTi analyses), and ii) achieve expected volumes of voluntary carbon offsets (forecasts of carbon credits deliveries from the Livelihoods business plans). Hermès is continuing its work and investments to offset all of its residual emissions by 2050. Livelihoods Carbon Fund In June 2012, Hermès joined the Livelihoods carbon funds (LCF), a coalition of companies financing carbon offset projects with high social and environmental value. Livelihoods initiatives are described below as well as in the section covering relations with stakeholders (see §2.7.2.1.4), notably explaining that more than 142 million trees have already been planted, benefiting more than 2.15 million people. The operation of this system is based on seven structuring principles, the foundations of the Livelihoods charter, which contribute to its interest: reduction first : the carbon credits generated by Livelihoods projects serve to complement internal reduction efforts, and are one of the parameters for achieving carbon neutrality by 2050; s the additionality principle : the projects supported by Livelihoods would not have seen the light of day without its investment alongside project developers, the vast majority of which are NGOs, which requires detailed study in complex social and ecological contexts. These are not off‑the‑shelf or standardised projects, but projects that require a systemic and tailor‑made approach. Starting from the aspirations of disadvantaged and sometimes marginalised communities, this involves helping them out of poverty by increasing their income and improving their food security; s carbon credits certified to the highest standards , Gold Standard and Verra (formerly VCS), which validate the carbon effectively removed (and not carbon reduction estimates or future projections). In addition, each project gives rise to monitoring and impact calculations in accordance with the United Nations SDG framework, given its contributions, which extend beyond just carbon sequestration (no poverty, gender equality, life on land, etc.); s taking an entrepreneurial risk to finance projects from the beginning : Livelihoods does not buy credits “on the market” from projects that have already been started, accepting to pay a margin to an intermediary. It helps communities by investing for them right from the beginning, and by taking a risk of between €2 million and €6 million on each project, with no absolute guarantee of any return. The communities concerned do not have the means to carry out their projects without this risk‑taking. Project financing occurs during the first years, with the results seen, for example, when the trees grow. This can sometimes be five years after the main investments have been made; s

Nature‑based solutions are defined by the International Union for the Conservation of Nature (IUCN) as actions that rely on ecosystems to meet global challenges such as the fight against climate change, management of natural risks, health, access to water, food safety, etc. 1.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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