Hermès // CSR Extract 2023

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

2.7.4.3 METHODOLOGICAL NOTE In accordance with the regulatory requirements for the 2023 financial year, the alignment analysis was conducted for the sole purposes of climate change mitigation and adaptation. Substantial contribution Alignment is based on compliance with the substantial contribution criteria and the non‑enforceability of a generic or specific DNSH criterion (see methodology below). Compliance is assessed in the light of the supporting documents available to the Group. For example, large‑scale renovation projects significantly improving the energy performance of buildings were considered aligned because In order to qualify the alignment of building renovation investments, meticulous work was carried out for each investment of more than 500 K€ in order to analyse the alignment with the substantial contribution, notably by demonstrating a reduction in demand for primary energy of at least 30%. 7.7 Acquisition and ownership of buildings The analysis of the substantial contribution criteria for activity 7.7 was based on the identification of elements to define the energy performance of buildings (RE2020, primary energy demand, DPE, etc.). As permitted by the Commission Communication of 20 November 2023 on the interpretation and implementation of certain legal provisions of the delegated act on the climate aspect of the Taxonomy, investments in the construction of new buildings by the Hermès Group were analysed using the relevant criteria of activity 7.7 and are reported under this activity. Methodology for assessing generic and specific DNSH criteria As indicated in the table presenting the CapEx eligibility and alignment ratios, only eligible activities categorised as 7.2 and 7.7 show an alignment component. The DNSH criteria, for each of the Taxonomy activities, were applied as follows: 7.2 Renovation of existing buildings DNSH adaptation – The Climate Delegated Act recommends compliance with three criteria: analysis of the various physical climate risks that could affect the activity; s assessment of these risks using climate projections in order to determine their significance; s assessment of adaptation solutions. s METHODOLOGICAL NOTE In accordance with the regulatory requirements for the 2023 financial year, the alignment analysis was conducted for the sole purposes of climate change mitigation and adaptation. Substantial contribution Alignment is based on compliance with the substantial contribution criteria and the non‑enforceability of a generic or specific DNSH criterion (see methodology below). Compliance is assessed in the light of the supporting documents available to the Group. For example, large‑scale renovation projects significantly improving the energy performance of buildings were considered aligned because they had such supporting documents. 7.2 Renovation of existing buildings In order to qualify the alignment of building renovation investments, meticulous work was carried out for each investment of more than 500 K€ in order to analyse the alignment with the substantial contribution, notably by demonstrating a reduction in demand for primary energy of at least 30%. 7.7 Acquisition and ownership of buildings The analysis of the substantial contribution criteria for activity 7.7 was based on the identification of elements to define the energy performance of buildings (RE2020, primary energy demand, DPE, etc.). As permitted by the Commission Communication of 20 November 2023 on the interpretation and implementation of certain legal provisions of the delegated act on the climate aspect of the Taxonomy, investments in the construction of new buildings by the Hermès Group were analysed using the relevant criteria of activity 7.7 and are reported under this activity. Methodology for assessing generic and specific DNSH criteria As indicated in the table presenting the CapEx eligibility and alignment ratios, only eligible activities categorised as 7.2 and 7.7 show an alignment component. The DNSH criteria, for each of the Taxonomy activities, were applied as follows: 7.2 Renovation of existing buildings DNSH adaptation – The Climate Delegated Act recommends compliance with three criteria: Hermès has carried out an analysis of the physical risks impacting its main sectors since 2019. This analysis ranks, for each of the French sites, a list of chronic and acute physical climate hazards and projects them over different climate horizons based on the IPCC RCP2.6, RCP4.5 and RCP8.5 scenarios. Depending on the ranking obtained and the results of the climate projections, Hermès undertakes the construction of adaptation plans consistent with the nature of the assets concerned, their geographical location and the priority physical climate risks. analysis of the various physical climate risks that could affect the activity; s assessment of these risks using climate projections in order to determine their significance; s assessment of adaptation solutions. s they had such supporting documents. 7.2 Renovation of existing buildings Hermès has carried out an analysis of the physical risks impacting its main sectors since 2019. This analysis ranks, for each of the French sites, a list of chronic and acute physical climate hazards and projects them over different climate horizons based on the IPCC RCP2.6, RCP4.5 and RCP8.5 scenarios. Depending on the ranking obtained and the results of the climate projections, Hermès undertakes the construction of adaptation plans consistent with the nature of the assets concerned, their geographical location and the priority physical climate risks. 2.7.4.3

b. Eligible CapEx Eligible CapEx are mainly related to the construction and renovation of buildings owned and rented for a total amount of €832 million. The environmental objectives concerned by these eligible CapEx are as follows: climate change mitigation, including the following Taxonomy activities: s 7.2. Renovation of existing buildings, for €228 million, • 7.7. Acquisition and ownership of buildings, activity concerning both buildings for the Group’s own account, for €136 million and new property leases recognised in accordance with IFRS 16, for €468 million; • transition to a circular economy, including the following Taxonomy activity: s 3.2 Renovation of existing buildings, for €228 million. • b. Eligible CapEx Eligible CapEx are mainly related to the construction and renovation of buildings owned and rented for a total amount of €832 million. The environmental objectives concerned by these eligible CapEx are as follows: Other Taxonomy CapEx, which are non‑eligible, amounted to €494 million and mainly included: climate change mitigation, including the following Taxonomy activities: s 7.2. Renovation of existing buildings, for €228 million, • 7.7. Acquisition and ownership of buildings, activity concerning both buildings for the Group’s own account, for €136 million and new property leases recognised in accordance with IFRS 16, for €468 million; • transition to a circular economy, including the following Taxonomy activity: s 3.2 Renovation of existing buildings, for €228 million. • Other Taxonomy CapEx, which are non‑eligible, amounted to €494 million and mainly included: c. Aligned CapEx In 2023, the alignment of CapEx under the Taxonomy totalled 20% (aligned CapEx out of total Taxonomy CapEx), compared to 8% in 2022. The Group owns almost all of its production sites. Hermès has created its own sustainable construction framework, called Harmonie, certified in 2022 for its alignment with the most ambitious labels and certifications on the market (§ 2.5.2). This framework is gradually being enhanced with the criteria and evidence required by the Taxonomy. Thus, the application of the Harmonie framework contributed significantly to the increase in the CapEx alignment rate. In addition, the Hermès Group leases most of the stores in the cities where it operates. These stores are often located in the shopping avenues of historic city centres, in buildings that do not yet meet the highest energy performance standards, and are currently incompatible with the standards set by the Taxonomy. Nevertheless, whenever possible, Hermès undertakes renovation work to improve the environmental performance of the occupied point of sale. In total, the alternative indicator showing the ratio of aligned Taxonomy CapEx to eligible Taxonomy CapEx amounted to 32% in 2023. investments related to recurring maintenance, for €101 million; s equipment and tooling for workshops, amounting to €64 million; s real estate investments of individually less than 500 K€, which were not analysed, represent a total of €9 million. s c. Aligned CapEx In 2023, the alignment of CapEx under the Taxonomy totalled 20% (aligned CapEx out of total Taxonomy CapEx), compared to 8% in 2022. The Group owns almost all of its production sites. Hermès has created its own sustainable construction framework, called Harmonie, certified in 2022 for its alignment with the most ambitious labels and certifications on the market (§ 2.5.2). This framework is gradually being enhanced with the criteria and evidence required by the Taxonomy. Thus, the application of the Harmonie framework contributed significantly to the increase in the CapEx alignment rate. In addition, the Hermès Group leases most of the stores in the cities where it operates. These stores are often located in the shopping avenues of historic city centres, in buildings that do not yet meet the highest energy performance standards, and are currently incompatible with the standards set by the Taxonomy. Nevertheless, whenever possible, Hermès undertakes renovation work to improve the environmental performance of the occupied point of sale. In total, the alternative indicator showing the ratio of aligned Taxonomy CapEx to eligible Taxonomy CapEx amounted to 32% in 2023. investments related to recurring maintenance, for €101 million; s equipment and tooling for workshops, amounting to €64 million; s real estate investments of individually less than 500 K€, which were not analysed, represent a total of €9 million. s investments in land for €166 million; s IT investments amounting to €128 million; s investments in land for €166 million; s IT investments amounting to €128 million; s

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

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