Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE COMMUNITIES: SUPPLIERS & PARTNERS

DEVELOPMENT OF RESPONSIBLE PURCHASING

2.6.2

i.e. an eightfold increase in five years. Driven by a proactive policy, these purchases are mainly made at the initiative of Hermès Leather Goods & Saddlery and Hermès Group Services. The Group regularly uses the Hors les Murs initiative, in which EA and/ or ESAT workers come and carry out tasks in the workshops. In many métiers (Hermès International, Hermès Group Services, Hermès Leather Goods & Saddlery, Hermès Perfume and Beauty, etc.), these workers, made available on a daily basis by EAs and ESATs, contribute to various activities (cutting, preparation of orders or meeting rooms, logistics, security, concierge, mail dispatching, etc.). These collaborations provide long‑term employment opportunities. Building on this inclusive base, the Group now monitors the impact of its purchases in the regions in France, and the results represent a significant impact in terms of social responsibility. Indirect purchases thus contribute to the development of priority regions. In 2022, these purchases were made from 3,340 SMEs in France (<250 people, revenue <€50 thousand): 746 ESS – social and solidarity enterprises, 1,075 suppliers located in ZRR (rural revitalisation zones) and 2,408 suppliers located in QPV (priority city neighbourhoods). In total, in France, 43% of suppliers of indirect purchases involved purchases with social and environmental added value, for an amount of €242 million, as detailed below:

Aware of its societal responsibility and driven by the development of purchases from socially supported organisations both for its direct and indirect purchases, Hermès has begun a process of developing its responsible purchasing, wishing to extend its societal commitment beyond the strict definition of socially supported organisations. POLICY The Group has long pursued a policy in favour of people with a disability, through partnerships with companies in the socially supported and sheltered organisation (EA , ESAT ) in France. This ambitious purchasing policy with socially supported organisations is based on enabling EA and ESAT workers to exercise a professional activity in an adapted framework that provides a meaningful environment. The legislation changes of the Disability Reform, which set a ceiling for the tax reductions generated by purchases from socially supported organisations, will not threaten this policy, which has been reaffirmed to all players and influencers. The ambitious target to increase the use of the socially supported and sheltered organisation sector in France by 20% per year was widely exceeded in 2022, with purchases made growing from €0.7 million at the end of 2017 to €5.2 million at the end of 2022, (1) (2)

Purchases made from EAs/ESATs

Purchases made from companies in the social and solidarity economy (SSE) sector

Purchases made from suppliers in rural revitalisation areas (ZRR)

Purchases from suppliers located in a priority or revitalised neighbourhood (QPR)

€5.2 million (+23% vs. 2021)

€13 million*

€118 million*

€106 million*

* 2022 marks the first year of monitoring these purchasing flows

MEASURES IMPLEMENTED AND RESULTS IN SOCIALLY SUPPORTED ORGANISATIONS The year 2022 was marked by the importance given to the commitment of the France exclusive stores grouped within Hermès Distribution France. Following the Bordeaux and Lyon stores, the Lille, Deauville, Strasbourg and Georges V exclusive stores in Paris have developed partnerships with EAs/ESATs enabling them to integrate EA/ ESAT workers in the stores in regular positions, mainly in stock management, but also sometimes part‑time in reception or providing various services. Hermès Maroquinerie‑Sellerie’s commitment in favour of disability is at the heart of an ambitious prevention policy for all employees. Hermès Leather Goods & Saddlery wishes to continue and strengthen partnerships whenever possible, with the aim that each in‑house regional division develops a partnership with one or more EA/ESATs in its region. Each partnership is first and foremost a human journey, providing an opportunity to integrate people with disabilities into the teams, drawing on the experience and skills of these structures.

The first step is to have the EA/ESAT partners work locally on the skills they already offer: green spaces, company canteens, renovation of workbenches, small equipment, etc. Once this potential is tapped, a ramp‑up of skills is envisaged in the techniques necessary for the manufacture of objects. The ultimate goal is to enable certain EA/ESAT partners to become contract manufacturers to whom the sites could entrust the manufacture of certain small, finished products. These supported long‑term partnerships make it possible to free up internal production capacity within the leather goods workshops, while allowing the EAs/ESATs to improve their skills and develop their activity. Committed since 1999, the Hermès Leather Goods & Saddlery collaboration with EAs/ESATs on the core métier grew by 6% in 2022 vs. 2021 representing 90 FTEs spread across eight EA/ESAT partners. This revenue alone reached €2.5 million in 2022, compared to €1.6 million in 2021. The core métier activities entrusted to them consist mainly in the production of interfacing cuts and reinforcement kits, as well as, for 25%, the making of small objects, or even projects related to circularity. In all, the revenue generated between HMS and socially supported organisations amounted to €2.7 million,

1. 2.

EA – Adapted company. ESAT – Sheltered work establishment.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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