HERMÈS - 2018 Registration document

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Corporate social responsibility

People: teams

Diversity management In order to develop responsible management, the “Alterego” training programme was rolled out in an ambitious way to express the wealth of difference for the company and thereby strengthen equitable mana- gement in terms of access to employment and career management, by equipping managers to respond to everyday situations. Started in 2017, this programme continued in 2018 with 35 one-day sessions for 379 divisional and local managers from all entities in France. The objective is to engage them in our responsible employer culture by prompting several discussions about disability, religion, gender equality and inter-genera- tional management. Disability Hermès has long been committed to integrating people with disabilities into its different métiers. Following the signature in 2017 of the first Group Disability Agreement with all representative trade unions within the Group, the Group’s Disability Working Group acted in coordination with a network of 12 Disability Advisors across all métiers (Silk, Leather, Crystal, Perfumes, HermèsMaison,Women, HermèsServicesGroup, Hermès International, Hermès Commercial, Hermès Distribution France) to help all sites to make progress in integrating and retaining people with a disability, whether temporary or permanent, in employment. Through this agreement, Hermès confirms its desire to act to support recruitment and integration, keeping people in employment, developing procurement from the socially supported and sheltered sector, and also in the area of communications, awareness and training in these issues. 2018 was the first year of the Group Disability Agreement, representing a decisive step forward. Significant progress was made, including the establishment of partnerships for hiring, various communication initiatives on disabi- lity within teams, and the forum for purchases from socially supported organisations. At the end of 2018, the employment rate of people with disabilities was 4.93%, up from 3.99% in 2017. It reflects a direct employment rate of 4.21%, up from 3.51% in 2017. The three-year agreement (2018-2019-2020) involves voluntary tar- gets with respect to recruitment and is already bearing fruit, in particular with the recruitment in 2018 of nine people with disabilities on perma- nent contracts, three of whom were previously employed by a sheltered work establishment (ESAT), thus complying with the framework commit- ment of 20 permanent contracts over three years. In 2018, 59 employees completed their initial disability recognition pro- cess, bringing the total number of employees with disabilities to 362 full- time equivalents, up from283 in 2017. Initiatives of this nature testify to the confidence these employees have in Hermès. The people concerned will benefit from dedicated support in their position and for job retention.

Several divisions have an employment rate above the French target of 6% employees with a disability before the reduction coefficient: HMS, HTH, St Louis, John Lobb. A total of 21 companies, given their good outcomes, are now completely exempt from the OETH tax 1 (only nine companies are still subject to it). Working Groups were formed within each division and each with a Disability Advisor to enable the roll-out of the Disability Agreement as closely as possible to the teams. Disability Week is an opportunity to conduct various awareness-raising actions among employees, with conferences by autistic people, plays addressing disability, sensory workshops, events around themes like Diabetes or MSD, relaxation massages by visually impaired individuals, etc. A three-year partnership agreement was signed with Sciences Po Paris including two aspects: supporting access to the Sciences Po Accessible programme dedicated to Sciences Po students with disabilities, and the Sciences Po School of Management and Innovation-EMI to develop exchanges of métiers between Hermès and students completing their Master’s degrees, in particular. The Group Disability Agreement organised a Market Place in Pantin invi- ting more than 80 purchasers and directors to share best practices and foster purchasers’ use of socially supported organisations, in particular working with 15 Adapted Companies (EAs) and sheltered work establish- ments (ESATs), which were there to propose their services. The Group’s overall purchases from socially supported organisations almost doubled compared with last year, while the Group Disability Agreement had set a target increase of more than 20% per year. Within the Hermès Leather Goods & Saddlery division, management is showing great ambition with its Disability policy and has for several years been supporting the development of partnerships with ESATs and EAs to perform certain support tasks. This division’s purchases from socially supported organisations more than doubled compared with last year, reaching €1,119k in 2018. In the Maroquinerie Savoie Dauphiné division, which has a training school in Fitilieu, a special ambition is driven by the organisation of collective information sessions dedicated to people with disabilities. In 2018, 2 sessions have been organized with more than 40 participants each. This allowed the integration of people with disabilities into each training session. Hermès Parfums has developed various partnerships with the local ADAPEI (organisation of friends and parents of disabled children) for packaging or laundry services. Hermès Commercial has established several partnerships with EAs or ESATs for the secondment of employees to logistics workshops. As such, four “external” employees are constantly present, and one of them was recently hired on a permanent contract. Within HCP, collaboration with socially supported organisations is dyna- mic, with various tasks focused on sampling, brochure packaging, main- tenance of landscaping, and catering.

(1) Obligation to Employ Disabled Workers.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL