Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE BUSINESS MODEL

2.1.3 MATERIALITY ANALYSIS As every year, Hermès updated the analysis of its priority CSR issues in 2022 to guide its actions and facilitate understanding of its strategy. For the second consecutive year, a “materiality analysis” was conducted using the concept of double materiality, which looks at the two dimensions of value creation put forward by the European Union: economic and financial value creation, which essentially affects investors, and the creation of environmental and social value, which has a broader effect on all the Company’s stakeholders. In line with EFRAG recommendations, with the help of its stakeholders, Hermès ranked 15 priority issues from these two perspectives: acting with urgency while taking the time to do things well: our craftspeople do not like to put off until tomorrow what they can accomplish today. Hermès’ craftspeople, and by extension the House, see time as an ally, that enables them to work well, to integrate the internal or external challenges of all stakeholders, in order to see things in a balanced perspective. In the making of an object by hand, it is impossible to skip a step to save time, everything flows in continuity, everything is necessary. These modes of operation shape and determine the way projects are conducted. They encourage the implementation of responsible policies and practices, using a participative approach, blending exacting requirements and efficiency to obtain a high‑quality end result. While considering changing and accelerating contexts, projects take into account the necessary rhythm for sustainable change among employees, partners and natural ecosystems. Urgency to act and hasty execution should not be confused. s the materiality of the subject for Hermès’ business model, known as the "outside‑in" vision, i.e. the importance of these issues for the Group’s economic activity; s

In this way, Hermès anticipates the transparency obligations in terms of double materiality required by the Corporate Social Responsibility Directive, which will come into force from 1 January 2024. This double materiality matrix also follows up on the work carried out for several years by the Sustainable Development Committee and the Sustainable Development Department, together with the Executive Committee, and in collaboration with the audit and risk management department. It contributes to the risk analyses carried out at Group level. Identification, assessment and ranking of issues The 15 priority issues studied are the result of analyses updated internally every year since 2015 by a study of the main general CSR topics specific to the industry to which the Group belongs. In 2022, Hermès submitted the ranking of these 15 issues to a panel of almost 120 respondents, in the form of an anonymous interactive questionnaire, encouraging all topics to be ranked in order of relative importance, thus avoiding ties and the polarisation of subjects. This panel consists of: the impact that Hermès and its value chain have on the issues at a global level, known as the "inside‑out" vision, given their materiality (direct and indirect impacts given the Group’s image). s internally, the departments of the Group’s cross‑functional functions and métiers , members of the Sustainable Development Operational Committee, the network of EHS correspondents and members of the sustainable development network in foreign subsidiaries; s external partners, demonstrating the keen interest of Hermès' partners in its sustainability approach, representing nearly 40% of respondents. s The Sustainable Development Committee reviewed and validated the results from the consolidation of the panel's responses.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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