HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

Gas: gas is used only to heat sites. With a consumption of 8,975MWH in 2017, the gas ratio increased compared to 2016. The reason for this is: s the commissioning of a gas heating system in one of the production units to replace an existing device;

s the operation of new production units showing, in the first few mon- ths, a less efficient [gas energy consumed/productivity] ratio than the average for 2016, deteriorating the ratio of the division; s the use of “relay workshop” & “leather school” buildings dedicated to training, similarly presenting a less efficient [gas energy consumed/ productivity] ratio than the average for 2016, also deteriorating the ratio of the division.

LEATHER AND SADDLERY DIVISION – GAS – CHANGE IN CONSUMPTION (IN MWH)

LEATHER AND SADDLERY DIVISION – GAS – CONSUMPTION AS A PROPORTION OF REVENUE (BASE 100: 2007)

8,975

83

8,070 8,276

7,533

77

7,071

6,395

60

56

56 56

2016 2017

2012

2015 2014 2013

2016 2017

2012

2015 2014 2013

Heating with wood: Heating is performed entirely with wood within the production units of Belley and Abrets. The Nontron site also has a wood-fired boiler. For the Leather Goods division as a whole, wood represented 5% of energy consumption serving to heat buildings. Of all the energy consumed by the division in 2017, the share of renewable energy represents 8.6%. Tanneries In the same way as issues related to employee health and safety, improving environmental impacts (water, energy, waste) is one of the priority tasks of the production sites’ EHS managers. Information is also shared within the division.

2012

2013 1

2014

2015

2016 2

2017

Water in cubic metres

87,649 3,555

180,340

155,455

184,956

501,775 10,627 30,085

436,997 11,031 29,731

5,529

6,143

6,572

Electricity in megawatt hours Gas in megawatt hours Fuel oil in megawatt hours

7,230

13,541

11,788

15,019

-

55

35

52

48

59

(1) The reporting scope has included the tannerie d’Annonay since 2013 (acquired in December 2012). (2) The reporting scope includes Les Tanneries du Puy, bought in November 2015.

The average water consumption/activity ratio increased in the exotic tanneries scope, mainly due to changes in the manufacturing processes at certain sites. On the other hand, it has decreased in the scope of calf leather tanneries because of the significant fall in the Tanneries du Puy’s water consumption for equivalent production of hide. The water consumption issues are based on monthly monitoring of the tanneries’ water consumption, preventive maintenance programmes for facilities, installation of sub-meters, regular verification and sampling of meters, andprogrammes to raiseemployeeawareness andevenwork on the facilities as was the case at Tanneries du Puy during the last quarter

A total of €1.4 million was invested in the prevention of environmental risks. Most of this investment went towards the modernisation of water treatment plants, the other part went towards the optimisation of energy and water consumption. WATER The division’s water consumption was down 13% compared with 2017. It was mainly due to Tanneries du Puy’s reduction in water consumption, which accounts for 55% of the division’s water consumption, and was the result of the control and reduction efforts carried out during the year.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL