Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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RISK FACTORS AND MANAGEMENT RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3 RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3.1 A DEMANDING CONTROL ENVIRONMENT While Hermès has attained the stature of an international group, it remains a company with family values, dedicated to a culture and spirit of craftsmanship and seeks to cultivate strong values among its employees. At the forefront of these values is the demand for quality, the very essence of Hermès’ activity. The Group’s commitment to quality applies not only to its products and services, but also to its management methods. Hermès attaches great importance to its Senior Executives’ managerial skills. Induction programmes for new managers and specific training sessions forge the Hermès culture. Everyone can thus understand their place in the organisation and integrate the House’s rules of conduct and integrity. The demanding quality‑oriented values and commitment shared by employees also serve as a solid foundation to underpin behaviours and observance of stringent internal control policies and procedures. The culture of risk management and control, the management style and ethics of the Company ensure the demonstration and balance of these values. In this respect, an ethics charter has been in place and has been distributed to employees since 2009. The code of business conduct, which specifies the behaviour expected of the Group’s employees, has been supplementing it since 2012. These two documents, translated into 12 languages, were updated in 2016 and again in 2018. They are the foundation of Hermès Group integrity and ethics:

In addition, an anti‑corruption code of conduct, including concrete illustrations, has been distributed to all employees since 2019. It is translated into 18 languages (see chapter 2 “Corporate social responsibility and non‑financial performance”, §2.8.2.2.2 on the corruption prevention system). This anti‑corruption code of conduct has been accompanied since 2021 by an anti‑corruption e‑learning module translated into 12 languages. These documents are available on the Company intranet under “Our Ethics” and on the website (https://finance.hermes.com/en/ ethics‑human‑rights-and‑diversities/), and are subject to formal acknowledgement of receipt when given to employees. Additional training on anti‑corruption laws and human rights is organised for operational staff, thus strengthening the Group’s ethics culture. Actions relating to ethics and compliance are presented in chapter 2, §2.8. the purpose of the code of business conduct is to raise employees’ awareness about ethics risks and to instil behavioural and alert reflexes. s the ethics charter promotes respect for the broad fundamental principles. It is intended as an instrument of progress and dialogue, and encourages employees to discuss with their line managers in cases where the principles are difficult to apply or are open to misunderstanding; s

COMMITTED PARTIES RESPONSIBLE FOR RISK MANAGEMENT AND CONTROL

4.3.2

The risk management and internal control systems are applicable to the parent company and to the controlled subsidiaries. They are presented in the notes to the consolidated financial statements.

SUPERVISORY BOARD

GROUP MANAGEMENT

AUDIT AND RISK MANAGEMENT DEPARTMENT

AUDIT AND RISK COMMITTEE

SPECIALISED COMMITTEES

THE GROUP’S OPERATIONAL STAFF

THE NETWORK OF INTERNAL CONTROL OFFICERS

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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