Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE BUSINESS MODEL

2.1.6 CSR GOVERNANCE In late 2022, Hermès updated its internal organisation to improve the management of the Group’s CSR performance, with greater involvement from its governance bodies. The 2023 financial year therefore marks the first year of operation of this new organisational structure, which positions sustainable development as a strategic priority for the Group. You are reminded that this organisation provided for: greater involvement from the Executive Committee, which is now called upon directly by the Sustainable Development Board to arbitrate on major and strategic issues at dedicated meetings; s

The House has thus created the conditions to effectively organise and systematically intensify its ambitions, while remaining faithful to its decentralised model and its “all artisans of our sustainable development” approach. lastly, the creation of a Committee of Sustainable Development Directors to support change within the House’s various sustainable development departments, and promote sharing between the House’s CSR leaders. s the creation of a Sustainable Development Board, made up of the House’s main Managing Directors, which is tasked with managing the major cross‑functional projects and ensuring the progress of the operational roadmaps of the métiers and subsidiaries; s

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EXECUTIVE MANAGEMENT

Nurture and complement the Group’s sustainable development approach

SUPERVISORY BOARD

EXECUTIVE COMMITTEE Meeting dedicated to sustainable development 4 times a year

Determines the main strategic directions

FONDATION HERMÈS

AUDIT AND RISK COMMITTEE

CAG-CSR COMMITTEE

PHILANTHROPY COMMITTEE

Supervises and manages major cross-functional projects

ETHICS COMMITTEE

SUSTAINABLE DEVELOPMENT BOARD

Promote and drive the sustainability approach

SUSTAINABLE DEVELOPMENT DIRECTORS' COMMITTEE

GROUP MANAGEMENT

SUSTAINABLE DEVELOPMENT DEPARTMENT

Allow the sharing and development of best practices

SUSTAINABLE DEVELOPMENT OPERATIONS COMMITTEE

MÉTIER /SUBSIDIARY SUSTAINABLE DEVELOPMENT DEPARTMENTS

LOCAL COMMITTEES

CROSS-CUTTING PROJECT GROUPS

Supervisory Board Its CAG‑CSR Committee has the role of overseeing sustainable development issues. It meets with the sustainable development department twice a year. Nine out of 12 Board members declare expertise in sustainable development, thus contributing to discussions with the operational teams and increasing the high standards demanded for the approach implemented (see chapter 3 “Corporate governance”, § 3.4.5.2). In 2023, this body benefited from the first sustainable development training sessions, which will be rolled out more widely in 2024. Executive Management and Executive Committee Group Management plays an active role in the implementation and rollout of the approach. The Executive Chairman, Axel Dumas, is involved in many subjects. As a reminder, since 2019 (see chapter 3 “Corporate governance”, § 3.8.1.2.4), the variable compensation of the Executive Chairmen of Hermès is partly conditional (10%) on a “CSR” criterion consisting of three indices (environmental, social and societal).

Since 2023, the role of the Executive Committee has been strengthened, thanks to sessions entirely dedicated to sustainable development held every two months. Five sessions were held in 2023 in order to validate the major strategic orientations, monitor the associated objectives and results, and ensure a periodic review of the adequacy of the resources allocated to the objectives. In 2023, the subjects monitored were submitted to the Executive Committee: group decarbonisation and carbon offset strategy; s european green deal (taxonomy, CSRD); s strategy for responding to non‑financial rating agencies; s project to support our suppliers of raw materials; s analyses and arbitration of key points within production and raw materials sectors; s sustainable development training programmes. s

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

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