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2016 REGISTRATION DOCUMENT

HERMÈS INTERNATIONAL

76

Corporate social responsability

2

Environment

(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.

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.

2.5.6

Effective solutions for waste

management

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