Hermès // CSR Extract 2023

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

2.7.5.3 TNFD CORRESPONDENCE ANALYSIS A working group was set up on the disclosure of financial information relating to nature (Taskforce on Nature‑related Financial Disclosures – TNFD) to develop and provide a reporting framework for risks and opportunities related to the evolution of nature and to act accordingly,

with the ultimate aim of supporting a reorientation of global financial flows towards projects with positive externalities for nature. In September 2023, this group published a transparency framework, to which Hermès is aligned by publishing the information required in this Non‑Financial Performance Statement. The details of the alignment with this framework are presented in the table below:

Sections in the universal registration document

2

TNFD recommendation

Correspondence with Hermès’ strategy

Governance Board oversight of nature‑related dependencies, impacts, risks and opportunities Management’s role in assessing and managing nature‑related dependencies, impacts, risks and opportunities conducted by the Board of Directors and management, with respect to indigenous peoples, local communities, stakeholders affected and others, in the assessment and response of the organisation to nature‑related dependencies and impacts, risks and opportunities The organisation’s human rights policies and engagement activities, as well as the oversight Nature strategy Disclose the actual and potential impacts of nature‑related risks, opportunities and dependencies on the activities, strategy and financial planning of the organisation when this information is material

The CAG‑CSR Committee oversees sustainable development issues and interviews the sustainable development department twice a year, enhancing the stringency of requirements regarding biodiversity topics. The subject of “Biodiversity” is overseen by the Executive Committee, which relies on the work of the Sustainable Development Board. In addition, this issue is driven by specific competence present on the Supervisory Board. Driven by its humanist values, the Hermès Group’s ethics and compliance policy aligns with the universal framework set down by the major international principles, standards and agreements, in particular those covering the subject of human rights. The Group has several requirements in terms of ethics: zero tolerance for breaches of probity, a determined commitment to a culture of ethics, an anti‑corruption policy and, lastly, a structured approach to protecting personal data. Specific governance, carried out at the highest level of the organisation, guarantees the commitments, policies, control and alert systems that form the foundation of the approach. The Group’s biodiversity master plan is built around six components in line with the recommendations of the TNFD and those of the Act4Nature International system: vision, governance and organisations, the four pillars of our commitments (train, collaborate, assess, act). In line with the biodiversity blueprint, the SBTN approach was launched in 2023. The diagnostics carried out on the sites’ biodiversity and water resources made it possible to assess the risks for the Group’s direct activities. Since 2019, Hermès has methodologically mapped 80 supply chains in order to identify their risks, including on the environment. The rollout of the biodiversity strategy is overseen by the Executive Committee and the Sustainable Development Board, and regularly reviewed by external organisations such as Act4Nature International. The action plan follows four areas: training all employees in biodiversity, collaboration with recognised external stakeholders, measuring Hermès’ relations with biodiversity and the activation of action plans commensurate with the issues. The large diversity of types (more than 35 different leathers) and geographical origins of Hermès’ natural materials, and its mainly French production, make it possible to reduce its exposure to the occasional or chronic degradation of certain ecosystems.

§ 2.1.6 and § 2.4.3

§ 2.1.6 and § 2.4.3

§ 2.8

§ 2.4.3. and § 4.1.4

Nature‑related dependencies, impacts, risks and opportunities that the organisation has identified in the short, medium and long term

§ 4.1.4

Effects that nature‑related dependencies, impacts, risks and opportunities have had on the organisation’s business model, value chain, strategy and financial planning, as well as any transition plans or analyses

§ 2.4.3 and § 4.3

Resilience of the organisation’s strategy to nature‑related risks and opportunities, taking into account different scenarios

§ 2.4.2 and § 4.1.4

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

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