Hermès - Registration Document 2016

2016 REGISTRATION DOCUMENT

HERMÈS INTERNATIONAL

Corporate social responsability

Environment

2.5

Environment

One of Hermès’ strongest and most abiding values is the respect for

nature, the source its exceptional materials and the living environment

of its sites. Pragmatic but ambitious long-term solutions to preserve the

environment are systematically sought, trying to go further than required

by regulations wherever possible.

Our priority is to control our impacts across our entire value chain, from

the agricultural production to distribution, from purchasing to internal

operations. This commitment is a mindset that requires the involvement

of all, from everyday eco-actions to a robust environmental, health and

safety (EHS) culture on all sites.

2.5.1

Background

The scope of this environmental report includes all production and logis-

tics entities controlled by the House, as well as offices and stores.

2.5.1.1

Policy and organisation

Industrial

Working with all sectors and those involved in our production sites, the

Group’s industrial department pursues an environmental programme

formally approved by the Executive Committee, whose goals are

unchanged since 2003:

to comply with Environmental and workplace Health and Safety (EHS)

regulations and to prepare for changes in these regulationswhenever

possible. As explained in chapter 2.3.4, the industrial department

has a network of Environmental, Health and Safety (EHS) operatives

at its manufacturing sites;

to respect natural resources, particularly water, and master energy

consumption;

to enhance production processes by choosing the cleanest pos-

sible technologies and the most environmentally friendly materials

available;

tominimisewaste production and to reuse and recyclewhenever pos-

sible; to limit the “carbon” impact of activities.

Everyone’s efforts are needed at every site if we are to achieve these

goals. An Environmental, Health and Safety network (“EHS network”)

has been in place since 2003. Managed by the industrial department, it

coordinates the actions of the House in these areas. The network com-

prises 20 members who meet several times a year to share results and

best practices. The training of networkmembers in respect of EHS issues

represents almost half of meeting time. In 2016, the focus was placed

on arduous work, following recent legislative developments, as well as

changes in safety culture. Training of this nature is subsequently delive-

red more widely within the various units.

Since 2002, EHS audit cycles at our various units have been conduc-

ted by a specialist external consultancy, spread over three years. The

fourth cycle, started in 2014, continued in 2016, with audits of 14 sites.

These check the regulatory compliance of sites and assess their posi-

tion in terms of a safety culture. Audits are also conducted at the time

of construction or acquisition of new sites, enabling full coverage of

Hermès’ industrial assets over the three-year period.

The information systemdeployed to the sites for theGroup’s environmen-

tal reporting canalsobeused to coordinate the follow-ups to theseaudits

and monitor changes in environment, health and safety regulations.

Several times a year, the Sustainable Development Committee reviews

the results presented by the Industrial Department. These reviews may

relate to water consumption and the carbon footprint of different units,

supply chains, external EHS audits conducted in the House’s various

units, as well as social and environmental audits of the partners.

Possible support or assistance measures necessary for achieving the

House’s objectives are approved at meetings of this committee.

Construction

Since 2008, our environmental construction policy, overseen by the

construction development department, has been based on the following

principles:

the systematic adoption of an environmental stance during building

work;

helping to protect the environment by ensuring that building projects

are properly suited to their setting and the local architecture, while

simultaneously preserving the ecosystem;

the use of renewable energy sources whenever that is possible;

employing energy-saving methods;

a focus on building quality – design, functionality and sustainability

– in a constant effort to ensure users’ well-being;

striving for flexible, adaptable construction projects that integrate

future developments and running costs from the outset;

anticipating, whenever possible, regulatory and technical develop-

ments and incorporating them into our projects.

In 2016, in order to improve coordination and control of activities invol-

ving internal staff and external service providers, the Group’s construc-