Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE ETHICS – COMPLIANCE

2.8.4.2 RISK MAPPING AND ASSESSMENT METHODOLOGY

In particular, the Compliance and Vigilance Committee:

The Group’s vigilance plan was constructed by analysing its entire value chain as presented below (values and information date from 2022) defined a universe of risks specific to Hermès; s deepened the analysis of risks in certain scopes assessed as priorities; s added a source of raw risk data. s

In order to identify and assess risks throughout its value chain and to strengthen its mapping of risks related to the duty of care, Hermès has used the analysis of non‑financial risks, the materiality analysis and the risk mapping generated for its activities and supply chains. In addition, the risk mapping was developed in association with internal and external stakeholders.

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INTERNAL

EXTERNAL

HERMÈS VALUE CHAIN

SOURCING & TRANSFORMATION OF MATERIALS

PRODUCTION/MANUFACTURING OF FINISHED PRODUCTS structured according to the Hermès métiers

EXCLUSIVE DISTRIBUTION

Logistics platforms

Tanneries and Precious Leathers

Leather Goods & Saddlery

Crocodilian farms in the United States and Australia

E-Commerce

Stores

Production sites

Production sites

Subcontractors

Designers

France + Monaco

15 branches

15 concessionaires

Saddlery

Direct purchases Suppliers of materials and components from around the world divided into 88 supply chains grouped into five macro-families: animal (fibres and leather) plant-based synthetic/artificial mineral metal Indirect purchases Suppliers in France and worldwide divided into 38 categories grouped into 9 families, the main ones being: Communication IT General Services Transport & Logistics Real estate

Textile/Women’s and Men’s ready-to-wear

Europe

57 branches

15 concessionaires

Production sites

Internet of Things (loT)

Designers

North America

36 branches

8 concessionaires

Home

Metal parts

Latin America

Production sites

Production sites

Suppliers & subcontractors

10 branches

2 concessionaires

Manufacturers

Greater China

Accessories Shoes, jewellery, gloves, etc.

44 branches

7 concessionaires

Watches

South Korea

Production sites

Suppliers & subcontractors

Production sites

Manufacturers & subcontractors

11 branches

8 concessionaires

Japan

Cristalleries de Saint-Louis

Perfume and Beauty

29 branches

6 concessionaires

Puiforcat

John Lobb

Production sites

Manufacturers & subcontractors

South East Asia and Middle East 15 branches

Hermès Horizons

Petit h

16 concessionaires

Group support functions and local entities HR, Finance, Digital, Real Estate, Communication, Legal, etc.

Oceania

5 branches

1 concessionaire

This analysis enabled the Group to draw up the following mapping of risks related to the duty of care.

2022 RISK MAPPING RELATED TO THE DUTY OF CARE

AT HERMÈS

AT PARTNERS’ SITES

GLOBAL RISK MAPPING Assessment of risks according to their net criticality: impact x probability x level of control

HERMÈS MATERIALS AND COMPONENTS

SERVICE PROVIDERS & TRANSPORT

RAW MATERIALS SUPPLY CHAIN

PRODUCTION WORKSHOPS

MANUFACTURERS AND SUBCONTRACTORS

LOGISTICS PLATFORMS

HERMÈS BRANCHES

SUPPORT FUNCTIONS

CONCESSIONAIRES

RISKS

Human rights

Social dialogue

Discrimination

Decent wage

Child labour

Forced labour

Negative impact on communities

Personal data

Health & safety

Consumer safety

Health and safety at work

Psychosocial risks

Working conditions

Employee safety

Environment

GHG emissions and climate change

Pollution and waste

Depletion of natural resources

Biodiversity damage

Animal welfare

Very high

High

Medium

Low and very low

Not significant

Net criticality

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

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