Hermès - Registration Document 2016

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Corporate social responsability

Environment

Input materials

Downstream freight

Sources controlled by the legal entity

Electricity, heat, etc.

Upstream freight

Work-related travel

...

Other

Other indirect sources* (Scope 3)

Energy-related indirect sources (Scope 2)

Direct sources (Scope 1)

Other indirect sources* (Scope 3)

Upstream

Downstream

* Emission sources unaffected by regulatory requirements * Emission sources unaffected by regulatory requirements Source: Ministry of the Environment, Energy and the Sea.

The results of this study provide data for analysis of the Group’s envi- ronmental impacts and enable action plans to be drawn up within the framework of our Water Energy Carbon Waste plan, which has been in place since 2010. Because our activities are highly diverse and emis- sions vary widely from one division to another, each business line drew up a plan addressing its own issues. All of themeasures taken within this programme are aimed at reducing Hermès’ impact on climate change. Hermès’ scope 1 and 2 emissions total less than 32 million tonnes of CO 2 equivalent, down 5% compared with 2015 despite the inclusion of Les Tanneries du Puy. The main sources of scope 3 emissions are freight (approximately half of scope 3 emissions) and external purchases excluding packaging (less than one-quarter of scope 3 emissions). Work has been undertaken on both of these sources, including low-carbon logistics solutions (for example, the French logistics centres use hybrid or electric vehicles for deliveries to the Parisian sites). In June 2012, as part of its carbon offsetting strategy, Hermès also joined the Livelihoods Fund (LH), a group of companies financing carbon offset projects with high social and environmental value. Livelihoods ini- tiatives are described in the chapter concerning relations with stakehol- ders, notably explaining that more than 120 million trees have been planted. The fund, whose carbon credits will expand as the trees grow (the projects concerned span periods of 20 years), for the third time delivered carbon credits to its shareholders in 2016, after verification from specialised auditors (using the Gold standard and VCS standards).

In 2016, they served to offset two-thirds of Hermès’ scope 1 and 2 car- bon emissions. The key initiatives taken by the sectors and subsidiaries in this area in 2016 are described below. Leather Goods The Bilan Carbone ® (Carbon Assessment) initiative was launched within the Pierre Bénite facility in 2006, and extended to the entire division in 2008. The regular measurement of carbon emissions serves to verify that the carbon footprint grows at a slower pace than our business, and that the distribution of the contributing elements is stable year on year: one-half of emissions come from raw materials, one-quarter from staff commutes andone-quarter fromenergy consumption. It also contributes to the Water, Energy and Carbon progress plans, with concrete actions such as the use of an electric service vehicle, or increasing the share of renewable energies used. Tanneries The Bilan Carbone ® (Carbon Assessment) from the Tanneries and Precious Leathers division has been updated for the year 2016. CO 2 emissions in the division increased between 2015 and 2016 (+56%). The increase is attributable to the inclusion of Les Tanneries du Puy in the 2016 reporting scope. It accounts for 40% of the division’s overall emissions. At constant scope of consolidation, the division’s emissions

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL