HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

Input materials

Downstream freight

Sources controlled by the legal entity

Electricity, heat, etc.

Upstream freight

Work-related travel

Other

...

Direct sources (Scope 1)

Other indirect sources* (Scope 3)

Energy-related indirect sources (Scope 2)

Other indirect sources* (Scope 3)

Upstream

Downstream

* Sources of emissions unaffected by regulatory requirements Source: Ministry of the Environment, Energy and the Sea

The key initiatives taken by the métiers and subsidiaries in this area in 2017 are described below.

The results of this study provide data for analysis of the Group’s envi- ronmental impacts and enable action plans to be drawn up within the framework of our Water – Energy – Carbon – Waste plan, which has been in place since 2010. Because our activities are highly diverse and emissions vary widely fromone division to another, eachmétier line drew up a plan addressing its own issues. All of themeasures taken within this programme are aimed at reducing Hermès’ impact on climate change. Hermès’ scope 1 and 2 emissions total less than 32.6 thousand tonnes of CO 2 equivalent, (compared with 32 in 2016). The main sources of scope 3 emissions are logistics and packaging (approximately half of scope 3 emissions) and external purchases exclu- ding packaging (less than one-quarter of scope 3 emissions). Work has been undertaken on both of these sources, including low-carbon logis- tics solutions (for example, the French logistics centres use hybrid or electric vehicles for deliveries to the Parisian sites). InJune2012,aspartof itscarbonoffsettingstrategy,Hermèsalso joined the Livelihoods Fund (LH), a group of companies financing carbon offset projects with high social and environmental value. Livelihoods initiatives are described in the chapter concerning relations with stakeholders, notably explaining that more than 130 million trees have been planted. The fund, whose carbon credits will expand as the trees grow (the pro- jects concerned span periods of 20 years), for the fourth time delivered carbon credits to its shareholders in 2017, after verification fromspecia- lised auditors (using the Gold and VCS standards). In 2017, they served to offset two-thirds of Hermès’ scope 1 and 2 carbon emissions.

Leather Goods The Bilan Carbone ® (Carbon Assessment) initiative was launched within the Pierre Bénite facility in 2006, and extended to the entire division in 2008. The regular measurement of carbon emissions serves to verify that the carbon footprint grows at a slower pace than our business, and that the distribution of the contributing elements is stable year on year: one-half of emissions come from raw materials, one-quarter from staff commutes and one-quarter from energy consumption. It also contri- butes to the Water – Energy – and Carbon progress plans, with concrete actions such as the use of an electric service vehicle, or increasing the share of renewable energies used. Tanneries The Bilan Carbone ® (Carbon Assessment) from the Tanneries and Precious Leathers division has been updated for the year 2017. CO 2 emissions in the division decreased slightly between 2016 and 2017 (-5%). This decline in emissions is essentially due to a reduction in emis- sions related to the supply of raw skins and the use of chemical pro- ducts. These sources of emission as well as the energy consumption account for close to 95% of emissions from production sites, with the energy consumed (gas and electricity) alone accounting for half of these emissions.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL