Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

APPLICATION OF THE EUROPEAN TAXONOMY TO THE HERMÈS GROUP BACKGROUND

2.7.4

QUALIFICATION OF INDICATORS AND PRESENTATION OF RESULTS

2.7.4.2

Eligibility and alignment qualification The assessment of the alignment of the Hermès Group’s activities for climate change mitigation and adaptation was conducted on the basis of the Delegated Regulation of 4June 2021 and its annexes supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council with the technical screening criteria to determine the conditions under which an economic activity can be considered as contributing substantially to climate change mitigation or adaptation. The financial information detailed in the section below corresponds to the definitions specified in Article 8 of the regulations and has been subject to joint analysis and control by the sustainable development department, finance department, real estate development department and the métier teams. The methodological elements on which the Group conducted its analysis – assumptions, estimates and limitations – are described in §2.7.4.3. Revenue eligibility and alignment ratios As Hermès’ métiers are focused on leather goods, ready‑to‑wear, accessories, jewellery and beauty, no revenue is eligible under the climate change mitigation and adaptation objectives based on the activities defined by the European Commission for these objectives. The table corresponding to the alignment of revenue is available in §2.7.5.6. OpEx eligibility and alignment ratios In accordance with the regulation, as the ratio of operating expenses concerned by the Taxonomy to the Group’s total operating expenses is less than 5%, a threshold commonly taken to be the materiality threshold, the Group has used the exemption provided for allowing it not to publish the taxonomy eligibility and alignment ratios for its OpEx. The table corresponding to the alignment of OpEx is available in §2.7.5.6. CapEx eligibility and alignment ratios In accordance with regulations, the Group analysed its acquisitions of property, plant and equipment and intangible assets (IAS16 and 38), right‑of‑use assets (IFRS16) and business combinations (IFRS3) constituting the CapEx Taxonomy denominator. This amounted to (2) With regard to the acquisition of property, plant and equipment and intangible assets, most of the eligible investments relate to the construction and renovation of owned and leased buildings. They represent a total amount of €252 million. In particular, eligible investments as defined by the regulation correspond to the following Taxonomy activities: acquisitions of property, plant and equipment and intangible assets "CapEx" (€518 million) s the increase in right‑of‑use assets (IFRS16) (€330 million). s No significant business combination took place during the period. €848 million for 2022. This CapEx consists of:

2.7.4.1

Reminder of the regulatory context The European Taxonomy for sustainable activities, or “Taxonomy” Regulation establishes a list of economic activities considered environmentally sustainable, on the basis of ambitious and transparent technical criteria. The introduction of this standard designed to distinguish economic activities contributing to the European objective of carbon neutrality – the Green Deal – underlines the scale of the economic and industrial transformations to be achieved as well as the ambition of the European authorities in terms of sustainable and transparent finance. On the strength of its environmental, social and societal commitments, Hermès supports the European Commission in its work to analyse activities and define technical review criteria intended to guide the investments of public and private players towards projects contributing to the transition to a sustainable and low‑carbon economy. The first environmental objectives of the Taxonomy relating to the mitigation of and adaptation to climate change have dealt as a priority with the activity sectors termed “eligible”, which have a major contribution to greenhouse gas emissions at the European Union level or those developing solutions for climate change mitigation or adaptation. The Hermès Group’s activities, built on a craftsmanship, value‑creating and sustainable business model, are not included on the list of eligible activities published by the European Commission. Nevertheless, the Group is continuing the efforts undertaken for several years to limit its carbon footprint and comply with its climate commitments validated by SBTi as described in § 2.5.6. The Group is also closely monitoring the publication of delegated acts for the other four environmental objectives. In accordance with the Taxonomy Regulation, even in the absence of eligible revenue, since 2021 the Group has been required to publish indicators highlighting the eligible portion, and from this 2022 financial year, the eligible and aligned portion, of its investments (“CapEx”) and operating expenses (“OpEx”) under certain conditions. An activity is thus said to be “eligible” if it is explicitly included in the list of activities drawn up by the European Commission. This activity then becomes “aligned” if it cumulatively meets three conditions: (1) comply with the minimum technical thresholds for environmental performance (substantial contribution criterion); s do no harm to the other five remaining criteria, known as the “Do No Significant Harm” criterion s the activity must be carried out in accordance with the minimum safeguards (“Minimum Safeguards” criterion or MS) in terms of human rights, corruption, taxation and competition law. s

7.2. Renovation of existing buildings; s

1. 2.

https://eur‑lex.europa.eu/legal‑content/FR/TXT/PDF/?uri=CELEX:32020R0852&from https://eur‑lex.europa.eu/legal‑content/EN/TXT/?uri=PI_COM:C(2021)2800

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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