Hermès // CSR Extract 2023

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

2.5.4.2 Due to the artisanal production model, the Leather division sites do not use very energy‑intensive equipment. Electricity is the main source of energy for Leather Goods workshops (76% of total energy consumption in 2023): lighting, air conditioning, ventilation, office equipment and sometimes heating are the main consumption items. Gas is used exclusively for heating the division’s 13 Leather Goods workshops. Gas consumption in 2023 decreased by 20% there compared to 2022, in particular thanks to insulation work in certain Leather Goods workshops and the application of the French energy sobriety plan on all sites. CONTRIBUTING TO THE ENERGY TRANSITION Since 1 November 2015, Hermès has decided to actively participate in the energy transition process by planning its operations and investments in order to direct its companies towards actions compatible with the trajectory of less than 1.5°C of global warming, via a “Just transition” to achieve net zero CO2 emissions by 2050. This was formalised via its SBTi commitment, validated according to a trajectory by 2030 (§ 2.5.7). Developing renewable energies Working together with the Group real estate department, in particular, 2.5.4.2.1 Leather / 9% decrease in consumption in 2023 compared to 2022 and 15.8% decrease in energy consumed per leather craftsperson Total energy consumption in 2023 decreased by 9% in a context of increased activity. As a result, the ratio of energy per craftsperson fell by 15.8%. (1)

the House has a policy of using renewable energies, through the installation of geothermal heating or cooling, photovoltaic panels, the supply of green electricity for sites in France, connection to district heating and cooling networks and the use of wood‑fired boilers on some sites. Hermès wants to use energy from renewable sources (photovoltaic panels, wood‑fired boilers, geothermal energy, biomass, etc.) wherever possible, and has committed to implementing a policy of 100% renewable electricity in its own operations by 2025. No new industrial investment running on fossil fuels is authorised, except where this is not technically possible. In addition, the Group is developing pilot initiatives, designed to be expanded as and when new investment projects, available technologies and regulations in force permit. As part of its renewable energy policy, Hermès sites (production, farms, logistics) produce electricity directly through the installation of photovoltaic panels. All French sites (production, services, and stores) have been 100% supplied with green electricity (hydro, solar or wind) produced in France since 2021. On a global scale, the Group’s renewable electricity supply amounted to 92.1% (up 3% compared to 2022). In addition, in 2023, the Group purchased nearly 29 GWh of biogas. A little more than 34% of the Group’s gas consumption is therefore of renewable origin. Overall, nearly 70% of the Group’s energy consumption (69.0%) is from renewable sources , compared with 55.4% in 2022. (2)

2

Renewable origin

Non‑renewable origin

Total

Energy consumed

(MWh)

%

(MWh)

%

(MWh)

Gas

28,876 34

56,280 66

85,156

Electricity

118,240 92

10,500

129,740

8

Heat

1,411 63

832 37

2,243

Cold

1,890 100

1,890

0

Wood

410 100

410

0

Total

150,827 69

67,612 31

218,439

Leather Two renewable energies are used in the Leather Goods workshops: wood is used to heat the Abrets and Nontron production units; s several Leather Goods workshops, including the latest to be put into operation, benefit from photovoltaic installations. s In 2019, the Manufacture de Haute Maroquinerie site in Aix‑les‑Bains signed a contract with an electrical energy supplier to install a photovoltaic power plant on the shades of its car park, with a power

of 292 kWp. This renewable energy production supplies 27% of the site’s consumption. At all the sites concerned, 1,016 MWh of solar energy were produced in 2023. Most of this was consumed by the sites, and represents approximately the annual energy consumption of two Leather Goods workshops. Charging terminals for electric vehicles are installed in all site car parks. In 2023, the number of terminals increased by 46%.

For comparison purposes, the energy consumption of the Leather logistics site located in the Lyon region is not included in the indicators in this paragraph but is included in the Group’s overall consumption. Methodological clarification: Only energies whose origin is clearly defined by a contractual arrangement with an energy supplier (examples: renewable energy purchase agreement, standardised green electricity tariff, market instruments such as guarantee of origin from renewable sources in Europe or similar instruments such as renewable energy certificates in the United States and Canada, etc.) are considered to be renewable energy sources.

1.

2.

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

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