Hermès - Registration Document 2016

2016 REGISTRATION DOCUMENT

HERMÈS INTERNATIONAL

Corporate social responsability

Stakeholders and local integration

worked on common issues. This provided an opportunity for employees

to visit theWWFMai Po reserve in order to gain a better understanding of

the importance of this unique paradise formigratory birds. It was also the

opportunity to attend presentations of other WWF projects including sus-

tainable food supply and the carbon reduction program for offices. The

regional subsidiaries are deeply committed to sustainable development.

In Hong Kong, for instance, a large number of activities were organised

in 2016. Sustainable development week was locally embraced, with

workshops to raise awareness about well-being and the need to share

with the community. Actions revolved around several projects, including

a “green market” in the company’s premises to support local producers

and promote organic food.

The Fondation d’Entreprise Hermès, through the internal H3 call for pro-

jects, allows employees volunteering with an NGO to advocate provision

of support by the Foundation. Since 2013, H3 has intensified dialogue

between Hermès and civil society by involving the broader community

in initiatives taken by its staff worldwide (see “Fondation d’Entreprise

Hermès”).

2.6.2.2

Charitable operations

The House’s subsidiaries and sites supplement initiatives taken by the

Fondation d’Entreprise Hermès by organising local charitable opera-

tions. Noteworthy achievements in 2016 were:

in France, various initiatives, such as blood donations in partnership

with the French blood bank, are now rooted in employees’ habits.

“Le Relais” points for collecting used clothes have been installed on

sites in Pantin, Paris and Lyon. They are accessible throughout the

year and encourage the reuse of clothing, either through donations to

the needy or by recycling their fibres. Regular donations of store-win-

dow mannequins are made to NGOs in France;

in the same way as in France, the HOP subsidiary in the United States

this year took the initiative of donating slightly used or outdated uni-

forms worn by sales associates. Several boxes of uniforms were given

to associations helping people in the process of reintegrating a pro-

fessional sphere. HOP also supported a local organisation, the Lower

East Side Girl’s Club. The idea was to identify needs in respect of

supplies for the school year. The list was sent to the employees, who

responded with generous donations;

in Taiwan, the subsidiary took part in various donations, notably to

the “Taipei City Yangming Home” for the disabled. The initiative to

partner with the Apple Daily newspaper was renewed in order to sup-

port poor families or children. Taiwan also supports the Boyo Social

Welfare association;

in Hong Kong, donations were made to “Food Angel”, an NGO invol-

ved in the fight against food waste and hunger in the region. Thus,

unsold and leftover food from local retailers and restaurants was

redistributed to disadvantaged communities in the formof hot meals.

Volunteers from the office and stores also helped collect food lefto-

vers for “Bread Run”, the leading food bank for people in need. The

subsidiary continued its support for “Lunch Club” with donations and

employees helping out at this restaurant for people in difficulty;

in India, the Hermès subsidiary chose to give 2% of its income (as

required under Indian law) to the “News” NGO in2016. News is active

in the fight to protect nature, the environment and wildlife. The contri-

bution was aimed at supporting aquaculture/fish farming develop-

ment projects in Sundarban villages in the Bay of Bengal;

some initiatives are supported by several of the subsidiaries wor-

ldwide. For example, the Earth Hour approach mobilised 56 stores

in 2016, a significant number of which were in Asia. Organised at the

initiative of WWF in the last week of March, it involves cutting non-es-

sential lights for a period of one hour to promote electricity conserva-

tion and in turn to reduce greenhouse gas emissions and contribute

to the fight against global warming;

“Carrés Solidaires” operations took place in Hong Kong, China,

Luxembourg and the United Kingdom for the benefit of different

associations, during which specially printed silk scarves are sold.

These sales contribute to the development of these local organisa-

tions’ projects.

2.6.3

Livelihoods

Since 2012, Hermès has been a partner of the Livelihoods Fund (LH),

which aims to improve the living conditions of disadvantaged communi-

ties in a sustainable manner by developing large-scale projects with real

impact against climate change

(www.livelihoods.eu

Livelihoods aims to be a start-up investor (with an entrepreneurial

approach and investment risk) in three types of projects – ecosystems,

agroforestry and energy – in Africa, Asia and Latin America. The fund

has 10 partners: Danone, Crédit Agricole, CDC, Schneider Electrics, La

Poste, Hermès International, Voyageurs du Monde, SAP, Firmenich and

Michelin. The initial term of the fund is 24 years, and the projects run

for between 10 and 20 years. On 31 December 2016, the investors

together pledged to invest a total of approximately €38 million in the

Livelihoods fund.

The projects generate benefits for local communities and ecosystems,

as well as for the partners in the fund, which earn carbon credits with a

significant environmental and social impact in proportion to their invest-

ment over the project development period. These projects, one of the

features of which is to cover a very large scale and extend over periods

ranging from 10 to 20 years, include:

restoration and preservation of natural

ecosystems

such as

man-

groves

. Nearly 8,000 hectares have been replanted in Casamance

(“Océanium” project); 4,500 hectares in the delta of the Ganges

(“News” project); and 5,000 hectares in Indonesia (“Yagasu” pro-

ject). These projects secure populations (protection against cyclones