HERMÈS - 2018 Registration document

Corporate social responsibility

planet: raw materials

Textile The Textile division’s business essentially uses two materials, silk and cashmere. Long-standing partnerships have been developed with a small number of suppliers for these two precious fabrics. Silk A supply chain for high-quality silk thread was developed more than twenty years ago in Brazil. The use of Japanese savoir-faire enabled culti- vation of the mulberry tree, whose leaves are used to feed silkworms, to be sustainably established in the state of Paraná. This industry pre- serves low-chemical hardwood biotopes (Bombyx Mori silkworms eat only non-polluted mulberry leaves). Silk has the particular characteristic of being a renewable product with a positive impact on the ecosystems, in particular through the planting of trees (mulberry trees), which contri- bute to soil regeneration. In the cultivation of mulberry trees, our partner does not irrigate because rain is sufficient. The farmers only use natural fertilizers for their crops and regularly analyse the soil to optimise any changes required to grow mulberry trees. Its production helps to gene- rate income for small local farms and thousands of families. There is a dedicated annual budget to develop the knowledge, tech- niques and sustainability of the businesses and supply chains of these partners. Programmes to improve the quality of their products are also carried out and we maintain high levels of discussion and sharing. Cashmere Cashmere is derived from the “down” developed by the Capra hircus laniga goats fromHigh Asia, in reaction to the severely cold winters expe- rienced in these regions with a continental climate. This incredibly deli- cate hair is “harvested” by manually brushing the animal between April and May, when the temperature rises. The hair does not exceed an ave- rage thickness of 15 to 16 microns. We select the most beautiful fibres for our weaving: they are both fine and long to ensure unrivalled softness. Silk rawmaterials used in the division are sourced fromour long-standing suppliers; the following processing tasks are then mastered and moni- tored: weaving, printing, finishing and fabrication. This integrated pro- cess makes it possible to use exactly the right amount of raw materials, to streamline containers and packaging used to transport products, and to ensure bulk transport. Work on sustainable development in the sector has been initiated with the support of NGOs present on the breeding areas concerned by our sourcing (including WWF France). Theobjective is ultimately tomonitor and support agro-pastoral practices aimed at preserving the resource and the biotope.

Jewellery The precious materials used by Hermes are mainly gold, silver and dia- monds. All of the diamonds in our creations are natural and chosen with the greatest care for their exceptional purity and brilliance. Hermès travels the world to identify best practices for its precious mate- rials andmake themmore sustainable. The House uses recycled gold for part of its production. In addition, Hermès has been certified since 2013 by the Responsible Jewellery Council (RJC), the international reference body for the profession, and is committed to disseminating responsible principles to its partners. Fromextraction in themines to the sale of jewellery inHermès boutiques, the House’s diamond sector abides by the international Kimberley pro- cess. At the time of purchase, a certificate attesting to adherence to this ethics guarantee is issued to the customer. Extraction of the rough diamond, the cutting of its 57 facets, trading and sorting with a magnifying glass, crimping and verification of the quality of the finished jewels and finally their delivery and sale in stores: each of these links constitutes a control point for the Hermès diamond sector. This is how it earns its Kimberley Process Certification (KPCS). This traceability system for diamonds used in jewellery andwatchmaking has been adopted by 81 countries, including France, and it defines the conditions for controlling stone production and trade. It entered into force in 2003 and has made it possible to impede the arri- val on the legal market of “conflict diamonds”, the sale of which funded guerrillas in unstable and fragile countries. ThisKPCS certification is in turn required to obtain certification (also held by the Hermès diamond sector) from the Responsible Jewellery Council (RJC), another global certification as regards best social, ethical and environmental practices in the jewellery industry. Office supplies Internally, since 2016, the General Services Department in France has implemented a «green» purchasing policy with a selection of recom- mended products (office supplies, etc.). In the USA, Japan, China and Hong Kong, similar policies have been put in place. For paper consu- mables in particular, considerable work has been done with our sup- pliers to set up a PEFC-sourced supply and make an internal collection and recycling system more reliable). As a result, in 2018, more than 43,1 tonnes of paper/cardboard were recycled at all of our Paris sites versus 34.2 tonnes in 2017.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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