HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

STAKEHOLDERS AND LOCAL INTEGRATION

STAKEHOLDERS AND LOCAL INTEGRATION

2.7

These actions may involve local stakeholders in education, employment, security, economic, associative and cultural development and even crea- ting sports teams to participate in local sporting events. Leather Goods All the production units of the Leather Goods division maintain strong links with their respective local communities. For instance: The recently inaugurated Héricourt production unit continued to develop its relations with local stakeholders, including high schools as part of the “industry week”, football club, automobile club, support for job seekers via the “Local Mission”, involvement in the Belfort recruitment forum, participation in examination panels, etc. On 3 April 2017, the 130 artisans of the Ganterie de Saint-Junien left the downtown historic building to put everything into their new workshops. Leatherwork revived on the banks of the Vienne, a place rich with history of handicrafts and dressers. A metamorphosis for the building, an old sheep wool washing plant, which is now home to the glove-making indus- try, whose expertise extends to small leather goods. Moreover, the new site is involved in the upcoming project “Cité du Cuir” (Leather City) and restoration of the banks of the Vienne undertaken by the Communauté de Communes (Community of Communes). Having moved into their new production unit on 2 January 2017, the 130 employees of the Maroquinerie de Normandie celebrated the birth of their new site on 13 June 2017, under a magnificent Norman sun, joined by members of the Executive Committee, several members of the Hermès family, and official representatives. It all began with Hermès Parfums, 40 years ago, with the choice of this first location outside the Parisian region in 1977. A small leather goods workshop with around twenty employees was then established in June 1996. Year after year, the expertise and workforce evolved to become, on 1 January 2016, a Leather Goods division under the Hermès Leather Goods & Saddlery craftsmanship division. TheMaroquinerie de Belley developed links with the local schools to pro- mote knowledge of traditional and industrial trades and promote these sectors. In addition to donations of leather pieces, schools have been able to organise manual leatherwork activities. In 2017, La Maroquinerie Nontronnaise supported the organisation of the “Portes du Cuir” fair through the association Réso Cuir. In particu- lar, it has made a contribution by demonstrating its savoir-faire, which awakens an interest in trades among young people, and by screening films on the group’s artisanal métiers. The Maroquinerie also partici- pated in the “All in Business” week for job-seekers.

Harmonious relationships with our stakeholders ensure successful local operations in the long term, contribute to Hermès’ reputation and stren- gthen employees’ pride in belonging to the company. Hermès plays a role as a socially responsible company wherever it operates. Hermès assumes its territorial responsibility and contributes to value creation and the sustainable development of the countries, regions and cities in which it operates, notably by generating sustainable jobs, but also through local economic, social and cultural initiatives, and in other ways that express its uniqueness. Hermès’ founding values are also expressed through the Fondation d’Entreprise Hermès, founded in 2008, which supports sponsorship projects that seek to enhance savoir-faire, transmission and biodiversity. It should be mentioned that its budget (compared with revenue) is the largest of the French corporate foundations (source: Carenews study of 18 February 2018). A ROLE IN HOST COMMUNITIES All of Hermès’ production and distribution sites maintain constant dia- logue with local authorities and stakeholders to ensure that they are fully integrated within the host community and that they nurture relationships of trust and good neighbourliness. Our logic of industrial development, particularly in France, is that of spin- off: an organic development that creates human scale production sites (approx. 250 people), which starts with a core group of experienced workers, who will train new-comers. We have never closed a site, and we establish ourselves for the long-term. Hermès operates in 11 of the 13 regions of France with close to 80 sites (production units, stores, logistics sites, offices). Through the artisanal development model that it employs in France, it has shouldered its ter- ritorial corporate responsibility, which goes beyond the direct creation of jobs. This year, we created 438 jobs in France, and in addition to this direct impact, our establishments, which are often in rural areas, provide a major local boost for the communities concerned: stimulation of local consumption, property support, impact on collective needs (main- tenance of classes in schools, transport support, etc.) and council resources via taxation. Our regional development also promotes the development of schools and local training schemes. Local involvement Each division and each site grows roots in its host community through local actions designed to forge bonds between the House, its employees and its local stakeholders. 2.7.1 2.7.1.1

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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