Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE BUSINESS MODEL

2.1.4 ANALYSIS OF NON‑FINANCIAL RISKS As indicated in chapter 4 “Risk factors and management”, § 4.1, in 2023 the Group carried out an overall analysis of its risks according to two axes, the magnitude of the multi‑criteria impacts and the probability of occurrence. The materiality work carried out above made it possible to update this overall risk analysis, which distinguishes five major risk categories, three of which are more

relevant in the non‑financial field. The cross‑reference table below illustrates the link between this risk analysis and the 13 priority CSR issues identified by the materiality matrix. The non‑financial issues taken into account also include the concepts of positive contributions and opportunities, which are more difficult to incorporate in the risk analysis.

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Group risks

Priority CSR issues

4.1.1 Risks related to strategy and operations

4.1.1.2 Image and reputation

Regional responsibility

4.1.1.5 Management of talent and savoir‑faire

Employee well‑being, health and development Employer brand and relationships with educational establishments Diversity and inclusion Savoir‑faire and corporate culture Sustainable materials and responsible sourcing Supplier support

4.1.2 Industrial risks

4.1.2.1 Supply management

4.1.4 Risks related to social, societal and environmental responsibility

4.1.4.1 Changes in major global climate and biodiversity issues Climate change Biodiversity 4.1.4.3 Availability and proper use of natural resources Eco‑design, circular economy and innovative materials Animal welfare Energy, water and waste management 4.1.4.2 Respect for human rights, fundamental freedoms and ethics Ethics and human rights

2.1.5 CSR STRATEGY

Developed in 2015 and updated in 2020, the consistency of the “Hermès ambitions” CSR strategy was confirmed by the work carried out this year, by the subjects taken into account by its stakeholders, and ultimately by the double materiality analysis in 2023. The underlying premise is: “All artisans of sustainable development”; it constitutes the CSR reference framework applicable to all Group employees and entities. It is based on appropriation and implementation of topics at a collective level, a key factor in its sustainability. The Sustainable Development Board and the sustainable development department assist the Group’s subsidiaries and métiers to ensure its proper application. In 2022, more than 40 Group subsidiaries, métiers and cross‑functional departments used this strategic framework to formalise their own “sustainable development wheel” and highlight their specific sustainability issues, ambitions and objectives. All of the House’s Management Committees have therefore increased their knowledge of this subject, and worked on the operational implementation for their scope, with the help of the sustainable development department and third parties, where applicable, on

specific technical subjects. This work reflects greater maturity within the Group, and forms the basis of an operational approach now fully deployed within the House. In 2023, this approach continued with the gradual production of commitment handbooks, adapted at entity‑level from the Group’s sustainable development roadmap presented below. Thus, each entity of the House is now working on formalising action plans, monitoring indicators and quantified objectives specific to its scope and operational challenges. For example, indicators relating to water management are included in the commitment handbook of the Hermès division (which includes tanneries and farms with one of the Group’s highest water footprints), while the retail subsidiaries include indicators relating to managing their inventories and unsold goods. These commitment handbooks, which will be more widely rolled out in 2024 and 2025, will increasingly become sustainable performance management tools for each entity’s scope, and will align with future ESRS . 2023 was marked by the strategic project on compliance with the European Corporate Sustainability Reporting Directive (CSRD). (1)

1. European Sustainability Reporting Standards .

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

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