Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE THE PLANET: ENVIRONMENT

Water resource management is based on monthly monitoring of consumption, preventive maintenance programmes for facilities, frequent checks and calibration of meters, installation of new smart individual meters, and programmes to raise employee awareness. Significant discrepancies unrelated to production differences are analysed and verified in order to locate and repair any possible leaks.

The métiers work on a daily basis to minimise water consumption, find innovative solutions to increase the proportion of recycling (rainwater recovery, rainwater treatment, wastewater treatment, innovative efficient water and energy systems, implementation of valves that adjust the water flow, etc.). As an illustration of this approach, in the textile sector, the reduction of water consumption is one of the criteria of the incentive scheme agreement.

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ANALYSIS OF CHANGES IN INDUSTRIAL WATER CONSUMPTION BY MÉTIER

Change 2019/2021 Change 2020/2021 Change 2021/2022 Change 2022/2023

Tanneries (six in France and one in Italy)

-13.5%

+2.7%

+3.7%

-7.2%

Activities with high water consumption by processes: >90% of total consumption

Textile

-1%

+19.3%

+10.5%

-14.5%

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Leather goods

-14.8%

+26.3%

-8.7%

+6.1%

First year of observation

HMM

-19.3%

Including water consumption at the leather logistics centre. (1)

Tanneries / 7% reduction in consumption in 2023 compared to 2022 and reduction of 15% in the ratio of water consumed/hides put in water over the same period Hermès operates seven tanneries, including six in France (Annonay, Le Puy‑en‑Velay, Vivoin, Montereau, Bellac and the Mégisserie Jullien in Chabris) and one in Italy. Water consumption and effluent treatment are major issues for the tanneries. Historically located close to rivers, they use this resource for the tanning, dyeing and hide finishing processes. A total of 61% of the water for the division’s tanneries comes from waterways or boreholes. The rest comes from municipal sources. In accordance with the Group’s commitments to reduce water consumption by 5% per year in intensity, the tanneries have launched ambitious programmes to reduce water withdrawal. These programmes are based initially, if necessary, on the modernisation of water treatment plants and secondly on the development of approaches for reusing wastewater for certain process operations. The implementation of the Tannery division’s roadmap, together with the sobriety efforts, is directly reflected in the division’s performance, exceeding the Group’s objectives with a 7% reduction in water consumption in absolute value compared to 2022 in a context of increasing production. Each site has been able to optimise and reduce its water use to produce leathers while maintaining their quality, with reductions in the ratios of water consumed per product of between 6% and 22%. In 2023, more than 25,000 m of water were saved. 2023 was also marked by a period of severe drought. Concerned about their environmental impact and in order to contribute locally beyond the Group’s objectives, the division’s tanneries have put in place hydric sobriety plans (HSP). These plans have made it possible to improve the operational control of water use, ensure daily 3

monitoring of consumption and anticipate measures to raise employee awareness or reduce use according to the crisis thresholds of the water basins. The local authorities checked some of the plans. Thanks to consumption reduction and anticipation measures, no site was subject to regulatory restrictions during this period. Construction work on the new tannery treatment plant at the Tanneries du Puy continued in 2023 and the first stages of treatment have begun. As a reminder, this work aims to roll out circular water management with the target of reusing more than 60% of treated water by 2028. Full commissioning is planned for July 2024 and is on track, thanks to substantial investments. Other modernisation projects were also undertaken during the year, such as at the Montereau tannery, where a pilot test was installed to validate an additional abatement solution, and at the Mégisserie Jullien, where an activated carbon filter solution has been installed. In 2023, reuse solutions were also explored: in Annonay, a project to reuse water from the municipal wastewater treatment plant downstream of the site is currently being studied: it could make it possible to achieve at least 60% water reuse. Discussions with the authorities are continuing and the project will enter its implementation phase in 2024, illustrating a good example of an innovative project carried out in consultation with our stakeholders. In Italy, the Cuneo tannery commissioned an installation for the recovery and use of rainwater, reducing its water consumption by 22% per leather product compared to 2022. In parallel with these projects, the production teams and craftspeople are continuing their actions to reduce water consumption on a daily basis. This involves optimising the quantities of water used for each hide treatment recipe and improving the measurement of consumption through the use of connected management tools.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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