HERMÈS - 2018 Registration document

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Corporate social responsibility

planet: raw materials

in the production of its leather goods. The work continued in 2018 with progress plans developed with its partners. Animal welfare ethics The Group’s policy is to scrupulously comply with the laws and regula- tions in this area and ensure that the same is true for its suppliers and partners. The subject is taken into account in discussions with tanners, megisserie, suppliers of animal hides and, more broadly, the industry’s professional bodies. Within both its direct sphere of responsibility (rep- tile farms) and for its external suppliers, the Group has implemented a very strict policy, based on an ethics charter and a demanding guide of best practices, drawn up with the help of scientific experts and veteri- narians and covering an extensive range of aspects relating to animal welfare, farming and slaughtering practices, transportation, employee working conditions, the environmental performance of farms and their safety. This policy is monitored through regular internal audits, and was also reviewed by WWF France in 2016. In addition to these efforts, which have been ongoing for over nearly 15 years, theGroup contributes to the improvement of professional stan- dards. Since 2016, Hermès has participated in the ICFA (International Crocodilian Farmers Association) alongside the main players in the industry (farmers, tanners, manufacturers, brands). Thismulti-stakehol- der association brings together the experience of its members and a scientific community specialised in crocodiles, which has gathered together all practices and existing scientific studies. Its purpose is to develop and improve crocodilian breeding practices. In 2018 the ICFA accordingly defined a standard aligned with international best practices in the field. A panel of scientists, veterinarians, farmers, brands and spe- cialists in the area of regulations or in ISO compliance thus participated in the approval of this standard. This was then reviewed and amended by the CSG (Crocodile Specialist Group), an NGO member of the IUCN’s Species Survival Commission. The practices defined therein are based on scientific studies and the ICFA has declared its goal of under taking new research in areas that are not covered, which it will fund. Its founding principle is to verify the welfare of animals in a scientific and quantifiable way throughout their entire life span. These standards are applicable to different species and in different countries and will evolve over the years in line with the results of new scientific research. A certification process for the livestock of its founding members will be put in place in 2019 with the help of external certifying bodies. All farms that join the ICFA will adopt the standard and will therefore be audited. In addition to animal welfare, these audits cover environmental and societal aspects of livestock farming. In addition, Hermès does not perform animal testing for its products. Hermès’ actions in favour of biodiversity are presented in detail in sec- tion 2.5.5.

Exotic skins The exotic tanneries essentially use the skins of crocodilians. The vast majority of the skins come from farms located in the United States, Africa, and Australia. All Hermès partner farmsmust comply scrupulously with the rules drawn up under the aegis of the UN for the Washington Convention, which defines protection for endangered species. Hermès requires that its partners meet the highest standards for the ethical treatment of alligators and crocodiles following recommendations by expert veterinarians and local authorities such as the United States Fish and Wildlife Service, the federal nature protection agency. In addition to strict compliance with the Washington Convention, Hermès initiated a study in 2016, with the help of an external partner (WWF France), to evaluate the social and environmental footprint of the supply chain for alligator skins in the United States. Work continued in 2018 and a pro- gress plan was established with this partner. The House also initiated a working group with experts, veterinarians, researchers, regulators, animal well-being consultants and animal pro- tection groups to write the strictest animal well-being conditions into new guidelines (covering the entire supply chain) and to approve the best evaluation methods. It has committed to an approach targeting the sys- tematic certification of the supply chain (see ICFA below). The Tanneries division regularly develops newpartnerships and 100%of its subcontractors have been audited over the last five years. All of the farming sites with which the division maintains commercial relations have signed a best practices charter and have been audited during the past two years. Progress plans that have been established with suppliers are regularly monitored. The best farming practices charter, which was established in consulta- tion with veterinary experts, encompasses CITES regulations, the best animal welfare practices, environmental management, employee labour conditions, safety at work and safety of infrastructures. Regular inspections are also carried out on livestock sites. In addition to these inspections, an audit programme was set up for all crocodilian skin providers, based on the charter of best livestock raising practices. The “Lizard” (Varanus salvator inMalaysia) and “Python” sectors (Python molurus and Python reticulatus respectively, in Vietnam and Malaysia) were also inspected over the last two years by expert veterinarians in col- laboration with our partner. These inspections conducted by our partner, the purchasing department and scientists are designed to ensure com- pliance with current regulations, traceability of the supply chain and that best practices are in place in the facilities. In 2017, the House conducted a complete audit of the ostrich breeding sector (an animal raised mainly for its meat and feathers), which is used

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL