Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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

ANALYSIS OF CORRESPONDENCE WITH THE MAIN NON‑FINANCIAL REPORTING FRAMEWORKS SASB CORRESPONDENCE ANALYSIS

2.7.5

7.7 Acquisition and ownership of buildings DSNH adaptation – The applicability criteria and compliance with them by Hermès are the same as those detailed for activity 7.2. Methodology for assessing minimum safeguards Hermès followed the recommendations of the European Platform on Sustainable Finance report dated October 2022 concerning the study of minimum safeguards (“Final report on Minimum Safeguards”) . The Group conducted an in‑depth analysis of its practices with regard to the four themes described in the report (human rights, corruption, taxation and competition law) as well as an analysis of controversies with regard to the non‑alignment criteria described in the report. As a result of these analyses, Hermès complies with the minimum safeguard requirements for this first alignment exercise. It follows from these analyses that no convictions, constituting a criterion of non‑alignment, were noted. In addition, Hermès formalises its commitments to its employees and suppliers in a set of charters and codes accessible via the Group’s website : ethics charter, code of business conduct, anti‑corruption code, supplier commitment handbooks. These charters and codes are in line with the major fundamental principles such as the Universal Declaration of Human Rights, the Charter of Fundamental Rights of the International Labour Organization, the guiding principles of the OECD and the United Nations Global Compact. In accordance with French law no. 2017‑399 of 27March 2017 relating to the duty of care of parent companies and contractors, the Hermès Group has drawn up a reasonable vigilance plan to identify risks and prevent serious violations of human rights and fundamental freedoms, and the health and safety of people – and the environment, outside the scope of the minimum safeguards – resulting from its activities as well as the activities of its subcontractors and suppliers. These policies and procedures, supplemented by the Group’s tax policy, are in line with the requirements of the European Platform on Sustainable Finance report relating to the implementation of procedures specific to the four themes of the minimum safeguards. (1) (2)

2.7.5.1

The Sustainability Accounting Standards Board (SASB) is an independent, not‑for‑profit standard‑setting body that develops and maintains reporting standards for financially material sustainable development information. The SASB has established standards specific to 77 activity sectors including with the “Apparel, Accessories and Footwear (consumer goods)” sector. In addition to the information presented in this report, Hermès presents a summary of its actions according to the sector reading grid. This publication is also an opportunity to highlight the House’s progress. Hermès’ business model is quite unusual compared to the sector taken into account by the SASB. The SASB identifies nine key topics for the sector, five of which concern the supply chain (CG‑AA‑430); very few concern human resources and societal aspects. Hermès operates according to a highly integrated business model (55% of products are produced in‑house), with partnership relationships with its suppliers (the average length of relationships with the top 50 direct suppliers is 20 years), and production in France (for example, for 100% of leather goods, which represents half of the Group’s sales) and 78% in total. Although important, the topics highlighted by the SASB relating to the supply chain are not the only ones. Human and societal issues are also key to the House’s sustainability. In terms of risk, the categories identified by the SASB are not always the most significant for Hermès. As explained in §2.1, the Group has identified and prioritised 13 key topics that structure its reporting and provide material non‑financial economic information that is useful, comparable (even if sometimes specific) and evidence‑based. In addition, as presented in this document, the Group uses the CDP reporting framework for its carbon, water and forest issues, and complies with the TCFD recommendations.

1. 2.

https://finance.ec.europa.eu/system/files/2022‑10/221011‑sustainable‑finance‑platform‑finance‑report‑minimum‑safeguards_en.pdf https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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