Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CORPORATE SOCIAL RESPONSIBILITY AND NON ટ FINANCIAL PERFORMANCE BUSINESS MODEL

2.1.6 CSR GOVERNANCE In 2022, Hermès updated the organisation which steers the Group’s CSR performance, with increased involvement from its governance bodies. The Executive Committee is now directly involved, with four meetings per year scheduled on the subject. A Sustainable Development Board, made up of the House’s main Managing Directors, is tasked with managing the main cross‑functional projects and ensuring the progress of the operational roadmaps of the métiers and subsidiaries.

A Sustainable Development Directors' Committee has been created, reflecting the many appointments to this position in the House’s métiers and subsidiaries, in order to manage a rapidly growing network of operational managers and ambassadors. The House has thus created the conditions to organise and systematically intensify its ambitions, while remaining faithful to its decentralised model and its “all artisans of our sustainable development” approach.

EXECUTIVE MANAGEMENT

Nurture and complement the Group’s sustainable development approach

SUPERVISORY BOARD

EXECUTIVE COMMITTEE Meeting dedicated to sustainable development 4 times a year

Determines the main strategic directions

FONDATION HERMÈS

AUDIT AND RISK COMMITTEE

CAG-CSR COMMITTEE

PHILANTHROPY COMMITTEE

Supervises and manages major cross-functional projects

ETHICS COMMITTEE

SUSTAINABLE DEVELOPMENT BOARD

Promote and drive the sustainability approach

SUSTAINABLE DEVELOPMENT DIRECTORS' COMMITTEE

GROUP MANAGEMENT

SUSTAINABLE DEVELOPMENT DEPARTMENT

Allow the sharing and development of best practices

SUSTAINABLE DEVELOPMENT OPERATIONS COMMITTEE

MÉTIER /SUBSIDIARY SUSTAINABLE DEVELOPMENT DEPARTMENTS

LOCAL COMMITTEES

CROSS-CUTTING PROJECT GROUPS

Sustainable Development Board – former Strategic Committee for Sustainable Development : the reorganisation undertaken is also transforming the role of this body. The Sustainable Development Board has 14 members, who are directors of the Group’s main central functions and integrated sectors. This Board oversees the implementation of the CSR approach, steers major cross‑functional projects, oversees the roadmaps of the House’s main entities, launches and monitors ad hoc working groups, and identifies key decisions to be submitted to the Executive Committee. This body met five times in 2022, and has an average attendance rate of 87%. Sustainable Development Directors' Committee: to complement the Board’s functions and structure the management of the sustainable development function within the Group, this new body, created at the end of 2022, brings together eight sustainable development directors from the métiers , sustainable development functions and subsidiaries within the House (the Leather Goods, Ready‑to‑wear, Jewellery and Home métiers , general services department, Hermès Cuirs Précieux, as well as the French and British distribution subsidiaries). This Committee monitors the entity’s roadmaps and promotes discussion on cross‑functional training and internal communication issues. It is in charge of coordinating the network of SD contributors and ambassadors in the Group.

Supervisory Board: its CAG‑CSR Committee has the role of overseeing sustainable development challenges. It meets with the sustainable development department twice a year. 75% of Board members declare expertise in sustainable development, thus contributing to discussions with the operational teams and increasing the high standards demanded for the approach implemented (see chapter 3 "Corporate governance", § 3.4.5.2). Executive Management and Executive Committee: Hermès Group Management plays an active role in the implementation and rollout of the approach. The Executive Chairman, Axel Dumas, is involved in many subjects. As a reminder, since 2019 (see chapter 3 “Corporate governance”, § 3.8.1.2.4), the variable compensation of the Executive Chairmen of Hermès is partly conditional (10%) on a “CSR” criterion consisting of three indices (environmental, social and societal). The reorganisation of the CSR governance implemented at the end of 2022 significantly strengthens the role of the Executive Committee and ensures a strategic positioning for CSR as it becomes overseen by the Group’s highest body. From 2023, sessions entirely dedicated to sustainable development are organised every two months. These sessions make it possible to validate the strategic orientations, monitor the associated objectives and results, and ensure a periodic review of the adequacy of the resources allocated to the objectives. Through a more intimate knowledge of the subjects, the Executive Committee have a stronger ability to include CSR issues in the Group’s strategy, and enable more effective implementation of the various internal projects.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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