Hermès // CSR Extract 2023

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CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE BUSINESS MODEL

Identification, assessment and ranking of issues The 15 priority issues studied are the result of analyses updated internally every year since 2015 by a study of the main general CSR topics specific to the industry to which the Group belongs. This selection of issues is reviewed annually prior to the financial year. Thus, in 2023, the list of these issues was updated twice: the topics “eco‑design and circular economy” and “Innovation R&D” have been combined in a single issue, “eco‑design, circular economy and innovative materials” in order to better correspond to the operational reality of the topic and to specify the scope of the work carried out by the Group on its natural raw materials (optimisation, circularity, exploration of new materials); s the “regional responsibility” issue has been added to the list, in order to highlight the notions of local anchoring, the revitalisation of regions, and dialogue with our external stakeholders. Previously included under “socially responsible company”, the latter is refocused on the Group’s generous and humanist commitment and its philanthropic actions. s In 2023, Hermès took into account the relative ranking of these 15 issues produced by a panel of nearly 140 respondents, in the form of an anonymous interactive questionnaire, which invited participants to classify each issue first in terms of financial materiality, then in terms of impact materiality. This panel consists of: internally, the departments of the Group’s cross‑functional functions and métiers, members of the Sustainable Development Operational Committee, the network of EHS correspondents, the French and international internal control network, and members of the sustainable development network in foreign subsidiaries; s external partners, who represent 50% of respondents for the first time, demonstrating the keen interest of Hermès’ partners in its sustainability approach. s The Sustainable Development Committee and the Executive Committee reviewed the results from the consolidation of the panel’s responses. Understanding that the notion of risk itself contains an opportunity factor, Hermès uses the term “issues” to qualify its CSR approach in this Non‑Financial Performance Statement. These issues are summarised as part of the CSR strategy, and described in more detail in the following sections of the document.

2.1.3 MATERIALITY ANALYSIS As every year, Hermès updated the analysis of its priority CSR issues in 2023 to guide its actions and facilitate understanding of its strategy. For the third consecutive year, an analysis was conducted based on the concept of double materiality, which looks at the two dimensions of value creation put forward by the European Union and EFRAG: financial materiality and impact materiality, relating to the creation of environmental and social value, which has a broader effect on all the Company’s stakeholders. In this way, with the help of its stakeholders, Hermès ranked 15 priority issues from these two perspectives: result. While considering changing and accelerating contexts, projects take into account the necessary rhythm for sustainable change among employees, partners and natural ecosystems. Urgency to act and hasty execution should not be confused. the materiality for Hermès – known as the “outside‑in” vision, i.e. the amount of influence these issues have on the Group’s economic activity; s the materiality of Hermès and its value chain on the world, known as “inside‑out”, i.e. the direct and indirect impacts on the environment and society. s This materiality matrix is also in line with the continuation of the work carried out for several years in a collaboration between the sustainable development department and the audit and risk management department. It contributes to the risk analyses carried out at Group level and validated by the Executive Committee, with the double materiality enriching the “impact” pillar of the Group’s risk mapping. In addition, for three years now, Hermès has been anticipating the transparency obligations and the use of the principle of double materiality required by the European Corporate Social Responsibility Directive, transposed into French law in December 2023 and applicable from 1 January 2024. The methodology used in 2023 will change to take into account these regulatory changes in 2024, which may lead to changes in the format of the matrix and the results.

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

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