Hermès // CSR Extract 2023

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CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

underlines the scale of the economic and industrial transformations to be achieved as well as the ambition of the European authorities in terms of Sustainable Finance and transparency. On the strength of its environmental, social and societal commitments, Hermès supports the European Commission in its work to analyse activities and define technical review criteria intended to guide the investments of public and private players towards projects contributing to the transition to a sustainable and low‑carbon economy. An activity is thus said to be taxonomy “eligible” if it is explicitly included in the list of activities drawn up by the European Commission. This activity then becomes “aligned” if it cumulatively meets three conditions: comply with the minimum technical thresholds for environmental performance (substantial contribution criterion); 1. do no harm to the other five remaining criteria, known as the “Do No Significant Harm” (DNSH) criterion; 2. the activity must be carried out in accordance with the “Minimum Safeguards” (MS) criterion in terms of human rights, corruption, taxation and competition law. 3. Six environmental objectives have been defined by the Taxonomy Regulation and delegated acts were published by the European Commission aimed at specifying the sectors concerned and the information required. Since its implementation in 2021, the content of the Taxonomy information to be published has changed as follows. (2)

For almost 20 years, the Corporate Knights ranking has revealed the companies that have increased their investments in green solutions such as renewable energy, energy efficiency and the circular economy. Hermès made great progress by increasing its score against its peers from 28.58 to 50.54 (+21.96 points) in 2023 and reaching second place in the “Textiles and clothing manufacturing” category. Hermès publishes its Communication on Progress (COP) on the UN Global Compact website every year. These assessments were also supported in 2023 by various awards and studies conducted by the press or external organisations (§ 2.1.1), including the “CAC Large 60” award at the Transparency Awards, after receiving the Grand Prix All categories last year (for which the Group was no longer eligible to compete). Beyond the financial world, Hermès actively participates in civil society campaigns such as the Corporate Human Right Benchmark (CHRB), the WBA Gender Benchmark and the Know the Chain study.

2.7.4

APPLICATION OF THE EUROPEAN TAXONOMY TO THE HERMÈS GROUP REMINDER OF THE REGULATORY CONTEXT

2.7.4.1

The European Taxonomy for sustainable activities, or “Taxonomy” Regulation establishes a list of economic activities considered environmentally sustainable, on the basis of ambitious and transparent technical criteria. The introduction of this standard designed to distinguish economic activities contributing to the European objective of carbon neutrality – the Green Deal – (1)

Environmental objectives

FY21

FY22

FY23

1. Climate change mitigation

Eligibility

Eligibility and alignment

Eligibility and alignment

2. Climate change adaptation 3. Protection of water and marine resources 4. Transition to a circular economy 5. Pollution prevention and reduction 6. Protection of biodiversity and ecosystems

Eligibility

For each of the environmental objectives, the regulation requires the publication of the percentage of eligible and/or aligned activity for each of the following three indicators : (3)

Turnover (%); s CapEx (%); s OpEx (%). s

Regulation (EU) 2020/852. Delegated regulation (EU) 2021/2139 specifying the classification of sustainable activities on climate topics. Delegated regulation (EU) 2023/2486 specifying the classification of sustainable activities on other topics. Delegated Regulation (EU) 2021/2178 (“Article 8”) specifying the reporting obligations of companies in relation to the taxonomy.

1. 2.

3.

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

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