HERMÈS - 2018 Registration document

Corporate social responsibility

planet: environment

The indirect purchasing department prompts the Group’s suppliers to integrate the carbon component into our contractual relations as early as possible. Tanneries TheBilanCarbone ® (Carbon Assessment) for the Tanneries andPrecious Leathers division was updated for 2018. Scopes 1, 2 and 3 emissions in the division increased slightly between 2017 and 2018 (+1%). This rise in emissions is mainly due to an increase in emissions related to the supply of raw exotic hides. This source of emissions, together with energy consumption and chemical products, accounts for close to 95% of emissions from production sites, with the energy consumed (gas and electricity) alone accounting for half of these emissions. In 2010, following repeated tests, a maritime transport system was set up for Alligator mississipiensis from the southern United States, Crocodylus niloticus from Africa and, since 2013, Crocodylus porosus, from Australia. Whereas more than half of the raw crocodilian skins from the United States and Africa received in the tanneries were shipped by sea in 2017, we were unable to maintain that trend this year on account of more stringent supply and production restrictions. Nevertheless, one-quarter of raw crocodilian skins from the United States and Africa were shipped by sea in 2018. Silk The division’s Bilan Carbone® assessment is revised every year to analyse the impact of our actions on greenhouse gas reductions. The activities producing the most emissions are energy, purchasing (fabrics, chemical products and packaging), inter-site freight, upstream freight and business travel.

The division’s efforts to reduce energy consumption, the pooling of trans- port and purchasing, the reduction of inventories, along with communi- cations setting out travel rules and encouraging remote meetings are all factors that helped reduce our emissions. Livelihoods The Group decided to establish a voluntary carbon offset system in order to reduce its overall impact. In June 2012, Hermès joined the Livelihoods Fund, a group of companies financing carbon offset projects with high social and environmental value. Livelihoods’ initiatives are described in chapter 2.7.2 concerning relations with stakeholders, notably explai- ning that more than 130 million trees have already been planted. The fund, whose carbon credits will expand as the trees grow (the projects concerned span periods of 20 years), delivered carbon credits to its shareholders for the fourth time in 2017, after verification from specia- lised auditors (using the Gold Standard and VCS standard). In 2018, they served to offset 85% of Hermès’ scopes 1 and 2 carbon emissions.

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CHALLENGE: MANAGING WASTE

2.5.4

Waste management : reduce the production of waste in the House’s different métiers, recover or treat it.

2.5.4.1 Policy The wide range of métiers prevents a single overall waste policy other than the general principle of avoiding the production of waste and wor- king to improve its reuse and recovery. Each manufacturing division works with a specific dual policy of waste reduction and recycling whe- rever possible. The main contributors are the tanneries, silk, leather, perfumes, crystal and construction.

OIW 1

HIW 2

In tonnes/2018

Tanneries

3,570 1,254

3,831

Silk

843

Leather Goods

774 578

58

Perfumes

214

Crystal

89 93

1,157

Porcelain/Enamel

32

Logistics Watches

109

4

11

33

(1) OIW: Ordinary Industrial Waste. (2) HIW: Hazardous Industrial Waste.

sectors for reuse. In silk, offcuts are shredded and, whenever tech- nically possible, sent to material recycling sectors. In the Perfumes activity, undistributed inventories are reprocessed in specialised sec- tors that separate and reprocess liquids and packaging; soaps are reprocessed and donated to charitable associations.

2.5.4.2 Measures implemented and results As part of its waste and end-of-life product management policy for its objects, the Group is engaged with partners in France and abroad to find them a second life wherever possible. The House’s main métiers (leather, silk) have ongoing programs in this area. For example, all the leather offcutsmanufactured by production sites is sold to specialised

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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