Hermès - Registration Document 2016

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Corporate social responsability

Environment

Thermal insulation Particular attention is paid to insulating store façades (special glazing) and industrial buildings (improved external insulation). Other initiatives (installation of electricity consumption sub-meters and motion detector systems in fitting rooms, washrooms and back offices) were taken on all new store projects in 2016. These automated energy consumption consolidation systems offer constant visibility allowing rigorous management of energy use. Ever more efficient new technical solutions are constantly being evaluated for progressive incorporation into existing stores. The choice of building materials, a reduction in their weight and an effort to source supplies locally also improve results on the Bilan Carbone ® assessments of new buildings and new stores. The manufacturing units, with their technically different processes, generate a wide diversity of pollutant releases: each industrial division is focused on the dual objective of reducing pollutant releases and impro- ving treatment to minimise its environmental footprint. This demands continuousmonitoring as newprocesses or new technologies in this field are invented every year. Leather Goods Leather goods production units represent limited sources of pollutant releases, due to manufacturing procedures that are essentially manual and respectful of the environment. Air quality inside workshops is regularly analysed to ensure its quality. Production sites have systematically replaced solvent-based adhesives with water-based adhesives. Air conditioning, ventilation, heating, gluing and sanding equipment that generate air emissions are fitted with filte- ring devices that guarantee the quality of the air emitted. Tanneries Each tannery is equipped with an effluent treatment station and verifies its industrial pollutant releases in compliance with the applicable stan- dards. Regulatory inspection reports are submitted to the local autho- rities on a regular basis. The division’s tanneries continually work on improving the performance of effluent treatment. In Montereau, the reduction of water consumption combined with the production increase led toaconcentrationof pollutants in itswastewater. In 2016, as in 2015, the site continued research on the sources of pollu- tionand the implementationof complementary treatment. TheVivoin site meanwhile continued its work to develop and secure the treatment of its effluents, including the sludge system with the installation of a new filter 2.5.6 Effective solutions for waste management

(change of exchangers on the roof), optimisation of time slots and the installation of motion detectors for lighting. The site also uses energy supplied by photovoltaic panels. Crystal The processes using the most energy at the production unit are melting the rawmaterial and working with it while hot. The best available techno- logy in terms of production volumes is implemented in each investment project. The two recently renovated furnaces are a prime example. The reorganisation of themelt shop with its new tank furnace allowed the pooling of energy-consuming equipment on workstations (e.g. openings) and a reduction in the use of single-cell furnaces by optimising the use of the pot furnace renovated in 2015. The energy audit carried out in 2016 identified additional measures to reduce consumption, particularly on equipment used “around the edges” of the process, thereby confirming the interest of the blueprint currently being carried out to replace some boilers. Perfumes The establishment of a system to recover heat generated by air compres- sors now enables the production of hot water, which lessens the load on boilers and in turn has a favourable impact on gas consumption. Heat insulation has been installed or replaced on the pipes of air hand- ling units and boilers in order to improve the efficiency of the equipment. A campaign to replace existing lighting with LED systems in various buil- dings, especially the warehouses, has just begun. Construction Improving energy efficiency in our stores means optimising the main areas of energy consumption, which are lighting and air conditioning. Lighting Since 2013, an all-LED lighting solution for our watch and jewellery window displays, shelving and ceiling lights has been extended to all new store projects. In 2014, the retail projects department introduced a range of LED bulbs specially developed for Hermès and suitable for all existing installations and equipment. In 2016, in addition to the new stores, relamping with LED systems conti- nued on the global network of existing stores, bringing the total propor- tion of Hermès stores equipped with LED systems to 55%. Air conditioning Lower electricity consumption coupled with the fact that LED lighting generates far less heat than traditional lighting has enabled us to consi- der downsizing in-store air conditioning units. This programme continued for all new store projects throughout 2016.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL