Hermès - Registration Document 2016

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Corporate social responsability

Raw materials and suppliers

Regular inspections are also carried out in the livestock sites. In addition to these inspections, an audit programme was set up for all crocodile hide providers. These verifications primarily concern CITES regulations, best farming practices, environmental management, social conditions of employees, safe infrastructure and working conditions. These topics are grouped together in a charter of best livestock raising practices establi- shed in relation with veterinary experts. The example of Jewellery For several years, the Company has been involved in a certification pro- cess (the Responsible Jewellery Council - RJC) to guarantee the best tra- ceabilityforproductionandpurchasingforour jewellery.Thiscertification must be regularly renewed through audits performed by RJC throughout the chain, from production through to distribution. This renewal of the certification took place in 2016. This makes it possible to offer the best environmental and social guarantees regarding the conditions in which precious materials are sourced. Construction In 2016, a purchasing policy for partners for construction projects was defined. With each new relationship, suppliers are asked to make a commitment to complying with local regulations and accepting the fair dealing charters and corporate social and environmental responsibility policies before they begin working with the Hermès Group. A plan for external audits of suppliers in the real estate sector was launched in 2016.

Leather Goods Over the last seven years, the division has developed close partnership relations with four shelteredwork establishments (ESAT) and an adapted company (EA), located in the vicinity of the production units. Within these fivepartner establishments, theHealth, Safety andWorking Conditions underwent a formal audit. A personal contact person provi- ded these workshops with technical and quality support on a day-to-day basis, but also over the long term, as part of development projects, as well as in the implementation of future premises or the acquisition of new equipment. Textiles Partnerships with the ESATs for the recycling of photoengraving frames, fabric sampling for Créations Métaphores, maintenance of landscaped spaces and cleaning of the sites continued. In 2016, HTH continued to support the Handysoie partner company, in collaboration with an ESAT, which employs disabled staff for making textile products. Tanneries TheMontereau and Vivoin tanneries, through their partnershipswith ins- titutions andwork-aid support services (ESAT), have included the partici- pation of persons for the maintenance of green spaces. The Montereau site also hosts two people from the same ESAT programme as part of production operations. For its part, the Annonay tannery works with an ESAT branch for office supplies. Crystal Maintenance of green spaces is entrusted to the Association APAEIIE Ingwiller. The Paris sites: Hermès International, Hermès Services Groupe, Logistics The Paris sites use ESAT branches for a number of operations. Cooperation with various ESATs covers some administrative tasks and themakinganddelivery of food trays,meetings or seminars conferences.

Corporate responsibility and using socially supported organisations

2.4.5

Through its policy for the disabled, the Group promotes using services provided by the subsidised sector for socially supported organisations in France (EA, ESAT, sheltered work establishments and disabled adapted companies) whenever possible. Abroad, there are a number of different initiatives depending on local context. For example, the subsidiary in Hong Kong systematically checks the “social enterprise directory”, a guide to social enterprises, for listed service providerswhenever it needs to make local purchases.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL