HERMÈS - 2018 Registration document

Corporate social responsibility

planet: environment

at the time of construction or acquisitions, enabling full coverage of Hermès’ industrial assets over the three-year period. The information system deployed on the sites for the Group’s environmental reporting can also be used to coordinate the follow-ups to these audits andmonitor changes in environment, health and safety regulations. Results Several times a year, the Purchasing Committee reviews the results pre- sented by the Industrial Affairs Department. it monitors the number of audits conducted per year as well as the quality of the results. the indus- trial affairs department (IAD), under the control of the audit and risk management department (A&RMD), crafts action planswith the relevant métiers and monitors their progress. In2018, no fines or formal noticeswere handed out to theGroup’s indus- trial sites. Oversight of environmental actions occurs in different ways. The Industrial Affairs Department and its EHS Officers exert a first level of control within the context of a “water, energy, carbon, waste” plan that is updated each year. In the context of this effort, the audit and risk management department conducts audits on the critical topics included in the Group’s risk map (see section 2.6.2.3). Finally, exter- nal controls are performed to ensure coverage of all entities. The Industrial Affairs Department consolidates the results of these audits as part of an ongoing process of improvement. Environmental liabilities The amount of the provisions for environmental liabilities is made up of provisions for the cost of asbestos removal work on the roofs of the buil- dings at the Tanneries du Puy. This amount is of €3,9 million. 2.5.1.3

2.5.2.1 Policy The House’s Industrial Affairs Department runs an environmental pro- gramme whose objectives have remained unchanged since 2002 (pre- sented in the description of risks and challenges above). Everyone’s efforts are needed at every site if we are to achieve these goals. The House’s policy is based on the following pillars: s s improve the measurement of consumption and put in place reduc- tion solutions; s s improve production processes by encouraging the use of the most economical technologies; s s innovate by using environmentally-friendly solutions (in energy, for example). The House has a policy of using renewable energies, notably thanks to Construction Development Department in its projects (photovoltaic panels), the supply of green electricity for sites in France, and the use of wood-fired boilers on some sites. 2.5.2.2.1 Water Over the last decade, the Group has maintained its aim of decoupling consumption from growth, with industrial water consumption doubled compared to an increase of 2 times in business volumes. In 2018, total water consumption increased slightly (+0.9%) compared to 2017. The efforts of the tanneries and silk teams resulted in the reduced use of water in the process, relative to the high output. This was reflected in the stabilised water consumption of these divisions. 2.5.2.2 Measures implemented and results

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CHALLENGE: LIMITING CONSUMPTION OF NATURAL RESOURCES (WATER, ENERGIES)

2.5.2

WATER CONSUMPTION BY MÉTIER IN 2018

Logistics 1.2% Footwear 0.5% Silversmith 0.4%

Perfumes 0.4% Porcelain 0.3% Beyrand 0.3% Jewellery 0.0%

Controlled consumption of natural resources is a goal shared by all the House’s métiers. The artisanal production model of Maison Hermès is reflected in a low energy and water footprint in absolute terms. Water is mainly used for industrial consumption in our tanneries and silk units (719,725 m 3 /year at global level. Energy consumption (electricity, gas) is 208,682 MWh/year at Group level. The energy is almost entirely consumedbymanufacturing activities (the cristallerie, the tanneries, silk, leather) and represents nearly 77% i.e. 161 MWh/year (stores and offices represent 23% of the total).

1.5% Cristal Leather goods

4.5%

30.5% Textiles

Tannery 60.3%

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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