HERMÈS - 2018 Registration document

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Corporate social responsibility communities: stakeholders and local integration

In Japan, three dedicated programmes enabled students from underpri- vileged environments or with disabilities to be given a work placement. Employees were again made aware of the need to protect coral reefs. In 2018, 40 solidarity actions were carried out by the local teams in each region of Asia, with very active employee involvement and a determina- tion to make a long-term commitment. John Lobb and Co employees based at the Northampton production unit work with associations for various types of voluntary actions. In addition, donations of footwear unsuitable for sale were made to a partner asso- ciation in the United Kingdom. Footwear from this House has also been gifted to several charity events in the United States. Skills sponsorship Hermès wishes to develop the commitment of its employees to the social and solidarity economy by promoting local integration. The Group there- fore allows employees, during their working hours, to provide support to these organisations’ employees in various areas. A group-wide “Skills Sponsorship” methodology was developed and has been shared since 2017 within the French subsidiaries to promote tes- ting of the scheme. In 2018, Hermès has in particular helped workers in partner associa- tions. These skills partnerships focused on varied subjects such as human resources, knowledge of IT tools, reporting, communications or management. Hermès wishes to continue developing its openness and role as a citizen through other upcoming operations. Foundation (chapter 1.8) Hermès’ founding values are also expressed through the Fondation d’en- treprise Hermès, founded in 2008, which supports the women and men who learn, master, transmit and explore the creative actions to build the world of today and invent that of tomorrow. It has also developed nine major programmes focusing on key areas such as know-how, creation, and transmission. All the diverse actions of the Foundation are guided by a single conviction: we are created by our actions. Communication To communicate more about sustainable development actions and its craftsmanship spirit, Hermès opened a dedicated page on the website in March 2018 at www.hermes.com (https://www.hermes.com/us/en/ story/134986-sustainable-development/) to demonstrate our positive imprint on the world, men and women, and the communities to which we belong. Social networks (Facebook and YouTube) present the spe- cial collection of films made in the “Footsteps across the World” col- lection to show the Group’s concrete actions in favour of sustainable development.. In October 2018, Hermès of Paris, a subsidiary with a strong commit- ment to sustainable development, organised three events to share our vision and our accomplishments in this area with friends of the House, customers, influencers and journalists.

More than200 invitees fromLos Angeles toSanFrancisco, andNewYork, discovered the films “Empreintes sur le Monde” (Footsteps accross the world), in showings attendedby their director Frédéric Laffont, andOlivier Fournier, member of the Executive Committee, who then answered ques- tions from the audience. Emphasising the richness of our craftsmanship model, the essential role of the men and women who shape our objects, our contribution to the economic and social development of the territories in which we are located, these meetings enabled us to affirm our uniqueness, including our commitment to sustainable development. Livelihoods Since 2012, Hermès has been a partner of the Livelihoods Fund, which aims to improve the living conditions of disadvantaged communities in a sustainable manner by developing large-scale projects with real impact against climate change (www.livelihoods.eu). Livelihoods aim to be a start-up investor (with an entrepreneurial approach and investment risk) in three types of projects (ecosys- tems, agroforestry and energy) in Africa, Asia and Latin America. The fund has 10 partners: Danone, Crédit Agricole, Caisse des Dépôts et Consignations, Schneider Electric, 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 2017, the investors together had pledged to invest a total of approximately €38 million in the Livelihoods fund. The projects generate profits for local communities and ecosystems, as well as for the partners in the fund, which earn carbon creditswith a signi- ficant environmental and social impact in proportion to their investment over the project development period. These projects, one of the features of which is to expand their coverage to a very large scale and over periods ranging from 10 to 20 years, include: s s restoration and preservation of natural ecosystems such as man- groves . Nearly 8,000 hectares were thus replanted in Casamance (“Océanium” project); 4,500 hectares in the Ganges delta (“News” project); 5,000 hectares in Indonesia (“Yagasu” project). These pro- jects secure populations (protection against cyclones or the inva- sion of salt water) and provide food sources through ecosystem regeneration; s s agroforestry and soil remediation through sustainable agricultural practices. With the support of the Naandi Foundation, tribal Adivasi communities in the Araku valley have planted six million trees (fruit, firewood, construction, etc.), including three million coffee trees, on agroforestry models. In Guatemala, 4,000 hectares of trees and food crops are to be planted in the Cerro San Gil mountain area (“Fundaeco” project), allowing rural families to increase their food security and incomes, while protecting biodiversity. In Kenya (project “VI Agroforestry”), on the slopes of Mount Elgon near Lake Victoria, the livelihoods of 30,000 small farms will improve through the inten- sification of agriculture respectful of natural resources (Sustainable Agricultural Landscape Management – SALM) and the development of dairy production. The project also contributes to the protection of water resources and generates positive social impacts for women’s jobs;

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL