Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

This voluntary investment in carbon offset projects is part of a strategy of gradually increasing the coverage rate of the Group’s residual emissions, with the target of an intermediate situation of 50% between 2030 and 2040, and 100% of residual emissions by 2050, with a view to "net zero". In 2022, Hermès made its emission forecasts more reliable, given its reduction ambitions, and secured a trajectory for 2030 with Livelihoods projects with maturities of 20 years. Deliveries of these credits will accelerate in the coming years. In addition, SBTi took a position in September 2022 in its paper “ Net‑Zero: Urgent Beyond Value Chain Mitigation Is Essential ”. In short, SBTi is encouraging companies to take the leadership initiated by Livelihoods from the outset, namely to commit to large‑scale societal projects, recognising them as an effective means of combating climate change. The House’s actions are therefore fully in line with SBTi’s position on carbon offset. §2.7.2.1.4 provides further information on the Livelihoods societal aspects.

The carbon deliveries expand as the trees grow (the projects span a period of 20 years). They were made in 2022 after verification by specialised auditors (according to the Gold Standard and Verra – VCS standards), and Hermès cancelled all the credits granted to it. The Covid‑19 crisis unsurprisingly created difficulties and delays in projects, whether in their implementation or verification. Nevertheless, the funds were able to distribute credits for amounts greater than the budget forecast. To offset some delays in project verifications, Hermès acquired other credits from another French player in carbon offsetting, directly involved in the operations of projects with high social and environmental value. In total, Hermès thus received and cancelled 127,000 carbon credits for 2022 (representing 127 thousand tonnes of CO2‑eq) , and thereby contributed to reducing climate change impacts. This amount is equivalent to the entire scopes 1 and 2 carbon emissions and 100% of upstream and downstream goods transportation emissions, i.e. 23% of the Group's total emissions.

CARBON CREDITS RECEIVED AND CANCELLED

2018

2019 2020 2021 2022

Carbon credits received and cancelled in k tonnes CO eq % credits vs. scopes 1 and 2 (market‑based) 2

36

44

46

81

127

82% 27%

100% 100% 100%

100% 100%

% credits vs. scopes 1 and 2 (market‑based) + goods transportation

41% 44% 76%

% credits vs. Group carbon emissions

7%

11% 11% 19% 23%

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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