HERMÈS - 2018 Registration document

Corporate social responsibility

Business model

development challenges. The involvement of its members is essential to projects’ concrete implementation. It met four times in 2018 and organised a learning expedition in a pioneering company in this field in France. Each of the House’s main métiers and key subsidiaries has its own local Sustainable Development Committee . These committees, formed to launchandmonitor initiatives, share their achievementsat regional mee- tings and through the best practice observatory on theGroup intranet. As specified in the “environment” chapter, initiatives in this area are driven more specifically by an “HSE network” run by the industrial department. These committees carry out operational initiatives, and play a role in internal management and communication with teams. Throughout the year, the Group’s subsidiaries and entities initiate and monitor numerous sustainable development projects overseen by their Management Committees or by ad hoc committees. Cross-functional committees, led by Hermès’ head office departments, manage issues that are of common interest and often of a medium-term nature. They focus in particular on issues relating to recycling, materials innovation, sustainable construction and logistics. For example, since2017, Hermès China has taken a proactive approach, with the creation of a strategic Sustainable Development Committee (whichincludesthreeManagementCommitteemembers),aSustainable Development Committee (with 11 members in Shanghai) and a network of 23 ambassadors in stores. Again in Asia, for the fifth consecutive year, members of the Sustainable Development Committees in Japan, Korea, China, Taiwan, Singapore and Hong Kong met for three days in 2018 to share their operational practices. They are thus gradually becoming a regional repository of skills in this area. CSR Strategy The “all artisans of our sustainable development” strategic framework , signed by the Group’s Executive Chairman, has been distributed to all employees since 2015 and serves as a basis for the work of each indi- vidual. It focuses on the most significant issues in terms of the values of the House, the Company’s durability, and its responsibility towards its social and ecological environments and towards its stakeholders. It sets priorities in accordance with a materiality principle. It ensures that objectives are consistent and provides a framework for decentralised ini- tiatives. The métiers and subsidiaries are invited to report on their initia- tives and their ambitions annually on the basis of this document, during the half-year budgetary exercise, and are interviewed by the Sustainable Development Committee about their major challenges. This strategic framework is organised around six pillars which signpost the footprint that Hermès wishes to leave on the world. They concern People, the Planet, and the Communities in which we operate.

People: s s Hermès oversees the development and transmission of the savoir- faire of its craftsmen and women, and more widely, that of its teams, who form the foundation of its sustainable development approach. The framework sets out in particular the priorities in the areas of trai- ning, skills development, and the sharing of savoir-faire within teams and between generations. The development of production methods that are respectful of craftsmen and women and of the environment is one of the major focuses of work; s s special attention is given to the satisfaction and professional fulfil- ment of employees , and to promoting their diverse talents, which are drivers of sustainable growth. The framework has highly ambi- tious goals in the areas of working conditions, human relationships, the scrupulous attention to be paid to the health and safety of our employees, harmonious labour relations, employee well-being and work-life balance. It asserts a strong commitment to diversity and solidarity, particularly towards thosewho are experiencing difficulties or have a disability. Planet: s s the durability of theGroup’s business depends primarily on the future availability of the high quality raw materials that are key to Hermès’ unique character. Hermès protects and respects the exceptional natural resources that are used to produce its objects. The framework sets out major ambitions for our supply chains, particularly for natural materials, and their environmental and social footprints. It empha- sises our ambition to improve the way we use these materials, all of which are precious, in order to avoid waste. Significant attention is paid to managing waste from the point of manufacture to the product end-of-life; s s Hermès is constantly seeking long-term and ambitious but pragma- tic solutions to better preserve the environment . The framework confirms our ambition to control our impacts throughout the value chain, from the upstreamagricultural sector, tomanufacturing, to dis- tribution. This section sets out our challenges in the areas of control- ling industrial consumption (water, energy, etc.), managing waste emissions and industrial waste, reducing the environmental footprint of sites, reducing the carbon footprint and the carbon offset policy. Communities: s s the Group’s ability to grow is linked to the development and durabi- lity of its suppliers and partners , who are leading players in the field of high quality products and services, but also in social and envi- ronmental endeavours. The framework specifies the concepts deve- loped in the ethical charter (see 3.2.1.2), with ambitious objectives to improve our knowledge of and continue to support our partners in confronting quality issues as well as ethical, social and environ- mental challenges that they may encounter, with the required level of vigilance; s s Hermès ensures dialogue and the development of harmonious rela- tions with its stakeholders and is determined to play a role as a res- ponsible company wherever it operates. The Group reaffirms this objective for our corporate regional responsibility. In particular, it involves its stakeholders, skills sponsorship activities, support for local and disadvantaged communities, for example, through the Livelihoods project.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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