Hermès // CSR Extract 2023

RISK FACTORS AND MANAGEMENT RISK FACTORS

4.1.2.2 SAFETY ●

DESCRIPTION OF THE RISK s

POTENTIAL IMPACTS ON THE GROUP s

The safety of property means all measures and means for combating threats and malicious acts. The main threats identified are: physical damage to property, people and infrastructure, and damage to savoir‑faire and intangible property.

Such breaches could cause damage to property and people working at the Group’s sites (production, distribution, logistics or offices) or at events on external sites.

IMPACT PROBABILITY

Moreover, they could expose craftspeople and sales associates to risks, causing moral and psychological damage to all Group employees. In addition to direct financial losses, they could harm the Group’s image.

RISK MANAGEMENT s

The following actions have been taken:

Hermès is organised to take account of these risks on a daily basis: a central monitoring station, permanently operational, is connected to the 91 production and distribution sites in France and Switzerland. The Group took the decision to employ 72 agents in its internal safety division, to which external service providers are added. A service offering has also been developed to support the métiers and divisions that do not have an internal safety department. This concerns, for example, the development of safety systems for real estate projects and events. In addition, experts within the Group safety department update a body of procedures and technical documentation. They regularly travel to the various sites and events in France and abroad to ensure compliance with Group safety procedures. A questionnaire on safety is also completed during site visits or audits. Furthermore, the Group safety department has an advisory role to the métiers and subsidiaries. In March 2021, a computerised safety tool was rolled out at certain sites in the Paris region (production units, tertiary and logistics sites and Paris stores), to standardise the operational procedures of the Group safety department teams and manage their actions in real time. It also offers crisis management support capabilities. In 2023, its rollout began to all stores in France. At the same time, the tool has been configured so that it can contact any employee if necessary. Trials are underway for rollout to other production sites. It will gradually be rolled out internationally over the coming years, depending on the level of risk identified at each site. This system is also backed by partnerships set up through agreements signed with the police force and the Ministry for Europe and Foreign Affairs. To contribute to the safety of employees working elsewhere, an ad hoc platform is gradually being rolled out to all subsidiaries. This tool makes it possible to inform employees, before and during their trip, of possible events and, in the event of an emergency, to put them in contact with an operational centre and the Group safety department. Training and information sessions specific to certain destinations were also offered. Safety incidents are reported in a specific database and are regularly reported to the Group Safety Committee and the Audit and Risk Committee. They are analysed in detail, contributing to the continuous improvement of the system. A monitoring unit was created in November 2022. It aims to provide the crisis unit with advance warning scenarios and, on a daily basis, to provide the Group safety department with geopolitical, economic and social analyses. Since the end of 2022, e‑learning modules on safety and security have been offered to employees. safety governance is set out in a safety policy covering all the Group’s activities and sites; s since 2018, procedures for transportation safety have been regularly updated based on the analysis of incidents and on the decisions taken by the Transportation Safety Committee; s in the case of a serious event, a crisis management process is implemented. It provides for the activation of the crisis unit and dedicated resources. Crisis management exercises are regularly conducted. s

4

Strategy and operations

Industry

CSR

Regulatory compliance

Finance

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

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