HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

ENVIRONMENT

CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs)

Lastly, when required by the regulations, the tanneriesmay be compelled to carry out noise measurements on property boundaries. The latest measurements did not bring to light any excess noise above authorised limits. Perfumes The noise and olfactory pollution of the activity on the Vaudreuil site is very limited. No complaints have ever been received from the neighbourhood. Noise measurements are regularly carried out on the property bounda- ries to monitor this aspect. The main sources of noise are the technical equipment on the roof (ventilation, air conditioning) and truck traffic during working hours. Crystal Acoustic diagnosticswere carriedout in2017 toassess the level of noise generated by the site. This campaign highlighted the decrease in noise levels emitted over the past ten years andmade it possible to identify the actions to be implemented to continue this progress. The environmental monitoring plan validated by the authorities was implemented and will be completed in 2018. Beyrand Since the site is located in the centre of a village, work was carried out in 2016 in order to reduce noise at the property boundaries to a significant degree. Measurements taken before and after the installation helped highlight the reduction. Since then, no complaint fromtheneighbourhood was recorded in 2017. FOOD WASTE The Group monitors the use of all natural resources, including food des- tined for its employees, even though this issue is not material in view of the Group’s activity. At the major sites in Paris, the catering service provider has set up a system to ensure waste sorting and the recycling of food waste. ENVIRONMENTAL LIABILITIES The amount of the provisions for risks in environmental matters is made up of provisions of costs for asbestos removal work on the roofs of the buildings of the Tanneries du Puy. This amount comes to €4.3 million. No company in the Group was required to pay compensation in 2017 as a result of a court ruling concerning the environment. 2.5.10 2.5.11

2.5.12

Hermès’s environmental commitments are reflected in a significant number of SDGs, including the following (the numbers refer to the UN’s official typology): No. 3: Good health and well-being Hermès operates in countries in which regulations are very stringent on this subject. The Group continues to improve its production pro- cesses in order to enhance the management of health risks, inclu- ding those that may be generated by its products (chapter 2.5.1.1). No. 6: Clean water and sanitation 6.3 “ Improve water quality ”. The Group and all of the métiers (tanneries, crystal, textiles, and so on) have been actively working on controlling water consumption and managing runoff since 2002, which are considered to be impor- tant issues. Hermès is achieving significant results, (chapter 2.5.2), having gradually uncoupled growth from consumption, and through the implementation of improved technical systems now available. 6.4 “ Water stress ”. The main métiers that are concerned (textiles, tanneries, crystal) are located in areas with low water stress. Improving discharge levels is naturally a subject to which we pay careful attention, and which is governed by very stringent European or US regulations. (chapter 2.5.6), 6.6 “ Protecting wetlands ”. The group is participating in the Livelihoods project, which is contribu- ting to the restoration of coastal wetlands totalling over 18,000 hec- tares (Casamance, Sundarbans, Sumatra). In addition, the growth of the alligator farming industry in the last 20 years in the United States, to which the Group contributes, encourages the preservation of the natural habitat of these animals and consequently the protection of s 3.9 “ Reduce the health impacts of activities and pollution ”. s s s In France, 100% of electricity consumed is “green”, which represents 2/3 of the Group’s electricity use. In addition, the group has installed renewable energy devices (wood-fired boilers at production sites, photovoltaic energy at the sites and for the US logistics centre in New Jersey (chapter 2.5.5), 7.3 “ Improve energy efficiency ”. Our property management guidelines incorporate this concept into all new projects. We have seen a reduction in energy consumption in stores due to the replacement of lighting with LED equipment. At the end of 2017, 75%of stores had this equipment. In the industrial area, the decoupling of consumptions and growth has become a reality. s wetlands in Louisiana and Florida. No. 7: Affordable and Clean Energy s 7.2 “ Increase the share of renewable energy ”.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL