HERMÈS - 2018 Registration document

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Corporate social responsibility

planet: environment

Since 2008, the Group’s environmental construction policy, coordinated by the construction development department, has been based on the following principles: s s the systematic adoption of an environmental stance during building work; s s helping to protect the environment by ensuring that building projects are properly suited to their setting and the local architecture, while simultaneously preserving ecosystems; s s the use of renewable energy sources whenever that is possible; s s employing energy-saving methods; s s focusing on building quality: design, functionality and sustainability, in a constant effort to ensure the well-being of users, employees and clients; s s striving for flexible, adaptable construction projects that integrate future developments and running costs from the outset; s s anticipating regulatory and technical developments whenever pos- sible, to take them into consideration in our projects; s s monitoring changes in regulations, in close collaboration with stakeholders (architects, engineers and suppliers). Since 2016, in order to improve coordination and control of environmen- tal activities involving internal staff and external service providers, the Group’s construction development department has drawn up a sustai- nable construction framework based on three main ambitions: These sustainable construction policy, which was designed to be adap- ted to the specific features and functions of the Group’s buildings, is more demanding than themain external guidelines on themarket (LEED, BREEAM, HQE) and cover around 30% more criteria. The performance levels required by the Hermès policies are for the most part superior andare flexibleand scalableaccording to thegeographical, regulatory and economic environment of the real estate project. Some themes are specific to it, namely the consideration of non-conven- tional consumption (processes, kitchen equipment, outdoor lighting, etc.), user comfort through specific internal and external adjustments and the consideration of the environmental impact from the transport of people and building materials. The Hermès policy apply to all new construction or renovation projects relating to office, production and distribution sites in France and interna- tionally, in collaboration with the Group’s project managers and external partners (architects, technical design offices, builders and suppliers) selected by the construction development department. s s reduce the ecological footprint; s s promote the well-being of users; s s conserve vital resources.

The Framework serves to: s s improve the environmental quality for users of construction projects from conception to completion; s s transcribe the values and characteristics of the Hermès Group inter- nally and among our partners; s s harmonise and oversee sustainable building practices aimed at achieving ambitious goals; s s set out scalable and comprehensible goals for all players in the construction process. Environmental topics are supervised by a member of the Executive Committee in charge of the upstream division and investments, who is supported by his or her Deputy Managing Director, who is in charge of the House’s Industrial Affairs Department and the Construction Development Department. As part of the Group’s CSR strategy, an annual analysis is conducted by the main métiers of the House when the strategic plans are being prepared to identify issues in terms of environmental protection. For these various issues, pragmatic objectives are sharedwith theGroup’s Executive Committee. 2.5.1.1 Policy The Group’s policy is to put action plans in place that are adapted to the various métiers for better knowledge of and compliance with regulations primarily in a very rigorous European environment. Each métier is res- ponsible for monitoring and implementing the applicable regulations. The Industrial Affairs and Construction Departments are responsible for alerts and control in this area. Experts within each métier form a network. Everyone’s efforts are needed at every site if we are to achieve these goals. Since 2003, there has been an Environmental, Health and Safety network (called the “EHS network”) that brings together the EHS managers from the House’s different entities and comprises around 20 members. It meets several times a year to set targets, share results and best practices. Training network members on EHS issues represents almost half the meeting time. Training of this nature has subsequently been delivered more widely within the various units. External controls Since 2002, EHS audit cycles at our various units have been conducted by a specialist external consultancy, spread over three years. The fifth cycle started in 2018. These audits check the regulatory compliance and assess the safety culture of each site. Audits are also conducted 2.5.1.2 Measures implemented 2.5.1 CHALLENGE: COMPLYING WITH REGULATIONS Strict compliance with regulations in a stringent European environment and exceed regulations whenever possible.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL