Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

2

CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE BUSINESS MODEL

The change in the positioning of several issues is consistent with the initiatives and awareness‑raising actions carried out over the last two years, as evidenced by the following changes in positioning: the themes of climate change and water, energy and waste management have increased in importance and impact on Hermès’ business model. This change is due to better knowledge and understanding of the consequences of climate change on its activity, supported in particular by the physical risk analyses conducted in 2022 on its French sites and the context of energy sobriety imposed in several European countries; s other social themes have also seen their positioning improve in terms of impact on Hermès, such as recruitment and talent retention. This perception is consistent with the Group’s strong growth and the need to attract and retain the best talent to support these development prospects; s conversely, the impact of certain issues on Hermès' business is perceived as less important (relative to others) than before: animal welfare or supplier support. This is a positive signal, the result of initiatives such as the dissemination and accessibility to the public of a Hermès animal welfare charter, which governs its relations s

2.1.4 ANALYSIS OF NON‑FINANCIAL RISKS As indicated in chapter 4 “Risk factors and management”, §4.1, in 2020 the Group carried out an overall analysis of its risks according to two axes, the magnitude of the multi‑criteria impacts and the probability of occurrence. The materiality work carried out above made it possible to update this overall risk analysis, which distinguishes five major risk categories, three of which are more relevant in the non‑financial field. The cross‑reference table below illustrates the link between this risk analysis and the ten priority CSR issues identified by the materiality matrix. The non‑financial issues taken into account also include the concepts of positive contributions and opportunities, which are more difficult to incorporate in the risk analysis. with all its supply chains relating to materials of animal origin. In addition, actions aimed at better understanding, assessing and supporting the social and environmental practices of its suppliers were greatly strengthened during the financial year (for details, see “Suppliers and Partners” section), demonstrating better control of these issues.

GROUP RISKS

Priority CSR issues

4.1.1 Risks related to strategy and operations 4.1.1.1 Image and reputation

Socially responsible company

4.1.1.5 Management of talent and savoir‑faire

Employee well‑being and development Talent recruitment and retention Diversity and inclusion Savoir‑faire and corporate culture

4.1.2 Industrial risks

4.1.2.1 Supply management

Sustainable materials and responsible sourcing Supplier support

4.1.4 Risks related to social, societal and environmental responsibility

4.1.4.1 Changes in major global climate and biodiversity issues

Climate change Biodiversity

4.1.4.2 Availability and proper use of natural resources

Eco‑design and circular economy Animal welfare Energy, water and waste management

4.1.4.3 Respect for human rights, fundamental freedoms and ethics

Ethics and human rights

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

58