Hermès - Registration Document 2016

Corporate social responsability

Introduction

The Group Operations Committee meets every two months; it com- prises the heads of theHouse’smain corporate functions (approximately 15 people). It analyses projects’ technical and functional aspects, faci- litates information sharing and serves as a collective decision-making body providing a pragmatic perspective on sustainable development challenges. The involvement of its members is essential to projects’ concrete implementation. It met five times in 2016. Each of the House’s main métiers and key subsidiaries has its own local sustainable development committee. These committees, formed to launchandmonitor initiatives, share their achievementsat regional mee- tings or through the best practice observatory on the intranet. As specified in the “Environment” chapter, initiatives in this area are drivenmore specifically by a specific “HSE network” run by the industrial department. These committees carry out operational initiatives, and play a role in internal management and communication with teams. For example, all French sites and subsidiaries organise operations with their employees during the European Sustainable Development Week. Hermès of Paris, the American subsidiary, has run a Sustainable Development Week every autumn since 2013. This year, the event included an internal com- petition on the theme of creative recycling. In 2016, members of the Japan, Korea, China, Taiwan, Singapore and Hong Kong sustainable development committees met for the third consecutive year to share their operational practices and jointly create an eco-actions charter for stores. Tools Over the last 10 years, theGroup has developeda number of tools to help implement roadmaps validated by the Executive Committee. Committee work and operational decentralisation are facilitated by the dissemina- tion of these tools, all of which have been constructed in a participatory approach so as to facilitate their adoption. The House’s ethics are enshrined in a forty-page Ethics Charter distri- buted to all teams, in 10 languages. It aims to promote the corporate pro- ject and reaffirm the Group’s commitment to certain fundamental prin- ciples in the way Hermès relates to its stakeholders and wider society. It is given to all new employees when they join the House. It is structured around the following points: s s Hermès’ relations with its employees, suppliers and customers; s s Hermès’ relations with society and the natural, social, economic and cultural environment; s s uncompromising principles of Hermès objects; s s relations between Hermès and its shareholders. As described in chapter 2.3.7, Hermès adheres to all major principles and international agreements on human rights. 2.1.3

A code of business conduct, also available in 10 languages, sets out the House’s guiding principles on a range of operational matters. It lays out a matrix alert system by geography and by function. It addresses, among others, the following issues:

s s extra-professional activities; s s acceptable perks and gifts; s s money-laundering, corruption; s s confidentiality; s s conflicts of interest, insider trading; s s workplace bullying; s s use of Group resources.

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The “All artisans of our sustainable development” strategic framework was distributed to all Management Committees in 2015 and serves as a basis for the work of each one. It is built on six pillars: s s Hermès oversees the development and transmission of its artisans’ savoir-faire ( know-how), and more widely that of our staff which form the foundation of our approach to sustainable development; s s the satisfaction and professional fulfilment of employees , together with their diversity, are a driver of sustainable growth, and as such a matter for special attention; s s the durability of our business depends primarily on the future availa- bility of the high quality materials that are key to the Hermè’s unique character. Hermès protects and respects the exceptional natural resources that are used to produce its objects; s s Hermès is constantly seeking long-termand ambitious but pragmatic solutions to better preserve the environment; s s the Group’s ability to grow is linked to the development and sustai- nability of its suppliers and partners, which are leading players in the field of high quality products and services, but also in social and environmental endeavours; s s finally, Hermès ensures dialogueand thedevelopment of harmonious relations with its stakeholders and plays a role as a responsible com- pany wherever it operates. This document was prepared in a participatory approach, focusing on the most significant issues in terms of the values of the House, the Company’s sustainability, and its responsibility towards its social, eco- logical and societal environments. On each issue, it indicates priority topics and proposes three-year ambitions. Each business line and each subsidiary is called on to draw up a roadmap on the basis of the six overriding pillars; the Sustainable Development Committee reviews the various roadmaps annually. Teams also have access to other tools, including: s s “Ambitions”, an operational sustainable development blue print which provides a shared language and serves as a support for the actions of the operational teams. It helps each entity, depending on its activity, to identify the main areas in which it can take initiatives. It is naturally consistent with the strategy’s six pillars;

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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