HERMÈS - 2018 Registration document

Corporate social responsibility

planet: environment

Act4Nature Hermès joined the French project Act4Nature on 10 July 2018 along- side 64 players in the French economy, and confirmed its commitment to integrating biodiversity in its overall development strategy thereby contributing to the biodiversity targets set by the international commu- nity. Act4Nature is an initiative launched by EpE (the French associa- tion Entreprises pour l’Environnement) and several partners with a view to mobilising companies to protect, promote and restore biodiversity through shared commitments fixed by scientific institutions and asso- ciations, and through individual commitments specific to our House: s s a shared commitment (ten commitments in total) that aims to inte- grate biodiversity considerations into all activities, from governance and strategy to the most practical operations, to legitimise those considerations among the Company’s employees and stakehol- ders in order to elicit and encourage spontaneous and widespread actions; s s an individual commitment defined by each company and speci- fic to its activities. This commitment must be adapted regularly, as Act4Nature strives to follow a continuous progress approach. Measured and reassessed every year, these initiatives must help to set an ambitious course for major forthcoming events in global biodiversity. In 2020, the World Congress of the International Union for Conservation of Nature will be held in Marseille, and COP15 of the Convention on Biological Diversity will be held in Beijing. Results Through their location in rural areas, the sites are involved in various biodiversity initiatives. Leather Goods The Leather Goods division is committed to Biodiversity programmes. Available land around Leather Goods buildings is always examined with a view to developing such areas with local partners. The Sayat production unit helped to finance the creation of a conser- vation chestnut orchard in collaboration with the Conservatoire des Espaces Naturels in Riom Limagne. The programme aims to identify remarkable trees, harvest grafts, use themandhave17varieties of iden- tified chestnut trees cultivated by a nursery for one year. These chestnut trees will then be planted at the leather goods sites. Chestnut trees are emblematic to the Limagne fault line (where the Sayat site is located) and are very widespread locally as they are well suited to the geology of the soil (granite rock). This orchard will perpetuate these tree varieties, carefully selected more than 200 years ago. The Maroquinerie Iséroise uses sheep to maintain the pastures around the site. This original eco-grazing formula is helping to protect an endan- gered breed and to practise environment-friendly maintenance. Leather goods craftsmen and women help to guard the flock. 2.5.5.3

and to assess our impact on our supply chain. The contribution we wish to pursue covers two aspects in particular: Alligators in Louisiana: Hermès sources its alligator skins directly and indirectly from farmers in Louisiana. The alligator industry, considerably reorganised in line with the Washington Convention, has contributed (1) to protecting the species and its unprecedented development in the areas in question and, as a result, (2) to protecting and maintaining the marshlandswhere these animals live and reproduce. According to theUS Fish &Wildlife Service, this corresponds to 3million acres of marshlands that are thus better maintained. Our goal is to continue to support far- mers in their development, thereby ensuring the long-term sustainability of effects (1) and (2) above, fostering the protection of flora and fauna biodiversity. Silkworms in Brazil: For more than 20 years, Hermès has helped to deve- lopa supply chain for high-quality silk thread inBrazil. Located in the state of Paraná and drawing on Japanese expertise, the cultivation of mul- berry trees has made it possible to sustainably establish this division. This industry preserves low-chemical hardwood biotopes (silkworms eat only non-polluted mulberry leaves) and generates income for small local farms and, accordingly, thousands of families. Our goal is to continue to support the division, making it possible to protect these regions’ plant biodiversity while also ensuring long-term income for farmers. Voluntary commitments reaching beyond the economic sphere of influence of Hermès As a responsible company, Hermès voluntarily undertakes biodiver- sity-relatedeffortsreachingbeyonditsbusinessactivities.TheFondation d’entreprise Hermès contributes to various biodiversity-related projects and aims to continue its efforts in this area. It also supports a wide-scale project in Africa in partnership with the WWF: Traffic/AfricaTwix. This pro- ject aims to improve the fight against the poaching, trafficking and illegal trade of protected species in Africa, through the establishment of IT tools fostering dialogue between the different authorities of the countries in question. The Foundation will continue to support this project. Livelihoods: since 2012, Hermès has been a shareholder of the Livelihoods Fund, which aims to improve the living conditions of disadvantaged communities in a sustainable manner by develo- ping large-scale projects with real impact against climate change (www.livelihoods.eu). Investments are made in three types of projects (ecosystems, agrofo- restry and energy) in Africa, Asia and Latin America. The fund has 10 partners (1) working on these projects over a 20-year period. Overall, the Livelihoods fund will contribute to the replanting of 130million trees, including 18,000 hectares of mangroves (Casamance, Ganges Delta and Sumatra) and 34,000 hectares of agroforestry (Andhra Pradesh, Guatemala and Kenya). Hermès will continue its commitment to the Livelihoods fund by contributing to current projects, but also with the creationofanew,evermoreambitiousfund launched inDecember2017, which will have a considerable effect on biodiversity.

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(1) Danone, Crédit Agricole, Caisse des Dépôts et Consignations, Schneider Electric, La Poste, Hermès International, Voyageurs du Monde, SAP, Firmerich and Michelin.

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