Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

RISK FACTORS AND MANAGEMENT RISK FACTORS

RESPECT FOR HUMAN RIGHTS, FUNDAMENTAL FREEDOMS AND ETHICS ӳ

4.1.4.3

DESCRIPTION OF THE RISK ◆

POTENTIAL IMPACTS ON THE GROUP ◆

A rights, fundamental freedoms, health and safety or a breach of the Group’s ethics rules would damage its reputation and image. violation of human

The risks of infringement of human rights, fundamental freedoms, ethics values and the health and safety of people, mainly concern the Group's external activities. Over 63% of the workforce is in France and is therefore subject to strict regulations. The multiple nature of the métiers and supply chains, combined with the desire to use exceptional raw materials, means that the Group works in partnership with suppliers from all over the world. These partnerships require constant vigilance to ensure respect of these rights and ethics throughout the value chain.

IMPACT PROBABILITÉ

RISK MANAGEMENT ◆

The Group promotes a demanding ethics culture and does not tolerate any breaches of probity. The approach is structured around a specific governance, supported at the highest level of the organisation. Documents formalising commitments and tools for identifying, assessing, raising awareness, preventing and detecting these risks complete the control systems (see chapter 2 “Corporate social responsibility and non‑financial performance”, §2.8). 1. The Group has written its ethics values and its commitment to respect human rights and fundamental freedoms into the following documents:

an ethics charter that defines the Hermès Group’s fundamental principles, • a code of business conduct that gives them a practical framework in terms of ethics, •

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an anti‑corruption code of conduct that sets out the rules to be followed in terms of integrity and probity, • commitment handbooks, signed by suppliers and commercial partners, that explicitly address these subjects. •

These documents, which are regularly updated, are in line with fundamental principles such as the Universal Declaration of Human Rights, ILO rules, the OECD guidelines and the United Nations Global Compact as regards sustainable development. 2. In accordance with law no. 2017‑399 of 27March 2017 on the duty of care of parent companies and contractors, the Hermès Group has drawn up a vigilance plan. It aims to identify the risks and prevent violations of human rights and fundamental freedoms, the health and safety of people and the environment, resulting from its activities, as well as those of its subcontractors or suppliers. Systems for identifying, mitigating and preventing these risks have been put in place for employees, suppliers and subcontractors. 3. Risk analyses and procedures for the regular assessment of the situation of suppliers and subcontractors as well as audits make it possible to verify in situ the reality of the commitments made by suppliers. These relate to human rights and fundamental freedoms, health and safety and compliance with environmental regulations (see §2.6.1). 4. An internal and external whistleblowing system is available to report any breaches or situations contrary to ethics, social and environmental principles (see §2.8.1.3.2). The content of these action plans is detailed in chapter 2.

● Strategy and operations ● Industry

● CSR

● Regulatory compliance

● Finance

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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