HERMES_REGISTRATION_DOCUMENT_2017

2

CORPORATE SOCIAL RESPONSIBILITY

INTRODUCTION

The “all artisans of our sustainable development” strategic framework was distributed to all employees in 2015 and serves as a basis for the work of each one. It focuses on the most significant issues in terms of the values of the House, the Company’s durability, and its responsibility towards its social, ecological and societal environments and towards its stakeholders. It sets priorities in accordance with a materiality principle. It ensures that objectives are consistent and provides a framework for decentralised initiatives. The métiers and subsidiaries are invited to report on their initiatives and their ambitions annually on the basis of this document, during the half-year budgetary exercise, and are inter- viewed by the Sustainable Development Committee about their major challenges. This strategic framework is organised around six pillars which signpost the footprint that Hermèswishes to leave on theworld: people, the planet and communities where we operate. People: s Hermès oversees the development and transmission of its craftsmen’s savoir-faire , and more widely, that of our staff which formthe foundation of our approach to sustainable development. The framework primarily specifies priorities in the areas of training, skills development, sharing of savoir-faire within teams and between gene- rations. The development of production methods that are respectful of craftsmen and of the environment is one of the major focuses of work. s the satisfaction and professional fulfilment of employees, and pro- moting their diverse talents, are a driver of sustainable growth, and as such a matter for special attention; The framework has highly ambitious requirements for working conditions, human relationships and the scrupulous attention to be paid to the health and safety of our employees, harmonious labour relations, well-being and balanced lives. It asserts a strong commitment in the area of diversity and soli- darity, particularly towards those who are experiencing difficulties or have a disability. Planet: s the durability of our business depends primarily on the future availa- bility of the high quality materials that are key to the Hermès’ unique character. Hermès protects and respects the exceptional natural resources that are used to produce its objects; The framework sets out major ambitions for our supply chains, particularly for natural materials with regards to their environmental and social footprints. It emphasises our ambition to improve how these materials, which are all precious, are used in order to avoid waste. Significant attention is paid to managing waste from the point of manufacture to the end of product lives. s Hermès is constantly seeking long-term and ambitious but pragma- tic solutions to better preserve the environment . The framework confirms our ambition to control our impacts throughout the value chain, from the agricultural sector, upstream from production pro- cesses, through to the distribution activity. This section sets out our challenges in the areas of controlling industrial consumption (water, energy, etc.), managing waste emissions and industrial waste, redu- cing the environmental footprint of sites and the carbon offset policy.

system, manages internal communications, takes part in external com- munication and helps share best practices. The Group Operations Committee meets every two months; it com- prises the heads of theHouse’smain corporate functions (approximately 15 people). It analyses and validates projects’ technical and functio- nal aspects, facilitates information sharing and serves as a collective decision-making body providing a pragmatic perspective on sustainable development challenges. The involvement of its members is essential to projects’ concrete implementation. It met four times in 2017 and orga- nizeda learning expedition ina company pioneering in this field inFrance. Each of the House’s main métiers and key subsidiaries has its own local Sustainable Development Committee . These committees, formed to launch and monitor initiatives, share their achievements at regional meetings or through the best practice observatory on the intranet. As specified in the “environment” chapter, initiatives in this area are driven more specifically by a “ HSE network ” run by the industrial department. These committees carry out operational initiatives, and play a role in internal management and communication with teams. For example, in 2017, Hermès China took a proactive approach, with the creation of a Strategic Sustainable Development Committee, which has three Management Committee members, a Sustainable Development Committee in Shanghai with 11 members and a network of 23 ambassadors in stores. Still in Asia, members of the Japan, Korea, China, Taiwan, Singapore and Hong Kong Sustainable Development Committees met for three days for the fourth consecutive year to share their operational practices. They are thus gradually becoming a regional repository of skills in this area. TOOLS The Group has developed and regularly updates a number of tools to support and implement its approach. Committee work and operational decentralisation are facilitated by the dissemination of these tools, all of which have been constructed using a participatory approach that facili- tates their adoption. The House’s ethics are enshrined in a forty-page ethics charter publi- shed in ten languages and distributed to all employees. It aims to pro- mote the corporate project and reaffirm the Group’s commitment to certain fundamental principles in the way Hermès relates to its stakehol- ders and wider society. It is given to all new employees when they join the House. The Chief Compliance Officer oversees this area. A code of business conduct , also available in ten languages, sets out the House’s guiding principles on a range of operational matters. It lays out a matrix alert system by geography and by function. The content and operating modes in relation to these two documents are set out in section 3.2.1 of this document. 2.1.3

52

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL