HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

Thermal insulation Particular attention is paid to insulating store façades (special glazing) and industrial buildings (improved external insulation). Renovation of the thermal insulation of roofs and facades in 2013, at the production site of CNP Comptoir Nouveau de la Parfumerie in Vaudreuil (Normandy) helped reduce the site’s annual gas consumption by 35%. Other initiatives (installation of electricity consumption sub-meters and motion detector systems in fitting rooms, washrooms and back offices) were taken on all new store projects in 2017. These automated energy consumption consolidation systems offer constant visibility allowing rigorous management of energy use. Ever more efficient new technical solutions are constantly being evaluated for progressive incorporation into existing stores. The manufacturing units, with their technically different processes, generate a wide diversity of pollutant releases: each industrial division is focused on the dual objective of reducing pollutant releases and impro- ving treatment to minimise its environmental footprint. This demands continuousmonitoring as newprocesses or new technologies in this field are invented every year. Leather Goods Leather goods production units represent limited sources of pollutant releases, due to manufacturing procedures that are essentially manual and respectful of the environment. Air quality inside workshops is regularly analysed to ensure its quality. Production sites have systematically replaced solvent-based adhesives with water-based adhesives. Air conditioning, ventilation, heating, gluing and sanding equipment that generate air emissions are fitted with filte- ring devices that guarantee the quality of the air emitted. Tanneries Each tannery is equipped with an effluent treatment station and verifies its industrial pollutant releases in compliance with the applicable stan- dards. Regulatory inspection reports are submitted to the local authori- ties on a regular basis. The division’s tanneries continually work on improving the perfor- mance of effluent treatment. The Montereau site therefore continued its research on the sources of pollution in 2017 and conducted a pilot test on complementary treatment. The Vivoin site meanwhile continued its work to develop and secure the treatment of its effluents. After the installation of a new press filter in 2016, a new effluent homogenisation 2.5.6 EFFECTIVE SOLUTIONS FOR WASTE MANAGEMENT

Perfumes The campaign to replace existing lighting with LED systems in various buildings, continued in 2017, especially in the processing workshop and on pathways. The burner of one of our boilers operating on natural gas and used for heating buildings was also replaced. This new burner made it possible to adapt the operation of the boiler to the sanitary hot water supply and external temperature. Crystal The processes using the most energy at the production unit are melting the raw material and working with it while hot. During each investment project, the best available technology in terms of energy efficiency and production volumes are researched, then implemented. The latest two renovated furnaces (pot furnaces and continuous recuperative furnace) aswell as the reorganisation of the hot-part workshop are good examples thereof. The initiatives implemented in 2017, particularly the optimisation of the operating parameters of melting tools, renovation of the re-firing furnace and (operating on natural gas) or the gradual replacement of consu- mer equipment, particularly identified in the context of the energy audit carried out in 2016 (e.g.: openings of the hot-part workshops, certain boilers help improve the production unit’s energy efficiency. Construction Improving energy efficiency in our stores means optimising the main areas of energy consumption, which are lighting and air conditioning. Lighting Since 2013, an “all-LED” lighting solution all the window displays, shel- ving and ceiling lights has been extended to all new store projects. In 2014, the retail projects department introduced a range of LED bulbs specially developed for Hermès and suitable for all existing installations and equipment. In 2017, in addition to the new stores, relamping with LED systems conti- nued on the global network of existing stores, bringing the total propor- tion of Hermès Group stores equipped with LED lighting systems to 70%. Air conditioning Lower electricity consumption coupled with the fact that LED lighting generates far less heat than traditional lighting has enabled us to consi- der downsizing in-store air conditioning units. This programme continued for all new store and renovation projects throughout 2017.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL