Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

CORPORATE GOVERNANCE THE COMPANY’S CORPORATE GOVERNANCE CODE

Provisions of the Afep‑Medef Code not applied due to the Company’s legal form Severance payment (Article 26.5.1) The performance requirements set out by Boards for these benefits must be evaluated over at least two financial years. They must be demanding and may not allow for the indemnification of a director unless his or her departure is forced, regardless of the form of this departure.

Explanations

The Company made a commitment to pay MrAxel Dumas a severance payment under the conditions described in § 3.8.1.2.4. Given the importance of the role of the Active Partner in a société en commandite par actions (partnership limited by shares) – which has the power to appoint and dismiss any Executive Chairman – and in the case of a legal entity, its legal representative, it was considered that the termination of duties as Executive Chairman of MrAxel Dumas that may result from the replacement of the Chairman of Émile Hermès SAS, should be treated as a forced departure. The Supervisory Board therefore considered that the deferred compensation commitment made to MrAxel Dumas complied with the requirements of the Afep‑Medef Corporate Governance Code. In its November 2018 report on corporate governance and Senior Executive compensation, the AMF recommends that the Board carry out a regular review of the components of compensation that may be due at the time of or subsequent to the departure of a Senior Executive and that it questions the possibility and desirability of compliance with new Code provisions. No compliance was made necessary by the new provisions of the Afep‑Medef Code updated in December 2022.

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Provisions of the Afep‑Medef Code excluded for other reasons

Explanations

None

A revised version of the Afep‑Medef Code relating to CSR was published on 20December 2022. These recommendations are applicable to General Meetings held for financial years beginning on or after 1January 2023. However, it is recommended that Boards make their best efforts to implement them immediately.

Changes made since the most recent update of the Afep‑Medef Code in December 2022 to ensure compliance therewith The Board and CSR (Articles 5.1 to 5.3) The Board’s missions are strengthened so that it determines the multi‑year strategic orientations in terms of CSR and is the guarantor of their implementation.

Explanations

The Supervisory Board of Hermès International has powers strictly defined by the Company’s Articles of Association and does not have the authority to determine the strategic orientations that fall within the exclusive competence of the Executive Management. It is therefore the responsibility of the Executive Management to: determine the CSR strategy including climate objectives; decide on the implementation methods: action plan and the time horizons within which these actions will be carried out; annually review the results obtained and the opportunity to adapt the action plan or modify the objectives in light of changes in the Company’s strategy, technologies, shareholder expectations and the economic capacity to implement them. The governance put in place by Executive Management to monitor CSR issues is presented in chapter 2 “Corporate social responsibility and non‑financial performance”, §2.1.6). As part of its management control role, the multi‑year strategic guidelines in terms of CSR and their implementation methods were presented to the Supervisory Board. The results obtained are presented each year to the CAG‑CSR Committee, which reports on these to the Supervisory Board. This provision of the Afep‑Medef Code is therefore not applicable to Hermès International, given its legal form and the role assigned to the Supervisory Board (described in §3.5.1). The climate strategy – which is aligned with a trajectory of less than 1.5°C – validated by the Science Based Targets (SBTi) initiative, and the main CSR actions are presented each year to the General Meeting. The information presented at the 2022 General Meeting is available at the following address: https://assets‑finance.hermes.com/s3fs‑public/node/pdf_file/2022‑05/1652974639/ hermes_AG2022_presentation_EN‑01.pdf The Company is therefore already in compliance with this recommendation.

The General Meeting and CSR (Article 5.4) The climate strategy and the main actions undertaken for this purpose must be presented to the Shareholders' General Meeting at least every three years or in the event of significant change

The CSR training provided to Board members is described in §3.5.6.1. The Company is therefore already in compliance with this recommendation.

Training of the Board on climate issues (Article 14) Directors can benefit from training on environmental and climate issues.

As specified in §3.5.6.2, matters relating to CSR are the subject of preparatory work by the committees: since 2018: the CAG‑CSR Committee is in charge of monitoring CSR issues; s since 2021: a joint meeting between the CAG‑CSR Committee and the Audit and Risk Committee dedicated to the presentation of CSR risk exposure is organised each year. s

Role of the committees in terms of CSR (Article 16)

Matters relating to CSR must first be prepared by a specialised committee of the Board of Directors.

The Company is therefore already in compliance with this recommendation.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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