HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

RAW MATERIALS

In addition, working groups regularly study the different ways of reducing rejection rates for each activity so that we can optimise our material processing rate. Efforts were concentrated on the Enamel activity in the second half of the year, with the waste management task force meeting on a weekly basis. Silversmithing and Jewellery Puiforcat has implemented reusable containers (plastic boxes) between the store and the workshop for product exchange.

Construction In partnership with suppliers and design consultants, specification and local sourcing of building materials is systematically sought and recom- mended whenever possible. For several years, a thorough analysis has been conducted of the materials used in new or renovated stores and production sites, making it possible to progressively refine selection and recycling, resulting in a significant reduction of environmental impact. For example, the wood of store floors is selected from whatever local species are available.

2.4.3 WASTE The wide range of métiers prevents the Group producing a single overall measure of waste. Instead, each manufacturing division works with a dual policy of waste reduction and re-use wherever possible. The main contributors are tanneries, crystal, textiles and leather. As part of its strong com- mitment in these areas, the Leather Goods and Saddlery division (19 production sites in France) has, for instance, been using a recycling programme for all leather offcuts for several years.

OIW 1

HIW 2

In tonnes/2017

Tanneries

3,509

5,229

Textiles Crystal

531

755 849

96

Leather Goods

577 605

60

Perfumes Watches

241

19

38 30

Porcelain/email

130

In absolute value terms, the volume of industrial waste generated is low considering our volume of industrial activity and is explained by our craft- manship model.

The production of non-hazardous waste was down slightly in the division in 2017 (-13%). If the amount of hazardous waste produced increased significantly (67%), this exceptional increase is the result mainly of cleaning sludge accumulated in old disused reed beds at a site, and the removal of accumulations of old sludges from the usual treatment channels, which is generated by another tannery. Leaving aside these exceptional operations, the production of hazardous and non-hazardous waste at the tanneries remained stable overall between2016and2017. All the waste produced was removed by approved treatment operators. On-site waste storage involves facilities (sheltered storage areas, reten- tion basins, and so on) that are designed to prevent any soil pollution. Regular training activities and awareness-raising concerning the sorting of waste materials are conducted for tannery employees. A pilot project using the 5S method was carried out in relation to the layout of work areas.

Tanneries The rawmaterial used in the tanneries iswhole skins, referred to as “raw” skins, which are organic putrescible products. Tanning involves proces- sing the hide into finished leather, which is a sustainable product. The reduction of tannery waste naturally starts with the continuous impro- vement of the quality of the raw skins. Tanning generates unavoidable waste, associated with trimming the edges of the skins (“sampling”) or preparing the internal surface of the skin (“shaving”). Processing skins in successive baths also generates waste (in the form of sludge). The tan- neries are constantly seeking new reuse channels for this waste and are active participants in the think tanks that we bring together at Hermès to discuss leather waste, and in the work done by the Centre Technique du Cuir (CTC).

1. OIW: Ordinary Industrial Waste. 2. HIW: Hazardous Industrial Waste.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL