HERMES_REGISTRATION_DOCUMENT_2017

2

CORPORATE SOCIAL RESPONSIBILITY

STAKEHOLDERS AND LOCAL INTEGRATION

In December 2017, during an event bringing together more than 800 people at Hermès in the Jean Louis Dumas area (Pantin), shareholders, NGO partners and friends of Livelihoods celebrated the 6th anniversary of the Livelihoods fund, welcoming the quality of the model and results for the beneficiary communities. The investment model developed by Livelihoods has shown that it is possible to succeed in large-scale pro- jects that link large corporations committed to climate change actions and communities facing the consequences of this change. The results obtained prompted Livelihoods’ shareholders to announce at this event the launch of a second carbon fund, operating on prin- ciples similar to the first fund, with an investment target of €100 million to improve the life of more 2 million people and avoid or capture more than 25 million tons of CO 2 equivalent over the next 20 years. Hermès announced its participation in this second fund, which is an ambitious long-term project linked to its artisanal roots. The actions that were taken in relation to our “stakeholders” and in terms of “local integration” refer to the following SDGs (the numbers refer to the UN’s official typology): No. 1: No Poverty The Hermès distribution subsidiaries, as part of a Group policy, take part, at their level, in many local actions in favour of disadvan- taged communities. Through its contribution to the Livelihoods Fund, Hermès also helps to reduce poverty and hunger in countries where it does not operate. The various projects supported by the Fund improve the living conditions of communities in Africa, Asia and South America, with an impact on almost one million people. No. 4: Quality Education 4.4 “ Increase vocational skills ”. Through its local relations with schools and training centres, and via the payment of the apprenticeship tax, Hermès contributes to skills development. For its part, the Fondation d’Entreprise Hermès (Hermès Foundation), contributes to the training of artisans. s 2.7.4 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs)

No. 8: Decent work and economic growth

s 8.1 “ Sustain economic growth ”. Our business development, and that of the new facilities helps to create local value. Over the last six years, the Group has opened six new production sites and created 2,000 jobs. The work carried out in partnership with French employment centres made it possible to hire people, especially at the leather goods workshops, who did not have experience as artisans. Today, 90% of artisans that join the House have not received related training. Simulation exercises during the recruitment process gives everyone a chance. The property management division purchases materials s 8.3 “ Development of employment and local purchasing ”. s 12.8a “ More sustainable consumption patterns ”. Hermès’s objects are designed to last, and are handed down from generation to generation: they can be repaired. TheHermès Post-sales department repairedapproximately 140,000 products in its local and central repair workshops in 2017. Post-sales services covers all métiers of the House (including exceptional, unit or customised products). No. 15: Life on land The projects undertaken by the Livelihoods Fund contribute to the restoration of wetlands and also help to limit the impact of climate change. The replanting of mangroves in India or Indonesia, for exa- mple, helps to shore up areas that are exposed to monsoon activity or tropical tornadoes. No. 16: Peace and justice, strong institutions Hermès Group’s policy on ethics and business conduct condemns and prohibits any illicit conduct in this regard, resulting in formalisa- tion efforts and more stringent controls since 2017 in accordance with French law. No. 17: Partnerships for the goals s 17.1 “ Contribute to the development of certain countries, in particu- lar through the payment of tax ”. The Group does not have a significant presence in developing coun- tries. Distribution subsidiaries abroad comply with taxes and speci- fic local charges associated with development. This is the case with India, for example, which contributes 2% of its profits to the “News” association (chapter 2.7.2.2). The Group’s global tax rate is 35.4% s 15.5 “ Restore endangered natural habitats ”. s 16.5 “ Reduce corruption and bribery ”. locally as soon as possible for all new buildings. No. 12: Responsible consumption and production

110

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL