Hermès - Registration Document 2016

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Corporate social responsability

Environment

Construction Our environmental reporting primarily measures the energy consump- tion of stores and the offices of distribution branches around the world. Since 2015, environmental reporting has been further backed up by the gradual deployment of an automated system to consolidate energy consumption data from all new sites. Consumption data for exclusive concession stores are not included, as the Group does not control their operation. This reporting does not include consumption by certain branches, pri- marily because of their location in shopping centres, which complicates access to source data. The absence of individual sub-metering in stores means that thisenergy consumptiondata isnot available. Newsiteswere factored in from the date of opening, or when they joined the Group. Sites that closed or left the Group over the year covered by the reporting were also taken into account. Primary data are collected from contributors from each distribution subsidiary (in a network of over thirty contributors worldwide) and are centralised by the construction development depart- ment, which runs various checks (analyses) in relation to the previous year’s figures (comparison with similar sites) before consolidating them. For energy consumption, only the electricity consumption indicator is published. The consumption of other forms of energy, which are very marginal, is excluded from this indicator. Electricity consumption data concern nearly 76% of Hermès branches across the world, as well as John Lobb, cristallerie Saint-Louis and Puiforcat branches. In France, data for 100% of stores are included in the reporting. The same applies to all French branches of John Lobb, Saint-Louis and Puiforcat. For Faubourg Saint-Honoré, the storeaccounts for 41%of total consump- tion in a building that also houses offices and workshops. In Europe (excluding France) almost 93% of stores are covered. In Asia, over 92% of stores in Greater China (mainland China, Hong Kong and Macao) and100%of stores in Thailand, Malaysia and Australia are cove- red. In Japan, the four main stores are also included. For the Americas, 88%of stores are covered, including 100%of stores in the United States. Water usagedataby stores arenot publishedowing to the lack of informa- tion reported and the insignificant proportion of theGroup’s overall water use it represents, being mainly water used in washrooms.

tion development department has drawn up sustainable construction guidance based on three main ambitions:

s s reduce the ecological footprint; s s promote the well-being of users; s s conserve vital resources.

This Sustainable Construction Framework, applies to all new construc- tion or renovation projects relating to office, production and distribution sites in France and internationally, in collaboration with the Group’s project managers and external partners (architects, technical design offices, builders and suppliers) selected by the construction develop- ment department. The Framework serves to: s s harmonise and oversee sustainable building practices aimed at achieving ambitious goals; s s improve the environmental quality of construction projects from conception to completion, for users; s s transcribe the values and characteristics of the Hermès Group inter- nally and among partners; s s set out scalable and comprehensible goals for all players in the construction process. Changes in regulations in respect of construction are monitored by the Group’s teams, in close collaboration with stakeholders (architects, engineers and suppliers). Industrial Since 2012, Hermès has monitored environmental data from its indus- trial sites using reporting software accessible as a web resource to col- lect data about consumption at each site. The software also provides access to documentation explaining how the indicators collected are organised and defined. A consistency check is carried out automatically when the figures are entered and again when the global consolidation is performed by the industrial department. The published figures do not yet include data fromnewPrecious Leathers sites in Australia and theUnited States. Consumption figures for certain leased sites are not available (such as water for the Saint-Antoine leather goods production unit, and water and energy for the John Lobb Mogador workshop in Paris); howe- ver, given the size of the workshops and the absence of industrial water use, they represent a negligible proportion of the consolidated total. 2.5.1.2 Methodology and tools

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL