Hermès // CSR Extract 2023

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

AGRICULTURAL WATER AGRICULTURAL WATER CONSUMPTION

2019

2020

2021

2022

2023

In megalitres

4,512

4,495

4,810

4,680

4,757

Number of farms

4

4

5

5

5

This consumption takes place in the United States and Australia. Farms / 2% increase in agricultural water consumption in 2023 compared to 2022, -2% at constant scope compared to 2022. The Farm division is respectively composed of one alligator farm ( alligator mississippiensis ) and a hide inspection centre in the United States, as well as four crocodile farms ( crocodylus porosus ) and two hide processing and hide inspection facilities in Australia. Water withdrawals from the Australian Farm division increased due to the ramp‑up in capacity of the farm built in 2021. At constant scope compared to 2022 – i.e. excluding withdrawals from this last farm – water withdrawals were reduced by 2%, i.e. savings of nearly 100,000 m , due to the awareness‑raising efforts undertaken. Water is essential for livestock farming. The regular renewal of pool water and the control of its temperature are essential to animal welfare, and make it possible to prevent the proliferation of bacteria as well as to control the quality of the hides. The water used in the sites of the Australian division comes mainly from boreholes (86%), while the use of municipal sources is limited (7%). The balance comes from the recovery of condensation water from a sugar cane production unit located near one of the farms: this is an innovative industrial circularity operation, exchanging hot condensation water from the sugar refinery for farm effluents to irrigate the sugar cane crops in line with an agreement with local farmers. The American farm uses borehole water from hot springs exclusively, which allows it to significantly limit its energy requirements. The farms are located as close as possible to the natural habitats of crocodilians, which are aquatic animals. These areas are generally not subject to water stress. A study was launched in mid‑2023 on the American farm to map and 3

2.5.4.1.2 The water from the basins, mainly high in organic matter, is returned to the natural environment as far as possible for the irrigation of neighbouring crops, in compliance with local regulations: in Australia, 21% of the water discharged by farms is reused for irrigation purposes, i.e. a 16% increase compared to 2022. The water from one of these farms is reused to irrigate a sandalwood plantation in collaboration with Hermès Perfume and Beauty. This circular project aims to make this farm a supplier of raw materials to other divisions within 15 years, as Hermès’ perfumes use sandalwood essence in their formulation. On another farm, water is reused to irrigate a mixed plantation of mahogany, white mulberry trees and a syntrophic forest. Energy: electricity, gas Hermès’ sites use electricity and gas to light and heat buildings, as well as for manufacturing processes and livestock farming. The manufacturing sites and farms consume three quarters of the energy purchased by the Group. This energy is used to operate a wide range of equipments: glass furnaces and kilns for porcelain decoration, tanning and finishing drums, leather drying lines, textile finishing and printing lines, machining and polishing machines, porcelain decoration printing machines, etc. The Industrial Director, who reports directly to the member of the Executive Committee in charge of the Manufacturing Division & Equity Investments, coordinates issues relating to energy use on manufacturing sites and farms. The objectives are validated and the achievements monitored by the Sustainable Development Committee. Each métier draws up action plans and presents the investment plans and resources required to achieve the Group’s objectives to the industrial department. Major investments are approved by the Executive Committee. precisely measure the various water uses, to better identify the water sources and to reduce the demand on the resource. On one of the farms in the Australian division, a study is also underway to recycle some of the wastewater after treatment.

2

Objectives:

put in place actions compatible with the global warming trajectory of 1.5°C and, in particular, continue the decoupling between industrial energy consumption and activity growth; s implement a policy of 100% renewable electricity within its own operations by 2025 and 100% renewable energies by 2030, unless this is not technically possible; s no longer use gas or any other fossil fuels as an energy source for any new industrial investments, also unless this is proven technically impossible. This programme to “phase out fossil fuels at manufacturing sites” reaffirms Hermès’ desire to actively participate in the energy transition necessary to limit global warming; s progressively equip all stores with 100%-LED lighting, unless this is technically impossible; s contribute to the corporate sobriety effort in the context of major tensions on gas and electricity supplies by reducing energy consumption in France (manufacturing sites, tertiary buildings and stores) by 10% in 2023 compared to 2019. s

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

165